Evening star., 1942-12-26
Signs
Bill Lifting Tax
On Institutions
Restores Exemption
To Property Of D. c.
Non-Profit Groups

President Roosevelt has signed
the bill restoring to the District
tax-exempt list non-profit insti-
tutlons here, the White House
announced today.
The bill would restore to the ex-
empt list hospitals, charitable, re-
ligious, educational and scientific
institutions declared taxable by the
Commissioners within the past two
years.
A committee of local officials ap-
pointed by the Commissioners went
over the exempt list in December,
1910. They issued a series of de-
ciSons holding that properties with
total value of approximately $25,-
100000 were not legally entitled to
the exemption heretofore granted
them, under a strict Interpretation
of old District statutes. The taxes
that would be payable on that total
valuation from all the institutions
would be s450,000.
Backed by McCarran.
District officials, however, felt that
about half of the properties they de-
clared taxable should have the ex-
emption restored by clarifying the
old exemption laws. With this in
view measure, rewriting the old
laws, was introduced in the Senate.
The Senate District Committee,
after extensive hearings. decided
the exemption definitions favored
by the Commissioners were too mar
row. They were redrafted into the
McCarran-Hunter bill, quickly ap-
proved by both House and Senate
Local officials informally contend
the bill, in final form, restored ex-
emption to all of the properties
they held to be taxable, and made
possible additional exemptions.
Sections Opposed.
The Board of Trade, through its
Municipal Finance Committee, sup
ported the McCarran bill. 1t
pointed out that, since District Off
cials themselves advocated restor-
ing exemption to about half the
affected properties, the revenue in
volved in taxing the remainder
would be s225,O0O a year out of an
annual income requirement of
$60000,000
The Commissioners made a last
minute effort to narrow the scope
OF the bill in several respects, but
without success. Among the provis-
ions to which the Commissioners
objected as too broad were the re-
storing of exemption to religious
study houses, as distinguished from
churches, and allowing institutions
to retain on the exempt list their
surrounding land owned on July l.,
1912. Congress stipulated, how
ever, that if any such land later is
sold. instead of being used for in
stitutional expansion, back taxes
would have to be paid. up to limit
of so per cent Of the profit from the
sale.
Granting another point opposed
was the exemption to buildings of
organizations engaged in adminis-
tration, coordination and unifica-
ton of activities, locally or other
wise, Of institutions or organiza-
tions entitled to exemption.
Old Laws Too Narrow.
Up to now exemptions have been
governed by series of old statutes
passed at various times The local
officials who made the recent survey
took the position that the defini-
tions in some of these old laws
we're not broad enough to justify
the exemption heretofore extended
to some hospitals, charitable homes
and headquarters of religious So
cieties.
The McCarran bill, first of all, laid
down a new set of general defini-
tions, describing the types of insti-
tutions that should be exempt. 1t
also listed for exemption by name
number of national organizations
that have their headquarters in the
National Capital These we're:
National Geographic Society
American Pharmaceutical Associa-
ton, National Lutheran Home, Ma
tional Academy of Sciences. Brook
ings Institution. American Forestry
Association, Carnegie Institution of
Washington, American Chemica.
Society, American Association to
Promote the Teaching of Speech to
the Deaf and the Medical Society
of the District of Columbia.
The bills basic principal for de-
termining exemption rights is that
ar institution must not be organ