Evening star., 1952-09-29

ton tax on comparable proper
ties would be 80 per cent to 35
per cent lower than in the Dis
trict of Columbia" Under these
circumstances and in view of
the relatively high rate of real
estate taxes now prevailing in
the District of Columbia, we do
not recommend an increase in
real estate taxes of any kind.
Oppose Gas Tax Rise.
The gasoline tax rate has just
been increased by Congress
from four cents to five cents per
gallon, effective July /, 1852. In
a report submitted by S. r.
Harrison, Deputy Director of
Highways, dated January IA,
1852, he says, BASED upon to-
days rate of consumption, it is
estimated that one-cent in
crease in the gasoline tax rate
would increase revenues 81, 1885,
600. A two-cent increase in the
tax rate would only yield an
additional $955.000 The latter
estimate has more probability of
error than the former.
The nistrict at present has a
price advantage in the sale Of
gasoline and the uncertainty
lies in not being able to accu-
rately estimate consumption if
the price advantage is lost.
While I believe that the increase
of $955,000 is good estimate,
I also am of the opinion that
the additional return does not
justify the second one-cent raise
in the tax rate. The five-cent
rate per gallon is considered a
reasonable ceiling under exist
ing circumstances" We do not
recommend any further increase
in the gasoline tax rate.
We do not recommend an in
crease in the District of
Columbia sales tax of 90. At
the present time Virginia (Arl-
ington County, has no sales
tax. Maryland has a 90 sales
tax substantially like the Dis
trict Of Columbia tax except
that in the District of Columbia
private contractors pay no tax
on materials on a Federal con-
tract whereas in Maryland they
do. We are currently at a dis
advantage with Virginia and a
higher tax would further in
crease that disadvantage and
create new one with Maryland.
Higher Sewer Rate Asked.
The subcommittee on sewers
states, ut is safe to say that a
substantial increase in income
will be necessary and that this
revenue eventually must be OBJ
tanned in part from a sewage
service charge with the Federal
Government paying the same
pro rate share as Others"
The subcommittee on finance
recommends that such a charge
be put into effect. The revenue
from such a charge would be
quite small and would not in
any way solve the present prob
lem, but the subcommittee on
finance believes that the charge
is just and fair for the service
rendered.
We believe that the present
personal property tax is high
enough and further that it is a
nuisance tax unfairly distributed
Therefore. 40 increase is recon-
mended.
2. TAX-EXEMPT BONDS.
The question of sale to the
public of tax-exempt bonds by
the District of Columbia has
been discussed and studied care
fully and seriously by this COM
mittee. This method of raising |
the needed funds would further
complicate the acute problem |
which exists today and make
necessary. in our opinion, a sub |
stantial increase in tax rates
all along the line. which we
feel is wholly unjustified. We |
therefore do not recommend
that this method be employed |
except perhaps in the case of |
motor vehicle parking. and then
only provided that as the result
Of careful study it appears GER
tain that, If revenue bonds are |
sold by such an authority, they |
would be completely self
liquidating.
!. HIGHER ANNUAL PAYMENT
TO D. c. BY CONGRESS.
Prior to 1925, the Congress
provided 90 per cent Of the an
nual appropriations to the gen.
eral fund. Today it appropriateS
less than 10 per cent. Hbd the