Evening star., 1951-10-13
Bill Would Pay Cities,
| States for Tax-Exempt
Property Held by U. 5.
By Harold B. Rooers

1
local governments for Federal real
estate now exempt from locaI
property taxes have been recon-
mended by Senator Humphrey
Democrat, of Minnesota. and the
Democratic administration.
The lawmaker yesterday intro
duced a bill prepared by the
Budget Bureau as the result Of
lengthy consideration. Of the long
pending problem Of States suf-
fering from loss Of tax revenues
because Of Federal acquisition OF
property.
The bill. referred to the Sem
ate Expenditures Committee
would not affect the District. It
would apply to nearby Maryland
and Virginia.
Explaining why the District is
exempted. the Budget Bureau
statement says:
"The bill would not apply with
in the District of Columbia and
the island possessions. which have
usually been the subject of special
arrangements adapted to their
special relationships to the Fed
eral Government"
Basic Objective of Bill.
In a Budget Bureau statement
filed with the bill, it was stated
the "basic. objective of the bill is
that of avoiding, as far as feasi-
BILE. inequities between State and
local taxpayers on the one hand,
and Federal taxpayers, on the
other. in the distribution of the
tax burdens and governmental
costs associated with Federal
Government acquisition and use
of real property"
The bill, Senator Humphrey ex-
lplained, would authorize five types
lof payments to State and local
governments:
Il. Regular -. taxes on prop
critics owned by the Federal Gov
ernment but leased to private
users or sold to them under con-
lditional sales contracts.
%. Annual payments deter
mined by each Federal property
owning agency on the basis of an
application from the affected
State or local government and in
conformity with Government-wide
standards and procedures for
properties in each class. This
would be the most common type
of payment under the bill.
"3. Transition payments on a
declining basis over a 10-year
period
a. Special payments in unusual
Situations where a taxing jurisdic-
ltion can demonstrate that Federal
activities are imposing local
Hardship for whichsno other aid
is available from the Federal Gov
Iernment.
IS. Special assessment for local
Improvements, substantially the
same as for private property"
Would Repeal go Provisions.
The bill, Senator Humphrey
explained in statement. would
repeal more than 20 statutory
provisions authorizing special
TYPES of payments and would SUBJ
Istitute general provisions apply
ling to specified properties Of all
Federal agencies. Rules and re-
EQUATIONS to guide the property
downing agencies would be issued
llby a Commission consisting OF
1.-THE Secretary of the Treasury
the Administrator of General
Services and the Director Of the
Bureau Of the Budget.
Il Local governments, Senator
Humphrey pointed out, have lost
Ia. great deal of tax revenues as
la result of Federal Government
, defense activities since 1899. Many
: communities, he said had to build
schools. hospitals, houses, ano
: otherwise provide for the influx
Iof the new population.
The Budget Bureau recon-.
Imended that annual payments BY
the Federal Government be made
Ion property acquired after Janu.
larry l, 1946, except in cases whers
Ithe Government has made earliel
payment or where special hard
lshin exists.