Evening star., 1939-03-17
n|yBpct. Of DC.
Really Bears Tax,
Senators Told
Assessor Allen Gives
Figures at Hearing
On Overton Formula

Less than half of the land area
of Washington bears the entire real
estate tax burden because of the
extent of Federal and other tax
exempt property here, according to
testimony given before the special
Senate subcommittee considering
the Overton pan for solution of the
fiscal relations problem.
When the subcommittee ad-
journed late yesterday Senator Ov-
erton, Democrat, of Louisiana said
the hearings were nearly complete,
except for the testimony of a rep
resentative of the Census Bureau,
who will be called later. District
Budget Officer Daniel j. Donovan,
who Endorsed the plan Tuesday, also
will prepare brief for inclusion in
the record.
The Overton bill would fix the
Federal payment definitely on the
basis of the percentage of land
area of the city required for ma
tional purposes, which at the present
time would amount to approximate
ly 20 per cent of the general fund
expenses of the city, or slightly more
than $8,000,000.
About 45 Per Cent Taxable.
BY questions put to District As
SCISSOR Fred D. Allen yesterday after
noon Senator Overton brought out
that only about IS per cent of the
land area of the city is taxable.
Mr.. Allen testified that the Federal
land area is al acres. excluding
the streets to which the United
States holds title in the old original
portion of the city.
In addition, Mr.. Allen said, there
are 1000 acres Of District-owned
property. and 1914 acres ;of other
exempt property, such as embassies
administrations.
Out of the total of 80 ,273 acres Of
land area in the city, he said, the
remaining taxable area is 1887
acres.
Senator Overton turned to the
land-area formula to avoid conflict
ing opinions as to appraisal figures
II an effort was made to base the
Federal payment on the value of the
Government property. Mr.. Allen
agreed with the Louisiana Senator
that appraisal experts follow di-
vergent systems in estimating value
and that opinions would differ over
the figures to be used in valuation
formula. The Senator contends the
land-area formula can be determined
and adjusted from year to year with
mathematical certainty.
May Leave Out Made Land.
It is probable the Senator will
decide to leave out of the calcula-
ton the 925 acres of made Govern
ment land along the Potomac and
Anacostia Rivers, he indicated to-
day, on the theory it was not taken
off the tax books. but brought into
existence by the filling process.
Its inclusion would have raised the
Federal share to % per cent of the
annual general fund budget. 1eav-
ing this out, the Overton formula
consists of the acreage used for ma
tional purposes, plus the excess of
park area here over comparable
cities.
The latest figures of District Sur
veyor Edward A. Dent show this
would make the Federal payment
1896 per cent of the general fund
expenses. Instead of dropping frac-
tions entirely, as originally proposed
Senator Overton said he probably
would recommend a rule of drop.
ping them only when they are less
than one-half of l per cent. With
this change, the Federal payment
would remain at approximately 70
per cent for the coming year.
Cites Loss in Dollars.
Otherwise, the Senator pointed
out, with the general fund budget
amounting to about 100000, 900, the
dropping of the fraction of .96 pei
cent would take nearly $500, 900 OF
the Federal payment.
The indication given yesterday BY
Senator D. Worth Clark, Democrat
of Idaho, that he is favorable to the
bill enhanced the prospects for ia.
| vorable action.
Among those who indorsed the bill
yesterday was Miss Alice s. Siddal
of the Women's Single Tax Club
She advised the subcommittee not
to make amendments that might
| lessen its chances of passage.