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of Columbia, which certificate from the date of its filing shall have force and effect as against the delinquent person named in such certificate of the lien created by a judgment granted by said court, and such lien shall remain in force until taxes with interest and penalties thereon shall be paid.

TITLE IV-TAXES ON INSURANCE COMPANIES

On July 1, 1937, every domestic, foreign or alien insurance company of every type shall obtain from the Superintendent of Insurance an annual license. The fee for this license shall be $25 with a penalty clause for the issuing of contracts of insurance without having first obtained a license.

All companies are required to file an annual statement of its operation for the year ending December 31. The fee for filing shall be $20. The license may be revoked for failure to file.

All insurance companies are to pay a tax, equal to 2 percent of its policy and membership fees, and net premium receipts on all insurance contracts or risks in the District of Columbia.

A penalty of 8 percent per month is provided until tax is paid. Any relief association not conducted for profit is exempt from the provisions of this title.

TITLE V-AMENDMENT TO MOTOR VEHICLE FUEL TAX ACT

This title amends the act of Congress entitled "An act to provide for a tax on motor-vehicle fuel sold within the District of Columbia and for other purposes", approved April 23, 1924. The most important features of this title are as follows:

(1) Moneys collected by virtue of this act and all moneys collected for the registration and titling of motor vehicles, including fees charged for the issuance of permits to operate motor vehicles, shall be deposited in a special account in the Treasury and used solely for the construction, reconstruction, improvement, and maintenance of public highways, and for the expenses of the office of the director of vehicles and traffic incident to the regulation and control of traffic and the administration of the same, and for the expense necesssarily involved in the police control, regulation, and administration of traffic upon the highways; provided, however, that the total amount to be expended out of this item shall not exceed 15 percent of the total amount appropriated for pay and allowances of officers and members of the Metropolitan Police force.

(2) An annual license fee of $5 is provided for, and the licensee is required to file with the Commissioners a bond in form to be prescribed by the Commissioners in the approximate sum of three times the average monthly motor-vehicle tax due from such importer during the next preceding 12 months, or estimated to be due in the next succeeding 12 months; provided, however, that in no case shall such bond be less than $5,000 or more than $20,000.

Also all importers and distributors are required to render invoices to all purchasers from them of motor-vehicle fuel, except in case of retail sales; said invoices to contain a statement that the liability of the District of Columbia for the tax imposed has been assumed by the licensed importer named in said statement and that the importer

has paid the tax or will pay it on or before the last day of the calendar month last succeeding the purchase.

Records of all purchases, receipts, etc., of every importer, distributor, or dealer, shall be subject to inspection by the assessor and collector of taxes of the District of Columbia, or their duly authorized agents.

It shall be unlawful for any person to receive from the importer or distributor, except in case of retail sales, any motor-vehicle fuel unless the statement mentioned above appears upon the invoice for the fuel. This title shall take effect 30 days after the passage and approval of this act.

TITLE VI-REGISTRATION FEES FOR MOTOR VEHICLES

In substance, this title provides for the registration of motor vehicles. and the fees to be paid therefor as follows:

(1) Class A provides for gasoline-propelled passenger vehicles including passenger vehicles. When equipped with pneumatic tires. (according to weight) fees range from $5 to $12 and when equipped with other than pneumatic tires, double the above-mentioned fees.

(2) Class B provides for gasoline-propelled trucks, tractors, trailers and passenger-carrying vehicles for hire, having a seating capacity of eight passengers or more, in addition to the driver or operator. When equipped with pneumatic tires (according to weight) the fees range from $15 to $150 and when equipped with other than pneumatic tires, with the exception of trailers, double the above-mentioned fees.

(3) Class C provides for a fee of $5 for each motorcycle, motor bicycle, motor tricycle, and motor wheel.

(4) Class D provides for motor vehicles not propelled by gasoline and stipulates a fee double the fee for similar vehicles propelled by gasoline.

(5) Class E provides for dealers' identification tags, the fees for such tags being for the first three sets of tags $25, and $5 for each additional set.

TITLE VII-INHERITANCE AND ESTATE TAX

This title is divided into two parts and provides for a tax to be assessed against the distributive shares of beneficiaries under Article I, and a tax upon estates under article II.

