Evening star., 1946-07-09
z Pei. Sales Tax
Urged for DC.
lin Broad Plan
Sl7,750, 900 Program
Extends Income Levy
To Nonresidents
By John W. Thompson, Jr.

ny JoHh W. thompson, ".
A new tax program calculated
to raise S17,75O,000 was recon-
| mended to the Commissioners
today by their special Tax Com
mittee headed by Corporation
Counsel Vernon E. West.
recommendation and the amounts
they are calculated to produce are:
A 2 per cent sales tax, together
| with use" tax covering articles
purchased outside the District for
storage or consumption within, So
| 900 900.
| Broadening of the present income
tax to include not only those domi-
ciled here but also those maintain
| ing permanent residence here who
spend more than three months of
| the taxable year within the Dis
trict.' together with a levy on in
come earned in the District by nom
residents. S2,250,000
2ce on Gas, Electricity, Phones.
A per cent income tax on unin-
corporated businesses, $500 900.
2 per cent tax on gas, electric
and telephone bills rendered for
gas and electricity used in the Dis
trict and for all telephone service
originating within the District.
sl,00O0O0.
A 1-cent tax on each package of
20 cigarettes, to be collected by sale
of stamps, S800O00
A 10 per cent levy on the pur-
chase price of tickets to places of
amusement, ST 100000
Increases in the levies on spirits,
beer and wine, S2,800,0O0
! No action has yet been taken on
the committees suggestions by the
Commissioners.
The Special Tax Committee was
created about a year ago and con-
sisted originally of seven District
officials headed by then Corporation
!, Counsel Richmond B. Keech. At
that time, it was indicated the
/, committee would explore existing
and new sources of revenue with
view to raising at least $4,000, 900.
Membership of Is.
When Mr.. Keech became an aid
to President Truman, Mr. West as
sumed leadership of the committee
and its membership was raised to
l8. including representatives of key
civic organizations.
Increasing demands on the local
revenue, chiefly in the form of
higher salaries and operating ex-
penses. forced the committee to seek
more income.
In the case of the sales tax. the
committee recommended that it be
placed on all tangible property sold
at retail in the District whether for
use within the District or not. with
the exception of food products for
human consumption off the pre-
misses, sales of medicines, sales Of
materials used in the construction
of structures and to be permanently
incorporated therein and sales on
which a selectlve sales tax has been
levied
The members felt the Commits
sioners should have authority to
, exempt all sales under 25 cents from
; the levy.
Coupon Collection Plan.
The method of collecting the sales
tax favored by the committee is
similar to that used in Ohio in which
: coupons would be sold by the COL
. lector of taxes to the seller of the
goods and delivered by the seller
to the purchaser as evidence of tax
. payment.
In this way use Of tokens or
= coupons which would have to be
carried by the general public would
be avoided, the retailer adding the
= tax as a separate item to the selling
! price of the article and collecting
. it at the time of the sale.
;. In the case of the use tax the
: committee felt it should be imposed
on any articles purchased outside
the District which if purchased in
side would have been subject to the
j sales tax, with credit given for any
sales tax paid at the place of pur-
: chase
The use tax. however, would not
be applied to property acquired in
S any one month which does not eX-
4 ceed S25 in aggregate value, nor to
tSee TAXFS paoe A-Sl