Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Source Description

This file contains: U.S. government memo from James G. Greilsheimer to William D. Ruckelshaus regarding the income tax liability of federal employees and officers residing in the District of Columbia, Maryland, and Virginia. 5pgs. [Memo], 2/7/1969 Copy of form for the election or wavier of group life insurance signed by RN. 1pg. [Form], 1/23/1969 Copy of form for savings bonds/ savings notes authorization signed by RN. 1pg. [Form], 1/23/1969 Copy of signed form by RN for withholding income tax. 1pg. [Form], 1/23/1969 Typed memo from Bud Krogh to Ed Morgan with handwritten note from Morgan RE Washington DC income tax info. 1pg. [Memo], n.d. Memo from Dwight Chapin to John Ehrlichman RE: the President's payroll and salary deductions. 1pg. [Memo], 1/22/1969 D.C. Income and Franchise Tax Definitions. 4pgs. [Other Document], n.d. Hnadwritten note (author unknown). 1pg. [Other Document], n.d. Memo from Bruce Kehrli to Rose Mary woods with handwritten note (author unk) RE Haig's comments. 1pg. [Memo], n.d. Report on Nixon property in CA as reported by Phil Watson to Murray Chotiner. 2pgs. [Report], 8/14/1973

Scholar Source Context

Document identity
localId
26126346
label
WHSF: Returned, 14-7
core
doc
dtoType
document
pageCount
1
Source metadata
id
26126346
contentType
document
title
WHSF: Returned, 14-7
description
This file contains: U.S. government memo from James G. Greilsheimer to William D. Ruckelshaus regarding the income tax liability of federal employees and officers residing in the District of Columbia, Maryland, and Virginia. 5pgs. [Memo], 2/7/1969 Copy of form for the election or wavier of group life insurance signed by RN. 1pg. [Form], 1/23/1969 Copy of form for savings bonds/ savings notes authorization signed by RN. 1pg. [Form], 1/23/1969 Copy of signed form by RN for withholding income tax. 1pg. [Form], 1/23/1969 Typed memo from Bud Krogh to Ed Morgan with handwritten note from Morgan RE Washington DC income tax info. 1pg. [Memo], n.d. Memo from Dwight Chapin to John Ehrlichman RE: the President's payroll and salary deductions. 1pg. [Memo], 1/22/1969 D.C. Income and Franchise Tax Definitions. 4pgs. [Other Document], n.d. Hnadwritten note (author unknown). 1pg. [Other Document], n.d. Memo from Bruce Kehrli to Rose Mary woods with handwritten note (author unk) RE Haig's comments. 1pg. [Memo], n.d. Report on Nixon property in CA as reported by Phil Watson to Murray Chotiner. 2pgs. [Report], 8/14/1973
collections
Richard M. Nixon's Returned Materials Collection
Returned White House Special Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
26126346
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
4e8b101f666f03b0
ocrText
Richard Nixon Presidential Library White House Special Files Collection Folder List Box Number Folder Number Document Date Document Type Document Description 14 7 02/07/1969 Memo U.S. government memo from James G. Greilsheimer to William D. Ruckelshaus regarding the income tax liability of federal employees and officers residing in the District of Columbia, Maryland, and Virginia. 5pgs. 14 7 01/23/1969 Form Copy of form for the election or wavier of group life insurance signed by RN. 1pg. 14 7 01/23/1969 Form Copy of form for savings bonds/ savings notes authorization signed by RN. 1pg. 14 7 01/23/1969 Form Copy of signed form by RN for withholding income tax. 1pg. 14 7 n.d. Memo Typed memo from Bud Krogh to Ed Morgan with handwritten note from Morgan RE Washington DC income tax info. 1pg. 14 7 01/22/1969 Memo Memo from Dwight Chapin to John Ehrlichman RE: the President's payroll and salary deductions. 1pg. Wednesday, October 07, 2009 Page 1 of 2 Box Number Folder Number Document Date Document Type Document Description 14 7 n.d. Other Document D.C. Income and Franchise Tax Definitions. 4pgs. 14 7 n.d. Other Document Hnadwritten note (author unknown). 1pg. 14 7 n.d. Memo Memo from Bruce Kehrli to Rose Mary woods with handwritten note (author unk) RE Haig's comments. 1pg. 14 7 08/14/1973 Report Report on Nixon property in CA as reported by Phil Watson to Murray Chotiner. 