Evening star., 1954-05-10

VVVSIVIIVuJC
Lower Chamber Moy
Take Vote Today on
Compromise Plan
The Senate today approved
and sent to the House a COM
promise on the Districts $3O5
million public works financing
bill.
House supporters of the mea-
sure, which would increase local
taxes SLAB million annually, said
they would attempt to get House
approval of the measure today or
tomorrow, thus clearing the way
for it to go to the White House
for President Eisenhower's sig
nature.
Both houses have approved the
bill in slightly different form,
and confereeS last week agreed
on the compromise approved to-
day.
Alters Tax Structure.
The measure would raise sew
eral taxes and wipe out the Dis
trict's non-business personal
property tax on household goods,
effective July /.
Effective dates of the other
taxes vary, A 25-cents-a-barrel
increase, from ST., in the D. c.
beer tax would take effect the
day after the President signs the
measure. So would a 25-cents-a-
gallon increase on spirits, now
taxed at rs cents.
Other dates would vary. de-
pending upon the date the Presi-
dent signs the bill. Assuming the
signing takes place this month,
the new, one-percent sales tax on
groceries will go into effect Aug
ust l, as will a reduced exemp-
tion-from SIPS to so cents-on
restaurant meals.
A five-cent increase in the real
estate tax, from $2.15 to $2.20 for
each 500 of assessed evaluation,
will go into effect July /, as will
q boost from one to two cents
per-pack on the levy on cigar
cites.
U. S. Contribution.
The measure would authorize
a total Federal contribution to
the Districts annual general
fund budget of $40 million, an
increase of SO million. An ear
marking provision requires that
everything over $13 million ac-
tually appropriated each year be
matched by the District and
spent only on public works pro-
jects.
In addition, the measure au-
thorizes SGT million in new, in
terest-bearing loans to the Dis
trict from the Federal Treasury.
1t would also require the Fed
eral Government to pay metered
rates for the water it uses, rather
than the fiat 81 million-a-year
rate now provided.
Other Taxes.
Other tax increases and their
effective dates are:
Transient hotel tax, from two
to three per cent, effective the
first day of the first month so
days after approval august
If the President signs this
month"; Gasoline, from five to
six cents a gallon, first day of
the first month after approval.
Individual income, up l per
cent in each bracket, beginning
January l, 1854.
Buses, from eight mills to
cent a mile, with the exception of
Capital Transit Co., which will
pay = per cent tax on gross re-
ceiptS, November /, 1854.
Vault Rentals Up.
Vault rentals, unspecified in
creases to yield approximately
$250,000 a year, effective at the
Commissioners discretion.
Auto, fiat fees of $22 for cars
weighing up to $500 pounds and
$32 for those over that weight,
effective April /, 1855.
Water, to be increased in grad
uated steps from 10 to % per
cent depending on use, effective
the first day of the third month
after enactment.
Sanitary sewer charge, a new
levy of up to so per cent of the
water bill. The Commissioners
plan to set the rate at first at
so per cent of the water bill, ef-
fective at the same time water
increases go into effect.