Evening star., 1942-04-10
Higher Real Estate
Tax on Sliding Scale
Urged for District
Hunter Fovors Levy
Over SoIes Impost
Recommended BY Young
By WILL P. KENNEDY.


Increased real estate taxes on a
siding scale as suggested by Repre-
sentative Schultz, Democrat, of In
diana instead of a sales tax as
recommended by Commissioner
Young, is expected to be proposed
to the House by the Fiscal Affairs
Subcommittee of the House District
Committee.
Chairman Hunter, Democrat, of
Ohio admitted this proba ability to-
day, although he emphasized the
question of District revenue has
been discussed only informally.
Whatever measure is reported to
the House will not be drafted until
after the Ways and Means Com
mittee has brought in its new Fed
eral tax bill for next year, and until
after the District Commissioners
have made definite recommended
tions, Chairman Hunter said.
The question of the constitutional
ity of an "escalator" clause in the
new District tax bill has been raised
in the informal discussion, but
Chairman Hunter explained that
such legislation has been enacted in
some States and pointed out that
the Federal income tax law is also
based on a progressively increasing
rate.
Opposes Sales Tax.
Mr.. Hunter frankly admitted he
has never been friendly to a sales
tax and had fought such proposals
while he was in the Ohio Legisla-
ture. He said that the District Com
mittee would hesitate to propose a
local sales tax in the event that the
Ways and Means Committee recon-
mends a national sales tax.
In the informal discussion of the
Fiscal Affairs Subcommittee, the
members indicated they would favor
the increased real estate tax on a
sliding scale.
The plan discussed was to retain
the present rate Of SITS per 500
valuation on property assessed at
$500 or less, which is occupied by
the owno~ On property valued from
81 ,OOO w S4O,OOO, d ldh dlC Vi % RN4
$100 has been suggested and on real
estate valued at over SIS 900 a tax of
s225 per 500 is under discussion.
Mr.. Hunter roughly estimated
that this would increase District
revenues $4,000, 900 to $10,000,000.
While pledging that his sub-com-
mittee will give full consideration
to any proposal the District Com
missioners make" Mr.. Hunter said
he has often wondered how the Dis
trict expects to meet its budget, and
emphasized that the members of his
subcommittee feel that "a change
in the District tax structure is i'm
perative and inevitable"
Young Favors Sales Levy.
He asserted that Commissioner
Young has estimated the District
will be short $13,00o,000 in necessary
revenue if the present taxes are the
only revenue source.
Commissioner Young called the
proposed sales tax the fairest meth
cd Of raising necessary additional
revenue and expressed his opinion
that it is the only method of COL
lecting taxes from persons living
here, but claiming residence in vari-
GUS States.
Commissioner Mason also said he
believed sales tax is most equitable
and that rental tax might have
to be enacted.
During discussion Of a new Dis
trict tax bill, Chairman Hunter
pointed out that department heads
in the municipal government had
submitted budgets to a total of some
SOS ,000, 900, which was cut down to
s55 ,000, 900 before being submitted
to Congress. Appropriation Com
mittee members have already indi-
Gated that this District budget prob
ably will have to be increased when
the appropriation bill is being draft
ed, in the light of increased serv-
ices which result from the vast in
crease in population during the war
emergency.
Chairman Hunter expressed his
opinion that the Rent Control Ad-
miniStration might sanction rent
increases based on higher property
taxes, thus affording some relief to
real estate owners under the pro-
posed increase in real estate taxes.