2pgs. Wednesday, October 07, 2009 Page 2 of 2 UNITED STATES GOVERNMENT DEPARTMENT OF JUSTICE Memorandum TO : Mr. William D. Ruckelshaus DATE: Feb 7, 1969 Assistant Attorney General Civil Division FROM : James G. Greilsheimer Jess Special Assistant SUBJECT: Income Tax Liability of Federal Employees and Officers Residing in the District of Columbia, Maryland, and Virginia Summary Any "resident" of the District of Columbia, Maryland or Virginia, including a federal employee or officer, is required to pay the state or district income tax even if he maintains his domicile in another state. Congress, however, has expressly exempted from the District of Columbia income tax any elected officer of the Government of the United States and any officer of the Executive Branch appointed by the President and subject to confirma- tion by the Senate and whose tenure of office is at the pleasure of the President unless such officer is domiciled within the District on the last day of the taxable year. All three jurisdictions do not tax income received by the taxpayer prior to his becoming a resident of their respective juris- dictions. Each jurisdiction also grants a credit to a "resident" who continues to pay income tax to the state of his domicile. District of Columbia The District of Columbia imposes a tax " upon the taxable income of every resident " 47 D.C. Code 1567b(a) For income tax purposes the code defines "resident" as: " . every individual domiciled within the District on the last day of the taxable year, and every other individual who main- tains a place of abode within the District 2-2 for more than seven months of the taxable year, whether domiciled in the District or not. The word "resident" shall not include any elective officer of the Government of the United States or any employee on the staff of an elected officer in the legis- lative branch of the Government of the United States if such employee is a bona fide resident of the State of residence of such elected officer, or any officer of the executive branch of such Government whose appointment to the office held by him was by the President of the United States and 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, unless such officers are domiciled within the District on the last day of the taxable year.' (47 D.C. Code 1551c(s)). The rate of the tax is $350 on the first $10,000 of taxable income and 5% on the taxable income in excess of $10,000. 47 D.C. Code 1567b(a). Maryland The State of Maryland imposes ". a tax on the taxable net income of every resident individual of this state " 81 Md. Code 288 (a) (1967 Cum. Supp.). Section 279(i) (1967 Cum. Supp.) provides that: "Resident" means an individual domi- ciled in this State on the last day of the taxable year, and every other individual who, for more than six months of the tax- able year, maintained a place of abode within this State, whether domiciled in this State or not; The amount of the state income tax is $90 on the first $3,000 plus 5% on the taxable income in excess of $3,000. Section 283(a) authorizes the counties of Maryland and Baltimore City to levy a local income tax which may not be more than 50% of the state income tax liability. The local tax rate for 1968 for Montgomery County is 35% and for Prince Georges County 45%. - 2 - 2-3 Virginia The Commonwealth of Virginia imposes an income tax " upon every resident individual of this State . " 58 Va. Code 101 (1968 Cum. Supp.). Section 77 (8) (a) of Title 58 (1968 Cum. Supp.) states: "The word 'resident' applies only to natural persons and includes, for the purpose of determining liability to the taxes imposed by this chapter upon the income of any taxable year every person domiciled in this State at any time during the taxable year and every other person who, for an aggregate of more than one hundred eighty-three days of the taxable year, maintained his place of abode within this State, whether domiciled in this State or not." The amount of the tax is $120 on the first $5,000 of net income plus 5% of net income in excess of $5,000. Constitutionality A state income tax upon the salary of a federal officer or employee is constitutional. Graves V. New York ex rel. O'Keefe, 306 U.S. 466 (1939). A few weeks after this decision Congress enacted the Public Salary Tax Act of 1939, 53 Stat. 574. In Section 4 of this Act, which is now codified at 4 U.S.C. § 111 (Supp. III, 1964 ed.), Congress con- sented to the taxation of pay or compensation of an officer or an employee of the United States 11 by a duly constituted taxing authority having jurisdiction, if the taxation does not discriminate against the officer or employee because of the source of the pay or compensation." There is no suggestion that the tax statutes of the three jurisdictions in question discriminate against a federal officer or employee because of the source of his income. The Court of Appeals of Maryland has upheld the constitu- tionality of the Maryland income tax law with respect to federal employees who reside in Maryland but who work in the District of Columbia. Wood V. Tawes, 181 Md. 155, 28 A.2d 850 (1942), cert. denied 318 U.S. 788 (1943). A three-judge court in dictum noted its - 3 - 2-4 approval of Reiling V. Lacy, 93 F. Supp. 462 (D. Md. 1950), appeal dismissed sub nom. Reiling V. Tawes, 341 U.S. 901 (1951). Tax Credits All three jurisdictions do not impose a tax upon income which was received prior to the individual