Evening star., 1937-04-26

Taxes on Washington's four major
utility concerns would be revised
upward by the adoption Of H. r. 6543,
one Of the nine new revenue measures
which have been referred to the House
District Committee for action. Spon-
sors of the bill claim the increase in
revenues would be some $950000.
1t proposes repeal Of the present
system Of gross receipts or gross earn
1ngs taxes now levied against the
companies and the substitution of
annual assessments against all real
and personal property of the con-
Germs, against which there would be
applied the prevailing tax rate for
real and personal property, or sl.50
per 500. Also, the bill, apparently,
would repeal the bus mileage tax.
The District assessor would be
charged with the responsibility for
making annual appraisals Of the real
and personal property Of all four con-
Germs to arrive at the true cash value"
of the properties so assessed.
The assessor and his deputies would
have a maximum of but two months
and a half, and minimum of but
one month and half to make their
judgements of the true cash value
after receiving the required annual
statements from the concerns. The
bill, however, provides that an initial
survey be started at once.
Burden Placed on Assessor.
In contrast to this, it Is explained,
the Public Utilities Commission re-
peatedly has spent full year in max
ing an inventory and appraisal Of the
valuation of single public utility,
such length of time being required by
the multitudinous details Of the hold
ings Of utility concerns.
1t appears certain that the staff OF
the assessor would have to be enlarged
if he were to be enabled to make a
serious, unit by unit appraisal of the
value of the properties of the concerns.
This method of assessing utility con-
Germs is reported by some students OF
taxation to have been tried in some
other jurisdictions and abandoned as
too cumbersome, and method re-
quiring extensive work on annual val
uations. On the other hand, there are
those who insist the utility companies
should be made to bear heavier por-
ton of the Districts tax burden. In
reply to this is the declaration that
such tax as proposed merely passes
greater burden on to the consumer,
since taxes generally are charged to
operating expenses.
True Cash Value" Is Rule.
The proposed new style of utility
taxation would 60 into effect in the
calendar year 1898, although some pre-
liminary surveys would be started at
once on passage of the bill. 1t pre-
scribes that the real and personal
property of the electric light and power
companies, gas companies, street rail-
way companies and telephone compa-
nies, "by whomsoever owned" shall be
assessed by the assessor Of the Dis
trict at its true cash value"
The tax rate would be applied to all
real and personal property having a
'situs" in the District and this is de-
fined to mean the property Of the four
companies "owned, used and occupied"
by them within the District and such
proportion Of their properties as is
used partly within and partly without
the District "as shall be determined by
the assessor"
This means that the District assess
or would have to determine what
properties Of the gas, electric, tele-
phone and transit companies are used
within, or partly within and partly
without, the District. Such division
of properties of the utilities has
caused many an extended debate be-
fore the Public Utilities Commission
in valuation and rate cases, it Is re-
called.
The companies would be required to
submit annual statements covering
their holdings for the years ending
December 81 These would have to
be submitted between February l and
March l each year, covering the pre-
ceding calendar year.
Penalty for Refusing Data.
Should any company fail or refuse
to make the statements as required
by the assessor, to aid him in deter
mining the taxable values, or refuse
any information requested, the assess
or is directed to inform himself as
best he may" In this connection, the
bill prescribes that any company re-
fusing or neglecting to make any
statement required by the act, or any
part OF such statement, shall be sub
ject to penalty Of $500 for each day
of such refusal or neglect.
After the companies file their state