Smyrna times., 1923-03-14
GASOLINE TAX BILL PASSED
New Law Provides One Cent Per Gal
Ion This Year and Two Cents Next
Year to Provide Road Funds


Year to Provide Road Funds
Representative Lednum's bill to
provide a portion of the revenue nee
essary for the construction, recon
struction and maintenance of the pub
lie highways of the State by imposing
tax on motor fuels to be paid by
dealers, a proposed law which, it is
believed will be of the greatest inter
est to the people of Delaware, espec-
tally thoss owning and operating auto
mobiles both pleasure and commercial
cars, was passed by the House Friday
afternoon by a vote of % to 4. The
Senate passed the bill yesterday with
out a dissenting vote. The House
members who opposed the bill were
Representatives Carey, Reynolds,
Slaughter and H. Pratt. This is the
bill providing for a tax of one cent a
gallon on gasoline this year and two
cents gallon next year and thereaf-
ter. This tax is to be paid by the
wholesaler and not by the retailer or
the operators of supply stations. The
bill provides that every month the
wholesaler must make a report to the
State Treasurer of the amount of gas
Oline sold during that month and he
must accompany this report with the
tax on these sales. 1t will be mis-
demeanor to divulge the amount of
tax paid by any wholesaler. The bill
provides for the kind of forms to be
used in making these reports and pay
ments and specifies how the tax is to
be computed and paid.
Farming Implements are Exempt
While these dealers will have to
pay a tax on all the gasoline sold
they will be allowed a rebate on that
which is to be used for farming I'M
plements, motor boats and in fact all
kinds of gasoline propelled or operat-
ed engines except those in machines
traversing the public highWass as the
gas used in such is exempt from the
tax under this law Penalties for
violating any provision of the law are
fixed at $1,000 fine and six months in
planning his bill said this State has
100000 invested in improved high
ways and these must be maintained
The bill he stated will provide the
revenues to maintain them and also
to aid in the construction of additional
roads. He claimed this bill is abso-
lutely necessary if the building of the
States highways as mapped out is to
be continued. Representative Melzo-
stated there has been much ag,tat:or
in this State about new roads but tC
build them there must be money anC
to secure this there must be taxes anC
it was felt this tax on gasoline wa.
the fairest and best way to raise thes,
revenues for the people who use the
roads most are the ones who wea
them out and under this bill they vii
be the ones who will pay this tax fO
their upkeep, and it was agreed sucl
people are the ones who should pa!
the most for their upkeep.
Millions for Roads Will be Availabl
He thought the tax of one cent tn;
year and two centsNneXt year wa
misunderstood so he explained the on
cent tax this year, it is estimated, Wi
bring in to the State treasury abou
$4,000. The Federal GOvernmeT
has agreed to give Delaware for goo
roads approximately $1,000,000 if tn
State will match this appropriation
The State must also match the cOul
ties dollar for dollar for all they pr,
vide for road work and with the Dor
issues already made in the counti'
together with those authorized but m
yet issued there will soon be a fund
about $1,500,000 available for 70;
work. This with the Federal appr
priation will make $2,5OO,OO0 for 70;
work in this State. The revenue fro
this tax on gas will enable the Sta
to take care of the interest on
bonds for this purpose and will al
provide a sinking fund to care
such bonds as they mature. The t
of two cents next year will thereto
be necessary to meet the increasil
interest charges and the drafts on t
sinking fund as the bonds fall due.