Evening star., 1945-12-19

amount to s12 2,2S3, ,497, which is more
than double the lump-sum pay
ment of $1,000 900 now made to the
District of Columbia.
Privately Owned Tax-Exempt
Property.
| There is another factor which Is
now figuring prominently in remoy-
ing taxable property from the tax
rolls, and that is the acquiring Of
property by foreign governments.
In addition to being the National
Capital, the District of Columbia
is rapidly emerging as the capital
of the United Nations, and whereas
in the past foreign governments
purchased only small pieces of prop
erty. the trend now appears to be
toward purchasing much larger
properties-estates which have been
the sources of much revenue. When
SO purchased these properties go
from a taxable to a nontaxable
status.
| Services.
/ Due to the close association of
the Federal and District govern
ments, many services are exchanged
between them for which no reim-
/ bursement is made This is as it
should be, as the time and expense
necessary to compute the cost of
such services and to effect reim-
bursement therefor would in many
instances more than offset the orig
inal COST A listing of such services
/ will therefore not be included in
this report.
/ However, there are several serv-
ices rendered the Federal Govern
ment by the District government
without reimbursement that are of
such magnitude and Importance
that they should be called to at
! tention.
! % Water furnished the Federal
Government. During the fiscal
year 1885 there were furnished A.
356, ,986,345 gallons, having a sale
price of S407 1880, whereas during
the fiscal year 1914 this had in
creased to 7674,27l,132 gallons and
sale price of $7l7,54310, an in
crease of rs per cent. AS no part
of the annual payment made by
the Federal Government to the Dis
trict government goes to the water
fund, the water furnished is 100
per cent gratuitous service.
(2) The Federal Government paws
no assessment for the paving of
streets or sidewalks abutting prop
erty owned by the Government.-As
the cost of paving streets and side
walks is paid from the highway
fund, which is comprised of taxes
on gasoline sales and fees for the
registration of automobiles, etc,
from all of which taxes and fees
the Federal Government is exempt,
and as no part of the annual pay
ment goes to the highway fund, this
service also is 100 per cent
gratuitous.
/ Suggested tions.
| 1t is believed that it is the desire
of the Federal Government to as
sumo its proper share of the ex-
penses for the upkeep and opera
ton of the National Capital. This
finding is based upon the following
facts:
! l. The District of Columbia Is
| the seat of the Federal Government
set aside for Federal purposes. with
full legislative powers retained by
the Congress.
| 2, The area of the District of
Columbia is fixed. 1t cannot ex-
| pand. Therefore, when the Federal
Government purchases property the
tax revenue previously received on
such property is lost to the District
and cannot be replaced The resi-
dents of the District in fairness
should not be expected to make up
such loss in revenues by increased
taxes.
! 3, The enormous increase in the
expenses of the District of. Column
bia during the past 10 years has
been occasioned by the tremendous
expansion of the Federal Govern
ment, with no commensurate in
crease in the payment by the Fed
eral Government. During the past
6 years there has been no change
in the amount of the annual pay
ment.
4. The residents Of the District
through increased taxes have ade-
quately, fairly. and cheerfully pro-
vided their share of the cost of
operation and upkeep of the Ma
tional Capital
1t is believed that the annual
payment to the District of Column
bia should be based on a definite
formula, by the operation of which
the amount of the payment would
be automatically computed, thereby
eliminating the controversy which
has continued through the years
both as to the amount and method
of payment Such formula is pre-
sented herewith, together with
drafts of two bills for the consid-
Grafton and choice of the commit
tee, as follows:
Cd The first bill provides that
the annual Federal payment will
bear the same ratio to the total
revenues of the District of Column
bia during the last complete fiscal
year, exclusive of the annual Fed
eral payment and trust funds, as
the land owned by the United
States in the District as adjusted
by the park area and United States
land used by the District. bears to
the total land area of the District
less the adjusted land area owned
by the United States. Under this
bill the formula would apply to
the revenues of the general fund,
the water fund, and the highway
fund.
CD The second bill is similar to
the first one, except that the for
mula would apply only to the rev.
| enues covered into the general fund
| of the District exclusive of the