Evening star., 1942-07-26
DC. Heads Back
McCarran Plan
Of Tax Immunity
Hunter Bill Seen
Restoring All
Agencies to Rolls
BY A. J. O'LEARY.

pending in Congress to clarity the
subject Of tax exemption for relig-
tous, charitable and educational in
etitutions, the Commissioners are
expected to support the McCarran
Senate bill in preference to the
measure offered in the House by
Representative Hunter, Democrat,
of Ohio.
The Hunter bill is a broad, all-in-
elusive definition of types of insti-
tutions entitled to exemption, pro-
vided no part of the net earnings
tnure to any private individual
Informed sources believe this plan
probably would restore exemption to
all the property transferred to the
tax rolls in the last l8 months. and
some officials believe it would go
further and include some agencies
not heretofore on the exempt list
Selective Plan.
The bill sponsored. by Senator
McCarran, Democrat, of Nevada
and introduced in his absence by
Senator Clark, Democrat, of Idaho,
Is a more selective plan, consisting
of separate definitions for each gen.
eral type Of institution. 1t vests in
the Commissioners discretion to de-
termine the extent to which land
surrounding exempt institutions
should be tax-free.
At the same time, the McCarran
bill liberalizes some of the rigid
definitions in existing law, with the
result that it probably would restore
exemption to about so per cent of
the property declared to be taxable
In the series of $50 opinions handed
down since January, 194l, by the
Real Estate Tax Exemption Board.
Properties with total value of
$25 900 900, calling for an annual tax
levy Of $400, 900, have been made
taxable as result of the review of
the exemption rolls by the board,
under the direction Of Budget Of
ficer Walter L. Fowler, since Jan
wary. 1s4l.
Bills Provide Refunds.
Both the McCarran and Hunter
bills provide for refund of any taxes
paid during that period by institu-
tions whose property would be en-
titled to be returned to the exempt
list under the new definitions.
The essence of the Hunter bill is
contained in the following general
definition of exemption:
"All real property used for re-
ligious, charitable, educational,
scientific, hospital, clinic, orphan
age, library, literary, art gallery,
cemetery or other benevolent pur-
poses Uncluding property used for
the care, sustenance. moral or
mental Improvement of men, wom-
en-, or children, or for the preven-
ton Of ,cruslty to animals), when
said property Is used by any insti-
tuition. corporation, association
trust, community chest. fund, OF
foundation, having as its objective
and purpose the accomplishment Of
any one, or any combination OF the
aforesaid purposes. but only If ne
part OF the net earnings OF Sucf
institution, corporation. associa
ton, trust, community chest, fund
or foundation inures to the benefl'
OF any private shareholder or indi'
vidual."
The Hunter bill also provides
that II any part of property L
put to any use other than the pur'
poses specified above, that portiof
shall become taxable.
Eight Glasses Listed.
The McCurran bill, on the othel
hand, lists eight distinct classes o.
buildings that would be entitled u
exemption and writes into law
new definition for each class, th'
effect of which will be to restor'
exemption to some, but not all, O
the properties recently taxed. i
contains a separate, ninth para
graph, describing when ground
around these institutions shall b'
exempt. The classifications follow
Il. Art gallery buildings open Z
the public generally belonging t.
and operated by organizations whicl
are not organized or operated 10
private gain; provided. that n
charge is made for admission o.
more than two days each week.
the allowance of admission lee
two days a week is In recognltlo
~ the fact that some source OF In
come may be required to cover up
%. Library buildings open to tn
public generally belonging to an
operated by organizations which al
not organized or operated Tor pr
vate gain"
(Officials say this definition is
line with the Interpretation OF tr
present law where private npraflt
are open to the public
Charities Defined.
"3 Buildings used for purposs
of public charity belonging to an
operated by institutions which 81
not organized for private gain. Put
lie charity, as contemplated py Tn
act. means charity which conle
benefits on the public, or some po
tion thereof, OF the District OF u
lumbia. Charity is none the le
public because it is limited IN
operation to the members OF a pa
ticular race, sect, or society, so lor
as it is wholly beneficient IN u
end to be attained, and no priva
or selfish interest is fostered und
the guise thereof.
(This is a substantial change, al
will make possible the exemption
institutions such as old peopb
homes, even where admission is III
tied to a sect or race. 1t ehminat
the rigid definition, purely char
able" in the present law. which Il
some institutions OF this type 1
eligible to exemption.
a Hospital buildings belonging
and operated by organizations VIM
are not organized or operated I
private gain"
CThis is new. Oficials expla
hospitals were not listed by mar
in existing law, and had to quail
as purely public institutions to O
tain exemption. They interpret t
new definition as making eiigil