General-Continued Tax-exempt organizations.. Tax-exempt properties Tax losses to Maryland and Virginia by commuter tax_ Tax reciprocity.. Tax sources. Tourism, benefits in District_. Transit ownership and operation. Transportation and public safety services in Virginia.. Uncontrollable increases in fiscal year 1972....... Virginia, teachers.. Washington and its suburbs... Public schools: Associate superintendent_ Audits_. 205 206 206 208 274, 279, 296 286-289, 298-300, 291-292, 354 194 291 204 214 248 194, 197, 225 290 Nonresident tuition___ Objective I-Raising the level of adademic achievement. Objective II-Expanded special education____ Objective III-Expanding career development programs.. Objective IV-Strengthening support services.. Payments to failing students__ Per pupil expenditures, comparisons- Private school enrollment__ Program consideration.. Psychological evaluations__ School building program__ School budget.. School census_ School fares__ Virginia, statistical presentation: Table 1.-Budgeted fiscal year 1971-72 expenditures for Northern Page 364 Table 2.-Budgeted fiscal year 1971-72 revenues from taxation for 364 Table 3.-Approved or recommended changes in property tax rates for 364 Table 4.-Education task force: Summary of State and local costs for educational services in Northern Virginia.......... Table 5.-Human resources task force: Summary of State and local costs for social service programs in Northern Virginia_. Table 6-Transportation and public safety task force, summary of State and some local expenditures by agency and program in the Northern Virginia area (Árlington, Fairfax, Loudoun and Prince William Counties and cities and towns contained therein)....... Washington Technical Institute: Academic standing.. Board of trustees. 365 366 368 804 791 793 810 792 794 810 130-135, 795 809 795 804, 806 796 790 132 790 806 800 803 790 132-135, 797-800, 806, 808 798 801 APPENDIX. District Government, Hon. Walter E. Washington, letter to Chairman McMillan, enclosing concluding statement on revenue needs _ - - - - - 894-911 District Public Schools (questions and answers): Federal Aid to 50 States and the District of Columbia (fiscal 1970): Breakdown__. 912-915 Summary, total and per capita_ 916 REVENUE PROPOSALS TUESDAY, JUNE 8 HOUSE OF REPRESENTATIVES SUBCOMMITTEE ON BUSINESS, COMMERCE AND FISCAL AFFAIRS OF THE COMMITTEE ON THE DISTRICT OF COLUMBIA, Washington, D.C. The subcommittee met, pursuant to notice, at 10 a.m. in room 1310, Longworth House Office Building, the Hon. Earle Cabell (chairman of the subcommittee) presiding. Present: Representatives Cabell (presiding), Abernethy, Blanton, Mikva, Link, Nelsen, Broyhill, and Smith; and Delegate Fauntroy. Also present: Hayden S. Garber, counsel; Leonard O. Hilder, investigator; Paul Little, consultant; Hugh G. Hart, Jr., administrative assistant to Mr. Cabell. (H.R. 8392 follows:) H.R. 8392, 92d Cong., 1st Sess., by Mr. McMillan and Mr. Cabell (by request), on May 13, 1971 A BILL To provide additional revenue for the District of Columbia, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "District of Columbia Revenue Act of 1971". ARTICLE I TITLE I-APPLICABILITY OF ARTICLE-GENERAL DEFINITIONS SEC. 101. APPLICABILITY OF ARTICLE.-Except as otherwise provided, the provisions of this article shall apply to taxable years beginning on and after January 1, 1971 and to succeeding taxable years. SEC. 102. GENERAL DEFINITIONS.-For the purpose of this article, and wherever appearing herein, unless otherwise required by the context- (a) The word "District" means the District of Columbia. (b) The word "Commissioner" means the Commissioner of the District of Columbia, as established under Reorganization Plan Numbered 3 of 1967, and his duly authorized representative or representatives. (c) The word "Council" means the District of Columbia Council, as established under Reorganization Plan Numbered 3 of 1967, and its duly authorized representative or representatives. (d) The word "person" means an individual (other than a fiduciary), a trust, estate, partnership, association, company or corporation. (e) The word "corporation" means any entity (whether or not incorporated) subject to Federal income taxation as a corporation, including any organization subject to the Federal income tax on unrelated business income, any entity qualified as a small business corporation under the Internal Revenue Code, any regulated investment company, and any real estate investment trust. (f) The word "individual" means all natural persons (other than fiduciaries), whether married or unmarried. (g) The word "fiduciary" means a guardian, trustee, executor, committee, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person. (h) The words "trade or business" include the engaging in or carrying on of any trade, business, profession, vocation or calling, or commercial activity; and include the performance of the functions of a public office: Provided, however, That the words "trade or business" shall not, for the purposes of this article, include (1) sales of tangible personal property by a corporation or other person which does not physically have, maintain, rent, or use, an office, warehouse, or other place of business in the District, and which has no officer, agent, or representative having an office or other place of business in the District, during the taxable year; or (2) sales of tangible personal property by a corporation or other person whose principal place of business is outside the District, and which, for the sole purpose of dealing with the United States for commercial or noncommercial purposes, during the taxable year has, maintains, rents, or uses an office, warehouse, or other place of business in the District; or has an officer, agent, or representative having an office or other place of business in the District: Provided further, That the words "trade or business" in the District shall include any sales of tangible personal property to the Government of the United States by a corporation or other person excluded under subparagraph (1) and (2) if the property is shipped or delivered into the District. For purposes of the first proviso of this paragraph, the words "agent" or "representative" shall not include any independent broker engaged independently in regularly soliciting orders in the District for sellers and who holds himself out as such. (i) The word "taxpayer" means any person required by this article to pay a tax, file a return, report, or statement. (j) The word "deficiency" as used in this Act with respect to any tax imposed by this article means— (1) the amount or amounts by which the tax imposed by this article, as determined by the Commissioner, exceeds the amount shown as the tax by the taxpayer upon his return; or (2) the amount assessed as a tax by the Commissioner if no return is filed