Evening star., 1942-08-30
Tax-Exemption
Bill Action
Likely Soon
McCurron Measure
Ready for Study by
Senote D. G. Group
BY J. A. O'LEARY.

The Senate District COmmltteo
nay meet this week to take action
IN a new tax exemption bill which
IS expected TO restore exemption to
substantial number of charitable,
religious and educational institu-
tons declared taxable by District
officials during the past 18 months.
After another informal conference
with District legal officials yesterday.
McCarran expressed his
own conclusion that the Capital
should have a reasonably liberal
law on this subject.
Senator McCarran emphasized he
was not attempting to speak for
the committee, which has not yet
studied closely the measure he In
troduced five weeks ago. AS writ
ten, the bill would broaden the def
nitions in existing law so as to
make eligible for exemption some
OF the properties the District gov.
ernment has held to be taxable.
Amendments Foreseen.
During hearings further exemp-
tions were urged by spokesmen for
various classes Of institutions, and
1t Is probable some of these amend
ments will go in the bill. No action
has been taken yet, however, and
until the committee acts it will be
impossible to tell how many of the
properties affected by the District
tax survey will go back on the
exempt list.
Senator McCarran repeatedly has
argued that the Federal Govern
ment, in fixing its annual contribu-
ton toward the expenses Of WASH
ington, should take into account the
fact that many tax-exempt- types
OF institutions have heir headquar-
ters here because it is the National
Capita. Instead, Congress has
sharply reduced its share in the
upkeep OF the city over the past 20
years.
Alter departing from the fixed ra-
tic principle OF $3.50, and later 40
per cent as the Federal share, Con-
gress turned to temporary annual
lump sum payment, which is now
only little more than 10 per cent
Of the total annual outlay. For the
current year it is $4,000, 900 toward
District budget Of $56, ,313, 900, not
counting deficiency items that
usually have to be added out Of
District funds as the year pro-
crosses.
Part Exemptions Possible.
Senator McCarran raised . new
point yesterday by SuGgesting there
may be some institutions in the
Capital performing functions that
might entitle them to partial rather
than total exemption. He did not
indicate the types Of institutions to
which this principle might apply.
One Of the main changes ii the
biM advocated at l1earingx was a
broader definition of the amount
Of land surrounding charitable. re-
lgious or educational buildings that
should be granted exemption. As
introduced, the bill would exempt
land absolutely required and actu-
ally used for the convenient enjoy
ment Of the exempt buildings.
Some witnesses contended this
definition might be subject to re-
strictive Interpretation, and sug-
gested 1t be changed to reasonably"
required. Others thought there
should be some allowance made for
land intended for normal expansion
Of an institution.
Another question to be determined
BY the committee Is whether exemp-
ton should be allowed national or
ganizationS that have established
headquarters at the seat Of govern
ment to perform functions that are
scientific or educational. Some Of
these institutions would not be ex-
empt under the original bill, because
1T defined an exempt educational
institution as one embracing the
generally recognized relationship Of
teacher and student"
To Hear All Groups.
Senator McCarran said yesterday
that before the committee takes
final action he will give all groups
dACCtCo NY ~ dIl opportunity 10
see any proposed revisions in the
original draft of the bill. He said
he also viii recommend to the conn
mittee that it prepare a compre-
hensive report to. accompany the
bill, in which the intent OF Congress
as to the types of institutions to be
granted exemption could be ex-
pressed more directly than 1t would
be in the legal terminology of the
bill itself.
Senator McCarran said he be-
lieved "the Federal Government.
and the taxpayers of the District
as well, receive inestimable benefits
from the existence of many of these
institutions here" Some of the in.
stitutions render assistance to Gov.
ernment bureaus, he added. and
their establishment here helps to
attract visitors to the city.
Bow Scouts Will Make