Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-03-27
DC. Rea|tyLevy
Cited 10 Show
Sales Tax Need
Figures on High Rotio
Here to Be Stressed in
House Fight 7 Tomorrow
By Harold B. ROGERS

cent sales tax for the District
last night made public the official
arguments they will advance when
the budget-balancing proposal
comes up for a vote in the House
tomorrow.
The measure is a revised YER
sion of one which failed to pass
two weeks ago and to support it
this time sales tax advocates called
on congressional experts for fig
ures in the report which they will
use tomorrow.
The report will show, among
other things:
That the percentage of property
tax collections here in relation
to total tax collections is the
highest of 18 comparable cities,
with the exception of Boston.
Lighter Per Capita Tax.
That residents of the District
pay lighter per capita tax than
do the residents of the other cities
in the survey but it is because Of
lack of a general sales tax here,
the restricted nature of the income
tax here and Federal Government
exemption from unemployment
compensation taxes.
The new revenue bill is designed
to help finance the District for the
next fiscal year. The city now Is
facing an $18,0O0,0O0 deficit. The
House-passed District budget of
about $99,0OO,00O now is awaiting
action by Senate Appropriations
Subcommittee.
The Districts per capita tax
burden was listed at 1878, low.
cts in the list of 10 cities, as COM
pared with the average of $113.65.
Highest on the list was San Fran
cisco with $145.06.
The percentage of total city
revenue paid by real estate taxes
here was listed at 53.87 and was
second only to Boston which
showed 1882 per cent of its rev.
enues came from the real estate
levy.
Low Burden Sited.
In commenting on the study the
report said:
1.-THE most important conclusion
to be drawn from the statistics,
so far as the burden of taxation
can be measured on a per capita
basis. is that they show that the
people of the District bear a
lighter tax than do the inhabi-
tants of other large cities.
THE loWness of this burden re-
suits in large measure from low
per capita sales and gross receipts
taxes. the low individual income
tax of restricted application and
the extensive employer exemption
Federal Government) from un-
employment compensation taxes.
"A second conclusion of i'm
portance is that, on this basis Of
measurement, the District has
second place in the proportionate
part of all taxes which are raised
by taxes on property and may in
fact actually have first place."
Real Estate Tax Rate.
The District per capita burden
OF property taxes on a dollar basis.
the report pointed out, is neither
exceptionally high nor low, but in
stead falls a bit below the average.
The Washington per capita
real estate tax was listed at $47.32
as compared with the average of
$55.27.
The statistics were based mostly
on reports of the Buerau of Census
for fiscal years ending last year.
The author of the report, Ray
mond E. Manning. of the Legisla-
tive Reference Service of the Lii
brary of Congress. said his re-
port was subject to Limitations on
their accuracy" due to many fac
tors which he outlined in some
detail.
The four-part revised revenue
measure, now awaiting House &C
ton, after approval recently by
the House District Committee,
calls for a per cent retail sales
tax, a 15-cent increase in the
real estate rate, a SO per cent
increase in liquor licenses, and
amendments to broaden the Dis
trict income tax.
To Offset Deficit.
The bill is estimated by the
majority report to raise $17,756,-
$50. 1t is designed to meet the
estimated $1S,00O,OO0 deficit faced
by the District in the fiscal year
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