Evening star., 1940-03-10
15-Cenf Tax Boost
In kontgomeryto 10
Be Proposed
Civic Federation to Get
Committee Report
Tomorrow Night
BY BEN H. PEARSE.

Tomorrow Night
BY BEN H. PEARSE.
A proposal to raise the tax rate
IN Montgomery County Is cents per
800 valuation is expected to set
OF q spirited discussion at the
March meeting of the Montgomery
County Civic Federation tomorrow
night in the Bethesda Elementary
School.
The proposal will be submitted
by Frederic P. Lee, chairman of the
Public Finance and Budget Com
mittee, in an exhaustive report on
county finances which will declare
against any suggestion of a reduc-
don In the tax rate despite an ex-
pected increase in the total tax
able base resulting from the general
reassessment now nearing compile
ton.
County officials were non-commit-
tai yesterday but agreed that the
Yeassessment would not increase the
taxable base of real property in the
county, now about 500, ,0OO, 900, by
more than $20,000,000 or perhaps
SIS, 100000. The total taxable base
last year, including real and per-
sonal property was about $145, 900, 900.
Seek Cut In Refunding.
The resolution to be offered to
the Civic Federation tomorrow Is
expected to recommend that no re-
duction be made in the county tax
rate of $1.50 per 500 valuation to
the end that no deficit be incurred
IN county operating expenses and
that at least SIS per cent of debt
maturities be met without refunding.
The resolution is expected to in
clude a recommendation that the
tax rate be raised Is cents so that
approximately all the debt maturi-
ties for next year can be met with
out refunding. thereby taking the
first step toward placing the county
in sound financial position" and
saving large sums expended for re-
funding bonds.
This recommendation is in con-
trast to one adopted last week by the
Greater Kensington Civic League,
headed by Washington I. Cleveland,
a past president of the federation,
asking that 10 per cent reduction
in taxes be adopted by the Board of
County Commissioners as a result
of the increase in the county's tax
able base, estimated by that group
at between $17,000,000 and $25,-
100000.
To compensate in part for any
failure to reduce the present tax
rate, the committee is expected to
recommend that every effort be made
to reduce the tax rate set in the
special taxing areas, and to reduce
county expenditures through elimi-
nation Of unnecessary personnel,
provision of more efficient county
purchasing, to effect savings by re-
organization and consolidation of
county functions, elimination of fu-
ture certificates of Indebtedness, and
authorization Of bond issues only for
necessary new construction.
Factors In Financial Troubles.
The fire which destroyed the Rich
0fd Montgomery High School at
Rockville Thursday and school ex-
penditures In general resulting from
the population increase in recent
years are pointed to as factors in
the present troubled financial condi-
don Of the county.
The committee found that q 49,
cent increase In the tax rate would
be necessary to meet the county's
operating expenses for next, year
and to pay off the countys indebt-
edness that natures next year. The
county spent 36 per cent of its un-
restricted income this year for prin-
clpal and interest and then had to
refund IS per cent of its debt ma
TURTLES, it was estimated. It would
have had to spend So per cent of
Its income for debt service in order
to meet all debt maturities without
refunding, according to the Finance
Committees report.
The taxing officials of the various
special taxing areas account for an
average of 80 cents over and above
the $3.50 county tax rate, and should
economize wherever possible, the re-
port will state. Any increase in
revenue resulting from the higher
taxable base should be used to re-
duce the tax rate in special taxing
areas, it will be recommended.
The necessity for economizing on
purchasing and general county ex-
penditures will be stressed in the
report. It is pointed out that no
substantial additional county in
come will accrue from the State
income tax, which has been boosted
from one-half of / per cent to 21a
per cent on earned income and 6
per cent on unearned income. The
report says there is no denying this
tax works a hardship on the tax
payer.
1t is further pointed out that the
county revenue from the beer tax,
invalidated by a recent court ruling
and totaling about $4,000 a year
IN the past, has not been replaced.
Increased expenditures include
about $4,000 for maintenance of
new school buildings, additional
teachers for the TOO new students
received annually and a deficit of
about $4,000 for this years budget.
The report will point out that
even with the increase of the as
sessable base due to the reassess-
ment, the county income will rise
only between 100000 and SIPS, 900.
Partly because of the necessity
Tor constructing a new school to re-
place the Richard MONTGOMERY