Evening star., 1938-01-05
NEW TAX LAWS
MAY Be NEEDED
Items Total S47,817,O00.
Business Privilege Co|Iec.
tions to Decline.
BY DON S. WARREN.

kIVlto w SSSlNltSs
BY DON S. WARREN.
Total charges against District rev.
enues in the next fiscal year may rise
to more than 100000 and create a
deficit of some $4,000, ,0O0-which must
be covered by new tax legislation un-
less there is an increase in the Federal
payment-according to a study of the
proposed 1889 budget and municipal
finances.
Items contained in the District
budget amount to $47,344,702 but to
this must be added items for Freed
mems Hospital, contained in the In
terror Department budget, and for the
courts. now contained in the Justice
Department budget, which bring the
total to $47,817,O77.
In addition, the District must add
as a charge against next years rev.
enues a deficit of S619,0OO to be left at
the end of this fiscal year, and an ad-
ditional sum of $3.50 900 for deficien-
cies and supplementals which Congress
may appropriate early in the session
to meet special, urgent needs.
Tax Failure a Factor.
On top Of this. there is to be con-
sidered the probability that the busi-
ness privilege tax will fail this fiscal
year to produce the estimated $3,O0O,-
900 in revenue, and by whatever sum it
fails to meet that estimate the 1893
deficit will be increased. Present
prospects are that the District will
not raise more than $2,500,00O from
this tax, and perhaps the receipts may
fall as low as $2,000.000 To date the
District has collected little more than
100000.
The charges against the general rev.
. enues also may be increased by $685.
900 If Congress declines to approve
the Budget Bureau proposal to shift
street lighting cost from the general
revenues to the special gasoline tax
and highway fund In past, street
lighting has been charged against gen.
eral revenues.
The Commissioners estimates were
cut by roughly s2,ll3.0o0 by the
Budget Bureau. For general fund
charges the city heads had proposed
items totaling SAL .904,6 ,694, not count
ing the sums for the Districts share
Of the costs of Freedmen's Hospital
and the courts. This figure was cut
by the bureau to s39,629,542.
Traffic Expenditures Raised.
For expenditures to be charged
against the gas tax and highway
funds, the Commissioners asked items
amounting to S5,628.155 and the bu-
reau made changes which brought the
total to s5,722,140, including the
street lighting charge. For the Water
Department the Commissioners asked
$2.397,670 and the bureau allowed
s1.993. 900.
Basing revenue calculations on a
rate of S15O for real estate and
tangible personal property and a
Federal payment of but S5.000,OO0.
and not counting on continuation of
the business privilege levy. District
officials anticipate that the 1899 gen.
eral fund revenues would total $751;
725 5,000-which would mean a net
deficit next year of s3.347.8l8.
II the Budget Bureau proposals
were approved as laid before Congress
today. it is estimated there would be
q surplus Of S446,61l left in water
revenues at the end of the next fiscal
year and a surplus of s93.O27 in the
gas tax and highway fund. Under
existing law neither highway nor
water funds can be used for general
purposes.
The Budget Bureau report noted
that revenue calculations for next year
were below those for this year, but
explained this was due to the fact
that under existing law the business
privilege levy and the present realty
tax rate Of SITS are to expire auto
mAtically at the end of this fiscal
year. It added that the District gov
eminent intends to recommend new
tax legislation to avert the indicated
deficit.
Realty Tax Biggest Source.
Discussing the revenue picture, the
budget message stated:
"It will be observed that, under
the general revenue account, by far
the largest source of revenue for the
District. is the tax on real estate, esti-
mated to yield $18,15O.000 for 1899.
This yield includes both current and
back taxes. the levy being based on
an assessed valuation of s1.191, 500 900
At $3.50 per hundred This valua-
ton is an increase of $20,169,O79 over
the valuation for 1898.
"The tax on tangible personal prop
erty is estimated to yield Sits 900,
Including delinquency payments. This
estimate is based on an assessment of
&81 100000 at $150 per hundred. The
assessment is s1.o0O.0OO in excess of
the assessment for 1898.
THE yield from the tax on intangible
personal property is estimated at s2.-
oco'ooc' ohSSo oAi all dSSeSSSQ FHIud.
ton Of $570,000.00 at $3.50 per hun
dred. The valuation shows an increase
Of SIC. .000, 900 in excess of that for 1888
"Other large items in the revenue
estimates Of the District for 1899 are
the tax on public utilities. banks. etc.
amounting to $2,600,0OO; personal
property tax on motor vehicles, $685.
600: inheritance and estate taxes
$S00.000: penalties and interest on
taxes. $325,000; alcoholic beverage
taxes and license fees. $2.100.000: mis-
cellaneous revenue items, $500. 900;
highway fund, gasoline tax and motor
vehicle fees. s4.630, 900, and water
rates, $2.10s.o00."
A group Of American-type homes are
TO be constructed in Guatemala, Guat-