A-25441, JANUARY 3, 1929, 8 COMP. GEN. 325

A-25441: Jan 3, 1929

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DISTRICT OF COLUMBIA REVENUES - DISPOSITION OF THERE IS NO AUTHORITY FOR THE COLLECTOR OF TAXES OF THE DISTRICT OF COLUMBIA TO DEPOSIT TAXES AND OTHER REVENUES OF THE DISTRICT RECEIVED BY HIM ELSEWHERE THAN WITH THE TREASURER OF THE UNITED STATES. THE PRACTICE APPEARS TO BE AS FOLLOWS: ALL CHECKS RECEIVED BY THE TAX COLLECTOR ARE DEPOSITED WITH THE DISTRICT NATIONAL AND FEDERAL AMERICAN NATIONAL BANKS. THAT IS. IF A DEPOSIT IS MADE WITH THE FEDERAL- AMERICAN NATIONAL BANK ON MONDAY. THE DEPOSIT IS MADE WITH THE DISTRICT NATIONAL BANK ON TUESDAY. ON THE DAY FOLLOWING THE DAY THE DEPOSIT IS MADE A CHECK IS DRAWN BY THE COLLECTOR OF TAXES ON THE BANK IN WHICH SUCH DEPOSIT WAS MADE FOR THE FULL AMOUNT THEREOF AND A DRAFT ON NEW YORK IS GIVEN TO THE COLLECTOR BY THE BANK IN WHICH THE CHECKS WERE DEPOSITED.

A-25441, JANUARY 3, 1929, 8 COMP. GEN. 325

DISTRICT OF COLUMBIA REVENUES - DISPOSITION OF THERE IS NO AUTHORITY FOR THE COLLECTOR OF TAXES OF THE DISTRICT OF COLUMBIA TO DEPOSIT TAXES AND OTHER REVENUES OF THE DISTRICT RECEIVED BY HIM ELSEWHERE THAN WITH THE TREASURER OF THE UNITED STATES, AND THE PRESENT PRACTICE OF THE COLLECTOR OF DEPOSITING CHECKS REMITTED TO HIM IN PAYMENT OF TAXES AND OTHER OBLIGATIONS IN LOCAL BANKS SHOULD BE DISCONTINUED.

ACTING COMPTROLLER GENERAL GINN TO THE PRESIDENT OF THE BOARD OF COMMISSIONERS OF THE DISTRICT OF COLUMBIA, JANUARY 3, 1929:

THERE HAS BEEN RECEIVED YOUR LETTER OF DECEMBER 12, 1928, SUBMITTING FOR DECISION THE QUESTION AS TO THE LEGALITY OF THE PRESENT PRACTICE BY THE COLLECTOR OF TAXES OF THE DISTRICT OF COLUMBIA IN DEPOSITING CHECKS RECEIVED BY HIM IN PAYMENT OF TAXES AND OTHER OBLIGATIONS DUE THE DISTRICT OF COLUMBIA IN TWO LOCAL BANKS AND RECEIVING FROM SAID BANKS DRAFTS DRAWN BY THEM ON THEIR CORRESPONDENT BANKS IN NEW YORK, SAID DRAFTS BEING DEPOSITED LATER WITH THE TREASURER OF THE UNITED STATES.

BRIEFLY SUMMARIZED, THE PRACTICE APPEARS TO BE AS FOLLOWS:

ALL CHECKS RECEIVED BY THE TAX COLLECTOR ARE DEPOSITED WITH THE DISTRICT NATIONAL AND FEDERAL AMERICAN NATIONAL BANKS, THE DEPOSITS BEING MADE WITH EACH BANK ALTERNATELY; THAT IS, IF A DEPOSIT IS MADE WITH THE FEDERAL- AMERICAN NATIONAL BANK ON MONDAY, THE DEPOSIT IS MADE WITH THE DISTRICT NATIONAL BANK ON TUESDAY, AND SO ON. ON THE DAY FOLLOWING THE DAY THE DEPOSIT IS MADE A CHECK IS DRAWN BY THE COLLECTOR OF TAXES ON THE BANK IN WHICH SUCH DEPOSIT WAS MADE FOR THE FULL AMOUNT THEREOF AND A DRAFT ON NEW YORK IS GIVEN TO THE COLLECTOR BY THE BANK IN WHICH THE CHECKS WERE DEPOSITED, WHICH DRAFTS ARE IN TURN DEPOSITED WITH THE TREASURER OF THE UNITED STATES. IT MAY BE NOTED HERE THAT THE DRAFTS ON NEW YORK RECEIVED BY THE COLLECTOR IN EXCHANGE FOR THE INDIVIDUAL CHECKS DEPOSITED BY HIM ARE FOR THE FULL AMOUNT OF THE DEPOSITS AND IF ANY OF THE PERSONAL CHECKS ORIGINALLY RECEIVED BY THE COLLECTOR SHOULD BE DISHONORED WHEN PRESENTED TO THE BANKS ON WHICH DRAWN THE BANK IN WHICH DEPOSITED IS REIMBURSED THEREFOR. IN OTHER WORDS, THE HANDLING OF THE CHECKS IN THIS MANNER IS NO ASSURANCE THAT THE AMOUNTS DEPOSITED IN THE TREASURY MAY NOT LATER BE REDUCED IF ANY CHECKS DEPOSITED IN SAID BANKS SHOULD BE DISHONORED.

