Evening star., 1942-02-03
Plan 10 Free
Hospitals Of
Tax Indicated
City Heads koy
Ask Enactment Of
Law for Exemption
This Is the concluding article
OF a series OF three discussing
taration OF Washington hospt-
tals.)
III

The Commissioners probably will
send to Congress in the near future
q draft Of q proposed tax law amend
ment specifically exempting the
Capitals non-pront voluntary hospi-
tails from realty taxes.
Such q statutory change has been
under consideration for some time by
the ONCE of Corporation Counsel
Richmond B. Keech and Is expected
to be sponsored by the city heads as
a means of finally determining the
status of hospitals which are not op-
Grated for private gain but neverthe-
less charge for their services.
It Is understood a preliminary
draft already has been prepared and
rejected as not covering the situa-
tion adequately. Although q number
of institutions are mentioned by
name among the exemptions now
provided, it ID felt at the District
Building any move to clarity the
laws view of voluntary hospitals
should not list those now operating.
Wording should be such that insti-
tutions organized subsequent to en-
actment of the amendment would be
covered. it is explained.
District Reported Sympathetic.
Decisions by the Real Estate Tax
Exemption Board have held the hos
pitals not eligible for exemption as
institutions of purely public char
ity." even though the board has ad-
mitted they do provide large meas
ure of free care and are not main
tanned as money-making establish
ments.
Several hospital executives report
ed being told by District officials it
had been decided to restore their
institutions to the tax rolls as a
means of calling congressional at
tention to the statutory provision
under which they had been enjoy
ing exemption for more than SO
wears. The hospital authorities said
they had been assured of the Dis
trict's sympathy for their financial
limitations and were Informed the
municipality was not deslrous Of I'M
posing new loads but now felt the
established policy could not be justi-
fed by wording Of the code.
In other words, the impression OBJ
tanned by these hospital ofdcials was
that the Commissioners intended TO
order restored to the tax lists those
properties of the voluntary hospitals
which could not Justify exemption
when tested by strict interpreta-
ton of statute. Then Congress would
be informed OF the situation and
asked to give the institutions posi-
tive relief through amendment.
Value TO Community Cited.
Consistently, the reports of the
Real Estate Tax Exemption Board
on hospital investigations have cited
value to the community Of such
establishments and stated no evil
dence of private, profit had been
found.
Effectiveness Of the orders plac-
ing the properties on the tax lists
has been stayed by the hospitals
appeals. Present indications are
they never will become operative,
unless Congress ignores the Dis
trict's recommendation when it Is
presented.
1t appears whatever legal change
is suggested will not provide ex-
emption for Doctors Hospital or
other institutions organized under
profit" charters in the future, even
though the incorporators do not
expect income to exceed expendl-
lures substantially.
Although the tax matter has q
bearing on the main question OF
the future of Washington's volun-
tary hospitals. it is being. studied
separately. When 1t was injected
into a recent hearing before the
House District Committee on need
for additional hospital facilities
here, Commissioner Guy Mason
suggested discussion be confined to
the subject at hand and hospital
taxation left for consideration when
it came before the committee in
due course.
Unless pressure Of other matters
becomes much greater, it now is ex-
pected the proposed tax law amend
ment will be whipped into shape be-
fore long and sent to Capitol Hill
by the Commissioners.