Evening star., 1938-04-24
D. c. TAX ACTION
4 SOUGHT IN SENATE
EARLY THIS WEEK
Prompt Agreement With
y House in Conference
Is Expected.
FILINGS FOR BUSINESS
LICENSES DUE IN MAY
Surplus Of 100000 Is Seen if
Il Measure Is Approved in Its
Present Form.
BY J. A. O'LEARY.

The Senate will be asked to act early
this week on the S., zoo, 900 District ia,
? bill as soon as the pending naval con.
struction program is disposed Of
Chairman King Of the District Com
mittee said yesterday.
The naval measure may be voted or
by Tuesday, and Senator King is hope.
ful 1t will not take long to obtain ap-
proval Of the tax bin. A prompt agree.
ment in conference also is expected
since House District Committee men,
bers already are familiar with the
modified gross receipts tax added te
the Senate bill to make up the revenue
lost when the House rejected the in
come tax. The House tax group origi-
naIly considered this revised form ot
gross receipts levy before ie decided
to recommend the income tax.
Application on Licenses.
Although the annual $40 business
licenses to be required again as a
feature Of the gross receipts tax will
be for the fiscal year beginning July
4 !, It was pointed out yesterday that
the Senate draft Of the bill provides
that application must be made dur
, ing May for renewal Of these licenses
This provision was placed in the bill
to give District officials time to check
over the applications before issuance
Of the renewals about July /.
With May only week OF, it Is
probable efforts viii be made to ex-
pedite final passage OF the measure.
Since the business privilege tax this
year applied to all gross receipts in
excess Of $4,000. applicants certifying
annual gross receipts of less than
$4,000 were given q business license
without payment of the $40 fee. In
tho bill for next year the exemption
has been lowered to $1,000, and the
$40 license fee will apply to all ex-
oept those certifying less than 1000
Of gross receipts.
Sliding Scale Provided.
The most important change for the
coming year, however, is adoption of
. sliding scale instead Of the nat rate
of twO-1ifths Of / per cent on gross
tSeceiptS, in order to measure the tax
a to IN 9Dfy11g maxgdps,
lbetWeen the cost OF goods and gross
freceipts in different lines of business.
The rates will range from one-tenth
TO fouf-tenths Of per cent, depending
Eoue the percentage Of spread between
the cost Of goods and the proceeds
szrum sales.
I The sliding scale Will apply only to
in merchandise. Professional
and vocational groups subject to the
Tax viii continue to pay the fat rate
Of four-tenths Of per cent. The tax
does not apply to persons working as
semployes for wage or salary.
The gross receipts tax is estimated
70 raise $4,000, ,00o The Senate bill
lso retains without change House
provisions continuing the SITS real
state and tangible personal property
pate for another year and imposing
- TAX of so cents q barrel on beer.
M nese TWO sources are estimated to
roduce $500, 900.
ss Surplus. to Be Left.
g Ihe total, s., ZOO. 900, will leave a
surplus Of nearly 5000, 900 above the
present known deficit to cover any
nture contingencies. such as q DOS
De increase. in the unemployment
phef fund during the new fiscal year.
ss That the pending tax bill is not
garded as permanent legislation is
dicated by inclusion in the bill again
shis year Of authority for the Com
SAisetoners to spend $4,000 of Dis
xict funds for & further survey OF
tAe entire local tax structure, includ-
4ng taxes paid by public utilities, with
strtactions to report back to Con-
Gxess by January is next year. A SIM
q survey was authorized last year
6tsamship and air transportation
3 ses have been exempted for the
epning year, along with the railroads
I'm the gross receipts tax. Bus and
H1ek lines have been specifically in
8Aorded, along with radio, telegraph
a1a telephone lines.