Omaha daily bee., 1921-12-20
Tax on Gas
Planned by
M'Kelvie::: 6:
Governor Will Call s. )
Session of Lcgisls' y -
Raise ,OOO,Oy ~
Fuel Levy.
Says System Is Just

Governor MeKclyie announced to-
day he would call a special session
OF the legislature in February to
pass legislation imposing a tax OF
cent a gallon on all gasoline used
in Nebraska and thus relieve the
poorer people from paying approx
imately Sl,000,000 in taxes next
year.
Figures were available here for
the consumption of gasoline in Ne
braska in 1919. 1t was 7S,726,450
gallons.
The governors decision followed
reports from several governors at
the conference of governors in the
east where such tax is in operation
and where. according to information
Governor McKelvie has. it has been
found to be means of placing the
road construction tax directly on the
people benefited, the automobile
owners.
Says Tax Equitable.
THE tax is equitable for the auto
mobile owner, too" Governor Nc
Kclvie said. "The driver OF the
heavy truck and the expensive car
uses the most gasoline and is harder
on the road, SO he must pay more
tax than the man who has light
car.
Furthermore, such tax will go
far in remts ling the present unfair
ness OF taxation throughout the
country because owners Of real prop
erty must bear the burden as the
owners of intangibles keep them
hidden and thus escape paying their
proper share"
The governor said he believed the
gasoline tax would meet next years
appropriations for ., road building
and take it altogether from the
shoulders of the poor people. The
states share of tax for road con-
struction in 1922 is approximately
$1O0O,000.
Plan Long Considered.
"Such a plan has been in my mind
for some time,' the governor said,
"but it seemed better to wait until
suits brought in other states against
the imposition of the gasoline tax
were completed in the courts and
thus ascertain if it were legal. |
learned at the conference that the
gasoline tax has been upheld by the
courts"
The governor emphasized that
every effort would be made to cut
legislation passed to the minimum
and make the session short. He
said it was probable that meeting
of business men and bankers might
be called before the session opened
to endeavor to work out a plan to
better the state guaranty act and re-
lieve, in degree, the heavy drain
On til guarantee fund in the last year
caused by numerous bank failures.
May Ask Capitol Funds.
Also, he declared, if it were found
that the failure OF the legislature to
make a special appropriation of ST.
100000 for the new capitol might
delay the project, he would ask the
special session to pass the measure.
However" the governor said,
eve were assured by State Auditor
Marsh during the session last Win
ter that the state house bill passed
two years ago provided for regular
appropriations every two years until
the S5,000000 was raised"
+ Difficulties of conflicting laws
discovered by compilers of the Ne
braska statutes and state laws which
conflict with Nebraska getting full
benefit of war finance corporation
loans may be wiped out at the ses-
sion, it was stated. ...
Democrats who began immediate
ly after the governors announce
ment of a special session to ascer-
tain its cost, declared it would run
from $4,000 to $4,000.
Governor Denies Report.
The governor also denied report
that he would ask the legislature to
repeal the four laws passed by the
last session, which are being held up
as result of referendum petitions
circulated by the Nonpartisan
league.
There was no such intimation
given out by me- he said, 81 have
no such plan in mind"