Evening star., 1942-07-19
Hunter Introduces
Bill Fixing District
Tax Exemption Rules
Benevolent Institutions
Of Many Types Would b
Relieved From Levies

Chairman Hunter of the Fiscal
Affairs Subcommittee of the House
District Committee yesterday in
troduced a. bill to exempt from
taxation in the District all real
estate used for charitable, edu-
cational, scientific, hospital and
other benevolent purposes.
Much valuable real estate within
this category recently has been re-
stored by the Commissioners to the
tax rolls, on recommendations of
special District board, headed by
Budget Officer Walter Fowler, to
which had been assigned the task of
obtaining additional revenues.
Practically all of the institutions
made subject to tax levy have filed
protests, now pending before the
courts, the Board of Tax Appeals
or the Commissioners.
Under the present District law,
Mr.. Hunter explained, tax exemp-
ton is allowed only for educational
buildings mot used for private gain"
and for charitable institutions
operated without charge to in
mates" and without profit or
income"
Seeks Officials Opinions.
Mr.. Hunter pointed out that the
National Academy of Sciences is an
institution created by Congress, and
expressed the opinion that other
quasi-government institutions, such
as the National Art Gallery. might
similarly be found subject to tax
alton. Recently he asked the District
Commissioners, Corporation Counsel
Richmond B. Keech and to the
District Bar Association for ex-
pressiors of their opinions. He
made public yesterday letters from
Commissioner J. Russell Young and
Corporation Counsel Keech.
Commissioner Young wrote, with
special reference to the National
Academy of Sciences, Il concur in
your view that special legislation
with reference to any particular in
stitution or classification at this
time would not be productive of
good results. Under instructions of
the Board of Commissioners, legisla-
ton dealing with the entire subject
of exemptions from real property
tax is being drafted. 1t is the hope
of the Commissioners that this will
be in shape for submission to Con-
gress within reasonable time"
Corporation Counsel Keech's re-
ply further explained that two
courses seeking to have a determi-
nation of the validity of the return
to tax rolls of property which has
heretofore been exempt have been
followed: Cd Appeal to the Board
of Tax Appeals of the District,
which necessitates as condition
precedent to lodging of the appeal,
payment of the tax; CD filing of
an action in the District Court, seek
ing to obtain a declaratory judg-
ment."
Against Special Legislation.
Mr.. Keech pointed out that third
course would be to seek legislation
as to the particular property in
volved or general legislation dealing
with the entire subject of the ex-
emption of real property from taxes.
Il do not believe it would be prac-
tical from the point of view of the
District or of the taxpayer" he
wrote, Ito have special legislation
filed. AS practical proposition,
should Congress finally conclude to
exempt the property of the National
! Academy of Sciences it could and
| probably would exempt it from any
taxes which might have accrued
between the time the property was
returned to the tax rolls and the
date of enactment of the bill pro-
vldlng for exemption"
| The Hunter bill also would in
clude for exemption property used
for clinics, orphanages, libraries. art
| galleries and cemeteries, as we'll as
property used for the care, susie
nance, moral and mental improve
ment OF men, women or children,
or for the prevention of cruelty to
animals. The bill makes the stipu-
lation, however that no part of the
net earnings may benefit any private
/ shareholder or individual.