[Congressional Record Volume 140, Number 33 (Tuesday, March 22, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    THE MACHTLEY AMENDMENT TO H.R. 6

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                               speech of

                        HON. HERBERT H. BATEMAN

                              of virginia

                    in the house of representatives

                        Tuesday, March 22, 1994

  Mr. BATEMAN. Mr. Speaker, I would like to take this opportunity to 
detail my reasons for supporting the Machtley amendment to H.R. 6 which 
was debated by this House on March 21, 1994. The Machtley amendment 
would have reinstated payments for civilian b students within the 
Impact Aid Program. These payments make impact aid more broad based and 
compensate localities more fairly for the taxes lost due to the 
presence of Federal facilities.
  The Impact Aid Program compensates localities for four categories of 
tax loss: residential property taxes; employer property and other 
business taxes; sales taxes on items purchased tax-free at 
commissaries; and personal property taxes lost when military personnel 
keep their boats and vehicles registered in a State where there are no 
property taxes, rather than the State where they actually reside.
  Under the current system, section a payments compensate for all these 
tax losses. Military b payments compensate for all these categories 
except loss of residential property tax. But civilian b payments are 
still necessary to compensate for loss of employer property and 
business tax losses. The Government does not pay these taxes, but 
private employers do.
  An example of the impact of civilian a payments can be found in my 
district. On Virginia's Lower Peninsula, roughly the same number of 
residents work for the Government as work for the area's largest 
private employer. The private employer pays millions in local and State 
taxes every year. The Federal installations pay nothing. Clearly these 
localities should be compensated for those lost tax revenues.
  While the Machtley amendment was withdrawn from consideration, I do 
hope that the final version of H.R. 6 that is enacted will contain 
civilian b payments under the Impact Aid Program.

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