Evening star., 1941-06-14
JobIess Compensation
Tax Problem Arises
AT National Airport
Whether Virginia or D. c.
Will Receive Revenue
Is Question

The District governments as
sumption of jurisdiction over the
Washington National Airport at
Gravelly Point has raised a ques-
ton as to the status Of unemploy-
ment compensation taxes paid on
the airport construction pay rolls
and the benefit claims that may be
made in the future by workmen
who have been employed on the
project.
District officials admitted today
that this question apparently was
overlooked in the first appraisal of
the issues involved in the ruling
holding that the airport lies within
District territory.
All the unemployment cornpensa-
ton taxes collected from the vari-
Gus contractors on the airport prof.
ect have been paid to the Virginia
Unemployment Compensation Com
mission Whether this money
should now be transferred to the
Districts unemployment compensa-
ton fund is one of the problems
involved in the question.
Local officials indicated they had
not given any consideration to this
particular phase of the problem
and that they felt this question IS
one of a number that might not be
solved until the boundary decision
becomes final. In announcing the
ruling on the airport jurisdiction
officials pointed out that Virginia
may challenge any action taken by
the District under the decision, and
for that reason the ruling would
not be considered final.
No Action for Contest.
So far no action has been taken
bv Virginia to contest the decision,
and the District government is 60
ing ahead with plans for licensing
and collection of fees on operations
at the airport.
John A. Marshall director of the
District Unemployment COmppnsa-
ton Board. said he contemplated
no action at the present time, and
that he preferred to wait and see
whether Virginia challenged the
ruling. If the decision is upheld,
MI. Marshall said. he would take
steps to have the Unemployment
compensation taxes collected on the
airport project transferred to the
District fund.
He said he did not think it would
be wise for the District to seek the
transfer until Virginia's position on
the decision had been made clear.
In Richmond Col. Edwin S. Reed,
chairman of the Virginia Urem-
plovment Conversation Commits
sion. said he had not been informed
of the Districts boundary decision
and had given no thought to the
question of whether the District
should now handle tax funds from
the airport project. He added that
he felt it didn't make much differ
ence who collected the tax and paid
the benefits as long as it was done
satisfactorily.
Conference Planned.
Col. Reed said he would discuss
the question with the assistant at
tornev general of the State as
signed to the Unemployment Com
penSation Commission. He was un-
able to give any estimate OF the
amount Of taxes paid by the airport
contractors on their employees wages
nor of the amount of benefits paid
to workers formerly employed or
the airport project.
Social Security Board officials
here took the position that it was
matter for Virginia and the Dis
trict 10 decide. One official voiced
an opinion that if it is finally agreed
the airport is District jurisdiction
Virginia could effect transfer of
the unemployment compensation
funds to the District on the basis
that the contributions had been
paid enormously to Virginia.