becoming a resident of the particular jurisdiction. While the District of Columbia Code does not have an express provision to this effect, the Court of Appeals has so construed the income tax law. District of Columbia V. Davis, 371 F.2d 964 (D.C. Cir.), cert. denied, 386 U.S. 1034 (1967). The Maryland income tax law provides: " Where, however, an individual who during the taxable year transfers his residence to this State from a state or jurisdiction other than Maryland with the intent of becoming a resident of this State, he shall be taxable under this subtitle only with respect to taxable income as defined herein received by him from and after the date he becomes a resident of this State through the close of the calendar year and the allowable exemptions and dependent credit shall be prorated on the basis of the number of months during which residence was main- tained in this State bears to twelve months, provided, however, that an in- dividual filing a return in accordance with this provision shall not be entitled to the credit provided in § 290 of this sub- title for any income tax paid to the state or jurisdiction of his former residence while a resident of such former state or jurisdiction." (81 Md. Code § 279(i) (1967 Cum. Supp.). Virginia law provides: "Any person, however, who, during the taxable year, becomes a resident of this State, whether domiciliary or actual, for purposes of income taxation, by moving to - 4 - 2-5 this State from without this State during such taxable year, shall be taxable as a resident for only that portion of the taxable year during which he was a resident of this State and his personal exemptions shall be reduced to an amount which bears the same ratio to the full exemptions as the number of days during which he was a resident of this State bears to three hundred sixty-five days. No person to whom this subparagraph applies shall be entitled to any credit on his income tax payable to this State for any income tax paid to the state or other jurisdiction of his former domicile or actual residence for that part of the taxable year during which he was a domiciliary or actual resident of such other state or jurisdiction, not withstanding the provisions of § 58-103." (58 Va. Code 77 (8) (b) (1968 Cum. Supp.)). Section 58-103 relates to credit for tax paid to other states by "residents" of Virginia. It appears that Virginia is more restrictive than Maryland in allowing a credit for the year in which the taxpayer becomes a resident: Maryland disallows the credit only if the person retains a residence in another state while Virginia disallows the credit if the person is a domiciliary or actual resident of the other state. All three jurisdictions allow a taxpayer for any year in which he is a "resident" of the jurisdiction for the entire year a credit for the income taxes he is required to pay to another state. 47 D.C. Code 1567d(a) ; 81 Md. Code 290; 58 Va. Code 103 (1968 Cum. Supp.) The amount of the credit depends upon the particular provisions of the statutes of the state of domicile and the state of residence. - 5 - 2 - ELECTION OR WAIVER OF GROUP LIFE INSURANCE ELECTION, DECLINATION, OR WAIVER IMPORTANT OF LIFE INSURANCE COVERAGE AGENCY INSTRUCTIONS FEDERAL EMPLOYEES GROUP LIFE INSURANCE PROGRAM ON BACK OF ORIGINAL TO COMPLETE THIS FORM- 1 FOLLOW THESE GENERAL INSTRUCTIONS: Read the back of the "Duplicate" carefully before you fill in the form. FIII in BOTH COPIES of the form. Type or use ink. Do not detach. 2 FILL IN THE IDENTIFYING INFORMATION BELOW (please print or type): NAME (last) (first) (middle) DATE OF BIRTH (month, day, year) SOCIAL SECURITY NUMBER NIXON Richard M. January 9, 1913 567 68 0515 EMPLOYING DEPARTMENT OR AGENCY LOCATION (City, State, ZIP Code) White House Washington, D. C. HAVE YOU EVER BEFORE FILED AN "ELECTION, DECLINATION, OR WAIVER OF LIFE INSURANCE COVERAGE"? YES NO If "YES," your last such form remains in effect and you should not file this new form unless you want to change the old one. (See Instructions for Employees on page 4.) 3 MARK AN "X" IN ONE OF THE BOXES BELOW (do NOT mark more than one): Mark here ELECTION OF OPTIONAL (IN ADDITION TO REGULAR) INSURANCE if you I elect the $10,000 additional optional insurance and authorize the required deductions WANT BOTH from my salary, compensation, or annuity to pay the full cost of the optional insurance. optional and This optional insurance is in addition to my regular insurance. regular (A) insurance Mark here DECLINATION OF OPTIONAL (BUT NOT REGULAR) INSURANCE if you I decline the $10,000 additional optional insurance. I understand that I cannot elect op- DO NOT WANT tional insurance until at least 1 year after the effective date of this declination and unless OPTIONAL but at the time I apply for it I am under