Evening star., 1956-03-31
Bill Boosting
D. {. Revenue
Becomes Law
Tuxes Increased
$40 Million q Year;
U. S. Payment Rises
By HECTOR MCLEAN

by HECION MCLEAN
President Eisenhower today
signed into law the Districts new
1918 million a year revenue in
crease bill.
The measure is estimated to
increase local taxes nearly $40
million a year, and provides an
increase from $40 million to $23
million in the annual Federal
Observation-Disclosures by Congress.
The bill was passed by Con-
Igress only last Wednesday, and
President Eisenhower today gives
the city a windfall of some
100000 in additional tax
revenues.
The new law increases some
sales taxes. effective June /.
Because of language in the meas
lure, If President Eisenhower had
failed to sign the bill before the
end of this month the taxes
would not have been effective
until July /.
$4,000 Sales Tax Rise
City officials expect the new
measure will net an $81, 900 in
crease to the city in sales taxes,
the bulk of it from levies on
restaurant meals.
New liquor taxes will 60 into
effect on May l. If President
Eisenhower had failed to sign
the bill today they would have
gone into effect on June !. pro-
ducing an estimated $130.000
less than will be the case.
AS President Eisenhower
signed the tax bill, District
Commissioner Samuel Spencer
issued the following statement:
THE Commissioners of the
District of Columbia are deeply
appreciative of the attention
given to the revenue problems
of the District by the President
as evidenced by the very rapid
review of this legislation by his
staff and his signing of the
bill today.
Since 'many pressing needs
jof the District can be met only
as a result of the increased
revenues provided by this leg.
islation. it was vital that the
legislation be passes. .as early ir
the session as possible. Consider
ing the complexity of this bill
lit has passed the Congress in a
remarkably short time. The first
hearings were held on January
IL. 1856, and action by the Con-
gress was concluded on March %
ON behalf of the Commits
sionerS I would like to thank
the many members of Congress
who have given so generously
OF their time to help the District
on this matter. also the repre-
sentatives Of the Bureau of the
Budget and the members C. our
own staff who have worked hard
land tirelessly. Finally, I would
like to thank the many citizens
OF the community who have
given us the benefit of their
views in connection with this
legislation"
Exemption Reduced
The new law reduces personal
exemptions under the District
income tax from $4,000 to 81 900,
and adds new upper bracket
rates.
The change applies to all in
come earned during 1856 and
will require District employers
to start withholding the tax
from the pay of District residents
next October.
The 2 per cent sales tax on
restaurant meals, which has
been charged on all costing more
than SD cents, will now be
charged on all meals costing IA
cents or more.
Liquor taxes will 60 from 81
a gallon to $1.25 a gallon, or a
nickle a fifth. The beer tax is
increased from $1.25 barrel to
$1.50.
The measure also imposes a
p per cent sales tax on rentals OF
tangible personal property, but
Excludes linen rental services
and films and records rented BY
ltheaters and radio and televisior
'Istations.
The law imposes a new tax o1
is cents a gallon on table wines
increases from 20 to 80 cents the
tax on fortified wines and boosts
from 80 to As cents the tax on
champagne and sparkling wines
The measure does not affect
1.-THE District real estate tax rate