Date: 1982-12-13
Speaker: SAM B. HALL (democrat)
Chamber: H

Mr. Speaker. I yield myself such time as I may consume. Mr. Speaker. the bill. as amended by the committee. amends the charter of the U.S. Capitol Historical Society to make it clear that sales by the Society on the Capitol Grounds are not subject to the District of Columbia sales tax. The committee reported this bill on March 5. 1982. following hearings by the Subcommittee on Administrative Law and Governmental Relations in December 1981. The Judiciary Committee report sets forth the rationale for this bill at length. so I will be brief. I think all of us are acquainted with the operation of the U.S. Capitol Historical Society in the Capitol. Most of us are at least familiar with their excellent historical calendars. The Society has operated its souvenir stand in the Capitol since 1064. In November 1981. the District of Columbia sued the Society for nearly $750.000. The District alleged that the Society is liable for sales tax on sales made in the Capitol after August 1. 1966. Subsequently. upon the request of the Architect of the Capitol. the United States sued the District of Columbia in Federal court on behalf of the Society and denied the alleged tax liability. The clarification made by this bill is needed to preserve the efforts of the Society and to protect the sovereignty of the Congress and the Government of the United States. The clarification has two sound legal bases. First. the U.S. Capitol Historical Society is not subject to District of Columbia sales tax because it is an instrumentality of the Federal Government. Though the United States does permit State and local governments to levy taxes on Federal property.pursuant to provisions of the Buck Act. the Buck Act specifically does not authorize the "levy or collection of tax on or from the United States or any instrumentality thereof." The Society has continuously operated its sales booth in cooperation with the Congress for the convenience of visitors to the Capitol. The profits of sales have been devoted to the improvement of the Capitol Building. historical research. and educational projects. Since 1968 the Society. pursuant to contract with the Architect of the Capitol. has fulfilled the functions mandated by title III of the National Visitors Center Facilities Act of 1968 to provide tourists with information. assistance and educational materials. Clearly. the Society is an instrumentality of the Federal Government. In addition. the committee report concludes that the U.S. Capitol. the site of the sales. is not now and never has been within the jurisdiction of the District of Columbia. As indicated by a map in appendix 2 of the committee report. the Capitol is located on property reserved for the exclusive use of the U.S. Government by the proclamation of President Washington in 1798. 2 years before the District of Columbia was created. The United States has maintained exclusive control over this property upon which we stand cver since. The District of Columbia government has no jurisdiction in this enclave except that expressly granted by Congress. The position of the committee has received support in the Federal District Court for the District of Columbia. On September 3. 1982. that court granted the motion for summary judgment by the plaintiff. the United States in its countersuit against the District of Columbia. The court agreed with the committee that the Society is an instrumentality of the United States and is therefore not subject to District of Columbia sales tax. The District of Columbia filed notice of appeal from this order on November 4. I urge my colleagues to support this bill. It makes a helpful clarification in the law that will both preserve the worthwhile efforts of a great organization and will preserve the legitimate sovereignty of Congress and the Government of the United States in the District of Columbia.