Evening star., 1932-07-21
SALES TAX TREND
IS SEEN IN STATES
New Levies and Economies
Are Mapped to Lift Burden
From Personal Property.

(copyright 1882. by the Associated Presso
CHICAGO. July 2l.-Citizens OF
America from coast to coast are paying
special taxes on things they eat, drink,
wear or burn. survey, revealed yester-
day-the trend in perhaps half the Ma
tons 4s States being toward modified
sales taxes.
Legislative leaders everywhere were
reported mapping painless taxation
programs While State administrations
trimmed expenses to the minimum. both
movements being designed to remove
part of the staggering tax burden on
real estate and personal property.
Taxes on tobacco. restaurant meals,
telephone bills, stock transfers, amuse-
ment tickets, marriage licenses and le-
gal documentS-those were only few
of the special levies reported. In
majority of States. taxes are collected
on gasoline to finance road building and
movements toward State income laws
also were general.
Had Levy Since 1921.
Two States. Mississippi and West
Virginia. reported sales taxes as pro-
yiding much of the revenue which ordi-
narllE NOulQ come from property own
ers. West Virginia has had gross
sales tax since 1921, State officials re-
ported. and it is one Of the principal
sources of revenue Mississippi like
wise has found its general sales tax an
important factor in balancing the
budget
Alabama and Illinois. both of which
may have special legislative sessions
within a few months, are among dozen
States in which sales taxes are being
considered. IN Illinois Chairman Mar
tin Carlson of the State Tax Commis-
sion said he would recommend passage
of law similar to MissiSsippi's by the
Legislature.
Governors. taxation authorities and
various officials of other States, how
ever, declared themselves opposed to
anv form of new taxation or increase
in present levies. Their attitude is ex-
emplified by a statement from Gov.
Pollard of Virginia to the Legislature
increase no taxes; curtail all expenses
Typical of States reporting numerous
"fnXurv and nuisance taxes but no
general sales levy we're the following:
Taxes in Louisiana.
LOuislana-Taxes tobacco. butter.
beef. milk products. insurance policies,
OF corporations.
F1orida-Legislature rejected gen.
eral sales tax in 1881 but placed lux
ury taxes on horse racing, dog racing,
pari mutuel wagering commissions is
sued by the State, stamps on legal doc
uments. retail stores. inheritances and
estates. gasoline, electricity, telephones
and telegraph.
Kentucky-House of the last Legisla-
hllf
Senate turned it down. passing bills for
half dozen special taxes instead.
Agitation for sales tax was re-
ported from Iowa. while in Texas. where
the last Legislature refused to pass such
q bill. committee is going over the en-
tire tax situation. CALIFORNIA; S State dl-
rector of finance has advocated ten
tatively a luxury tax on beverages,
cosmetics, cigarettes and amusement
tickets.
From practically all OF the States
covered in the Associated Press survey
came word that tax collections are fall
ing lower than expected-in some cases
80 per cent-because of business condl-
tons
Expenditures Slashed.
In lieu of new or increased taxation,
impossible in many cases because OF no
legislative session since 1881, State Of
ficials have issued orders to slash ex-
penditures to the bone Salary cuts
of from 10 to 20 per cent and reduc-
tions in the budgets Of every State de-
partment were general
Several legislatures, including Indi-
anas, are meeting or have been called
into special session to enact measures
for economy and tax relief" Clamor
for reductions of real property taxes
came from a dozen States including
Michigan. where a movement has
started to exempt from taxation every
occupied home valued at $4,000 or less.
Wen trim, our expenses until they
can be trimmed no further" was the
consensus of many State officials. and
if we still need money general sales
taX-or at least additional luxury and
nuisance taxes - will be the only
solution"