Evening star., 1938-04-03
TAX LAW CHANGES
SOUGHT TO MAKE
COLLECTION EASIER
City Heads Want Uniform
Interest Rate Charged
to DeIinquents.
UP-T0.DATE METHODS
ALSO ARE DESIRED
Card Index System of Accounts
and Use of Billing
Machines Advised.

collection machinery more efficient
and a bit less painful in the case Of
special assessments and DELINQUENT
payments-the Commissioners yester-
Gay asked the Budget Bureau to ap-
prove a bill proposing numerous
amendments to the tax laws.
Most of the provisions in the re-
quested legislation are based on recon-
mendatlons submitted to the Com
mlSsloners last year by the Delinquent
Tax Committee, headed by Auditor
Daniel j. Donovan and including other
District officials and leaders of busi-
ness and civic groups.
| 1he changes also are in keepjny
with other recommendations for mod
ernlzation Of the tax Offices. provision
OF current card index system of
keeping tax accounts and Use of bill
ing machines to speed the machinery.
one OF the most important changes
IN law proposed in the bill is to pro-
VIDE for practical uniformity of pen
aity interest charges for delinquency
IN payment of tax bills, which now
vary considerably, causing confusion
and charges Of discrimination.
Sale After 2 Years Provided.
| Inls section of the proposed hill
PROVIDES that special assessments shall
| bear interest after so days from the
cate OF service at the rate of one-half
OF per cent and that. if such assess
ments remains unpaid after the ex-
! plratlon Of two years. the property
may be sold to recover the due taxes.
Ii the Budget Bureau approves
Congress will be advised by the Com
mlssloners that under present law
there are varying rates of interest for
different assessments and that the
property may be sold for non-payment
at dlHerent times. For examp'e
assessments for the paving Of road
ways, alleys and sidewalks now are
payable IN three equal installments,
lne nrst due within so davs after
service OF notice and the second with
IN one year and the third within two
years. Such assessments may be paid
without interest within so DAYS after
notlce, but any portion of the assess
ment not paid within that period
pears interest from the date of service
OF the notice. Each installment bears
interest at the rate of per cent until
oellnquent. after which the interest
penalty becomes IL per cent.
On the other hand, while assess-
mens for water mains and service
sewers are also payable in three equal
lnstallments, the first installment is
que without interest within 30 davs
from notice. Interest is charged on
all amounts unpaid at the expiration
OF 50 DAYS at the rate of s per cent.
until paid. from the date OF notice
The property may be sold for any
mstallment not paid when due as
against the restriction that properties
may not be sold for non-payment of
paving assessments for two Years
Protest Right Proposed.
The proposed bill also would specify
tnat any property owner aggrieved bv
any special assessment levied for anv
public improvement, other than a
special assessment levied in a con-
oemnatlon proceeding, shall have the
rlgnt TO file protest within so davs.
Inc commissioners would be author
l1eo 10 abate. reduce or adjust anv
assessment if. after hearing. they find
tne assessment levied is too high or
Is unequally or inequitably assessed
with relation to other properties abut-
tlng the public improvement. In
other words. this provision would ex-
tend TO the case of special assess
ments the powers held by the Com
mlssioners in the case of paving as
seSSments.
Another section OF the bill would
provide that in cases where the courts
SET aside any special assessment for
puoilc improvement, other than one
levied by a condemnation jurv. for
any reason other than the right of
the District to levy an assessment for
the purpose. the Commissioners NAV
nave the property reassessed. This is
intended to prevent the District from
losing all tax claims in the case
merely because the courts found that
the original assessment was ineouitable
or conflscatory.
Inc commissioners also would be
authorized, in their discretion. to
waive. in whole or in part, interest
and penalties on unpaid taxes and
special assessments when, in their
judgment, such action would be
equitable or just in the public in
terest."
In their request to the Budget Bu-
reau, the Commissioners said: 1T
frequently happens that because of
litigation, or through some other cause.
taxes and assessments have been per-
mltted to remain unpaid for such a
length of time that the interest and
penalties equal or exceed the value
OF the property" They held that their
plan would be in the interest of better
business administration"
Monthly Interest Rate.
Another section would provide that
the amount Of interest to be charged
on real property sold for taxes, after
such sale, shall be per cent for each
month. irrespective Of whether the tax
| deed was sold to private purchaser,
or tax broker, or was bought in by
the District. Under existing law it is
provided that If any installment of
taxes becomes overdue it shall be sub
ject to penalty of per cent per
month. However, after the property
IS sold for taxes the delinquency pen
atty becomes IL per cent year, If the
| tax deed is purchased by a private
owner, but becomes only per cent a
year if the deed Is bought in by the
District
The collector of taxes would be au-
thorized to omit from his records of
assets all taxes and special assess
ments which the Commissioners may
determine are uncollectible, under an
other section Of the bill. This clause,
however, would not relieve the tax
payer Of his liability for the payment