Evening star., 1947-05-18
HeariingsCalled
On U. 5. Fee for
Untaxed Realty
District Is Included
Under Bill Systemizine
Federal Payments

A House Public Lands subcom-
mittee will begin hearings May 26
on a bill to systematic Federal
payments to State and local gov
ernments In lieu of taxes for Federal
real estate holdings.
The measure is being sponsored
by Representative Engle, Democrat
of California, In behalf of the Ma
tional Association of County On
cials and other groups representing
areas which have lost tax revenues
through the acquisition of land by
the Federal Government.
Representative Barrett, Republic
can Of wyoming, Is chairman of the
subcommittee which has called the
hearings.
Commission Provided.
The bill would provide commits
sion on Federal contributions to
States and local governments which
would hear claims Of areas hurt by
Federal land ownership and would
have authority within the limits Of
the bill to make adjustments. The
District is included. Federal prop
erty used for Office buildings, court
houses and postofices, however, are
exempted as source OF payments.
A bill along the same general lines
but differing in details has been
introduced in the Senate by Senator
Butler, Republican of Nebraska.
The District is not specifically in
cluded in this plan.
Between rs and 80 representatives
of the more than 5000 counties in
the country are expected to appear
in support of the plan. Also in
terested are the Council Of State
Governments, the American Mu-
nicipal Association, the National
Education Association and the Ma
tional Institute of Government Pur-
chasing Agents, it was said.
Local Governments Concerned.
Proponents of the bill say they
are interested specifically in the
plight. of local governments. They
point out Government land owner
ship in many cases has increased
property values and otherwise bene-
fitted people around the federally
owned area. But they add that this
has not made up to the counties
and other units the loss. of revenue
brought about by the withdrawal Of
the land from taxation. Property
Is the mainstay of county and city
taxation generally.
Payments in lieu of taxes now are
made under approximately 40 diff
ferent provisions In acts of Con-
gress, it was said. Most of these
apply to various Government cor
poratiors and include the Federal
Works Agency and the Department
Of Agriculture. ~,
Before the war the problem was
said to have been most acute in the
western land counties where acre
age was held by the Government in
forests or grazing land. During the
war, however, Uncle Sam extended
his holdings to other areas and
other types Of property. resulting in
u growing awareneSs on national
basis Of the effect of these holdings
on local tax structures.
Much Space Here Exempt.
In the District the Federal Gov
ernment owns about $4,000 of the
total $1,000 acres. But much of
this would be exempt from the pro-
visions of the bill because 1t is used
for Office space.
In September, 1914, the Public
Lands Committee studying the prob
lem of taxation of public property
published tables on the Federal
ownership of land in the States. The
table showed "a per cent of the Dis
trict in Federal hands, 8 per cent
Of Virginia and per cent of Mary
land.