Evening star., 1942-09-16
Hearings Closed
On District Tax
Exemption Bill
Young and Fowler
Testify on Study
Of Institution Rolls

Chairman Hunter d the House
District Subcommittee on Fiscal
Affairs today closed hearings on his
bill to restore tax exemptions to
many educational, religious, chari-
table, scientific and patriotic organ
izations recently placed on tax rolls.
Witnesses at the final hearing
were Commissioner j. Russell Young:
Budget Officer Walter Fowler. who
conducted two-year study that re-
suited in placing many of these in
stitutions on tax rolls, and Corpor-
alton Counsel Richmond B. Keech.
Declaring he wanted the subject
decided by Congress so that mo in
justice may be DONE" Commissioner
Young said exemption for educa-
tional, charitable, religious and
scientific organizations should be
specifically defined in law. He esti-
mated that about one-half of the
properties which were put on the
tax rolls recently would be taken off
again.
Reason for Exemptions.
Mr.. Fowler said that, broadly. the
sole reason for exempting such
properties is that they perform
service for the public, relieving the
State from expenditures which
would have to be borne by the tax
paying public
He added that hospitals would
not come under the present law be-
cause they are not purely public
charity conducted without charge to
inmates, but emphasized that the
Commissioners feel they should be
exempted.
Mr.. Fowler said the law should be
changed to exempt Catholic, Pro-
testant and similar homes because
otherwise their inmates would be a
charge on the State. All parochial
schools also should be exempted, he
testified, otherwise the State must
educate the children and the tax
payers pay the bill.
Fundamental Question.
"The fundamental question: Mr.
Fowler stated, "is relief of the State
from a burden in return for exemp-
ton of taxes"
Representative Schultz, Democrat,
of Indiana, said that if any religious
organization or other institutions
claiming tax exemptions held large
tracts of land which later were sold,
retroactive taxation should apply to
that portion sold.
Corporation Counsel Keech en-
phasized that the Federal Govern
ment holdings in the District enjoyed
immunity" from taxation and that
diplomatic properties have exemp-
ton under international law. When
the Fowler study was started in
1910, Mr.. Keech said, there was ST.
00l 900 900 taxable property in the
District, of which 1888 O00, 900 was
on exempt rolls. The Federal gov
ernment owned 1868 8071 900 of this,
the Municipal government $75,000,-
600, and sl12,0O0,000 was privately
owned.
Burden Carried for Years.
Commissioner Young said I'VE feel
the taxpayers have been carrying a
heavy burden for many years be-
cause certain properties have not
been taxed which should have been"
He promised Chairman Hunter the
Commissioners would submit re-
port on the bill under consideration
without further delay, so that no
hardship might result.
Mr.. Fowler added that any taxes
levied against hospitals which are
later declared tax exempt, would be
refunded.
Mr.. Fowler said religious insti-
tutions are not and never were ex-
empt under the present law, which
refers only to churches" Commits
sioner Young said the Franciscan
Monastery should be recognized as
church and be tax exempt.
Chairman Hunter said that prob
ably two or three additional execu-
tive sessions would be held to con-
slider a corrective bill which the
Commissioners have promised to
submit. and to discuss amendments
to the Hunter bill.