Imperial Valley press., 1933-07-26
APPROVAL FOR
STATE SALES
TAX MEASURE
Assembly Adopts Inter-House
Conference Report Providing
For Levy.
DISPUTED POINT SETTLED
Rate Set At Two And One-Half
Per Cent Until June, 1885, And
Thereafter Two Per Cent.
DISPUTED POINT SETTLED
BY THOMAS b. MALARKEY
United Press Staff Correspondent

United Press Staff Correspondent
SACRAMENTO, July 26. (U.P)-
The legislature today finally passed
retail consumers sales tax when
sLthe assembly approved, 43 to 30
(khe inter-house conference COM
mittee report.
The assembly then killed the pro-
posed 81 increase in the automobile
license fee by 45 to 20 vote. The
tax would have raised licenses from
SO to 81 and yielded approximate
ly $4,OOO,OOO,OOO during the bien-
mum.
The sales tax was set at 21s per
cent until June 30, 1895; thereafter
Q per cent.
Way was cleared for passage
when assembly leaders convinced
the lower house utilities would pay
taxes from January /, 1895, to July
/, 1885. A question raised ON this
point prevented approval of the re-
port last night.
Estimates varied widely on the
field. State board of equalization
and state finance department esti-
mated between $80,000000 and $685.
100000 Others ran as high as $l12,-
100000.
Lowest predictions are based on
the assumption the state will re-
main at about its present econo-
mic level Optimistic forecasts are
founded on bright prospects of re-
Covery or in lieu of that. initiation.
The tax will affect $4,000 mer-
chants in California. 1t will become
effective August L. The act will be
administered by the state board of
equalization. Two per cent of the
gross returns will be diverted to-
wards collection expense. This will
net between 100000 and $500,000
annually for administration.
Adoption of the conference re-
port precipitated little debate. The
assembly was talked out of the is
minds beyond possibility of persua-
sion.
BY approving the sales tax, the
legislature took long stride to-
wards balancing the budget-or,
at least, coming within striking dis
tance. Assuming $100,000,000 will be
raised-the midway point between
low and high estimates-there still
remains red" balance of $25 000,-
O0O
Still pending were a $4,000. 900
state income tax, 100000 beer tax
increase and possibly, several 9TH
ers which may pop up at the last
moment.
Resolution calling for study Of
the desirability of annual legisla-
tive sessions instead of present BIZ
ennial meetings, was adopted by the
assembly today on motion of As
semblyman Frederick M. Roberts,
Los Angeles. A three member in
quiry committee is called for
Roberts favorS annual sessions,
alternatively introducing and act
ing upon bills. Interval between
introduction and action would al
low time for familiarizing the pub
lie with legislation.
SACRAMENTO, July 26. - I'm
patient and fretful legislators
swung today into the final day of
the 5Oth session with the founda-
ton of their vast budget $780,
100000 balancing enterprise-the
retail sales tax and income tax
Still in doubt.
Adjournment was set for 4 p. m.
But unless problems and controv-
ersies are settled with unprecedent-
ed speed the clock will be "Stop-
ped' and long night session un-
dertaken.
The sales tax was at the brink