by the taxpayer. (k) The term "resident" means every individual: (A) who is domiciled in the District at any time during the taxable year; or (B) who maintains a place of abode in the District for the aggregate of more than ninety days during the taxable year, whether or not consecutive, and whether or not such individual is domiciled in the District. In determining whether an individual is a resident, absence of such individual from the District for temporary or transitory purposes shall not be regarded as changing his domicile or place of abode. If an individual is domiciled in the District for less than the entire taxable year, or maintains a place of abode in the District for less than the entire taxable year (but for an aggregate of more than ninety days), he shall be considered a resident for only that portion of the taxable year during which he maintains in the District his domicile or place of abode. Except to the extent that such persons have "District income" as defined in section 503 of title V of this article (other than salaries or wages or wages from employment by the Government of the United States), the word "resident" shall not include any of the following persons if they are not domiciled in the District at any time during the taxable year (1) any elective officer of the Government of the United States; (2) any employee paid as a member of the staff of the office of an elected officer in the legislative branch of the Government of the United States, provided such employee is domiciled in the State from which such elected officer was elected. As used in this paragraph, the word "State" does not include the District of Columbia; and (3) any officer of the executive branch of the Government of the United States (excluding foreign service officers and foreign service information officers) whose appointment to the office held by him was made by the President of the United States, subject to confirmation by the Senate of the United States, and whose tenure of office is at the pleasure of the President of the United States. (1) The word "nonresident" means, for any taxable year, an individual not qualifying as a resident in the District during any part of the taxable year, except that the word "nonresident" shall not include individuals who are expressly excluded from the meaning of the word "resident". (m) The word "employee" shall have the same meaning as when used in a comparable context in the Internal Revenue Code. The word "employee" shall not include any individual expressly excluded from the definition of the word "resident" or the word "nonresident". (n) The words "wages" and "employer" shall have the same meaning as when used in a comparable context in the provisions of the Internal Revenue Code relating to collection of income tax as source on wages, except that the word "employer" shall not apply to a non-government employer whose activities are carried on exclusively outside the District. (0) The words "resident estate" mean the estate of a decedent who, at his death, was domiciled in the District, and the words "nonresident estate" mean the estate of a decedent who, at his death, was not domiciled in the District. The residence or situs of the fiduciary shall not control the classification of an estate or resident or nonresident. (p) (1) The words "resident trust" mean a trust created by an individual domiciled within the District at the time the trust is created; or a trust consisting of property of a person domiciled within the District; or a trust created by the will of a person domiciled in the District at the time of his death; or a trust resulting from the dissolution of a corporation organized under the laws of the District of Columbia. The words "nonresident trust" mean, for any taxable year, a trust not qualifying as a resident trust during any part of that taxable year. The residence or situs of the fiduciary shall not control the classification of a trust as resident or nonresident. (2) If the grantor of a trust is, for Federal income tax purposes, taxable on the income of the trust, he shall be taxable on the income of the trust for District tax purposes. (q) The words "full-year resident" mean, for any taxable year, an individual qualifying as a resident in the District during the entirety of that taxable year. (r) The words "part-year resident" mean, for any taxable year, an individual qualifying as a resident in the District during only part of that taxable year. (s) Unless a different meaning is clearly required, any term or words used in this article, which are not defined herein, shall have the same meaning as when used in a comparable context in the Internal Revenue Code. The term "Internal Revenue Code" means the Internal Revenue Code of 1954, as heretofore or hereafter amended, in effect for taxable years beginning on or after January 1, 1971, or, if the Internal Revenue Code of 1954 is repealed or replaced, such term or words mean the statute or statutes in effect for the same taxable year for Federal income tax purposes, after such repeal or replacement. (t) The words "final determination" mean any irrevocable determination or adjustment of a taxpayer's Federal tax liability, from which there exists no further right of appeal either administrative or judicial. (u) The words "adjusted gross income" and "taxable income" means the adjusted gross income, or the taxable income for the taxable year, as required to be determined under the Internal Revenue Code by any person required to file a District return. (v) The words "Federal income tax", as applied to all persons other than corporations, mean the Federal income tax as required to be determined under the provisions of the Internal Revenue Code after allowing for the retirement income credit, investment credit, foreign tax credit, and tax free covenant bonds credit, but before the allowance of any other credit against that tax and before the addition of any surtax which, for any given taxable year, may be imposed under the Internal Revenue Code. TITLE II-EXEMPT ORGANIZATIONS SEC. 201. ORGANIZATIONS EXEMPTED UNDER THE INTERNAL REVENUE CODE.— Organizations exempted from the Federal income tax under the Internal Revenue Code by virtue of their purposes and activities shall be exempt from the District income tax: Provided, however, That if any such exempt organization is subject to the Federal income tax on its unrelated business taxable income, such exempt organization shall likewise be subject to the District income tax to the extent that such taxable income is fairly attributable to trade or business in the District, or is otherwise from District sources. SEC. 202. OTHER EXEMPT ORGANIZATIONS. (a) Any organization which, by another Act of the Congress of the United States, is specifically declared to be exempt from District income taxes. 62-938-71-pt. 1-2 |