Evening star., 1939-07-19
D. 6. Taxes
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staff larger than the business privi-
lege division workers would be
needed since under that old measure
only some 10000 taxable returns
were filed, where as a much larger
number are anticipated under the
income levy More than 100000
Washingtonians, he said. made Fed
eral income returns, although it is
not known yet just how many of
these will be exempt under the Dis
trict tax
Meanwhile, District officials began
preparations for establishing rules
under which the income levy will be
handled. 10 V. Morgan, sole men,
Der of the Board of Tax Appeals,
while not acting officially in this
work, told reporters that exemptions
will be determined primarily on a
basis Of who is "domiciled' in the
District.
He voiced belief that the Govern
ment worker, who lives in the Dis
trict and is found to contemplate
staying here indefinitely could not
escape the tax on the grounds that
he claimed legal or voting resi-
dence in some State or that he was
. required to pay State income levy.
Three Tests in Prospect.
Three principal tests may arise for
determining if one is "domiciled"
here, he explained. These are, he
said First that the person physical
ly is in the District; second, that the
person came here as free agent not
including Army, Navy and Marine
officers, here on assignment, nor
wives living with husbands. nor the
insane nor convicts; and, third, that
the person is found to have the in
tention of remaining in the District
for an indefinite" period.
The time when income returns and
payments must be made may vary,
under stated circumstances, but for
the average Salaried person the re-
turns and the payment will become
due next March Is. This is the usual
calendar year basis. However, in
cases in which the business is on
fiscal year, which ended in 1899 prior
to enactment of the income tax mea-
sure, the date for filing and paying
would be October Is. If the fiscal
year ends in 1889 after enactment of
the law, then the date would be on
or before the 18th day of the third
month following the close of such
fiscal year.
The section giving the formula
reads: All returns of income for the
preceding taxable year shall be made
to the assessor on or before the
18th day of March in each year, ex-
cept that such returns If made on
the basis of a fiscal year shall be
made on or before the 18th day of
the third month following the close
of such fiscal year, unless such fiscal
year has expired in the calendar
year 1889 prior to the approval Of
this act, in which event, returns
shall be made on or before the 18th
day of the third month following
the approval of this act
One Pet. on First Taxable $4,000.
The law does not provide for max
ing the income payments in Install
ments, as does the Federal law, but
the exemptions and deductions are
practically the same. The eXemp-
tions are $1,000 for single persons,
$2,50O for married persons and $4OO
for each dependent. The rates for
the levy, which is estimated to pro-
duce some $4,000 are / per cent
on the first $4,000 of taxable in
- come: Is per cent for the next S.
600; 2 per sent for the next $4,000:
2.5 per cent for the next $4,000: and
3 per cent for all over $4,000. The
measure also provides a fiat 5 per
cent corporate income levy.
Intangible personal property taxes
have been abolished, except as to
any back bills due. and District Of
flcials said they would ignore any
new Intangible returns if anyone
sent them in, for the new fiscal year