A SUMMARY OF THE LAWS GOVERNING THE COLLECTION AND DEPOSIT OF MONEYS BY THE COLLECTOR OF TAXES OF THE DISTRICT OF COLUMBIA IS AS FOLLOWS:

AN ACT OF THE LEGISLATIVE ASSEMBLY OF THE DISTRICT OF COLUMBIA APPROVED AUGUST 23, 1871, ENTITLED "AN ACT PRESCRIBING THE DUTIES OF CERTAIN OFFICERS FOR THE DISTRICT OF COLUMBIA AND FIXING THEIR COMPENSATION," PROVIDED---

THAT IT SHALL BE THE DUTY OF THE COLLECTOR OF TAXES TO COLLECT ALL TAXES IMPOSED BY THE GOVERNMENT OF THE DISTRICT OF COLUMBIA, EXCEPT SUCH AS MAY BE OTHERWISE PROVIDED FOR, AND TO DEPOSIT THE SAME DAILY WITH THE TREASURER (OF THE DISTRICT OF COLUMBIA) * * *

THIS ACT FURTHER PROVIDED---

THAT THE COLLECTOR OF TAXES, BEFORE ENTERING UPON HIS DUTIES, SHALL EXECUTE A BOND IN THE SUM OF $100,000, WITH SUFFICIENT SURETY OR SURETIES TO BE APPROVED BY THE GOVERNOR (COMMISSIONERS OF THE DISTRICT OF COLUMBIA), CONDITIONED UPON THE FAITHFUL PERFORMANCE OF THE DUTIES OF HIS OFFICE.

THAT ACT ALSO PROVIDED---

THAT THE TREASURER OF THE DISTRICT OF COLUMBIA SHALL RECEIVE DAILY FROM THE COLLECTOR OF TAXES ALL MONEYS WHICH MAY BE PAID TO SAID COLLECTOR, GIVING RECEIPTS IN DUPLICATE. THEREFORE, ONE OF WHICH SHALL BE RETAINED BY THE COLLECTOR OF TAXES, AND THE OTHER TRANSMITTED TO THE COMPTROLLER (OF THE DISTRICT OF COLUMBIA) * * *

THE ACT OF JUNE 11, 1878, 20 STAT. 105, SEC 4, PROVIDED THAT---

ALL TAXES COLLECTED SHALL BE PAID INTO THE TREASURY OF THE UNITED STATES, AND THE SAME, AS WELL AS THE APPROPRIATIONS TO BE MADE BY CONGRESS AS AFORESAID, SHALL BE DISBURSED FOR THE EXPENSES OF SAID DISTRICT * * *

THE ACT OF JULY 1, 1882, 22 STAT. 144, PROVIDED---

THAT HEREAFTER ALL MONEYS APPROPRIATED BY CONGRESS FOR THE EXPENSES OF THE GOVERNMENT OF THE DISTRICT OF COLUMBIA, TOGETHER WITH ALL REVENUES OF THE DISTRICT OF COLUMBIA FROM TAXES OR OTHERWISE, SHALL BE DEPOSITED IN THE TREASURY OF THE UNITED STATES AS REQUIRED BY THE PROVISIONS OF SECTION 4 OF THE ACT APPROVED JUNE 11, 1878, AND SHALL BE DRAWN THEREFROM ONLY ON REQUISITION OF THE COMMISSIONERS OF THE DISTRICT OF COLUMBIA.

THE ACT OF MARCH 3, 1881, 21 STAT. 460, PROVIDED THAT---

THE OFFICE OF TREASURER OF THE DISTRICT OF COLUMBIA IS HEREBY ABOLISHED FROM AND AFTER THE 30TH DAY OF JUNE, 1881, AND THE COLLECTOR OF TAXES FOR SAID DISTRICT SHALL, FROM AND AFTER THAT DATE, COLLECT ALL REVENUES OF THE DISTRICT AND DEPOSIT THE AMOUNTS COLLECTED DAILY WITH THE TREASURER OF THE UNITED STATES.

THE LAST ACT QUOTED REQUIRES THAT ALL COLLECTIONS OF REVENUES BE DEPOSITED DAILY IN THE TREASURY AND NO AUTHORITY IS FOUND FOR THE USE OF BANKS--- EITHER THOSE NOW BEING USED OR ANY OTHERS--- AS INTERMEDIARIES OR COLLECTING AGENCIES. IN FACT, THERE APPEARS TO BE NO AUTHORITY FOR THE COLLECTOR OF TAXES TO DEPOSIT MONEY OR CHECKS RECEIVED AS REVENUES OF THE DISTRICT OF COLUMBIA ELSEWHERE THAN WITH THE TREASURER OF THE UNITED STATES.