Evening star., 1942-02-03
III


send to Congress IN the near future
. draft Of . proposed tax law amend
ment specifically exenpting the
Capitals non profit voluntary hospd-
tails from realty taxes.
Such 4 statutory change has been
under consideration for some time by
the of1ice Of Corporation Counsel
Richmond B. Keech and Is expected
to be sponsored by the city heads rs
q 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 = preliminary
draft already has been prepared and
rejected as not covering the Atua-
tion adequately. Although q number
OF institutions are mentioned by
name among the exemptions now
provided, 1t is 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 i1sti-
buttons organized subsequent to en-
actment of the amendment would be
covered, 1t rs explained,
District Reported Sympathetic.
Decisions by the Real Estate Tax
Exemption Board have held the hos
pftals. not eligible for exemption aS
institutions OF purely public char
ity." even though the board has ad-
naitted 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 omcials 1t
had been decided to restore their
institutions to the tax rolls as =
means of calling congressional At
tention to the statutory provision
Under which they had been enjoy
ing exemption for more than 80
years. 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 desirous OF I'M
poSing new loads but now felt the
established policy could not be justi-
ned by wording Of the code.
In other words, the impression OBJ
tanned by these hospital ofncials was
that the Commissioners intended to
orderfsestospd 10 thctap AsN thefe
properties OF the voluntary hospitals
which, could not Justify exemption |
when tested by q strict intefpreta-
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 tie
Real Estate Tax Exemption Board
on hospital investigations have cited
value to the community Of such
establishments and stated no evi-
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 recomrpendation 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 expendi-
lures substantially.
Although the tax matter has a
bearing on the main question OF
the future of Washington's volun-
tary hospitals, 1t is being studied
separately. When it 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
1t 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.