Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-06-21
0verton Plan
In Tax Bill
Awaits Senate
Committee Votes to
Continue Existing
Structure for Year
BY J. A. O'LEARY.

The local tax bill is awaiting Sen
ate action within day or two, car
rying the Overton plan to raise the
Federal share of the expenses Of
the National Capital, and continuing
the existing tax structure for an
other year in place of the high local
income tax passed by the House.
Meanwhile, House and Senate
conferees on the District appropri-
alton bill, who also have the size of
the Federal payment before them,
held a second conference today
without settling that question or
other major items in dispute. In
the appropriation bill, the Senate is
fighting to raise the lump sum from
S., 100000 to S7,750,000 for the COM
ing year as temporary solution of
the fiscal relations problem, where
as IN the tax bill, the Overton form
ula offers a permanent solution.
The conferees, headed by Senator
Overton of Louisiana. and Repre-
sentative Collins of Mississippi, are
conference proceeds, but 1t is be-
lieved that thus far they have con-
sldered only the smaller Senate
amendments. The enlarged school
building program added by the Sem
ate, the increase in the relief fund
and other important amendments
await later discussion, according to
reliable information, because they
bear direct relation to the settle
ment Of the Federal payment. The
conferees will meet again tomorrow
morning.
In taking action on the Overton
plan late yesterday the Senate Dis
trict Committee Overwhelmingly
supported the proposal of Senator
Overton to put the national OBJ
hgatlon back on permanent, fixed
ratio basis, such as existed for nearly
30 years prior to introduction of
temporary lump sum practice in
1925. Even after that date the 6O-40
fixed ratio remained in substantive
law, although not followed, until 1t
was repealed in last years tax bill.
Vote on Motion Is 8 to1.
OF the nine members present, the
vote of the Overton motion was 8
to l, with Chairman King dissent
ing. 1t is understood four absentees
also had authorized the casting of
their votes for the plan, which would
have made II out of a total mem
bership of Is
The committees action in voting
to keep the present tax structure
for another year instead of attempt
ing hasty revision of the House in
come levy, if finally sustained in
conference, will mean:
Continuation of the gross receipts
business privilege tax, which other
wise would expire June 80.
Retention of the Intangible per-
sonal property tax, abolition of which
was part of the income-tax program.
Cuts Parking Lot Tax.
In addition to striking out the in
come levy, which would have taxed
income above $4,000, starting at 2
per cent on the next $1,000 and 60
ing up by $4,000 steps to maximum
rate of 7 per cent above $4,000 the
Senate committees action eliminates
these other provisions of the House
bill:
The special 2 per cent gross re-
celpts tax on automobile parking
lots.
The gift tax provisions that had
been added to the present inheri-
lance law.
The 5 per cent corporate income
tax
The House schedule of public util-
lty tax changes.
District officials were busy, mean
while, rewriting the tax measure in
accordance with action of the Sen
ate Committee. 1t is probable that
when they have finished, another
meeting of the committee may be
called for final check of minor de-
tails that were not definitely settled
last night. These include certain
administrative changes in the exist
ing tax structure. The redrafted
bill probably will not be ready to be
reported to the Senate before to-
morrow
The Overton formula would meas
ure the nations obligation to its
Capital according to the percentage
OF land acreage of the city required
for national purposes. At present
this would be 20 per cent of the gen.
eral fund expenses. or about S8,OO0,-
600 on the basis of current expen-
ditures.
Since all of these committee
changes are still subject to final set
Element in conference with the
House, assuming the Senate passes
the revised bill. the Districts reve-
nue. yield for the coming year cannot
be definitely estimated until the bill
emerges from conference.
The amount that will have to be
raised also depends on the outcome
OF conferences now in progress on
the 1910 District appropriation bill,
in which a difference of more than
$4,000 900 between the Senate and
House remains to be adjusted.
In general, however, District ON
Gals figure that continuation of
the business privilege and intan-
gible personal property taxes, will
(see D. c. TAXES, Page A-3J
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