Evening star., 1938-04-26
SENATE PASSAGE
RETURNS D. c. TAX
BILL TO HOUSE.
Conference Is Expected to
Bring Agreement on
$500, 900 Measure.
NEW GROSS RECEIPTS
SCALE QUICKLY o. KID
Senator's Approve Terms Without
Debate-Surplus Estimated
at 100000.
BULLETIN.

Chairman Palmisano of the
House District Committee an
nounced today he would ask the
House to send the 1899 revenue bill
to conference. He said he did not
believe the House would accept the
business privilege tax as provided
by the Senate without fight"
The $5,200,000 local tax bill is on
Its way back to the House today for
action on amendments after passing
the Senate late yesterday, without de-
bate, in less than minutes.
The House probably will send the
measure to conference, where an early
agreement is expected on the continual
tion of the gross receipts tax in revised
form. which the Senate added to re-
place the income tax rejected by the
House two weeks ago.
The new gross receipts levy, with a
sliding scale of rates based on the per-
centage of spread between the cost of
commodities and proceeds from their
sale instead of fiat rate, is estimated
to produce S2,000,000.
Realty Rate Sl.75.
The Senate approved without change
House provision continuing the SITS
rate on real estate and tangible per-
sonal property for another year, and
the new tax of so cents per barrel on
hner THhoco tvr,N 4
to bring in s3,2o0.00O.
The three main tax features bring
the total yield to S5,200,0O0, which
would leave an unobligated surplus of
nearly 100000 above the known deficit
at this time. In justification of this
total, the Senate committee pointed
out Congress may increase the unem-
ployment relief appropriation as re-
suit Of the investigation now being
made, and that, if not the balance
would be available for the ensuing year.
Chairman King of the Senate Dis
tr1ct Committee obtained permission
late yesterday to lay aside temporarily
the pending naval construction pro-
gram for consideration of the local
revenue measure, and it was approved
without word of opposition. Earlier
in the day it was thought the tax bill
might have to wait several days until
the fight over expansion of the Navy
had been settled.
Prompt Action Necessary.
With the tax bill in It's present form
prompt action is necessary, because
applications for the annual business
privilege licenses that accompany the
gross receipts tax must be filed dur
ing May. The licenses are for the year
beginning July l..
In addition to the gross receipts
tax the business license will cost $40.
except that applicants who certify
their annual gross receipts are less
than $1,000 would be issued license
free.
Instead of the present fiat rate of
two-flfth Of l per cent the gross
receipts tax will range from one
tenth to four -tenths of / per cent
for dealers in goods, wares and mer-
chandise. The rate in each case will
depend on the percentage of spread
between the cost Of goods and receipts
from the sales.
The new bill lowers the exemption
from $4,000 to $1,000 but retains the
provision in this years law allowing
deduction of tangible personal prop
erty tax payments.
Salaried Employees Not Taxed.
Professional and vocational groups
will continue to be taxed on the fat
rate of four-tenths of l per cent.
Persons working as employees for
salary are not taxed. The sliding scale
was adopted to meet the objection
that the present law is inequitable in
lines Of business where the gross re-
ceipts are large but the margin small
between cost and gross receipts.
The Senate bill also substitutes one
tax appeals official for the three
member board of tax appeals pro-
vided for in the House bill.
A clause in the Senate bill gives the
Commissioners $4,000 to have an
other thorough study made of the en-
tire District tax structure before next
January, indicating that the pending
bill is not regarded as permanent
solution.