age 50 and present satisfactory medical evidence do want of insurability. I understand also that my regular insurance is not affected by this declina- regular (B) tion of additional optional insurance. insurance Mark here WAIVER OF LIFE INSURANCE COVERAGE if you I desire not to be insured and I waive coverage under the Federal Employees Group Life WANT NEITHER Insurance Program. I understand that I cannot cancel this waiver and obtain regular in- regular nor surance until at least 1 year after the effective date of this waiver and unless at the time optional I apply for insurance I am under age 50 and present satisfactory medical evidence of in- (C) surability. I understand also that I cannot now or later have the $10,000 additional insurance optional insurance unless I have the regular insurance. DATE AND SIGN. RETURN THE ENTIRE FORM TO 4 FOR EMPLOYING OFFICE USE ONLY YOUR EMPLOYING OFFICE. (official receiving date stamp) SIGNATURE (do not print) Rilly DATE January 23, 1969 nip See Table of Effective Dates on back of Original ORIGINAL COPY-Retain in Official Personnel Folder STANDARD FORM No. 176 APRIL 1968 FPM Supplement 870-1 SAVINGS BONDS/SAVINGS NOTES AUTHORIZATION Standard Form 1192 UNITED STATES SAVINGS BONDS AUTHORIZATION (Formerly Treasury Form No. 2254) FOR AGENCY USE 3 Treasury FRM 1000 Fiscal Service, Bureau of Accounts FOR PURCHASE AND REQUEST FOR CHANGE 1192-101 DATE January 23, 1969 EMPLOYEE'S NAME (MR.) (FIRST NAME) (INITIAL) (LAST NAME) SOC. SEC. OR EMP. PAYROLL NO. *(MAS.)- - (MISS) Richard M. Nixon 567-68-0515 DEPARTMENT OR AGENCY BUREAU OR OFFICE LOCATION White House A. NEW B. INCREASE C. CHANGE D. CHANGE E. OTHER ACTION ALLOTMENT ALLOTMENT DENOMINATION INSCRIPTION (Describe on reverse) (If you checked A, B, or C above, AMOUNT TO BE ALLOTTED EACH PAY PERIOD BOND DENOMINATION SERIES OF BOND complete the following) **$ **$ 100 BOND INSCRIPTION (If you checked A or D above, complete the following-Type or Print) OWNER'S NAME (MR.) (FIRST NAME) (MIDDLE NAME OR INITIAL) (LAST NAME) SOCIAL SECURITY NO. *(MRS.)- - - -(MISS) Richard M. Nixon 567-68-0515 (NUMBER AND STREET) The White House Washington D.C. ADDRESS (CITY OR TOWN) (STATE) (ZIP CODE) (CHECK ONE) (MR.) (FIRST NAME) (MIDDLE NAME OR INITIAL) (LAST NAME) SOCIAL SECURITY NO. CO-OWNER (MRS.) BENEFICIARY (MISS) I hereby authorize the foregoing allotment from my pay with the understanding that U.S. Savings Bonds will be issued as requested. This authorization is to remain in effect until canceled by me in writing or termination of my Federal employment. EFFECTIVE ON FIRST PAYROLL PERIOD AFTER Kill Nut Employee's Signature (Must be same as shown or. payroll) 19 Deliver (check one): In person By mail * Married woman's first name must be shown, not that of her husband. See allotment table on back. INCOME TAX WITHHOLDING FORM W-4 (Rev. Jan. 1967) U.S. Treasury Department EMPLOYEE'S WITHHOLDING EXEMPTION CERTIFICATE Internal Revenue Service Type or print full name Richard Milhous Nixon Social Security Number 567-68-0515 Home address The White House City Washington State D.C. ZIP code EMPLOYEE: File this form HOW TO CLAIM YOUR WITHHOLDING EXEMPTIONS with your employ- 1. If SINGLE (or if married and wish withholding as single person), write "1." If you claim no exemptions, write "0" er. Otherwise, he 2. If MARRIED, one exemption each is allowable for husband and wife if not claimed on another certificate. must withhold U.S. Income tax from (a) If you claim both of these exemptions, write "2"; (b) If you claim one of these exemptions, write "1"; (c) If you claim neither of these exemptions, write "0" 2 your wages with- out exemption. 3. Exemptions for age and blindness (applicable only to you and your wife but not to dependents): (a) If you or your wife will be 65 years of age or older at the end of the year, and you claim this exemption, write "1"; EMPLOYER: If both will be 65 or older, and you claim both of these exemptions, write "2" Keep this cer- (b) If you or your wife are blind, and you claim this exemption, write "1"; if both are blind, and you claim both of tificate with your these exemptions, write "2" records. If the employee is be- 4. If you claim exemptions for one or more dependents, write the number of such exemptions. (Do not claim exemption lieved to have for a dependent unless you are qualified under Instruction 4 on other side.) claimed too many 5. If you claim additional withholding allowances for itemized deductions fill out and attach Schedule A (Form W-4), and enter exemptions, the the number of allowances claimed (if claimed file new Form W-4 each year) District Director 4 should be so 6. Add the exemptions and allowances (if any) which you have claimed above and write total advised. 