Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-08-29
DC. toRequiire
Extra Business
License Sept. IS
Permit to Operate
Affects Firms With
Gross Over $4,000

gross annual income OF more than
$4,000, may engage in business in
the District without a license after
September Is.
This was announced yesterday by
Edward A. Dent, District assessor,
after the Commissioners had ap-
proved a set of regulations drafted
by the assessors Office in collabora-
ton with the Corporation Counsel.
Authority for the regulations was
granted by Congress last month.
Provides Enforcement.
The new regulations are designed
to lay the groundwork for city en-
forcement of the new rnircorpo-
rated business tax and the revised
personal income tax ordered by
Congress last month. The new
omnibus income tax statute re-
pealed the earlier income tax act
of 1889 which applied only to per-
sonal and corporation income.
In the new law the former corpo-
ration levy was continued with only
a few minor notifications, the I'M
incorporated business levy added,
and the personal income tax
changed fro ma base of legal resi-
dence to actual residence.
The new act also exempted Fed
eral salaries earned hes and credits
against any tax payment here the
amount of any income tax paid to
State.
Those who do not have a license
by September Is are liable to fine
of $500 day, Mr.. Dent explained
The licenses under the new law will
be in addition to, and not in lieu
of, all other licenses and permits
required by law.
Regulation Provisions.
The new regulation states:
ANY unincorporatedb business, en-
gaging in or carrying on any trade
or business wholly or partially with
in the District, which has a gross
income of $4,000 or less from with
in the District for any full calendar
year, shall not be required to apply
for or obtain a license for the
succeeding calendar year If its esti-
mated gross income from within the
District for such succeeding calen-
dar year is $4,000 or less
The new regulations provide,
however, that if the gross income
unexpectedly exceeds $4,000 a Ii
cenSe must be obtained within 60
days.
The new law exempts from the
provisions of the license any bust
ness which by custom or ethics can
not be incorporated, or any trade
or business in which more than 80
per cent of the gross income is
derived from personal services and
in which capital is not a material
income-producing factor.
Status of Professions.
The professions recognized to come
under the professional status are
accounting, chiropody, law, medi-
cine and surgery, osteopathy, phar-
macy, physiotherapy and veterinary
medicine and surgery.
The new regulations rescind some
of the rules adopted for the District
Income Act of 1889. Retained, how
ever, are requirements for filing
reports, examination of records
collection Of taxes set up in the act
and imposition of penalties for fail
ure to comply with these provisions
An organization Is not exempt
from provisions of the corporation
license requirement merely because
it is not operated for profit. Clubs
organized and operating exclusively
for pleasure, recreation, and other
nonprofitable purposes, are among
the groups pointed out by the as
SCISSOR being covered by the new
regulations. Farmers associations
organized on a cooperative basis
also must obtain licenses.
Chest Exempt.
The Community Chest and founda-
lions operated for religious, char
table, scientific, literary or educa-
tional are exempt If their activities
are confined to the District ITO a
substantial extent" The fact that
the Community Chest carries on
some of its activities in areas con-
tiguous to the District does not de-
prive it of exemption, the regulations
specify.
Under the new regulations any in
come from Government worker
derived from the operation of a
taxicab, an apartment house, OF
business or professional activity, in
the District, even if he claims doni-
cile elsewhere, shall be taxable il
such person actually has lived in the
District for more than seven months
of the taxable year. The spouse OF
any Federal oficeholder is not
exempt from filing income tax re-
turns, even though domicile is
claimed elsewhere, if he or she has
an income not derived from the
Federal Government.
Tax Bills Senf Ont