Evening star., 1953-03-05
City Seeking
More Business
And Auto Fees
Higher Rents Asked
On Use of Areas i.
Under Sidewalks
By George Beveridee

BY George Beveridge
A new auto fee system and an
eight-fold increase in rental
revenues from privately used
space beneath public streets and
sidewalks are proposed by the
Commissioners to help pay for a
$124 million highway improve
ment program.
Details of the highway plan,
made public today, constitute a
major part of the 1887 million
eight-year drive to overhaul the
entire city's physical facilities
The 1887 million program will go
to Congress this year.
AS in other parts of the pro-
gram, Congress is called upon to
provide a substantial share IF
the highway costs, in line with
its responsibility toward the
Federal City. The $124.343.00O
expense would be met by:
Expenditure of $49.30 900
from existing revenue sources OF
the District highway fund, a
1915 million Federal grant and
a 1878 million interest-free Fed
eral loan, to be repaid over a
60-year period. y
Repayment Proposals.
TO repay the $37.5 million loan
the city heads want to increase
highway fund revenues by $780,
900 a year. They would do it by:
l.. Transferring from the gen
eral fund to the highway fund
a current bus mileage tax. I'm
posed at the rate of 8 mills per
mile, this brings in $185,000 an
nually.
2. Replacing existing auto per-
sonal property taxes and regis
tration fees with a flat-fee SyS-
tenn, based on weight of the auto
mobile. Under the present sys-
tenn the general fund gets about
$3.3 million and the highway
fund about $1.8 million per year
The new proposal would provide
the same income to the general
fund, but would raise highway
fund revenues by about $315.000
annually.
3. ReassesSing and diverting
underground vault rental reve-
nues" from the general to the
highway fund. This would boost
income fro mthe present So, ,000
to about $250,000 per year.
Small Rentals Now.
The so-called vaults" are
spaces under sidewalks and
streets adjoining private proper
ties. Users of the space, virtually
all Businessmen, pay small rental
fees for the privilege.
District Tax Assessor James
L. Martin stressed that the sharp
revenue increase from $4,000
to $25O.000 a year would result
from two actions. The first, a
re-Survey of vault space used,
would be expected to add a num-
ber Of leSSeeS to the rolls. The
second would be increased rates
as yet undetermined-to bring
a. &Iao H0EO nm .o,,rIo&
Present rates are based on a
rather complex formula, which
is related to the assessed value
of the adjoining properties. As
an example of low rates paid to-
day, Mr.. Martin said some F
street store -owners have a rental
of about 191a-cents per square
foot per year.
Details Of the proposed fiat
rate auto fee were made public
yesterday by Traffic Director
George E. Keneipp. Generally
1t would substitute for the pres
ent registration fee and personal
property tax a one-Shot annual
fee Of $40 for autos weighing
up to $500 pounds and $50 for
those above that weight. Simi-
lar rates are proposed in Mary
land.
Declining Benefits.
The weight-baSis system would
reduce the initial investment in
a new car. since present personal
property taxes are based on the
fair. market value of cars. Own
ers Of older cars wouldn't fare
as well. Instead of paying lower
taxes as values Of the cars de-
creased. the weight-baSiS fee
would remain constant.
Mr.. Martin, however, said
there is virtually no difference
between the two systems in the
total amount car-ownerS would
pay over a period of several
years.
The main reason for the $315,-
600 annual revenue increase. he
explained, is that the one-shot
fee would be assessed each time
an auto changes hands. AS OF
today, the personal property tax
is imposed only once a year on
each car. If it changes hands
during the year, the new owner
pays no personal property tax
A primary complaint against
the present system. Mr.. Martin
said, is the substantial initial
cost OF acquiring title and tags
The current registration and
personal property toll for a new
Chevrolet. for example, he said
is about SAL. Under the proposed
system, the total would be $40.
Cuts Administrative Work.
Another advantage Of the pro-
posed change, Mr.. Martin said
is that the new system would cut
administrative work drastically
This, in turn, would give mem
bers Of the tax assessment Office
more time to devote to othel
sources of revenue, he explained
The $124 million highway pro-
gram. meanwhile. contains vir-
tually the same long range
projects as those recommended
at q 1864 million cost last Sep
tember by the Citizens Advisory