7. Additional withholding per pay period under agreement with employer. (See Instruction 1.) $ I CERTIFY that the number of withholding exemptions claimed on this certificate does not exceed the number to which I am entitled (Date) anuary 23 1969 69 (Signed) FORM W-4 (Rev. Jan. 1967) U.S. Treasury Department EMPLOYEE'S WITHHOLDING EXEMPTION CERTIFICATE Internal Revenue Service Type or print full name Richard Milhous Nixon Social Security Number 567-68-0515 Home address The White House City Washington State D.C. ZIP code EMPLOYEE: File this form HOW TO CLAIM YOUR WITHHOLDING EXEMPTIONS with your employ- 1. If SINGLE (or if married and wish withholding as single person), write "1." If you claim no exemptions, write "0" er. Otherwise, he 2. If MARRIED, one exemption each is allowable for husband and wife if not claimed on another certificate. must withhold U.S. (a) If you claim both of these exemptions, write "2"; (b) If you claim one of these exemptions, write "1"; (c) If you Income tax from claim neither of these exemptions, write "0" 2 your wages with- out exemption. 3. Exemptions for age and blindness (applicable only to you and your wife but not to dependents): (a) If you or your wife will be 65 years of age or older at the end of the year, and you claim this exemption, write "1"; EMPLOYER: if both will be 65 or older, and you claim both of these exemptions, write "2" Keep this cer- (b) If you or your wife are blind, and you claim this exemption, write "1"; if both are blind, and you claim both of tificate with your records. If the these exemptions, write "2" employee is be- 4. If you claim exemptions for one or more dependents, write the number of such exemptions. (Do not claim exemption lieved to have for a dependent unless you are qualified under Instruction 4 on other side.) claimed too many 5. If you claim additional withholding allowances for itemized deductions fill out and attach Schedule A (Form W-4), and enter exemptions, the the number of allowances claimed (if claimed file new Form W-4 each year) 2 District Director should be $0 6. Add the exemptions and allowances (if any) which you have claimed above and write total advised. 7. Additional withholding per pay period under agreement with employer. (See Instruction 1) $ I CERTIFY that the number of withholding exemptions 1969 claimed on this certificate does not to which I am (Signed) exceed/the number entitled. 1-19084-07-979 (Date) anuary 23 THE WHITE HOUSE WASHINGTON TO: ED MORGAN FROM: BUD KROGH Dr Here's the Washington, D. C., income tax information for the President. (File No. 96 enclosed) Rose woods advised. send back to Krogh. ELM January 22, 1969 MEMORANDUM TO: John Ehrlichman FROM : Dwight Chapin RE : The President's Payroll and Salary Deductions Attached you will find the payroll and salary papers which The President must fill out prior to receiving his first paycheck. You will note that the comptroller would like to receive these papers back by January 24th. I leave this matter in your hands. Thank you. Done OM 13 pigs No. 122 f-71 D. C.-Income and Franchise Tax-Definitions 1103 social and financial connections, retention and strength of affiliations in the community of origin, and payment of taxes in the old community which might be avoided by surrendering that domicile. The burden of proof of domicile outside the District is on the taxpayer. In the Murphy and De Hart cases the Supreme Court stated that "It is not an unreasonable burden upon the individual who knows best whence he came. what he left behind, and his OWN attitudes, to require him to establish domicile elsewhere if he is to escape the tax." Any person not specifically exempted who has moved into the District during the taxable year and has maintained a place of abode within the Dis- trict on the last day (but for a period of less than seven months) of the taxable year must complete and file Form FR-131, Domicile Questionnaire (1 13-462). with the Department of Finance and Revenue. For definition of resident estates or trusts, see IT 12-005. .15 Acquisition of domicile.-While it is .25 Deceased persons (N. Y.).-Under possible to acquire a statewide domicile by the New York personal income tax law, de- leaving one locality within a state to accept fining residents to include "any person who employment in the District of Columbia shall, at any time during the last six months with the intention of returning to another of the calendar year, be a resident of the locality within the same state at the termi- State," held that the use of the word "in- nation of the employment, it is not possible cludes" was not meant to make the above to abandon a domicile in one state before designation exclusive, but that a resident going to work in the District and to acquire at the time of his death in April was a a domicile in another state by means of in- resident and not a nonresident for tax pur- tention alone without at least physically poses. People ex rel. Estate of Woolworth establishing a residence in the new state in v. State Tax Commission ('22), 200 App. the interim. Baker v. District of Columbia, Div. 287, 192 N. Y. S. 772. B. T. A., July 27, 1943; agreement for dis- missal of petition for appeal and for settle- .35 Intention of individual.