Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-22
Plan Offered
To Tax Exempt
D. {. Incomes
Dent Urges Bosis Of
6 Months Residence
During ToxobIe Year
BY DON S. WARREN.


Enactment of legislation to apply
the Districts income tax to per-
sons residing IN the District Tor six
months or more during the taxable
year, as well as to those "domiciled''
here on the last day Of the taxable
year, was recommended yesterday
by Tax Assessor Edward A. Dent.
Making his annual report to the
Commissioners, Assessor Dent also
called for the adoption Of a gift
tax for the District, as supplement
to the inheritance and estate taxes,
in agreeing with suggestions made
earlier by other District officials. In
this latter connection he said: The
purpose of the gift tax would be to
offer no advantage, so far as sue
cession tax is concerned, to prop
erty transferred prior to death over
that passing by will or by law after
death. We still consider this pro-
posed legislation advisable"
The Commissioners and other Dis
trict officials asked Congress last
spring to amend the income tax
law to get away from the "domi-
ciled" provisions because it was caus-
ing confusion and exempting a
large number of persons who either
live or earn their incomes in the
District. but the proposed amend
ment was blocked in the House Dis
tr1ct Committee.
Figures on Collections.
Mr.. Dent reported that while
under the personal income tax,
this calendar year. his office had
made tax levy of 81 SAB ,280. Sc. the
amount collected was sl,3l9 ,345. 76,
leaving S328,93480 uncollected. Under
the corporation income tax. while
the assessor levied total of
sl.470,734, he reported he had COL
lected 1886 1858, leaving uncol-
lected s5l4.34S.67. The total of the
two new taxes, as to collections.
he said. was $2,275,731, as against
q levy OF $3,119,014. which was in
tended to replace the repealed in
tangible personal property tax and
the abandoned business privilege
tax, which produce far more revenue
Mr.. Dent said that if the final
legal Interpretation of the "domi-
ciled" feature of the personal in
come tax law turns on the court
rulings in the Sweeney case on the
old Intangible personal tax law, it
appeared there would be "discrimi-
nation" in income tax levies and,
If the District had to make con-
siderable refunds of tax payments,
some other source of taxation must
be found" to meet the loss of
revenues.
In discussing this problem, MIR.
Dent said:
Most of the income tax laws en-
acted by the States impose a tax
on the income of individuals who
either resided in the State for
period OF six months or more during
the taxable year or were domiciled
therein at the end of the taxable
year. The District law makes no
reference to residence but imposes
tax on only those individuals domi-
ciled in the District The liability
of the individual for tax being con-
tingent upon domicile rather than
residence has presented a particu-
larly difficult administrative task.
In the case of James J. Sweeney
VS.. District of Columbia. involving
an assessment of intangible personal
property tax. the United States
Court of Appeals for the District of
Columbia decided that the petition
er, Federal Government employe
and resident Of the District for ap-
proximately 20 years, was domiciled
In Massachusetts,, as he claimed,
even though he maintained no place
OF abode in that State.
Writ Plea Denied.
"A petition for writ of certiorari
f1led by the District with the United
States Supreme Court was denied on
the ground that a decision in this
case was no longer a matter of pub
lie interest, as the law imposing an
Intangible personal property tax in
the District had been repealed.
Nevertheless, many of those persons
IN the employ of the Federal Gov
eminent. as we'll as others who vote
or pay taxes in other Jurisdictions,
have filed claims for refund and fur
ther similar claims may be expected
II decision favorable to the tax
payer is made, for the law allows the
filing OF claim for refund within
two years after payment of the tax.
The assessor is Withholding deci-
sion on many such claims until such
time as court decision in a District