The inheritance tax is assessed upon all real property and tangible and intangible personal property or any interest therein having its taxable situs within the District of Columbia and transferred from any person who may die seized or possessed thereof.

Beneficiaries are divided into three classes. Property in excess of $3,000 transferred to the father, mother, husband, wife, children by blood or legally adopted children, or any other lineal descendants or lineal ancestors of the decedent, is subject to a tax of 1 percent on the clear value thereof. Property in excess of $2,000 transferred to brothers, sisters, nephews and nieces of the whole or half blood of the decedent, is subject to a tax of 3 percent thereof. Property in excess of $1,000 transferred to any persons, firms, institutions, associations, or corporations, not included in the first two classes, is subject to a tax of 5 percent thereof.

Executors and administrators and any other persons making distribution are charged with payment of the tax, and it is provided that the bond of the executor or administrator shall be liable for the tax. Property transferred exclusively for public or municipal purposes, or exclusively for charitable, educational, or religious purposes within the District of Columbia, is exempt from taxation under article I.

Where an estate is not under the control of a personal representative, each beneficiary is required to file a return with the assessor of the District of Columbia similar to that required to be filed by the executor. The tax is computed upon the market value of the estate at the time of the death of the decedent.

The Commissioners of the District of Columbia are invested with administrative supervision of this act and have power to make such rules and regulations as may be necessary for its enforcement and efficient administration. The Commissioners may also provide for the granting of extensions of time within which to perform the duties imposed by this act. The assessor is charged with the determination of all taxes assessable under the act and appeal may be made from his determination to the Board of Personal Tax Appeals within 30 days after the determination of the taxes by the assessor. After a hearing the Board of Personal Tax Appeals may affirm, modify, or set aside the determination of the assessor.

Article II, Estate taxes. A tax is provided for upon the transfer of the estate of every decedent, who, after the effective date of the Act, shall die resident of the District of Columbia. This tax shall be equal to 80 percent of the Federal estate tax imposed by subdivision (a) of section 301, title III of the Revenue Act of 1926. It is further provided that there shall be credited against an implied deduction of the tax proposed by article II the amount of estate, inheritance, legacy, or succession taxes lawfully imposed by any State or Territory of the United States, in respect of any property included in the gross estate for Federal estate tax purposes. The purpose of article II is to secure to the District of Columbia its share of the 80 percent credit allowed under the provisions of the Federal Revenue Act of 1926. And, as provided in section 20, the estate tax shall not exceed the difference between the maximum credit which might be allowed against the Federal estate tax under the 1926 act and the aggregate amount of estate, inheritance, legacy, or succession taxes lawfully imposed by any State or Territory of the United States. The tax imposed upon estates under article II is in addition to the tax provided under the provisions of article I.

The personal representative of a decedent dying a resident of the District of Columbia, or any person in actual or constructive possession of any property forming part of the gross estate of the decedent, for Federal estate tax purposes is required to file under oath with the assessor of the District of Columbia a copy of the Federal estate tax return, within 30 days after the filing of the Federal estate tax return. This article further provides that the estate tax shall be paid to the collector of taxes within 30 days after the determination of the tax by the assessor. The act, including articles I and II, is to become effective at 12:01 antemeridian the date immediately following its approval.

Because of the length of the following two titles the same are set out by sections.

TITLE VIII-TAX ON PRIVILEGE OF DOING BUSINESS

Section 1: The term "person" includes every conceivable classifica tion; individuals, corporations, etc. The term "business" includes the carrying on or exercising for gain or economic benefit any trade, business, etc. The term "gross receipts" is defined as gross receipts received and includes cash, credits, property of any kind or nature, etc. Section 2: Requires a license be obtained within 60 days after the approval of the act. All licenses shall date from the 1st day of July in each year and expire on the 30th day of June following. The license must be conspicuously posted, is good for only one designated location. This section provides that a fee must be paid at each separate place of business. This section gives the Commissioners power to revoke licenses for cause, such as failure to file correct returns, etc.

Section 3: Requires a filing fee of $10 be paid.

