Evening star., 1960-07-03
District to Survey
Tax Issue Promptly
Officials Face
Real Estate
Levy Increase
BY SAM EASTMAN
Star Stan Writer

in the Districts real estate tax
rate will be taken up by the
Commissioners this week.
With the postponement by
Congress of action on the city's
related revenue and spending
legislation, the Commissioners
find themselves faced with a
complicated time element in
this decision.
The first question to be an
SWered, after Commissioner
David B. Karrick returns to-
morrow from a tWo-week Eu-
ropean vacation, is how long
the city can wait, from an ad-
miniStrative standpoint, to vote
on the real estate rate for the
current fiscal year.
Sales Tax Issue
These are the major factors
in the city's uncertain fiscal
situation:
/. Pending before a Senate
District fiscal subcommittee is
a House-passed bill to raise the
Districts general sales tax from
2 to 3 per cent.
2. The city also will renew
a request to Congress when it
returns in August to approve
spending So million this fiscal
year for additional public
works projects, and to vote a
81 million Federal payment to
help pay the cost.
3. The congressional vote to
override President Eisenhower's
veto of the Government en-
ploye bill, which takes in Dis
trict classified employees as well
as Federal workers, clearly
points to adoption of similar
salary increases for city teach
erS, policemen and f1remen.
New Revenue Assured
According to the latest esti-
mates by city officials, the Dis
trict now can count on about
SIS million in available revenue
to help meet the pay increase
costs of $50 million and the
requested So million for the
public works projects.
The sales tax increase would
bring in an additional $6.3 mil
lion in the current fiscal period
and then SO million annually.
A 20-cent increase in the $3.50
real estate rate, which had been
proposed by the Commissioners
as part of a Seven-point tax
increase program. would bring
in about $4.5 million a year.
At last Fridays Senate sub
committee hearing on the sales
tax bill, Commissioner Robert
E. Mclaughlin said a combina-
ton of revenue needs might
mean that the city would need
both a real estate tax rise and
the sales tax increases.
This week, the Commission
erS therefore will first have to
decide how long the city can
mark time on setting the real
estate tax rate.
Early Billing Urged
The Commissioners have
been advised by the Corpora
ton CounSel's Office that the
tax bill should be mailed out
to residents at least by Septem-
Der l. The first half-year pay
ment is due by the end of Sep :
tember. although the city can.
in effect, extend the deadline
by excusing the residents from
a late penalty payment.
The Districts Finance Office
has said that, to get the bills
out by September l with a
smooth and routine opera
tion,' the Commissioners must
set the annual rate by about
July Is. But, here again, less
time would be needed if the
Commissioners decided to au-
thorize extra man-hours for
the job.
The sales tax increase bill,
sponsored by Chairman McMil-
Ian of the House District Com
mittee as a substitute for the
city'S legislative tax package,
was passed by the House with
out debate. In the face Of this
a tion, the Commissioners
withdrew formal opposition to
the measure, while at the same
time standing by their position
that the city's proposed tax
program is preferable.
Reconsideration Possible
The House rejected the city's
capital works budget and the
Senate went along with this
action Friday, but indicated
that the request will be recon-
sidered when Congress returns.
City officials say they are
hopeful that Congress finally
will agree to authorize the
spending for these projects,
but are not hopeful that the
full 81 million Federal payment
the difference between the
$32 million authorized snd the
S25 million appropriated this
year-will he granted.
DAI kI.