The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-04-05
TAX. K. SCHOOL
PROGRAM now
NEAR DECISION
Three Per Cent Sales Tax
8-Months School AL d.
most Assured
By HENRY &LESESNE

RALEIGH, April 5.-The gen
cral assembly viii finally. wind
up with the adoption of Il 3 per
cent general sales tax and
state supported eight months
school term, according to those
familiar with the situation here,
despite the fact that there Is
some sentiment in both houses
for luxury sales tax, and strong
opposition in the lower branch
Ct the assembly to any form OF
sales tax. ..''
The house finance committee
has drawn a revenue bill with
only a 2 per cent general sales
tax. and which makes no provl-
sion for an eight months term.
However, the senate is almost
unanimously in favor of an eight
months school term, which will
necessitate a sales tax Of 3 per
cent, and is definitely lined up
against the adoption of luxury
sales tax, which had strong sup
port in both houses Of the 1881
assembly.
1t is generally conceded here
that the senate will never ac-
quiese to revenue bill without
general sales tax sufficient TO
take care of an eight months
term, and if it comes to a sit
ting contest" between the two
houses, the chances are that the
senate can sit the longest and
that the house will eventually
nave to come around to the SEN
ate's way Of looking at things.
# the house agrees to : per
cent general sales tax, as IS con-
tanned in the house revenue bill,
it is likely that no !Ong-drawn
out Sitting contest" will result,
and that the differences can be
ironcd out in conference in a rel
atively short time, permitting the
assembly to adjourn probably
within two or three weeks.
In the event the house ap-
proves the revenue bill in sub
stantially the same form that it
was drawn by its finance com
mittcc, the chief difference be-
tween the two houses will be
over On eight months school
term. A per cent sales tax
will match the appropriations
bill. provided there IS no eight
months term. but it is agreed
that an eight months school term,
which eliminates nearly $1,000,
GEO year in special school
lcvies. will require 4 3 per cent
sales tax. Under the appropria-
tionS bill passed by the senate.
S2,OO0.000 was added to tn"
school item to tax" care Of an
eight months term. This is $500
600 more FOR this purpose than
was recommended by Governor
Ehringhaus in his recent special
message to the assembly. and IL
is believed thai fine house would
agree to an eight months term
if compromise figure OF ST.
100000 is submitted.
There is considerably less senti-
ment for a luxury tax among
members Of the legislature than
there was two years ago. The
house has Indicated that it is OPP
posed to any form Of sales TAN
but many members have come
around to the view that some
sort of sales tax is inevitable.
Representative Tam Bowie, the
leader of the ultra-economY bloc
in the house. will lead the OPP
position to a sales tax. He has
a considerable following in the
house, but it is still problenaticaI
whether this group can muster
enough force to bloc the COM
mittee revenue bill.
The prevailing belief here,
however, is that the Bowie bloc
is not strong enough. Bowie
was an ardent luxury tax adVo-
cate two years ago, and 1t IS be
Iieved that if he fails to block
any kind of sales tax, he and his
followers will switch to a luxury
tax. However, a coalition OF
luxury sales tax advocates and
the Bowie followers will not pre-
sent enough strength to bring
about adoption of a luxury tax,
according to informed opinion
here, and it is believed that the
house will finally adopt a bill
substantially the same as that
written by its finance committee.
Many of those wine have tav-
cred a luxury tax in the past
have come around to the view