Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-09
GAS TAX STRUCTURE
HELD ENDANGERED
A. A. A. Head Sounds Warn
ing Prior to Meeting of
Legislatures.
0Jaso AI.z1xLsuAE. .aAe.

Citing the fact that during the 1929
sessions of the State Legislatures no
less than 81 States increased the taxes
on the motorist by boosting the gaso-
line tax, the American Automobile As
ISOLATION sounded a double warning to-
day In anticipation of the converting
of the biennial sessions of the LegiS-
latures in ~ States early in 1881.
In the statement under the signature
of Thomas P. Henry, its president, the
national motoring body declared that
the structure of the gasoline tax, SO
vital to the continuation of the coun-
tryS road program, is endangered by
two tendencies, namely, the temptation
to pyramid the tax from year to year
and the temptation to use it for other
than bodybuilding purposes.
Way of Illustration.
BY way Of illustration of the latter,
Mr.. Henry cited the proposal coming
before the New Jersey voters on No
vember for the floating Of two bond
issues for purposes that have no con-
nection with highways, although the
bonds would be retired by an increase
in the gas tax rates.
"As If it were not enough that the
gas tax in some States should be di-
verted for schools, sea walls and fish
hatcheries." he said. New Jersey now
comes along with the proposal to saddle
the expense of State institutions and
inland waterways, in the amount Of
SIT ,000, 900, on the users Of the high
ways.
1.-THE New Jersey voters have o per-
feet right to tax themselves as they see
At, but If the proposal Is successful and
the precedent Is followed by other
States, it will ultimately prove the UNI
doing of the gas tax
Because of the ease with which 1t
is levied and collected, there undoubt-
eddy exists a temptation to keep raising
the tax out of proportion to road
building needs, to which. of course, it
should be at all times directly related.
Rate Limited.
IF this tendency continues the mo-
florists might find 1t necessary to invoke
on a Nationwide scale the principle
established in Missouri where the gaso-
line tax rate OF 2 cents per gallon and
motor vehicle license fees have been
limited, through constitutional
amendment passed IN November, 1928
to the present rate for a period of 10
years. Because Of the growing practice
whereby many States now plan their
road programs for a period OF years,
such guarantee to motorists as Mis-
souri, has given is capable Of wide APP
plication."
Billion and Half Received.
Mr.. Henry's statement continues:
The gasoline tax was first adopted
as an equitable means of taxing the
motorists for bodybuilding and mainte-
nance in proportion to his use of the
highways. Since it was inaugurated in
Oregon, in February, 1919, car owners
have paid q total Of Slate, 463,6 54 In
gas taxes and have accepted the i'm
proved highways as an adequate return
on their investment.
But within the last Ave years there
has been a tendency to pyramid gas
taxes sometimes, without regard for the
actual program Of construction and
maintenance For instance, in 1925
only one State had scent rate, four
collected cents gallon, thirteen, 3
cents and twenty-five, cents Today
three States collect cents a gallon
eight scent tax, twenty, cents, and
nine, 3 cents.
"The year 1880 opened with every
State in the Union collecting the tax.
New York passed gas-tax law for the
first time in 1929 and Illinois repasSed
the law eliminating provisions which
caused the first act in 1928 to be de-
clared unconstitutional"