Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-12-28

VnOHl1iI DnIS
Due in February
, 10 Pct. Levy on Use
OF Cos, Water, Phones
And Electricity Voted
Alexandria will begin levying q
10 per cent tax on all utility bills
beginning about February /.
The new tax will be paid by
users of water, gas. electricity and
telephones.
The levy. expected to raise
$4,000 in 1850, was approved
last night by the Alexandria City
Council despite vigorous OPPOSE
ton by a group of citizens and
spokesman for the utilities. The
vote supporting a recommends
ton Of City Manager w. Guy
Ancell was S to 2.
The utility tax was approved in
preference to additional levies on
real estate to help provide money
necessary for a record budget Of
$4,312,312-a figure $155, 800 below
that proposed by the city man
ager. It is 100000 more than is
being spent in 1949.
t3-Day Wait Required.
Technically, the new budget and
new tax cannot become effective
until several steps are taken. The
council must wait three days be-
fore making its action final. TIC
do that, it will meet Saturday
Then, it must ask the Virginia
General Assembly to amend the
present city charter so the utility
tax can be levied. This will be done
when the Legislature convenes
next month. Assembly approval is
expected Immediately.
After that, the council must
adopt a city ordinance imposing
the 10 per cent tax on utility bills.
Mayor Franklin p. Backus said this
can be accomplished in time to
make the ordinance effective Feb
ruary /.
Alexandria new charter. also
to be introduced in the Legisla-
t,lre, will contain provisions for
utility taxes.
Councilman Marshall ]. Bev-
erley and Leroy s. Bendheim.
who voted against the utility levy.
said they favored an increase in
the real estate tax. The 1850
budget contemplates an additional
3255, 900 from real estate taxes
because Of a recently completed
re-assessment. The realty rate
is $2.75 per 500 of assessed valua-
tion and the personal property
rate s. per 500 Of assessed valua-
ton.
Tax Called Too High.
Gardner Boothe, attorney for
most utility companies, said the
firms felt a 10 per cent tag was
too high.
He said industries requiring
much utility service would have to
pay heavily. He asked some re-
ductfon in the rate for industrial
users.
Paul Eckman. speaking for the
Chesapeake g. Potomac Telephone
Co., said his firm felt the proposal
singled out telephone users for an
undue portion of the tax burden.
Raymond c. Brehaut, manager
of the Rosslyn Gas Co., called
the taxes discriminatory. saying
residents who use fuel other than
gas would have no tax on their
heating bills. He said the cost
of collecting tax may force the
gas company to seek a rate in
crease. -'......
j. w. Howard of the Virginia
Electric Power Co. also opposed
the tax.
o. B. Carpenter said he object
ed because he didn't want to be
reminded of taxes every time he
brushes his teeth, turns on lights
or drinks 3 glass of water.
Other Taxes Rejected.
Mayor Backus said q majority
of councilmen agreed on the tax
after a number of others had been
discarded as less desirable. He
said possibilities considered in
cluded a higher capitation tax.
sales tax. local income tax and
occupancy tax. Most Of these,
he said. were rejected because
councilmen doubted their legality.
The council very seriously con-
sidered raising the real estate
assessment more" said Mayor
Backus, 'but the majority felt it
would be an unfair additional
burden at this time on the home
owners"
He said the utility tax is used
in at least 10 other Virginia cities.
The principal reductions made
In Mr.. Apcell's proposed budget
included a $67,312 cutback in al
locations for capital improve
ments and a $4,000 cut in the
school budget. The School Board
will have to decide where to cut
its own budget.
Other reductions were spread
among city departments.
Arlington Man Gets Term,
Sf00 Einein Numbers Case