-In order to ment, stipulating for refund of taxes and retain his former domicile, one who comes penalties paid under protest together with to the District to enter the Government costs of perfecting appeal, filed in United service must always have a fixed and defi- States Court of Appeals for the District of nite intent to return and take up his home Columbia. Order signed by Board of Com- there when separated from the service. A missioners, March 6, 1944. mere sentimental attachment will not hold the old domicile. Residence in the District .152 To acquire a new domicile there with a nearly equal readiness to go back must be an abandonment of the former where one came from or to any other com- munity offering advantages upon the ter- domicile, physical presence in the new lo- mination of the service is not enough. cale and an intention to reside permanently, Halsey v. District of Columbia, Board of Tax or at least indefinitely, therein. The tax- Appeals, May 5, 1942. payer did not establish domicile in Cali- fornia on the basis of a four-day stay in .352 An individual's intention to return San Francisco on required government business by reason of (1) registration for to the State of his domicile must be definite in order to avoid the creation of a new voting, (2) maintenance of a bank account in California and (3) payment of personal domicile in the District. Leighton et al v. income taxes, which he was not required District of Columbia, Board of Tax Appeals, to pay, to California. Buchanan et al. v. December 8, 1942. District of Columbia, D. C. Tax Court, De- .354 Where the intention to return to cember 30, 1960. the State of domicile is definite, no District domicile can be acquired even though the .20 Choice of domicile.-A domicile of actual date of the intended return is indefi- choice cannot be acquired by an intention nite. Bush v. District of Columbia, Board of to make a home in the future, but only by Tax Appeals, December 8, 1942. an intention to make a home at the moment. Fowler, John E. and Pearl G., v. District of .50 Nonresident power of attorney.- Columbia, Board of Tax Appeals, December When a taxpayer came to the District in 17, 1942. the course of her employment and resided District of Columbia Tax Reports 10-071 1102 D. C.-Income and Franchise Tax--Deinitions 70 12-57 [Editorial Comment For Di-trict income tax purposes, a "resident" is (1) any individual who is domiciled within the District on the last day of the taxable year or (2) any individual who maintains a place of abode within the Dis- trict for more than seven months of the taxable year, whether domiciled in the District or not. While a person may qualify as a "resident" under (1) and (2) above and, therefore, is subject to tax. the on ation of incom. earned outside the District before such person was domiciled or came into the District was held invalid. Paul S. Davis v. D. C., United States Court of Appeals, D. C. Circuit, January 5, 1967, Certiorari denied by the Supreme Court, Docket, 1221, May 8. 1967. (See 1 200-106 for full text of the Court of Appeals' opinion.) The District has adopted this view and revised Form D-40 and Instructions to effect this change in tax treatment. See 1 13-438. 13-439. Certain federal officials and employees do not fall within the definition of "resident." Those excluded are: (1) any elective officer of the federal government; (2) any employee on the staff of a Congressman who is a bona fide resident of the Congressman's home state; (3) any officer appointed by the President subject to Senate con- firmation whose tenure of office is at the pleasure of the President unless the officer is domiciled within the District at the end of the taxable year. Prior to the present income and franchise tax the test of taxability was whether or not an individual was domiciled within the District. A great number of cases arose involving federal officials and employees. The present law makes it clear which persons employed by the federal government are to be excluded. Domicile.