Evening star., 1947-05-26
States Ask u. 5.
ToPay for Loss
OF Tax on Land
House Unit Studying
IS Such Requests
For Reimbursement
By Harold B. Roaers

By HoroId B. Rogers
Members of Congress from
widely sections today
began laying before House Public
Land subcommittee the need of
their home states for Federal pay
ments to reimburse localities for the
loss of taxes due to large Federal
real estate holdings.
Hearings opened before the sub
committee on a series Of Is bills all
directed at the general idea of OBJ
tanning Federal compensation for
lost taxes which the localities claim
have constituted an increasing bur-
den.
One Of the bills, by Representative
Engle, Democrat, Of California,
would establish a Federal commits
sion on national contributions to
States and local Governments.
Loss in Taxes Spur Demands.
Payments in lieu of taxes now are
made under about 40 different pro-
visions in acts of Congress, it was
learned, but there is a rising tide of
irsistence from the States that they
are losing too much local taxation
because of Federal holdings.
-Four bills to authorize State and
local taxation of Federal real estate
were opposed today by the War and
Navy Departments and the Recon-
struction Finance Corp. at the sub
committee hearings today.
Sponsor of the first measure
brought up Representative Angel,
Republican, of Oregon, presented q
strong plea to the committee in be-
half of his proposal to provide for
taxation by States and their politi-
cal Subdivisions of real property &C
quired for military purposes.
He asked for consideration of his
bill as introduced early in the
Eightieth Congress. But he said that
If the committee could not agree on
the principle that Federal property
should be taxed by State, some
provision should be made to re-
imburse local Governments for loss
of taxes caused when the Federal
bdhCc ofC1 P1oPOlbJ AZ
moving it from local taxation.
Engle Supports Proposal.
Representative Engle, a member
of the committee, supported Mr..
Angell's general contention that
there was an obligation on the
part of the Federal Government
to the States on account OF the
issue involved.
Chairman Barrett explained that
. the committee would take up all
Is pending bills in block and
began calling them one at time.
1t was predicted that the COM
mittee might require two or three
days of hearings.
The commission provided by Mr..
Engle's bill would hear claims of
areas hurt by Federal land owner
ship and would have authority
within the limits Of the bill to
make adjustments.
Mr.. Engle's bill would include the
District of Columbia. His measure,
however, excludes Federal property
used for Office buildings, courthouses
and postoff1ces, as source Of pay
ment.
Use of School District Cited.
Rep. Miller, Republican, of Ne
braska, who is a member of the
House District Committee, supported
q contention by Mr. Engle that the
Federal Government owed an obli-
CATION on account of its withdrawal
of property from the local tax rolls.
In his home state Mr.. Miller con-
tended the Federal Government took
from one-half to two-thirds of some
of the school districts, making it
difficult for the locality to support
Its educational institutions.
Representative Crawford, Repub-
tican, of Michigan sharply attacked
the idea of permitting States to tax
Federal property. He contended
that when the State and Federal
officials agree on the transfer of
property to national ownership.
there should be an understanding at
that time as to some form of reim-
bursement.
He characterized the agreements
as horse trading" and insisted that
the local authorities should be wise
enough" to insist on some compen-
sation If it Is needed.
Army Stresses Benefit to Areas.
Representative Angel retorted "the
States have about as much oppor-
tunity to negotiate at such a time
with the Federal Government as a
man would have faced with hold
up bandis.'
The War Department contended,
in objecting to the local taxation of
Federal property, that many Fed
eral reservations turned out to be a
big prc9t to the locality.
1t quoted the Federal Real Estate
Board report of 1e43 as recommend
ing against the local taxation of
Federal real estate
The Navy Department in oppos-
ing bills for taxation of Federal
property also agreed with the Fed
eral Real Estate Board objection on
this score. 1t added, however, that
any hardship occasioned to the To-
cal communities. If they could be
proven, should be compensated for
by some payments to the localities.
The Navy, however. insisted that
much of the tax loss to the COM
munities was offset by benefits in
the form of payroll. fire protection,