Evening star., 1951-02-04
Dispersal Poses
Tax Problem
For Workers
Maryland May Take
Income Levy From
District Residents

Income Levy From
District Residents
Moving Government agencies
into Maryland under the dispersa
plan is going to mean that the
District resident who goes to work
across the Maryland line also il
going to face demands for Mary.
land income taxes.
What is more, the fact the Dis
trict is cutting. the income taxes
for the lower brackets is not going
to mean anything to the District
residents in those brackets who
works in Maryland.
Maryland. collecting from non
residents who earn their salaries
IN that State, permits the taxpayer
to deduct from the Maryland tax
the amount of tax on his salary
paid at home. The amount the
District resident saves from the
tax reduction in Washington will
have to be paid to Maryland.
Plan Familiar to Many.
District residents who work al
the Agricultural Research Center
at Beltsville and at other Gov.
ernment installations in Mont
gomery and Prince Georges Coun-
ties already are familiar with the
Maryland nonresident tax.
Meanwhile, a subcommittee oi
the House Public Works Com
mittee prepared to hold hearings
tomorrow on the bill to disperse
Government agencies as defense
measure.
A total of 10000 employees would
be moved into Maryland and Vir-
glnla areas 20 miles from down.
town Washington in the $19C
million project.
Tax Method Explained.
Six permanent buildings woulc
be built on as many sites ano
two temporary buildings.
How the Maryland tax on non-
residents works was explained by
A. Coleman Barrett, manager of
the Office maintained by the Mary
land Controller of the Treasury in
downtown Washington for the
convenience of its taxpayers living
in the District. The Office is at
1919 F street NV.
Mr.. Barrett gave this example
OF how the Maryland tax would
apply to the District resident en-
ployed in Maryland:
A wage Garner making $4,000 a
year.. married with one child is
assumed.
In Maryland he is allowed $4,000
exemption for himself and his
wife and 5000 for their child. In
the absence of any other deduc-
tions he pays 2 per cent tax on
$4,000. or $40.
The wage Garner makes a re-
turn to the District because he
earns more than $4,000. He is al
loWeo a personal exemption of
$4,000, plus $500 each for his wife
and child, a total of SIS, 900. There
fore he has no District tax to pay.
Also, he has no offset against the
Maryland tax and he pays that
State $40.
The Virginia resident working
in Maryland also is subject to the
nonresident tax. But since the
Virginia rates generally are a bit
higher than those in Maryland,
the Virginian offsets his home
State payments and owes Mary
land nothing.
Virginia had a nonresident tax
on salaries and wages but re-
pealed it during World War II.
Other Developments Listed.
These were the other develop
ments in the dispersal program
yesterday:
l. Both Senator Byrd and Rob-
ertson, Democrats, of Virginia,
expressed doubt that dispersal
would mean much in cutting the
value of the Capital as target
for enemy bombs-the object of
the plan. Members of the Vir-
ginia delegation in the House
adopted rather skeptical atti-
tude.
2. The Arlington County Board
in statement to the Holland SUBJ
committee of the Senate Public
Works Committee, urged Federal
grants for planning made neces-
sary by the Federal program
While none of the projected build
1ngs is expected to be placed in
that county, the board expressed
apprehension lest highways to
buildings farther out become
traffic sluice-ways" isolating Ar
lington from the passing traffic
or dividing the county into un-
connected parts.
Fairfax Asks Fund Provision.
3. Fairfax County, Va, also in
a statement by the Board of Sup
ervlsors to the Senate subcommit-
tee. said there are ample areas
in the western part of the county
for Government agencies, but
asked that the county "be given
consideration in any funds to be
made available for public facili-
ties due to the increase in popula-
tlon caused by the dispersal
program"
4. The Maryland-National Capt.
tai Park and Planning Commission
winch has planning Jurisdiction
over parts of MONTGOMERY and
Prince Georges Counties, for
Warded resolution to the Senate
subcommittee. It said that dis
persal is feasible only if plans for
1t are -ordinated and integrated
with regional plans and the plans
OF the local areas.
Senator BYRD said yesterday