Evening star., 1949-11-20
toStudy
Plan 10 Equa|ize
Tax Revenues
Closed Conference
To Seek More Funds
For States, Cities

For States, Cities
A united front on new legisla-
ton proposed for presentation to
Congress in January is the aim Of
a closed meeting at the Budget
Bureau tomorrow. 1t will be at
tended by Federal, state, county
and city officials interested in
equitable taxation.
Because the Federal Govern
ment has bought up so much tax
able property in communities.
taking it off the local tax rolls
and depriving them of this reve-
nue, Federal officials are in
terested in getting more funds for
running their governments. 1t has
been estimated by these officials
that as much as $3.50, 100000 an
nually for the entire Nation is
lost to local taxation, because Of
the Federal Government becon-
ing an ever-increasing landlord.
American Municipal Association
officials placed the Districts losses
in taxation, due to Federal prop
erty holdings here. at $17.700.000
annually; that for Arlington
County at s3,0OO,000 and for
Montgomery County at $4,700,000
The Federal Government now
makes $12,000,000 payment to-
ward the expenses of running the
National Capital.
To Seek Solution to Problem.
Legislation now pending in
Congress on inter government
taxes has met with objections
from the Federal administrative
agencies. the Interior and Treas
ury departments and others. To-
morrow's meeting will present pro-
posals to meet these objections
and determine if they conform
to the taxation views of State and
local groups. This will be staff
conference.
If satisfactory solution to all
concerned can be worked out at
tomorrow's session, it is considered
likely that Secretary of the Treas
ury Snyder and Budget Director
Frank Pace will confer with Presi-
dent Truman later. A policy by
the administration on the new
legislation would then be laid
down.
Non Federal officials say it Is
unjust to have a particular city.
county or State bear the tax loss,
when the Federal Government
moves in and buys land. Federal
property is exempt from local tax
alton. Population growth now
makes the problem acute, due to
the demand for more services,
such as schools.
Unfair Losses Charged.
When new Federal facility
moves in. the officials point out it
may serve an entire region, but
the tax loss falls only on one SEE
ton. This, they contend, is unfair.
It has been proposed that the
Federal Government give up some
excise taxes to localities urgently
seeking new revenue sources. State
and local representatives have said
that towns and cities should share
in the ST, 800. 100000 Federal reve-
nue. obtained from taxes on amuse-
mentS. gasoline, electric power and
telephone calls. They contend that
when there is a general Federal ex-
else tax revision, the interests of
States and localities should be
considered.
In considering the complex
problem, attention is being de-
voted to the differences in use to
which Federally- owned property
is put. the effect of new Federal
land purchases on specific COM
munities and new expenditures
imposed on local governments by
the Federal operation, particularly
in new school requirements with
added Government employees and
their families.
State taxing authorities have
suggested that the Buck Act Of
1910 be amended to permit their
collection of personal property
and franchise taxes on Federal
reservations. In exchange for the
right Of State and local govern
ments to collect taxes on Federal
reservations, the Federal Govern
ment may require State and local
governments to provide school and
other facilities on about the same
terms they are available to non
Federal workers.
Particularly interested in to-
morrow's sessions are: !. M. Labo-
vitz, head of the state-1ocal di-
vision of the Budget Bureau: the
Council of Economic Advisers;
Keith L. Seegmiller. Washington
representative of the National As
ISOLATION of County officials; the
Council of State Governments and
the Governors Conference; Don
Hanks, assistant director of the
American Municipal Association;
the United States Conference Of
Mayors; the National Association
of Tax Administrators; the gen.
eral counsel of the Treasury De-
partment. and its tax legislative
counsel; and top officials of the
Bureau of Internal Revenue.
A preliminary conference was
called = by Secretary Snyder and
the Budget Bureau in April to
threSh out the whole problem.
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