The Washington times., 1939-01-17
new D. c. TAX
PLAN BASED ON
EIGHT POINTS
Present System Seen
As behind Times"

CONTINUED from Page ~
the taxable status date of auto
mobiles from January / to a pro
rata time basis.
Variable Realty Tax
7. Authority for the District
Commissioners to vary the tax
on real estate and tangible per
sonal property in order to bal
Ance the budget and avoid large
SurpluseS, the maximum rate
not to exceed SITS per hundred
dollars Of assessed valuation.
8. Amendment of the law re-
iattng tc the Board of Tax Ap-
tpeals so that-(a) a taxpayer is
required to exhaust his remedy
before the Board of Equaliza-
ton and Review as prerequisite
to appealing to the Board Of Tax
Appeals, tb) the Commissioners
are enabled to secure an advis-
ory report from the Board of
Tax Appeals as to facts and law
in those cases in which there is
no absolute right of appeal, and
the solution is left to the Com
miSsioners, and (c) jurisdiction
Of the Board Of Tax Appeals be
extended to cover motor vehicle
fuel taxes.
Broad Sales ImpOst
The sales tax. affecting every
person in the District as we'll as
Its millions Of visitors, will be at
the rate of 2 per cent, with ex-
emptions on food not eaten in
restaurants, medicines, sales un-
der IS cents, and articles sub
ject to Selective sales taxes by
Lhe District, such as liquor and
gasoline.
In order to aid enforcement re-
tailers should be required to obtain
q license and pay a S. license fee
for each place Of business.
The use tax" provides that a
two per cent tax should be levied
on purchases in excess of $25 a
month brought into the District
for use, If they would have been
subject to the local sales tax.
$500, 900 Return Seen
From all ramifications Of the
sales tax, the report estimated an
annual revenue Of $5,500,000.
The income tax is Selective, pro-
posing to levy a graduated tax on
earned income only in excess Of
$4,000 and on investment income
in excess Of $500. Rates will be as
follows:
Two per cent on taxable net
income under $1,000; three per
cent, more than $1,000 and not in
excess of $4,000; four per cent in
excess of $1,000, and not in excess
Of $4,000; five per cent, from
5000 to $1,000; six per cent.
from $1,000 to $4,000, and seven
per cent on income in excess Of
$4,000.
The income tax is expected to
yield 5000.
Corporation Taxes
The five per cent corporation
income tax would permit deduc-
tions for tangible personal
property taxes, and provides for q
$2E filing fee, to be credited
against the tax. The anticipated
annual yield will be $2,700.000.
Under this tax, the report con-
templates a four per cent fran.
chise tax on gross receipts for the
electric, telephone and gas utili-
ties, and a three per cent tax for
the transit company. These
changes in public utility taxation
are expected to yield an addi-
tional $360,000.
The parking lot tax, which
should yield 5000, is "solely
for the purpose of reimbursing
the District for the loss of real
estate taxes resulting from the
demolition of buildings to make
way for parking lots"
IS License Fee
A S. license fee will be charged
to parking lot operators, and
special legislation is asked to place
the lots under the regulation of
the Public Utilities Commission,
to bring about improvements in
rates, service and operations gen.
orally.
Providing a potential cushion
Of nearly $3,30O,000, the differ
enee between the $3.50 and SITS
tax on real estate should be left
10 the Commissioners, the report
states, and should be regarded as
the elastic elements" in the tax
structure.
Repeal of the intangible per.
sonal property tax, which now
yields approximately $4,000, 900, is
recommended because it is sin.
equitable, difficult to administer
and has fallen into general dis
rspute."
nuisance Tax" Out
The business privilege tax, levied
for two years as a stop-gap meas
ure, should be allowed to die, the
report continued, because it has
no relationship to ability to pay
works a hardship on new anc
struggling concerns as well as or
those showing a deficit and dis
eliminates against firms operating
An nArrnur ror.nfif rnarnins and of