Evening star., 1938-02-23
COL[ADAY URGES
7 DC. BEERTAXFOR
REVENUES IN 1889
Levy, With $1.60 Real Es.
tate Assessment, Sufficient
for Needs, He Says.
BUSINESS PRIVILEGE
PROVISIONS ASSAILED
Trade Body President Opposes
Proposal to Establish Board
Of Appeals.
By JAMES T., CHINN.

A local tax on beer and 81 go real
estate tax rate will raise sufficient rev.
enue to keep the municipal government
out of the red in the coming fiscal
year. Edward F. Colladay, president
of the Washington Board of Trade
today told the fiscal affairs subcom-
mittee of the House District Committee
at a hearing on the 1899 revenue bill.
The present real estate tax rate is
s1.75, and the bill proposes to re-estab-
lish that rate in the new fiscal year
Mr. Colladay declared the District
is the only jurisdiction in the United
States which imposes tax on beer,
and estimated that sucn levy would
yield the municipal government be-
tween 100000 and 100000 year in
additional revenue.
Beer was purposely excluded from
taxation when prohibition vas re-
pealed," he said, because it was be-
lieved its price should be kept as low
as possible in order to make it more
easily available than hard liquor and
to promote temperance in drinking 1t
has been our observation that the price
Of bottle or glass of beer is no lower
in the District than it is in either one
of our neighboring States and We.
therefore, see no reason why the Dis
trict should not now levy a tax on
this article, as every State in the
Union is doing"
Made "Unsympathetic."
Chairman Nichols of the subcom-
mittee said he was surprised to learn
that the District did not tax beer, and
remarked:
That's what makes it so difficult to
write tax bill for the District and
makes me unsympathetic-to learn
that the District has escaped taxes
paid by other Jurisdictions
Mr.. Colladay registered vigorous OBJ
jections to various features Of the reve-
nue. bill. especially the provisions to
impose an income tax on the District
and to continue the unpopular business
privilege levy on gross receipts.
These taxes, he declared. are not
necessary to balance the 1889 budget.
He also explained the only excuse for
new tax legislation would be to provide
funds to meet an increase in the ap-
preparation for relief. and argued that
such revenue should be produced
through sales tax.
Says Relief Only Need.
I'VE know that no additional taxes
will be necessary for any other purpose
than relief" he said, and therefore.
why should not the sales tax be used
to raise funds for this purpose in the
District if the need for additional re-
lief money is established?"
Mr. Colladay said if Congress insists
on continuing the business privilege
tax, outside firms doing business in the
District should not be exempt and pre-
dicted that an income tax in any form
will not work in the District.
The House in its last preceding
session" he declared, "clesyly indicated
that any such tax passed By it would
be so limited in its scope as to be alb
solutely unequal in its application TO
our population. We believe it would
be only matter of time until all Gov
ernment employees in the District
would be exempt from the provisions
of an income tax and that the result
would be the placing Of very heavy
burden upon resident business and
professional men"
Mr.. Conaday told the subcommittee
the present SITS real estate tax rate
has resulted in serious hardships to
real estate owners, and declared if it is
continued serious damage will be in
flicted on the basic economic structure
of the city
Says s1.60 Rate High.
A s1.60 rate he said, is a sufficiently
heavy rate at any time.
Many people are misled in esti-
mating the burden of real estate by the
fact that the rate in dollars and cents
is extremely low compared with that
in most other cities" he declared.
When due consideration is given to
the difference in valuation of property
in the District and in other cities. 1t
will become Immediately apparent that
this rate is not low, but extremely
high. Our assessments are required to
be made on 100 per cent basis, while
We all know that in many cities
throughout the country the assessment
(See d G.. TAX Page A-3N