-In determining whether a person is domiciled in the District on the last day of the taxable year, the reasoning in District of Columbia 21. Murphy; Same v. De Hart ('41), 1 STC 1 228, 314 U. S. 441, 62 S. Ct. 303, re- lating to the domicile of federal employees, is still applicable. The Supreme Court found domicile to be a question of fact to be decided in each individual case. It held that where a person changes his residence to the District of Columbia upon the acceptance of employment with the federal government, the question of his change of domicile for a determination of his taxability under the District income tax act must be decided from all the circumstances both at the time he originally moves there and after he has established him- self. No simple factor, such as the individual's oral declarations of intention or the maintenance of his voting franchise, is controlling, but the change or retention of domicile must be determined from all relevant considerations. To be considered are the nature of the position held, the manner of living, 1 10-071 © 1967, Commerce Clearing House, Inc. No. 79 12-67 D. C.-Income and Fran Tax-Definitions 1101 [1] 10-066] "Include," "Includes" or "Including" Defined. -The law pro- vides See. 47-1551c. (p) The words "include," "includes," or "including," when used in a definition contained in this subchapter, shall 110 be deemed to exclude other things therwise within the meaning of the word or words defined. [See. 47-1551c, D. C. Code.] [' 10-067] "Individual" Defined.-The law provides: Sec. 47-1551c. (f) The word "individual" means all natural persons (other than fiduciaries); whether married or unmarried. [Sec. 47-1551c, D. C. Code.] ['] 10-068] "Nonresident" Defined.-The law provides: Sec. 47-1551c. (t) The word "nonresident" means every individual other than a resident. [Sec. 47-1551c, D. C. Code.] [Editorial Comment: For definition of "resident," see : 10-071. [1] 10-069] "Payroll Period" Defined.-The law provides: Sec. 47-1551c. (x) The term "payroll period" means payroll period as defined in section 3401 (b) of the Internal Revenue Code of 1954. [Sec. 47-1551c, D. C. Code.] [Editorial Comment For administrative interpretation, see Reg. Sees. 12.8(b)(1) and 12.8(b)(2) at 1 13-182 and 13-184. [1] 10-070] "Person" Defined.-The law provides: Sec. 47-1551c. (e) The word "person" means an individual (other than a fiduciary), a fiduciary, a partnership (other than an unincorporated business), an association an unincorporated business, and a corporation. [Sec. 47-1551c, D. C. Code.] [1] 10-071] "Resident" Defined.-The law provides: Sec. 47-1551c. (s) The word "resident" means every individual domiciled within the District on the last day of the taxable year, and every other individual who maintains a place of abode within the District for more than seven months of the taxable year, whether domiciled in the District or not. The word "resident" shall not include any elective officer of the Government of the United States or any employee on the staff of an elected officer in the legislative branch of the Govern- ment of the United States if such employee is a bona fide resident of the State of residence of such elected officer, or any officer of the executive branch of such Government whose appointment to the office held by him was by the President of the United States and 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, unless such officers are domiciled within the District on the last day of the taxable year. [Sec. 47-1551c, D. C. Code.] District of Columbia Tax Reports "I 10-071 1104 D. C.-Income and Franchise Tax-Definitions No. 122 6-71 therein, abandoning her domicile in another a domicile elsewhere SO as to terminate state, it was determined that her domicile his Massachusetts domicile for tax pur- was in the District. even though she had poses; Fechan v. Trefry ('21), 237 Mass. built a year-round house in Delaware and 169, 129 N. E. 292, holding that one spend- had voted in Delaware after her arrival in ing the most of his time in the State and the District, but had paid no income tax sharing household expenses had acquired to the State of Delaware. It was deter- a domicile in the State: Com. v. Davis ('33), mined that she had impliedly considered 284 Mass. 41. 187 N. E. 33, holding that a herself as domiciled in the District by fail- resident had failed to prove change of dom- ing to file a "nonresident power of attor- icile to another State. CCH. ney" required of nonresident executors of wills probated in the District, when she .80 Temporary residence.-A taxpayer is had acted as a co-executor of a will and not domiciled in the District for income tax her co-executor had filed such a power of purposes where he resides in another juris- attorney. Newman v. District of Columbia, diction during the greater part of the year B. T. A., July 12, 1943. and only during the winter months occupies an inherited residence in the District as his .55 Presumption of domicile.