The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-03-04
HOUSE PASSES
BILL TO TAX
CHAIN Stores
Heavy License Fee Provided
by Measure; Now Goes
to Senate.
EASES BLOW ON VOTER
Committee Is Selected to
Devise Other Ways of
Raising Revenue.

+ The bill placing all chain stores
operating in Indiana under heavy
license fees was passed, IS to 5, by
the Indiana house Of representatives
today. The bill now goes to the sem
ate.
The passage was part of a move
ment to meet the five million dol~
lar increase il the state budget
without increasing the state tax
levy by 10 cents.
The l0-cent levy would hit the
voters directly. The chain store
levy, while it might be passed along
to the consumer in the end, would
strike the voter like billiard,
losing some of its force, the Repuh-
ilcan leaders figured.
At the same time the house, by
a vive vOce vote, adopted the sem
ate resolution which creates a COM
mittee composed of three senators,
three representatives the Cover
nor, Lieutenant-Governor and
Speaker of the house. to devise
ways and means of raising revenue
aside from the tax on real prop
erty.
Committee Is Named
Speaker James Knapp appointed
Representative Sam Farrell, Charles
M. TroWbridge, William Storen. and
j. Glenn Harris as members Of the
committee. Knapp explained that
he appointed Harris to serve in lieu
of himself because the many duties
devolving upon the speaker at the
end of the session.
The chain store bill taxes single
Stores SIS annually: provides pro
portionately higher taxation for
larger groups OF. stores; and maxi
mum taxation of $3.50 a store for
chains operating forty or more
stores in Indiana.
Constitutionality of such measure
was questioned by Representative
John w. Chamberlain, of Terre
Haute
In my opinion, such legislation is
unfair, in that it legislates against
one certain group and therefore is
unconstitutional" Chamberlain said.
Should Share Burden
ut is time that the chain stores
were compelled to bear their por-
ton of the cost Of government" de-
clared Representative Charles Wor-
ley of Alexandria, merchant
"They run down their stock on
March,, and turn in tax duplicates
of $500 or $500, thus avoiding full
taxation
1.-THE chain stores rapidly are
achieving full control of business in
Indiana and should bear their cost
Of government"
THE question of cQpstitutionality
will be met when the bill after
passage. is brought TO a question, a
Representative Sam j. Farrell al
Hartford City declared. Farrell is.
a. member of the budget committee,
and chairman of the house ways
and means committee.
I'VE have made number of un-
successful attempts to raise reve-
nue. aside from property taxation.
We are facing an increase in the
levy and this assembly should pass
the bill and give it a chance to work.
If it is not good, nothing will be
lost, and if 1t is constitutional the
state will be saved an addition Of
10 cents to the levy"
Money for Schools
ITO lift the burden of 100000
school aid fund deficit from the
taxpayers, this bill should be
passed" Representative j. Glenn
Harris of Gary declared.
The bill provides that $2500O0
shall be paid from the tax collected
during 1929 to the school aid fund;
$55O,0OO in 1880; the same amount
in 1881; and 100000 every year
thereafter.
1--WE believe that this tax will
bring in approximately s5,000,000
annually and will relieve the situa-
ton, Representative George w.
Freeman said.
I'VE are at an extremity and
must have relief, and this is the
logical solution