Evening star., 1941-04-20
Increase in DC.
Real Estate Tax
Seen by Dirksen
50-Cent Jump Would
Add Sc, 900, 900 to
Revenue, He Says
BY JAMES E. CHINN.

Prediction that the House, In
order TO raise sufficient revenue to
provide the Districts urgent re-
quirements growing out of the influx
Of thousands of national defense
workers. would approve 50-cent
increase in the real estate tax
rate from SITS to $2.25 was made
last night by Representative Dirk
sen, Republican, of Illinois.
Ranking minority member of the
District Committee and sponsor of
the present local income tax law,
Representative Dirksen declared:
- There is widespread and sus-
tanned sentiment among members
of the House for substantial in
crease in the real estate tax rate
to meet the exigencies of the present
emergency"
He estimated a 50-cent jump in
the real estate tax would produce
about $6000,000 more year in
revenue.
OvertOn Plan Would Help.
Chairman Hunter of the Fiscal
Affairs Subcommittee of the Dis
trict Committee, which handles local
tax legislation, has said on several
occasions the District would need
at least s10,000,000 in additional
revenue each year to provide ade-
quate municipal services in the ex-
panded areas. Adoption of the Over
ton formula, which would fix the
annual Federal payment toward
municipal expenses on the basis
of the ratio of tax-eXempt Federal
acreage to the total land area of the
District, it has been estimated, would
raise Federal share from $4,000 900
TO approximately 100000 in the
coming fiscal year beginning July
/ and provide about 100000 of
the needed additional revenue.
Mr.. Dirksen has introduced bill
designed as substitute for the Over
ton fiscal relations formula-a plan
that would provide a "yardstick" of
fact for use of the House Appropria-
tions Committee in fixing the
amount of the Federal payment. 1t
calls for appointment of board of
three members of the Treasury De-
partment staff to decide annually
the valuation of all buildings and
grounds owned here by the Federal
Government. The board would make
its report to Congress and the in
formation it furnished would serve
as a guide as to how much should be
paid from Federal revenues to help
support municipal services.
Two Possible Sources.
"It is definiately recognized that
the growth of the District and the
increased functions and the addi-
tional burdens of the last few years
require additional revenue" said
Mr.. Dirksen. There are only two
possible sources of additional rev.
enue-an increase in the Federal
payment toward municipal expenses,
or higher taxes on private sources.
From Federal sources some of the
additional revenue might be de-
rived by adoption of the Overton or
Dlrksen plans. But I know of def
mite opposition in the House to each
OF these plans, and there is little
likelihood of their approval. So
the need for a source of additional
revenue still remains. An increased
tax on gasoline and luxuries would
only produce small proportion of
the required revenue. The only
other tangible and productive source
that know of is the real estate tax.
II that is raised to s225 the District
would have about 5000 900 more a
year in revenue.
t Sentiment for Increase.
discussions on the House floor
on recent District days has indi-
cated TO me there is a strong senti-
ment for substantial increase in
the real estate tax. And I sincerely
oelleve a higher tax will be or
dered."
Meanwhile, Representative Rus
sell, Democrat, of Texas, another
member of the District Committee,
said he thought some plan should
be developed to force non-residents
who work here to contribute some
thing" toward the support of the
municipal government. He pointed
out that the children of these nom
residents are allowed to attend the
public schools without payment of
tuition-an item that costs local
taxpayers about 100000 a year
and also have many other privileges
for which they pay nothing.
A general sales tax, Mr.. Russell
said, might be the solution, but he,
like President Roosevelt, is opposed
10 a sales tax.