Evening star., 1949-05-24
House Action SOUGHT
Today on Conferees'
DC. Sales Tax Report

DC. Sales Tax Report
I BY Don S. Worren
q House approval of the confer
fence report on the Districts $ls,-
900 900 tax bill was to be sought
today to speed final Congressional
action on the, deficit solving meas
snre.
/ A report detailing agreements
reached yesterday by House and
Senate managers Of the bill was
nled with the House late yester-
day to pave the way for its coz
isideration today.
As soon as the House has acted,
the bill would move back to the
Senate for ratification of the con-
ference changes. The bill then
would 60 to the White House.
= June i objective.
Z. An effort was being made to
complete Congressional action
this week 50 it might be ready
for the signature Of President
Truman before June /. Sales tax
collections will start August /, If
the bill is enacted before the end
Of this month.
House and Senate differences
over the bill were compromised
yesterday at a two-hour session
Of conferees. Their major recon-
mendations called for modification
Of the extra taxes proposed for
the liquor trade and the price OF
meals to be exempted from the
2 per cent sales tax.
Meals costing SIPS or less would
be exempted from the 2 per cent
sales tax under the compromise.
The. House had provided no ex-
emption on meals. The Senate
bill exempted meals costing $1.50
or less.
50% Liquor Boost.
The conferees agreed on q COM
promise raising liquor and wine
taxes by so per cent. The House
bill called for no increase in liquor
taxes. The Sentae called for q
100 per cent increase.
A Senate provision for a 100
per cent increase in the city's tax
on beer was left intact by the con-
feres.
Both houses already had agreed
to a so per cent increase in fees
for alcoholic beverage licenses.
Two provisions Of the measure,
written into the bill IN the Senate.
were accepted by the conference
group. One Of these calls for a
special cent a pack tax on
cigarettes, but leaves cigarettes
exempt from the two per cent
sales levy. The other exempts all
medicines, instead Of only pre-
scription drugs. from the sales
tax. =
Real Estate Rate Up.
Provisions Of the tax bill in
elude the following:
A one year increase In the Dis
trict tax rate on real estate from
a. to $2.15 per 500 of assessment;
A revision of the Districts per
sonal income tax to apply it to
all persons actually residing in
the District for seven menths or
more oft&srEar Except members
Of CONGRESS. their secretaries and
certain presfdentiafe aappointees) /,
but raising the basic exemption to
n. 900 Of taxable income.
A revision Of the five per cent
franchise tax unincorporated
businesses operating here, to
lower the basic exemption from
$lU,VUV 10 $o,VUU.
Some Items Exempted.
The sales tax. applying gen.
srally to all tangible personal
property bought here. or brought
into the District for use, specifi-
eally exempts some items. including
food bought for home consump-
ton, candies, bottled soft drinks
and such aids to handicapped as
wheel chairs, crutches. eye glasses.
false teeth and hearing aids. All
items selling for 13 cents or less
are exempted.
One section Of the sales tax
applies q two per cent levy on the
price Of transient hotel rooms.