Section 4: Requires that a statement be filed within 30 days after passage of the act showing the gross receipts for the preceding year. This section also gives the Commissioners the right to examine books, records, etc.; provides for testimony or answers to be given under oath; service of summons and obedience thereto. Under this section the Commissioners may extend the time for filing returns not to exceed 30 days.

Section 5: Tax of three-fifths of 1 percent is imposed on the gross receipts derived from the business for the preceding year; provides for the method of computing taxes where the taxpayer was not engaged in business for 1 whole year, and for computation of the tax in cases where there is consolidation of business.

Section 6. Exempts national banks and all other incorporated banks and trust companies, utilities, bonding companies, title and guaranty companies, incorporated savings banks, building associations and insurance companies, all of which pay a tax either upon gross receipts, gross earnings, or net premiums.

Section 7: Taxes are due and payable July 1 of each fiscal year but taxes may be paid in installments (September and March). This section also provides for a penalty where not paid on the due date.

Section 8: If the taxpayer files incorrect or insufficient reports or fails to file a corrected or sufficient return within the time indicated (20 days) the assessor shall determine the tax from information obtainable and levy a tax. This section, however, provides appeals to the Board of Equalization and Review. It further provides that the decision of the Board is final unless application is made within 20 days to the District Court of the United States for the District of Columbia.

Section 9: Provides a penalty where the taxpayer fails to file a

return.

Section 10: Provides that when an authorized notice is to be given by registered mail such notice shall be presumptive evidence of its receipt.

Section 11: Provides that the tax and penalties shall be collected in the same manner as taxes due the District of Columbia on personal property in force at the time of such collection.1

Title 2 of this bill provides a method for the collection of taxes due on personal property.

Section 12: Provides for penalties.

Section 13: Authorizes the Commissioners to make rules and regulations.

Section 14: Authorizes the Bureau of Internal Revenue to supply information requested by the Commissioners relating to persons subject to tax under the act.

Section 15: Makes it unlawful for the Commissioners or any administrative officer to divulge any information relative to the business of a taxpayer.

Section 16: Separability clause.

Section 17: Provides that title 7 does not repeal or in any way affect the existing laws or regulations under which taxes are now levied. Section 18: Provides that the title shall become effective immediately upon approval.

TITLE IX-INCOME TAXES

Section 1 and section 2 are devoted to definitions. Section 2 defines "net income" as the gross income less certain deductions which are enumerated therein. Section 2 also indicates the items not deductible.

Section 3: Levies a tax on corporate incomes of 5 percent. The net income of corporations is defined as gross income less certain deductions enumerated therein.

Section 4: Provides that the net income shall be computed on the basis of the taxpayer's annual accounting period, fiscal or calendar year, as the case may be.

Section 5: Provides the method of ascertaining the gain derived or loss sustained from the sale or other disposition of property.

Section 6: Relates to partnerships and requires that the distributive share of the net income of a partnership be reported, and shall be included in computing the taxable net income of each partner.

Section 7: Requires that source information be given to the Commissioner showing the salaries, wages, or compensation, in whatever form paid, earned by any person during a taxable year.

Section 8: Requires a return from (a) every individual having a net income for the taxable year of $1,000, or over if single, or if married and not living with husband or wife; and (b) every individual having a net income for the taxable year of $2,500 or over, if married and living with husband or wife. If the taxpayer is a minor or a person under legal disability, the return shall be made by the guardian, committee, etc.

Section 8: Gives the assessor power to grant reasonable extension of time for the filing of income-tax returns limiting the time of extension, however, to 3 months. In case the taxpayer fails to file a sworn return within the time prescribed by law or within the time permitted by the extension the assessor must under this title assess a penalty equal to 20 percent of the amount of the tax assessed thereon, but in no case shall such penalty be less than $2.

Section 9: Sets up the exemptions permitted under this title, these exemptions being $1,000 for a single person or married person not living with husband or wife, $2,500 for the head of a family, and also provides that if the husband and wife make separate returns or have separate incomes the exemption for each shall be $1,000. This section also provides for an exemption of $400 for each person (other

H. Repts., 75-1, vol. 2- -58

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