Evening star., 1941-05-05
DC. Realty Tax
Yield Held 67%
|0f Revenue
House Unit Weighed
Thot Fact Before
Booking Overton Bill
Earlier Story on Page BIZ
BY JAMES E. CHINN.

Representative Hunter, Democrat,
of Ohio told the House late today
the SITS real estate tax here is pro-
ducing about two-thirds Of the gen.
eral revenues and that the House
District Committee took that fact
into consideration before approving
the Overton bill
His statement was intended as an
answer to charges made in the
House last Monday by Representa-
tive Rees, Republican, OF Kansas
that the real estate tax in Washing
ton is far out of line" At that
time Mr.. Rees introduced a bill to
raise the tax rate to $3.50.
Representative Hunter. who as
chairman of the Fiscal Affairs Sub
committee of the District Commit
tee sponsored the Overton plan in
the House, declared that Mr.. Rees'
objections to it were based on IAN
erroneous assumption that residents
of the District are not paying
fair and just proportion of taxes, as
compared with the residents of COM
parable cities elsewhere in the
United States"
Randolph Asks Support.
Earlier. at a meeting of the full
District Committee, Chairman Ran
dolph appealed to the members to
give him utmost support in seeking
House approval of the Overton bill,
which contains formula for fixing
the amount of the annual Federal
payment toward municipal expenses.
The Overton formula, which is
scheduled to be called up in the
House next Monday, would fix the
Federal share of District expenses
on the basis of the ratio of Gov
ernment-owned acreage here, after
certain deductions. to the total land
area. Its application, 1t is estimated,
would raise the present lump sum
Federal payment from $4,000 900 to
approximately $4,000 900 in the COM
ing fiscal year beginning July l.
Representative Hunter, in his
statement to the House, said:
Mr.. Speaker, few days ago, the
gentleman from Kansas, Mr.. Rees,
offered some objections to H. r.
3490, which includes the Overton
formula for determining the annual
payment the Federal Government
will make toward the expenses OF
the District of Columbia.
List Of Cities Challenged.
The gentleman's objections were
L
have shown to be an erroneous as
sumption that residents of the Dis
trict are not paying a fair and just
proportion of taxes, as compared
with the residents of comparable
cities elsewhere in the United States
ITO justify the statements he
quoted real estate tax rates In ~
cities. A few of these cities may
rightfully have been called COM
parable cities, but it is difficult to
picture Sioux City, Iowa: Phoenix
Ariz.; Cumberland. Md: Topeka
Kans.: Fargo. N. OAK. and some OF
the other cities on that list as COM
parable cities.
Methods of Valua ton Considered.
The gentleman from Kansas" he
continued, also did not take into
| consideration a fact that is known
to every real estate operator in the
country: namely, that real estate
| tax rate means very little unless
methods of valuation are taken into
consideration. In one area, real
| estate NAV be assessed for taxation
purposes at so per cent of actual
selling price. In another, it may be
assessed at rs per cent of market
value. In the District, it happens to
be assessed for taxation purposes
at slightly more than 100 per cent
of actual sales or market value.
Your committee on the District
of Columbia did not approve the
Overton formula blindly. One of its
steps was to secure study of the
(See OVERTON, Page 2-X)