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B-105156 1 (1970-03-23)

handle is hein.gao/gaobabkel0001 and id is 1 raw text is:                     L.7.


                  COMPTROLLER GENERAL OF THE.UNITED STATES
                            WASHINGTON, D.C. 20548              RLLEASLh.



B-105156                                         MAR 2 3 1970

Dear Senator Proxmire:

      In your letter of October 10, 1969, you requested that we furnish
you certain information pertaining to the Oregon and California Rail-
road grant lands and the Coos Bay Wagon Road grant lands and an
analysis of Senate bill 2943 introduced in the Ninety-first Congress
first session. In October and December 1969 we met with representa-
tives of your staff and they agreed to certain modifications in the na-
ture and scope of the work to be performed. With the exception of our
comments on Senate bill 2943 previously furnished to you by letter
dated February 4, 1970, B-105156, the matters considered in our re-
view are discussed in detail in the enclosure to this letter. Our com-
ments on the items that appeared to be of the most interest to you are
summarized below.

      Federal payments to each of the 18 counties in Oregon in which
the Oregon and California Railroad lands are located were made from
1913 through 1937 on a tax equivalency basis, and beginning in 1938
payments were made on a revenue-sharing basis. The revenues dis-
tributed to the counties from 1938 through 1969 totaled $298,839,852.
In 1969 the payments amounted to $32,116,506.

      During the first few years after the payment basis was changed,
the revenue-sharing payments were less than the average tax equiva-
lency payments for 1913 through 1937. The payments gradually in-
creased, however, and beginning in 1943 the counties were generally
paid amounts that exceeded the average tax equivalency payments for
1913 through 1937.

      We estimated the amounts that would have been paid to Coos,
Douglas, Josephine, and Lane Counties during 1938 through 1952 if the
payments had continued to be made on the Oregon and California Rail-
road lands on the same basis as taxes on comparable private lands.
A comparison of the estimated tax equivalency for that period with
the revenue-sharing payments showed that for 1938 through 1942 the
revenue-sharing payments, in most years, were less than the esti-
mated tax equivalency and that thereafter they generally exceeded tax

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