Evening star., 1945-05-19
Major Tax Change
Looms for District
Il Aides Get Pay Raise
By BAINBRIDGE CRIST.

With the appointment yesterday
by the Commissioners of seven
District officials to study the mu-
nicipal tax structure in the hope
of raising 100000 of additional
revenue, District residents may be
faced with the first major tax
change since 1899.
Corporation Counsel Richmond
B. Keech, named chairman of the
group. said he did not know when
the study would begin. He said
that with Congress indicating rather
clearly that it would increase SAL
aries for Federal employees, it al
most certainly followed that Dis
trict employees would be treated ac-
cordingly. and that this would prove
an additional drain on District
revenues.
The District Revenue Act of 1889
levied an income tax on persons
domiciled in the District, imposed
a tax on corporations, estate and
inheritance taxes. but abolished
taxes on intangibles and repealed
UuolllCSo pllfucSc tdAcS.
Would Cost $500, 900.
Legislators recently were advised
that extension of the proposed Is
per cent basic pay raise for Federal
employees to classified workers of the
District would cost approximately
81 100000. If Congress should de-
eide to continue overtime payments,
as well as grant basic pay raise,
an additional $3,800,000 would be
added.
When the budget was sent to
Congress in January-prior to dis
cussion of the increase in basic pay
it was estimated that there would
be left at the end of the next fiscal
year a surplus of about $1,100,OOO
as against surplus of more than
S5,000,000 carried from 1914 fiscal
year into the current year.
The budget also called for
$5,000,00 postwar investment to be
added to the present $4,000, 600 fund.
AS it went to Congress, the budget
provided for retirement of the re-
mainder of the Districts debt by
appropriating $4,000 to repay the
United States for advances under
the Capper-Cramton Act, and 1884,
900 for defense loans from the Fed
eral Works Agency.
Major Items Listed.
Total revenue for the fiscal year
1946 was estimated at 500 ,538, 300.
The budget called for appropriations
of $65,915, ,480, exclusive of provi-
sions for continuing overtime pay
mentS.
In addition to the $6,O00,0 900 Fed
eral contribution, major items of
anticipated revenues for 1916 were
listed as follows: Property taxes,
$28, $4,000; sales and gross receipts,
such as alcoholic taxes, business and
insurance, $6,675 900; licenses and
permits, $1,650,O00; individual, cor
poration and inheritence and estate
taxes, $10,0OO,O0O; fines, reimburse
ments and special assessments, s2,-
10000; gas tax, S2,880,00O; water
rates, 100000, and income from
trust funds, loans and grants, $6,-
418.3O0.
At present, the real estate tax is
s1.75 per 500, and the gasoline tax
is 3 cents gallon. Approximately
so per cent of the revenue for the
general fund comes from real prop
erty tax. Since 1943, the gas tax,
which provides the bulk of revenues
for the highway fund. has produced
only 10 per cent of the amount
realized in 1912.
Last October, Mr.. Fowler issued
statement warning that revenues
may decline in the next several
years, that expenses were rising and
that maintenance costs would be in
creased as new construction work
was completed.