Evening star., 1950-10-22
Updegraff Urges
Repeal Of Tax on
Personal Items
Coils Assessments
Impossible Hits
long-Term Bonds
By Don S. Warren

equitable" personal property tax
on household belongings were ad-
vanced yesterday by George c.
Updegraff, chief of the tax divi-
sion of the corporation counsel's
office.
He told a group of tax lawyers
and accountants at American
University's sixth annual tax
institute, held at the Brookings
Institution, that 1T is a practical
impossibility for assessors to find
and properly assess such prop
erty."
In this he supported recon-
mendations adopted by the Com
missioners last July and views
voiced by numerous civic and
business spokesmen.
Little Hope This Session.
Little or no hope is held that
the recommended tax change will
be considered when the present
Congress meets for it's last few
days on November q but it is
expected the question will be
studied when the 82d Congress
convenes in January.
In his attack on the personal
property levy Mr.. Updegraff said
the proposed repeal should not
apply to tangible personal prop
erty held for sale or rent or-to
that used in trade or business.
But he noted that ordinarily
few, if any. records are kept by
the householder. AS result, he
told the group that the assessor
must depend mostly upon returns
filed by the owners of tthe prop
erty.
No Inspection Possible.
In contrast to real property"
he added, "a periodic and sys-
tematic physical inspection of
household property is impossible.
Homeowners normally resent the
intrusion of an assessor in the
confines of their homes and
rightfully so. The privacy of ones
home should be respected and
protected.
Under these circumstances, the
assessment of tangible personal
property taxes on household be-
longings is difficult and costly.
Much property is not reached by
the assessors. Some is over-valued
because OF the inherent honesty
tof house owner and his tend
ency to appraise the sentimental
value rather than the fair cash
value. And some is under-valued
by the owner and not reported
for taxation"
With this and a few other ex-
ceptlons. Mr.. Updegraff said, the
Districts present tax system sur
passes in excellence the tax sys-
tenn of any other Jurisdictions,
including those adjacent to the
National Capital.
Gives Arguments.
Mr.. Updegraff also said that
even with the adoption of the
sales and use taxes, along with
higher levies on alcoholic bever-
ages. the real property tax still
remains as the most important"
He said it was debatable as to
whether this should continue and
cited arguments on both sides.
But on this point he warned
against the addition to city debt
which increases the burden on
real property owners, particularly
when decentralization of a govern
mental area such as this is con-
templated.
Within an area like the District
and its suburbs" he said, there
is serious threat to the security
OF homes and business properties
by the indiscriminate issue of long
term bonds.
This is particularly true in view
OF the possibility that decentrali-
zation of Federal Government
agencies may become a reality
rather than, as at present, a sug-
geStion."
Urge Short t-Term Borrowing.
10 this he added warning that
bond issues, if they must be used
to produce revenue (the District
now is authorized to take large
Treasury loans to finance water
system expansion) should be kept
at the most frugal minimum.
He said borrowing should be kept
on a short-term basis so that debts
could be repaid promptly so that
the city's financial security would
not be "jeopardized."
Mr.. Updegraff brought out that
while adoption of other taxes has
lessened the burden on real estate
it also was noteworthy that since
1885 the total taxable real estate
area here has been decreased from
500 per cent to 48.3 per cent. This
was due to public and private
exemptions, including additional
private lands taken for Federal
purposes. Because of this, he said,
the value of the remaining tax
able lands in the District has in
creased and.<"of course" the tax
rate likewise rose to meet the Dis
trict's costs.
He commented that it would be
interesting" to see what changes,
if any, would be made in the
District taxing system in the next
10 years if Congress should enact
the bill for a "home rule" city
government.
Other Speakers Listed.
Other principal speakers were
10 v. Morgan, formerly sole mem
ber of the District Board of Tax
Appeals and president of the Dis
trict Bar Association, and John
w. Ahern, an attorney and pro-
fessor of Federal taxation at
Georgetown University.
Members of the discussion panel
included Caesar L. Aiello, Paul j.