The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-03-31
EICHT-MONTH
Term TO mean
TAX ON SALES
Final Action by Senate
Virtually Assures FL
nancing Method
By J. c. BASkERVlLL
The Times News Bure1u
Sir Walter Hotel

RALEIGH, March 81. - u.
action by the senate last night
lin amending the appropriations
bill to make provision for a state
supported eight months schoo
term with an appropriation OF
$l6,0O0,000 u year, is regarded
as virtually assuring the later en-
actment OF some kind of a sales
tax for North Carolina. Whether
lit will be q general sales tax OF
a so-called luxury tax, is not yet
evident, although a great many
believe a general sales tax is the
only one that will yield any
thing like the amount Of rere-
nue. needed.
Not as much Of Il fight de-
yclOped over the eight-monthS
school term provision as had been
expected by some, and the
amendment was adopted without
much opposition. One reason for
this was that it had become
known at least two days ago that
OF senators had already signed
an agreement to vote for the
eight-months term amendment.
so it was useless to fight against
known majority.
One of the principal arguments
used by the advocates of the
eight months term plan was that
it would do more to reduce prop
erty taxes than anything else the
general assembly could do, since
it would remove property tax
burden of approximately $4,SOa,-
900 q year now being levied III
more than 1900 special tax
school districts for the support
of extended term schools. 1t wa"
also pointer out that th" com-
bined reduction resulting from
the removal Of the special dis
trict school taxes and the re-
moval of the Is cents state TAX
would amount to almost $9,OOn:
900 year, OF an average OF
about So cents or the 500 valu-
alton.
But the argument that an !
eight-months- school term would
bring about a substantial reduc-
tion in property taxes was not !
the only argument advanced al
though there. is 10 discountlng |
the fact that it was a potent |
argument with u good many, If |
not the most potent argument.
But the contention Of Senator |
Carl Bailey Of Washington coun-
ty, and others from. the smaller
counties that unless the state |
took over the eight-months term
there would he no schools OBJ !
Grating for more than six months
in most of the counties, carried
much weight. Senator Bailey
pointed out that if the state did |
not take this step for all eight
months term that virtually the |
only places being able to have
more than six months school
term next year would be the |
larger cities and towns. |
There was some opposition TO +.
the amendment on the grounds |
that it would relieve large cor
porations of large sums which |
they are now paying in school
taxes on their property. 1t was
pointed out in reply to these OBJ
jections, however, that under the
constitution all property must be
taxed uniformly and that hence
if you relieve the small property
owners--the farmers and home
owners - that the corporations
must of necessity be relieved in
the same proportion, as far as
property taxes are concerned.
But it was also pointed out that
large part of the tax reduction
that the large corporations and
owners Of corporate property will
get as the result of the removal
| Of these school taxes can and
will be recaptured through in
creases in the corporation fran
chiSe and income taxes.
In fact, it has been known for
several days that the finance
committees have been working
busily for the past week or more
on working out ways and means
to recapture the saving that will
result from the removal of the
Is cents state tax and the spe-
cial school taxes from the cor
porate property owners. The
present revenue bill contains pro-
visions whereby the franchise
and income tax rates are sharp
~ urged to make up for the saw
ing that will result from the re-
moval of the Is cents tax alone
and it is agreed that both the
senate and house will insist that
additional increases in these
rates be made to take care OF
the additional savings that will
result from the state taking over
the eight months school term.
1t is generally conceded that
the house will probably refuse to
concur in the appropriations bill
as passed by the senate and that
it will be sent to conference. But
! it is also agreed that the house
| is becoming more and more rec
onciled to an eight-months term
and a sales tax and that. it Wal
not hold out long against the
! Senate'S bill. ...r.