Western news and the Libby times. [volume] (Libby, Mont.) 1920-1933, 1931-04-09
Will Not Increase Tax
Continued from page five.)

Referendum Measure No. IS to the
people of the state
The need for the passage OF Refer
endum No. IS comes from the fact that
there is now nearly S6,000,000 to the
credit of Montana in the Federal high
way fund, which, under federal law
must be matched by state funds be-
fore it can be used This money has
accumulated to Montanas credit be-
cause federal aid highway money has
been increased in recent years by the
action of congress, and Montana's high
way funds have not been sufficient
to keep pace with the increase in Fed
eral appropriations Referendum Meas
ure No. IS will make il possible to
wise this money will U lost to the
state.
Referendum Measure No. 35 will
make it possible for the state of Mon
tana to issue warrants not exceeding
S1,50O,00O in each of the four years
starting with 1881. for a total of not
exceeding s60O0000. These warrants
will be issued serially to mature III the
years 1884 to 1910 inclusive at the rate
of s858,000 per year. except in 194o
when the balance due will be $751;
00000
The warrants will be paid from the
revenues of the states five-cent gaso-
line tax Montanas gasoline tax was
enacted by vote of the people in 1926
with the rate of taxation set at three
cents per gallon In 1929, the legislature
increased the tax to five cents per gal
Ion and provided for the continuance
of this five cent tax until 1885 when it
was to be reduced to three cents. The
Twenty second legislative assembly
last winter, in House Bill No so, ex-
tended the time of the operation of the
five cent tax to 1941
Funds for the payment of warrants
to be issued under Referendum No. IS
will come from the five cent gasoline
tax after refunds for agricultural and
industrial purposes, as prescribed by
law, have been made.
Referendum Measure No. IS in no
way affects the gasoline tax law or the
refund law AS required by the con-
stitution, Referendum Measure No. 35
restates portion of the existing gaso
line tax law because this is the source
Of revenue for the payment of the
warrants to be issued The referendum
does not provide for new or additional
taxes, does not change the existing
five-cent gasoline tax. and in no way
alters the law regarding refunds The
measure specifically states that the
state treasurer shall set aside funds for
the payment of the warrants after the
payment of drawbacks or refunds
The measure does not provide for
a new tax but merely refers to the
source of revenue from which the war
rants shall be paid and this is required
by the constitution. There was no doubt
about this in the minds of the legis-
lators, who in such overwhelming num-
bers, voted for the bill, nor in the
mind of the governor who signed it.
If there should be any question what
ever as to the intent and purpose of
the measure, the final decision would
rest upon the intentions Of the legis-
lafive and executive branches of the
government, and it is certain, that the
intention is, the warrants shall be paid
from the revenues of the original and
only five cent gasoline tax which will
remain in operation until 1941 This
opinion comes directly from the at
torney general Of the state Of Mon
tana.
The primary purpose of Referendum
Measure No IS is to secure for Mon
tana, the S60O0 900 in federal funds for
the construction of highways in the
state. Under the Federal aid plan.
Montana matches federal funds at the
rate Of $4,000 from the state and $500
from the federal funds Under this
plan, started in 1919, federal-state
highway system of 1914 miles has been