Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1906-02-23
HOW THE STATE TAX IN 1907 GAN
BE REDUCED TO 10 CENTS.

BE REDUCED TO 10 CENTS.
= In special dispatch from Annapolis pub
lished a few days ago, the interesting sug
gestion Is made that II is In the power Of
the Comptroller of the Treasury 10 effect
reduction of o. cents 10 the State tax rate
next year without any legislative action.
The Comptroller, in bis annual report, rec
ommends the repeal Of the tax OF II cents
levied for free school books. This tax can
be repealed, as the Comptroller shows, with
out interfering witaThe free book system.
The large increase in the State tax rate
in 1905 was due principally TO the increase
OF toe tax for the public schools 70 10 cents
on the 800. 1t was the expectation when
that tax was laid that It would produce $1,-
100000 year Tor distribution TO the schools
10 addition to the appropriation TO the schools
OF the sum derived from this tax an add
tional sum of $4,000 was appropriated foI
school books sum considerably above tht
requirements OF most OF the counties. Bot
the State tax basis increased in 1905 about
$25, 000, 900, aud instead OF producing $l,'
100000, as was hoped, the 15.cent tax pro
duced last year 81, 1895. The yield will
be still greater for this year, and next year
II will yield enough to pay 100000 10 thu
public schools and sufficient sum for the
free books in addition. The II cent tax is,
therefore, unnecessary and should be re-
pealed for next year, as the Comptroller
recommends. This reduction added TO the
discontinued tax OF O. cents proposed would
make total reduction OF 81 cents and bring
the State tax rate down 10 10 cents-a lower
rate than has been levied in many years,
and would, the Comptroller says, relieve the
taxpayers of the burden OF 100000 year.
The total debt of the State at the close Of
the last fiscal year, as shown in the Comp
troller's report, is $3.50. 926. 13, the annual
interest upon which is $265.932 70. There
remains about 900 OF bonds authorized
for the Maryland Institute yet to be Issued,
but as all OF them will be taken into the
sinking fund, they do not materially affect
the situation.
Now, the question lie, II the tax is repealed
how is the $685. ,932.7s of interest on the
bonded debt to be provided
OF the entire debt the State owns $2JS41,
687, the annual interest upon which Is &88,
24761, which need not be provided, accord
ing TO this plan. That would leave the in.
terest ON the outstanding bonds $177, 6S5.17.
The sinking funds also hold various invest
meuts IN Baltimore City and other good
bonds, aggregating $4lS0O0, which yield
$17,474. Deducting this sum from SIT,
$50. II, there would remain $160,2l1.17 to
be actually provided. The Northern Cen.
trail annuity, which, under the Constitution,
belongs TO the sinking funds. supplies $780,.
600 of the necessary amount, leaving So.
211.17 to be supplied by dividends from the
Washington Branch stock, which must also
be carried TO the sinking funds and from the
general treasury.
The present net debt Of the State, after
subtracting the sinking funds from the gross
debt, is So, 225 339.13. As an Offset to this
sum the State owns several stocks worth
ss7 A7n. the Northern Central annuity
which ht lrea urer says can be sold for
S8.0000o0 snd which, he says, Is worth
m1re, sut the slate's stock In the Washing
ton bfanah, u view Of the admission oil
.he Baltimore md Ohio Company that the
atask % aalr'r more than 81 per cent, 1t is
commended that the Comptroller would be
justified in carrying it to the sinking funds
at valuation of $500 share, or 81, 200. 900
Adding these items together, the sinking
funds would exceed the debt, which, in the
contemplation of the Constitution, is equiva-
lent to Its payment.-Bdlto. Sun.