Evening star., 1940-01-13
InstaI|ment Plan
Urged for D. {.
Income Tax
Full Payment
Now Required
By March IS

Oy NtOI~II ~
Possibility Of amending the Dis
trict income tax law to permit in
stallment payments will be con-
sidered by the District Commits
sioners as a result of protests by
some taxpayers against having to
pay the full bill by March IS each
year.
All three Commissioners today
voiced general approval of the idea
of installment payments, if such
can be perfected without causing
any financial embarrassment to
the municipal government, but we're
dubious as to whether anything
could be done in time to relieve
taxpayers this March.
Engineer Commissioner David
McCoach, jr., said he would bring
up the subject for consideration. IF
arrangements can be made so that
the District would not be left in
a financial hole" he said, "I see no
reason why installment payments
should not be permitted"
Similar sentiments were voiced
by Commissioners Melvin c. Hazen
and George E. Allen
Extensions Permitted.
Unusual speed would have to be
displayed by Congress if anything
were done in time to tighten the
income tax load this year, since the
law requires that the corporate and
personal levies be paid in full on
or before March Is.
The present law grants the as
SCISSOR authority to permit an ex-
tension of time for payment, up to
six months, if he finds good
cause" in individual cases, but if
extensions are granted it must be
at the price of paying interest to
the District on deferred tax pay
ments at the rate of per cent per
month.
Maj. Daniel j. Donovan, District
auditor, is looking askance at any
move to defer this years payments.
1t was recalled that the current
District Revenue Act gives authority
to the District for obtaining ad-
vances of funds from the Treasury
but some raise the issue that if
money due to be collected this fiscal
year is not collected by June 80
there would be lag in receipts,
which would have to be met.
Bates Sees no Objection.
Representative Bates, Republican,
OF Massachusetts,, who sponsored the
income tax legislation, said yester-
day he had no objection to a change
in the measure, to permit INSTALL
ment payments, provided District Of
ficials find it workable.
He suggested taxpayers, required
to file their returns by March Is, be
permitted to pay but half the tax
then and the remainder by June 80.
With taxpayers becoming aware of
the fact that the full District in
come levy must be paid by March
Is, protests were heard. During
March, they recalled, tax payments
would be required also for the Fed
eral income levy, for the last halt
payment on District realty and
tangible personal property, and on
the District automobile weight and
tag taxes.
The original draft of the District
income tax provided for payments
to be made in october and April,
but chorus of protests was heard
on the grounds that that plan
would have applied the tax retro
actively to incomes received during
the calendar year 1885, The in
come levy was intended as a SUBJ
stitute for the old Intangible per-
sonal property levy. 1t was argued
that double taxation therefore
would result if the levy was retro
active to 1888.
Deficit Threatens.
When the tax then was applied
to incomes received in the 1899
calendar year, provision for semi
annual payment was stricken, max
Ing the full bill due each year on
4AolSli AZ. NAdJ. OOllOSdll uCCldl Gu
this was essential, particularly in
the first year of operation of the
levy, to prevent a District deficit,
because the District was losing this
fiscal year $3,0O0,00O from the
former business privilege levy and
some $2,200,000 from the old intan-
gible personal property levy.
Maj. Donovan is doubtful of the
wisdom of providing for any in
stallment payment plan for the
1941 fiscal year which would defer
any of that years payments until
the fiscal year 1912.
1--WE have got to get over the
hump, financially, in the fiscal
year 1941. If we are to avoid a
further tax hike he said, "for
there are heavy outlays anti
cipated."
Maj. Donovan agreed that with
the present authority for the Dis
trict to obtain any necessary ad-
vances from the Treasury for this
fiscal year, ending June 30, it ap-
peared possible a financial crisis
might be avoided this year.