Evening star., 1938-05-09
D. c. TAXES BILL
REPORT ADOPTED
|NHOUSE, "a T032
Measure Goes to Roosevelt
for Signature After
Bitter Fight.
PRIVILEGE LEVY BILLS
OFFERED IN SENATE
Byrd Would Exempt From Gross
Levy Farm Groups Formed on
Cooperative Basis.
BY JAMES E. CHINN.

The 1899 District tax bill, designed
to raise $5,100.000 in additional reve-
nue. to balance the municipal budget
in the coming fiscal year, cleared its
last legislative hurdle this afternoon
and was put in shape for the signature
Of President Roosevelt.
The House. by 94-to-32 vote,
adopted the conference report on the
bill after bitter fight which involved
chiefly Chairman Palmisano of the
District Committee and some of his
committee members.
Meanwhile. Senator Byrd, Democrat.
OF Virginia introduced two bills in the
Senate to amend the business privilege
tax. One would exempt from the
gross receipts levy farm groups Or
ganized on cooperative basis, with
out capital stock. for the purpose of
marketing the products of their men,
bers or other producers. The second
bill would exempt from the $40 busi-
ness privilege license fee any person
whose deliveries are not made from a
fixed location within the District.
They were referred to the District
Committee for study
Conference Report Fought.
Representative Palmisano fought
hard against adoption of the confer
ence report. He wanted to kill the
revenue bill and thus force the Com
missioners to raise the real estate tax
rate to sl.90 in the new fiscal year
to raise sufficient revenue to keep the
municipal government out of the red.
The bill, in final form, provides for
continuation of the existing sl.75 real
estate tax rate. 1t also provides for
continuation for another year of the
existing business privilege tax on gross
receipts on modified scale. and
local tax of so cents a barrel on beer.
Representative Bigelow of Ohio and
Tarver of Georgia, both Democrats,
aided Mr.. Palmisano in his battle
against approval of the report. But
they failed to muster sufficient sup
fort to overwhelm the forces in charge
OF Representative Nichols, Democrat.
OF Oklahoma. and Dirksen. Republic
an, Of Illinois, both members of the
District Committee.
Double Cross" Charged,
Mr.. Palmisano told the House the
business men of Washington had
double his committee in
urging the Senate to write in the bill
provision for a modified business
privilege tax to raise the 2,OOO, 900 in
additional revenue which would be
lost as a result of the failure of the
House to approve the proposed in
come tax.
Not one man who lives in the
District or elsewhere supported the
business privilege tax during the hear
lngs before our Fiscal Affairs SUBJ
committee" he declared But the
very minute an income tax was
written in the bill, the same men who
opposed the business privilege tax
asked for it instead of an income tax.
Let's turn down this report and
say to the Commissioners: Study and
work a little more and come back
here next year with proper tax bill"
$4,000 Overhead Alleged.
Representative Bigelow argued that
collection of the business privilege tax
would cost the District $4,000 in
overhead expenses, whereas collection
OF an additional real estate tax would
be negligible. He also declared an
increase in the real estate tax would
not force the people of Washington
to pay a rate higher than is in effect
IN most cities of comparable size.
Il can't understand" he said, 1.-The
love of members of this House for
the landlords of this city"
Representative Arnold, Democrat, of
Illinois, member of the District Com
mittee, explained that while the real
estate tax rate seems low in Washing
ton, the valuation in most cases is far
above the market price.
Il am opposed to real estate bear
ing all of the tax burden" he declared.
Representative Nichols opened de-
bate on, the conference report by
pointing out the death of the tax bill
would place the burden of raising suffi-
cient revenue to balance the budget on
property owners. ...