Evening star., 1939-07-20
Only Persons Living
In Capital 10 Face
Assessment
5 Per Cent Figure
Authorized for
Corporations

The tert OF the income tar
provisions OF the nelU District OF
Columbia revenue act tollotDS!:
SECTION 1.-The provisions of
this title shall apply to the taxable
year 1889 and succeeding taxable
years. except that in the case of a
taxable year beginning in 1888 and
ending in 1899 the income taxable
under this title shall be that frac-
ton of the income for the entire
fiscal year equal to the number of
days remaining in the fiscal year
after January /, 1899. divided by
three hundred and sixty-five: Pro-
vided, however, That if the tax
payers records properly reflect the
income for that part OF the fiscal
year falling in the calendar year
1899, then the portion of the fiscal
years income taxable hereunder
shall be the portion received or ac-
crued during the calendar year 1889.
Imposition of Tax.
SECTION 2 faJ TAX ON INDI-
VIDUALS-There is hereby levied
for each taxable year upon the tax
able income of every individual
domiciled in the District of Colum-
bia on the last day of the taxable
year a tax at the following rates:
One per centum on the first $4,000
Of taxable income.
One and one-half per centum on
the next $1,000 of taxable income.
Two per centum on the next $4,000
Of taxable income.
Two and one-half per centum on
the next $4,000 of taxable income.
Three per centum on the taxable
income IN excess of $4,000
fbJ TAX ON CORPORATIONS
There is hereby levied for each tax
able year upon the taxable income
from District of Columbia sources
of every corporation, whether do
meStic or foreign except those or
ganizatlonS expressly exempt under
paragraph Id of this sectionl, tax
at the rate of per centum thereof.
fcj DEFINITION OF TAXABLE
INCOME"-As used in this section
the term taxable income means
the amount of the net income in eX-
cess of the credits against net in
come provided in section of this
title.
ID EXEMPTIONS FROM TAX
There shall be exempt from taxa
ton under this title the following
organizations: Corporations. includ-
ing any community chest, fund,
foundation, cemetery, associa ton,
teachers retirement fund aSsocia-
ton. church. or club, organized and
operated exclusively for religious,
charitable. scientific, literary, edu-
cational, or social purposes, or for
the prevention of cruelty to children
or animals, no part of the net earn
hgs of which inures to the benefit
of any private shareholder or indi-
vidual and no substantial part of
the activities of which is carrying
on propaganda. or otherwise at
tempting to influence legislation;
and labor organizations, trade asso-
Citations. boards of trade, chambers
of commerce. citizens associations
or organizations, not organized for
profit and no part of the net earn
ings of which inures to the bene-
fit of any private shareholder or in
dividual; banks, insurance COM
panies, building and loan associa-
tions, and companies, incorporated
or otherwise, which guarantee the
fidelity of any individual or indi-
viduals, such as bonding companies,
all of which pay taxes upon gross
premiums or earnings under exist
ing laws of the District of Columbia;
and voluntary employees beneficiary
associations providing for the pay
ment of life, sick, accident, or other
benefits to the members of such
association or their dependents, if
1 no part of their net earnings
inures (other than such payments)
to the benefit of any private share
holder or individual. and 90 IS per
centum or more of the income con-
members for the sole purpose of
making such payments and meet
ing expenses.
Net Income.
SECTION 3, DEFINITION-The
term met income means the gross
income of taxpayer less the deduc-
tions allowed by this title
Gross Income and Exclusions.
SECTION 4 (a) OF INDIVID-
UALS-The words "gross income" :"
as used in this title, include gains,
profits. and income derived from sal
aries, wages, or compensation for
personal services of whatever kind
and in whatever form paid. includ-
ing salaries, wages. and compensa-
ton paid by the United States to
its officers and employees to the ex-
tent the same is not immune from
taxation under the Constitution, or
income derived from professions,
vocations, trades, businesses, COM
merce, or sales or dealings in prop
erty, whether real or personal
growing out of the ownership, or
use of, or interest in. such property;
also from rent, royalties, interest,
dividends, securities. or transactions
of any business carried on for gain
or profit, or gains or profits, and in
come derived from any source what
ever.
tbJ OF CORPORATIONS-In the
case of any corporation, gross
income includes only the gross in
income from sources within the
District of Columbia. The proper
apportionment and ALLEGATION of
income with respect to sources of
income within and without the Dis
trict may be determined by processes
or formulas of general apportion-
ment under rules and regulations
prescribed by the Commissioners
(cJ EXCLUSION FROM GROSS
1NCOME-The following items shall
not be included in gross income and
shall be exempt from taxation under
this title.
IN LIFE Observation-Disclosures
received under life insurance con-
tract paid by reason of the death of
the insured, whether in a single
sum or otherwise (but if such
l. L.