Evening star., 1946-10-27
Flexible Gas Tax
Rate for District
May Be Sought
City Heads Favor Levy
Based on Need Rather
Than Fixed Figure
By John W. Thompson, Jr


The Commissioners may ask
Congress for power to adjust the
gasoline tax rate according to
need instead of seeking a per-
manent figure of 4 cents a gallon
as proposed by their special tax
committee.
This was disclosed yesterday by
Commissioner Guy Mason who said
the city heads are exploring" the
problems involved in a flexible rate.
I'VE like the idea," said Mr.. Ma
son. I'VE just want to see if there
are any bugs in it not Immediately .
apparent"
Under a law of 1922, the Commits
sioners have the authority to fix the
rate of the real estate and personal
property taxes. This is their only
taxing power, all other taxes and
rates being fixed by Congress.
S1,500,0O0 Revenue Increase.
The gasoline tax was emporarily
increased from to cents a gallon
effective in early 1912 to finance a
prewar highway development plan
of Highway Director H. G. White
hurst. 1t is due to return to 2 cents
in 1851 unless additional law is en-
acted.
Headed by Corporation Counsel
Vernon E. West, the special tax
committee urged the cent gallon
increase to cents as a permanent
level The members estimated this
would raise 81 100000 more than the
present Scent tax will produce an
nually for the highway fund. The
fund finances all highway and .traf-
fic expenses and a portion of police
salaries. The gas levy now pro-
vides about IS per cent of its income.
Until a decision is made in the
matter, Mr. West will not be directed
to begin preparation of gasoline tax
legislation, Mr.. Mason said.
He added that the Commissioners
have abandoned an earlier plan to
submit an omnibus tax bill covering
both the general and highway funds.
They will be treated as separate
items, he explained.
The Highway Department has de-
clared that the gas tax boost is
necessary to enable the department
to meet 1948 obligations including
participation in the Federal aid post
war plan and the South Capitol
Street bridge now under construc-
ton.
West Working on Bill.
City gas and oil men and the Fed
Grafton of Business Mems Associa-
tions have opposed the increase. Op-
ponents argue that the present 8
cent rate never has had a fair trial
in normal year. Gasoline con-
sumption was forced down by ra-
tioning as soon as the last increase
went in effect, they contend. Others
have suggested postponing major
construction for a. better building
market.
Meanwhile, Mr.. West said he has
already started drafting a general
fund tax bill for the Commissioners.
The bill will contain all seven pro-
posals of the special tax committee
last summer to raise a total of ST.
$50 900, it was learned.
Sole change made by the Com
misSionerS was in the amusement
tax. They are sponsoring a 10 per
cent levy on admissions to be paid
by places of amusement.
Originally the West committee
called for 10 per cent tax on ticket
price. At the public hearing Sep
tember l6, theater spokesmen pro-
tested that such tax pyramided
on the Federal 20 per cent levy
would put amusements beyond the
pocketbook of persons in the low
pay bracket.
The Commissioners then shifted
their attention to seat" tax. under
which amusement places would pay
according to capacity. Mr.. West
persuaded them, however, that this
would nit be desirable or fair since
the number of seats bore no relation