Evening star., 1962-12-30
District Faces
Taxes Higher
Than Suburbs
Department Tells
Effect Expected
Under Proposals
BY CHARLES ID. PIERCE
Star staff Writer

District families in all income
brackets will generally pay
higher taxes than most Of their
suburban neighbors, If proposed
increases in city taxes are
adopted.
This was disclosed yesterday
in an analysis made by the
Department of General Admin
istration Of the effect Of the
real estate and income tax in
creases being considered by the
District Commissioners.
The Commissioners have pro-
posed that the real estate tax
rate be boosted from $3.50 per
S100 Of assessed value to $2.7O
and that a bigger income tax
bite be imposed on all lower
levels Of taxable income.
The Department of General
Administration studied the ef-
feet these hikes would have on
the direct non-Federal tax bill
for a family Of four with q
home and q car.
Pay Bigger Tax
1t showed that the tax bite
for families with an income of
$40 900 or more would be above
the median in other area local
Governments. District families
in the $1,000 and $500 a year
income brackets are already
paying a bigger local tax bur-
den than the median paid by
comparable families in the SUBJ
urbS.
The median is half way be-
tween the lowest and highest
area local tax bills.
Inc medlan tax burden now
in the Metropolitan Area for
this family with an income of
$4,000 is $579. The present
District tax bill for a family
in this income bracket is $573
or Sc below the median.
If real estate and income
taxes are boosted, the District
tax bill would increase to $500
a total Of $32 higher than the
$3.50 which would be the area
tax median then.
Kenneth Back, District n.
nance officer, said that tn,
major effect of the proposed
real estate and income Ia,
boosts would be ito bring tn
tax burden for the high-incomI
families more in line with tha'
paid in the surrounding areas.
i Higher Taxes
The Department of Genera,
Administration study shows
that a District family with ar
income Of $4,000 a year would
pay a higher local tax than q
comparable family under any
other area local Government.
The tax burden for a District
family in this income bracket
would be $1,046, If the tax
boosts are approved. This
would be $50 higher than the
area median.
The tax burden used in this
study included not only the
income and real estate taxes
but also sales, personal prop
erty and motor vehicle regis
tration taxes.
The real estate tax is thu
single most important source o.
tax revenue for the District.
The Department of Genera
Administration said tha'
changes in tax rates, changei
in assessments and the addi
ton Of new construction to thI
tax rolls have raised DiStric
real estate tax revenues from
$42.4 million in fiscal year 1885,
to $3.50 million in fiscal yea
1862.
Percentage Drops
Nevertheless" the stud,
said, real estate tax revenu,
dechned from 81 to IS per cen
Of total general fund tax reve
nues between fiscal years 1856
and 1862 as sales and individu
al income taxes have increased
in Importance"
i A comparison Of real estatl
tax rates can often be mislead
ing because of differences be
tween assessment practices b.
individual local governments
However, the Department o
General Administration mad
a special study to compare are
real estate tax rates after the,