Evening star., 1949-02-27
.Sa|esTaxRedraft
To Fix Levy on
Each Purchase
Tokens Ruled Out;
subcommittee Seek
Accord This Week

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The customer will know each
time he pays a sales tax. the
amount won't be a puzzle, and no
special tokens will be used.
This reinsurance. when and If
the District is given such a reve-
INCREASING measure, became evil
dent yesterday, as Senate and
House District fiscal subcommit-
tees provided Corporation Coun-
sci Vernon E. West with a week
end of work reshaping sales tax
legislation in accordance with
their views.
The revenue bill introduced by
Chairman Smith of the House
group was serving as basis for
Mr.. Vests redrafting. according
to Chairman Hunt of the Senate
subcommittee.
This bill includes the principle
of a stated tax on each sale.
rather than percentage levy on
gross sales of a business.
Senator Hunt made plain that
the change, which would bring
gas and electric bills under the
sales tax, contemplates that the
consumer be told just how much
of his monthly utility charge Is
tax.
Asked how this change, ap-
proved Friday, would affect users
of gas and electricity, Senator
Hunt said it merely would mean
adding another line" to the
monthly statement to show the
amount of the tax.
This will be an important week
in determining the fiscal fate Of
the District for 1850.
Tuesday morning, the House
Appropriations Committee will
meet to take final action on the
District Appropriation Bill a
$103, 100000 proposition in orig
inal form. 1t is expected the
committee report will be filed
when the House meets at noon.
The House Democratic leader
ship already has announced the
bill will be called up for consider
alton on the floor Wednesday.
Tuesday afternoon. the Senate
and House fiscal subcommittee
are expected to meet together
again to study the sales tax legis-
lation as redrafted by Mr.. West.
Bracket" Principle May Stand.
It seems virtually certain there
will be no change in the bracket"
principle which Is a feature of the
Smith bill.
This provides that the purchaser
pay a specified tax on each item
subject to the levy, depending on
the bracket in which the purchase
price falls. The bill contemplates
2 per cent sales tax, but the
actual amount collected on a given
sale would be fractionally more or
less than that percentage in most
cases.
Specifically, there would be no
tax on items selling for less than
IA cents, and there would be cer-
tain blanket exemptions. including
food for home consumption. medi-
cines and such items already SUBJ
ject to so-called selective levies
as gasoline.
For each item selling for from
IA cents to so cents, the purchas-
er would pay l cent in tax. Above
so cents, the tax would increase
cent for every so cents of the pur-
chase.
Would Avert Complications.
An article selling for $2.75, for
example, would have a Scent tax,
although 2 per cent would figure
to SIS cents.
Approval of such a schedule by
Congress would eliminate two pos
sible mechanical complications
which have concerned business
men who would have to collect
the tax:
l. There would be no difference
from the Maryland sales tax
schedule. If there was variance,
merchants would have to keep two
schedules in mind. applying one or
the other depending on the resi-
dence of the customer. Local
stores with large Maryland sub
urban business already collect the
Maryland sales tax on items de-
Ilivered to these customers and
would continue to do so, the Mary
land treasury getting the money
instead of the District.
2. There would be no need for
tax tokens, necessary in States or
cities using an exact percentage
system. in which fractional
amounts are collected.
The bill would give the Dis
trict Commissioners authority to
establish regulations governing
collection of the tax. Under these.
prices could be expected to be
quoted less tax and the levy
added as each purchase was made.
Senator Hunt said yesterday he
hoped the two subcommittee
could complete their work on the
sales tax this week, perhaps in
Tuesdays session, and move on
to consideration of other features
of the revenue measure, such as
the amount of the proposed in
crease in the District income tax
exemption.
The sales tax is part of a new
revenue program for the District
which also includes a doubling Of
liquor taxes and liquor license
fees.
Among the matters which would
be left to the Commissioners is
how to collect tax on installment
purchases. BY terms of the Smith