Imperial Valley press. (El Centro, Calif.) 1907-current, 1933-06-28
NEW TAXATION
/. PLAN ADOPTED
Riley-Stewart Measure Places
Heavy Task On Legislature
To Obtain Revenue.
By THOMAS b. MALARKEY
United Press Staff Correspondent

BY THOMAS b. MALARKEY
United Press Staff Correspondent
SACRAMENTO, June %. = APP
parent passage of the Riley-Stew-
art tax revision plan meant today
that California IS voters have scrap
ped their existing taxation system,
given vast relief to real property
taxpayers and imposed the ire
mendous task on legislators of rails
ing $121 100000 at the July session
of the legislature.
Defeat of proposals to divert APP
proximately $17000,000 of gasoline
tax funds was an electoral man.
date that these same legislators
shall not, on pain of political death,
use gas tax monies to make 10th
ends meet.
The Riley-Stewart plan is the
most revolutionary tax revision
program undertaken in. California
in % years. With one fell swoop. it
relieves real property of $4,000, 900
in taxes annually. This is accom-
plished the state assuming the
counties fixed school charges.
Government cost increase of ci-
ties and counties is limited to S
per cent annually; in the state gov
eminent, 5 per cent biennially. Last
but not least, the states famous
separation of sources tax system
is discarded, effective January /,
1885. This means approximately
81 300, 100000 in utility property val
uation goes back on the local tax
rolls.
Entirely aside from the existing
$45, 100000 deficit-something that
must be wiped out-the legislature
must now raise $76,000000 at next
months session to pay the coun-
ties school costs. This, it is under
stood, will be accomplished by a
two per cent sales tax.
Defeat of gas tax diversion COM
plicated plans for eliminating the
existing and anticipated $45, 000, 900
deficit. Legislative leaders had
counted strongly on this revenue
source. Without it, they must cast
about for new ways and means of
raising additional revenue.
Walter j. Little. speaker of the
assembly, will call the interhouse
legislative taxation committee, of
IA into session Immediately.
To Devise Tax Program
This group will devise tax pro-
gram based on outcome of yester-
days election. 1t is certain to con-
tain the sales tax to meet the
school costs. But how to meet the
$45 100000 bugetary deficit is the
stickler. Contemplated proposals
include: a utility consumers tax
rate: increase of the automobile Ii
cense fee; increased utility taxa
ton; Inheritance tax readjustments
and others.
The committee of IA hoped to
submit a complete taxation pro-
gram to the legislature when it re-
convenes July II.
Outcome of the gas tax issue de-
nonstrated once and for all that
California-unlike 80 other states
insists it's gas tax funds shall be
used for highways, and nothing
else. Even payment of interest on
highway bonds is forbidden.
OF course, the vote on this is
sue was purely advisory" But no
legislature, it was said, would dare
repudiate the electoral decision.
Passage of the Riley-Stewart tax
plan was a boon to real property
holders. 1t takes a $38,000,000 an
nual tax burden from the should
ers of Is per cent of the popula-
ton and redistributes it to the en-
tire state presumably by means OF
retail sales tax.