Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-12
WorksRevenue
Bill Approved
ByCon1mittee
Amended Measure
Sent to House Rules
Group for Action

The House District Committee
today approved with three
amendments and sent to the
House for action revenue
measure to finance the District
public works program.
The committee voted to ask the
House Rules Committee to send
the measure to the floor with
orders to consider it without
further amendment.
The measure could come up on
the House floor on the next Dis
trict day. March %.
Two of the amendments would
reduce the estimated SIS million
increased taxes on the District
by total Of $4,000. The pro-
posed tax on beer of SITS q
barrel was cut to $l.50 on q
motion by Representative Miller,
Republican. of Nebraska. The
present beer tax is 81 barrel.
Bus Mileage Tax Cut.
The bus mileage tax would be
reduced from cents a mile as
provided in the bill TO cent a
mile. This would cut the esti-
mated revenue by $4,000. The
present bus mileage tax is 8 mills
per mile. The amendment was
offered by Representative Smith,
Democrat. of Virginia.
The third amendment adopt.
ed on motion of Representative
Harris. Democrat of Arkansas.
would increase the amount OF
the Federal payment to the Dis
trict from the bills recommen-
dation of S45 million to SIS
million earmarked for the pub
lie works program. This money
would have to be matched by
District taxes.
This new figure of SIS mil
lion would be earmarked out of
the new $50 million Federal pay
ment to the District recon.
mended in the bill.
Several other proposed amend.
ments to the pending bill were
defeated.
The committee made only
these three changes in the reve-
nue. measure approved by the
joint fiscal subcommittee of the
House and Senate District Com
mittees.
Increase Of 50 Million.
The proposed $50 million
Federal payment in the bill
would be an increase of SO mil
lion over the present Sill million
Federal payment toward the
city's general fund.
Other highlights of the bill
as approved by the District
Committee included a five-cent
increase in the present $2.l5 per
$500 assessed value real estate
tax, a new l per cent sales tax
on groceries. reduction of the
sales tax exemption on meals
from Sl.25 to so cents and a
boost from 2 to 3 per cent in
the sales tax on hotel rooms.
Also called for by the bill
would be increases in the water
and sewer charges on District
residents and business houses as
we'll as the Federal Government
and its agencies.
There was no motion made in
the committee to strike the con-
troversial l per cent sales tax
on groceries. designed to pro-
duce $3.5 million revenue.
Defeated Moves Listed.
Among the proposed amend
mentS defeated in committee
were these by Representative
Mcmillan, Democrat. of South
Carolina:
To raise the Districts sales tax
from 2 to 3 per cent and strike
the increased levies on cigarettes.
liquor and wine.
The bill would raise the pres
ent cent tax on cigarettes to
2 cents. estimated to yield an
S75O.O00.
The District individual income
tax would be raised by per cent
IN each taxable income bracket
to produce an additional SIS
million.
Also approved in the bill were
proviSoS for Federal loans for
both the expansion of the water
system and highways.
Chairman Simpson of the
House District Committee, and
Chairman O'Hara of the Fiscal
subcommittee. who handled the
said after the executive
session. they hoped the Rules
Committee would approve their
request for a so-called closed
rule" sending the bill to the
House floor for action. This kind
Of a rule would bar all amend
mentS from the floor except the
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