-Where a temporary residence which is maintained for taxpayer offers no direct proof to show his sentimental and historical reasons. Blair v. intention as to his domicile, and where con- District of Columbia, B. T. A., December 4, flicting circumstances and conflicting infer- 1940. ences do not clearly establish his domicile, the Board holds that he has not overcome .84 Two homes.-In the case of an in- the presumption created that he is domiciled dividual having two homes, there is a strong in the District, and is, therefore, subject presumption in favor of the retention of to the District Income Tax. Scott v. Dis- domicile in the home or residence first ac- trict of Columbia, B. T. A., January 22, 1941. quired, which presumption can only be Followed in Duff v. District of Columbia, overcome by a fair preponderance of evi- B. T. A., February 28, 1941. dence that the residence last acquired has become the individual's principal home. .70 Statewide domicile.-A domicile may Brewster v. District of Columbia, B. T. A., be of a "statewide" nature and need not be May 6, 1943; Mead v. District of Columbia, confined to some restricted geographic area, B. T. A., May 1, 1943. such as a city, or village and its environs, or a county within the particular State. .85 Wife's domicile.-Where the deceased McMurray v. District of Columbia, B. T. A., husband of the taxpayer was a Federal Gov- July 12, 1943. See also Hornor v. District of ernment employee in the District at the time Columbia, B. T. A., July 16, 1943. of his death, and had during his life time declared his domicile to be in the District, .74 Sufficiency of proof of change the Board holds that the wife's domicile is (Mass.). resident of Massachusetts who also in the District despite her intentions to had previously expressed his intention to the contrary and the fact that she maintained permanently change his domicile from a residence in Philadelphia and was inde- Massachusetts to Florida left the State pendently wealthy in her own right. Meigs December 27, 1928, and arrived in Florida v. District of Columbia, B. T. A., April 28, waters at 3:00 A. M., January 1, 1929, was 1941. held not to have given up his Massachu- setts domicile until a new domicile was .852 For tax purposes, the domicile of established in Florida, and that he was, the husband will also be the domicile of accordingly, an "inhabitant" of Massachu- the wife. Kerr v. District of Columbia, setts during a part of 1929. Under the B. T. A., September 27, 1940. current statute he was taxable upon 1928 net income in Massachusetts. Ness v. Com- missioner ('32), 279 Mass. 369, 181 N. E. .854 The petitioning wife has never been 178. in California. Of course, that is not es- sential to domicile therein, if the husband See also Com. v. Bogigian et al. ('29), 265 actually was so domiciled. Buchanan et al. Mass. 531, 164 N. E. 472, sustaining a find- v. District of Columbia, D. C. Tax Court, De- ing that a resident had clearly established cember 30, 1960. I 10-071 © 1971, Commerce Clearing House, Inc. 1034- inducate in pment i 1qea penid. De -OK NY- Eeb 6 1 Decamber stanted Kell Jan - That great THE WHITE HOUSE WASHINGTON TO: ROSE MARY WOODS FROM: BRUCE KEHRLI) BACK Please note General Haig's comments on the attached note. Personpecty Gament has 8/14/73 revenved Phil Watson, Los Angeles County Assessor called Murray Chotiner to report the following: Hollis of the New York Times is in Los Angeles and has bee n checking on the assessed valuation of the house the President owns (the one his mother had lived in and now someone from Whittier Friends Church stays in it) -- the assessed value (they are allowed to look at the property rolls is $68,950 -- Hollis did not take their word for this and had a real estate firm - Colwell Banker - give him their appraisal and they said $70,000 so there could not be much of a story there. Then he said that Ron Kessler of the Washington Post is out there as well and he is asking to see the property that was involved in the Don Nixon- Howard Hughes loan. Again Watson has told them they cannot see anything but the property rolls. (That is the piece of property that was given to Hughes and they have had a gasoline station on there for years -- I would imagine they have made money on that and this is really beating an old horse over the head). Watson said he would be glad to be helpful to anyone if he can -- or if we prefer to not have anyone contact him directly we can go through Murray who is at the Balboa Bay Club for the balance of this week. (Code 714 645-5000 - - Room 218). - 2 Apparently the problem out there has been with the State Board of Equalization -- and Watson said that the assessors are meeting tomorrow morning in Sacramento and the County assessors are going to try to pass a resolution telling the State Board of Equalization to kepxx keep their nose out of any of the county's business -- Orange/ Los Angeles, etc.