REAL ESTATE TAXES

Mr. CABELL. In your budget projection I believe you are contemplating a 30¢ increase in your real property taxes?

Mr. BACK. The Mayor recommended to the Council an increase in the property taxes of 30¢ on the hundred

Mr. CABELL. As I recall, the increase was requested two years ago, wasn't it? Nothing was done about it?

Mr. WASHINGTON. Yes, sir. Nothing was done in the last year, sir. I requested it again this year of the Council. I am very hopeful that we will be able to get the amount that we requested this year because of the dire needs that we have.

9

MAJOR TAX LIABILITY AS A PERCENT OF INCOME IN
WASHINGTON COMPARED WITH THE AVERAGE IN THE
NATION'S 25 LARGEST CITIES 1970

Mr. CABELL. At this point, we will include a tabulation which you prepared for us in the last Congress, showing sources of revenue for the District, which we found helpful.

(The matter referred to follows:)

DISTRICT OF COLUMBIA TAX SOURCES, RATES AND ESTIMATED ANNUAL YIELD (FISCAL 1971)

Rates

Estimated yield (thousands)

Tax sources

GENERAL FUND

Property taxes:

Real estate.
Personal tangible.
Sales and gross receipts:
Alcoholic beverages.

Cigarette..
Insurance

Motor vehicle excise.

Public utilities, bank, etc..
Sales and use...

2% on net premium receipts, membership fees, or considerations
received on preceding year's business in the District.

4% of fair market value of vehicles at time certificate of title is issued.
4% of gross receipts (2% gross receipts of Building Asso.).
Food for human consumption off the premises where sold, laundering,
dry cleaning, pressing, and nonprescription medicines and drugs are
all subject to tax at 2%. (Credit against income tax for taxes paid on
groceries for lower income persons.)

$118,700 15,600

14, 200

5,600

5,900

6,600

17,000

Rentals of accommodations to transients, all alcoholic beverages, and
food for human consumption other than off the premises where sold
are subject to tax at 5%.

Source: Government of the District of Columbia, Executive Office, Budget & Management, Sept. 23, 1970.