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Mr. HERMAN. Yes; there was, Mr. Chairman.

Senator PROXMIRE. Is there any indication of the status of this legislation, this proposed legislation, to raise $33.6 million through additional taxes in the District?

Mr. FLETCHER. Yes, sir; it was assured by the Bureau of the Budget yesterday that that will be submitted to both Houses of the Congress. Senator PROXMIRE. Supported by the Bureau of the Budget; is that right?

Mr. FLETCHER. Supported by the Bureau of the Budget, Mr. Chair

man.

Senator PROXMIRE. There is no indication of where the tax increases will come?

Mr. FLETCHER. Well, we do have a detailed breakdown for you of what those proposals are; yes, sir.

Senator PROXMIRE. Have those been publicly announced?

Mr. FLETCHER. They have been. We can give them to you now, desire.

(The information follows:)

if you

DISTRICT OF COLUMBIA REVENUE INCREASE PROPOSALS FOR FISCAL YEAR 1970

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1. Increase the real property tax rate from $3.00 per $100 of assessed
valuation to $3.10 per $100...

2. Increase the personal tangible property tax rate from $2.30 per $100 to
$2.40 per $100......

3. Increase the cigarette tax rate from 3 to 64 per pack.....

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Increase the tax on alcoholic beverages as follows:
Beer from $2 per barrel to $2.50.....
Spirits from $1.75 per gallon to $2.
Wine - under 14% from 15 to 20 per gallon...

4.

Increase the motor vehicle excise tax rate from 3% to 4%.....

5.

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2.045

- 14% and over from 33 to 45¢ per gallon... - Sparkling from 45¢ to 60 per gallon.....

Total alcoholic beverages..

6. Eliminate the present exemption for professions, etc., from the unincorporated business tax...

7. Require that corporations and unincorporated businesses file declarations of estimated tax to produce a one-time windfall of.... General Fund Proposals

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--Repairs of tangible personal property.......

--Duplicating, addressing, mailing and stenographic services.........
--Purchases of news syndicates...

--Materials incorporated in construction for public and semi-public

8. Replace inheritance and estate tax combination with a single estate tax
as proposed by Ecker-Race ($3.0 annually when fully effective in FY
1972)

9. Increase sales tax on restaurant meals and alcoholic beverages from
4% to 5%.........

10. Apply the 4% general sales tax to:

--Admissions to theaters and other public events.....

institutions....

--Apply 2% sales to commercial advertising.......

11. Impose a service charge equivalent to 1/2 to 1% on gross expenditures in
the District of Columbia of non-profit organizations and corporations
exempt from business franchise taxes by reason of maintaining an office
in the District of Columbia for the sole purpose of engaging in business
with the Federal or District governments, exclusive of religious,
educational, and charitable organizations....

Total General Fund Proposals........

Highway Fund Proposals

1. Increase motor vehicle registration fees from $22.50 and $32.50 to $30
and $50 respectively, reduce the weight for the lower fee from the
present 3499 pounds to 3399 pounds, and increase by one-third all
commercial vehicle fees...

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Highway Fund Proposals

2. Increase motor vehicle title fee from $1 to $5.............

requirement, they shall be $......

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3. Increase temporary tag fee from $1 to $5, except where to meet DMV

0.060

4. Increase motor vehicle inspection fee from $1 to $3............

0.520

5. Increase operators permit from $3 for three years to $12 for four years 1/

1.0

6. Increase learner's permit from $5 to $10.....

0.225

7. Increase duplicate permit fees from 50 to $5......

0.067

8. Increase restoration fees for suspended and revoked permits from $5 to $10

0.030

9. Establish a $10 restoration fee for permits suspended under the Safety

Responsibility Act...

10. Establish a $5 fee for replacement permits (including name changes)......

11. Increase duplicate (replacement) tag fees from $1 to $2............

12. Increase duplicate registration card fees from 50 to $1.............

13. Increase transfer of registration fees from $1 to $2....

14. Impose a gasoline user tax on out-of-state commercial vehicles.....

Total Highway Fund Proposals....

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1/ It is our understanding that the new Federal Safety Responsibility Act requires that driver licensing in all states be placed on a four year basis beginning in 1970. Based on our recommendation to increase the driver license charge from $1.00 per year to $3.00 per year converting our present three year license period to meet this four year requirement will provide additional revenue of approximately $1 million in each of the first three years. In the fourth year which would be 1973, only new or first time licenses would be issued. Pevenue from this surce for that year would drop from the normal estimated $1.3 million to $0.5 million.

FEDERAL PAYMENT: 1970 PROPOSAL

Legislation will be proposed which will provide a method of establishing the level of the annual
Federal payment authorization at 30% of the District's local tax revenues including the general fund
portion of revenues obtained through the registration of motor vehicles.

The following tabulation indicates the estimated tax revenues, and resulting Federal payment which
reflects a steady growth in the authorized Federal payment in proportion to revenue returns:

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