Evening star., 1939-06-11
Overton
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other municipalities that can and dc
extend their corporate limits to take
in suburban developments, and have
such areas contribute to the expense
of the National Capital The District
cannot do it, because the National
Government says it cannot. The Dis
trlct. therefore, is being ground be-
tween the upper and neither mill
stones, with the National Govern
ment taking more and more of the
property of the District and subur-
ban developments encroaching on il
on all Sides
In drafting their favorable report
on the Overton land-area formula
the Commissioners embraced argu-
ments District Auditor D. j. Dono-
van made to the Senate Appropria-
tions Subcommittee recently, show
Ing that under the lump sum
practice of the past Is years. the
Federal share has gone down from
291 per cent of the general fund
total in 1925 to 1873 per cent of the
general fund requirements this year
Tax Increase Cited.
This was because the appropria-
ton total went up while the lump
sum was going down, with result
that, comparing 1925 with 1898
local real estate taxes increased by
SO 100000, other taxes by S6,127, 200
and license fees by ST, ,458.695. Stated
In percentages, these tax increases
were: Zeal estate, 1873 per cent;
other taxes. lis per cent, and Ii
cense fees SIS per cent.
Continuing. the Commissioners
report read in part as follows:
"1Nis submitted that the present
Federal payment of $1,000 900 does
not represent fair and equitable
payment by the United States under
the present and constantly increas-
Ing cost of government in the Dis
trlct of Columbia and that some
definite basis should be adopted by
Congress for the purpose of measur-
Ing the fair share which the Fed
eral Government should pay. This
the Commissioners believe, would be
accomplished by enactment of the
bill S. 1190 (the Overton bilD.
This bill, in the opinion of the
commissioners, proposes a fair and
just method of arriving at a solu-
ton to this long-discussed and vex-
Ing subject of the fiscal relations
between the United States and the
District of Columbia. which, as is
well known, has been a matter of
consideration and investigation by
Congress for more than 100 years
The formula involves merely the
application of simple mathematics
to certain factors susceptible of
definite determination from official
records, and in this way removes
the subject entirely from the field
OF conjecture, individual opinion
and arbitrary conclusion.
Another point in favor of this
formula is that it is flexible and
readily adaptable to changing con-
dltions which may occur in the
future without the need of amen
datory legislation once the formula
Is adopted into law"
Tax Base Narrowing.
After stating that the narrowing
Of the local tax base in recent wears
through continuous removal of
property from the tax rolls has been
a cause of great concern, the Com
missioners letter continued:
Another matter of Importance
not to be lost sight of is the i'm
perative need Of obtaining some basic
legislation in this matter of the
Federal payment. The Organic Act
OF June II. 1878, fixed this pay
ment at so per centum of the ap-
preparations approved by Congress.
and this continued until its repeal
and the adoption of the 60-4O plan
by Congress. This latter plan was
made permanent by the act of June
29, 1922, although Congress ignored
1t commencing with the fiscal year
1925, and until its repeal by the
provisions of the District of Co.
lumbia Revenue Act, approved May
Is, 1888.
Therefore for the first time in
81 years there is no basic or perma-
nent law for the Federal payment
to the District, with the result that
the District is now dependent upon