Montgomery County sentinel., 1935-03-28
New Sales Tax On Gross Retail
Receipts Takes Effect On Monday
Nice Approves Bill Reluctantly maryland Merchants
May Either Absorb Or Pass On Burden
To The Consumers

Maryland will inaugurate its new
one per cent gross retail receipts tax
on Monday. Governor Nice has indi-
Gated that he will sign the bill Sat-
urday. William S. Gordy, Jr., State
Comptroller, has already been in
structed to begin the rather compli-
Gated work of setting up machinery
to operate the tax plan.
Although Governor Nice said yes
teday that he will sign the measure,
the chief executive is plainly reluc-
tant about affixing his signature. He
sponsored the two per cent retail
sales tax which failed to pass the
Legislature.
1t is believed that any sales tax
will work unfavorably in Montgomery
County, as the competition from ad-
joining Washington merchants may
cause serious loss of trade. State
Senator Stedman Prescott was one
OF the firm opponents of sales tax
in the General Assembly.
Under the law which will become
effective Monday, the merchant is at
liberty to absorb the one per cent
levy that will be made on his receipts
for retail sales, or pass it on to the
consumer. The consumers tax bill,
introduced by Speaker Emanuel Cor
fine (Dem., Fourth Baltimore), would
have obliged the consumer to pay the
two per cent, tax.
The consumers tax at two per
cent. would have yielded approxi-
mately $6,500,0OO a year, whereas
the one per cent. gross levy is esti-
mated to produce approximately
81, 10000
Two county measures sponsored by
Joseph A. Cantrel and Walter M.
Magruder in the House went to Gov
ernor Nice for his signature yester-
day. They dealt with economy in
county government. A third bill, pro-
hibiting county officials from becom-
ing party to any contract involving
the expenditure of public funds, was
also before Maryland's chief execu-
tive.
In addition, three Montgomery bills
passed on third reading in the House
and were forwarded to the Senate,
while four other local measures
adopted by the Senate were sent to
the lower legislative branch.
Included in the latter group was the
bill to set up permanent registra-
tion system and Board of Registry.
Senator Melvin L. Fine of Baltimore
City is the author of the bill, which
applies jointly to Montgomery County
and Baltimore City.
One of the Cantrel and hlagruder
economy acts is designed to reduce
the salaries of the three members of
the Board of Assessments-the chair
man from $4,000 year to $4,000 and
his two associate members from ST.
TOO to $4,000.
While the other eliminates the $500
additional compensation received by
the county commissioner acting as
supervisor of the county home.
Passed by the Senate Tuesday they
were taken to the Governor along
with third bill passed in the Upper
House to bar county officials from
entering into contracts with the coun-
ty.
The bill, sponsored by Cantrel, was
strengthened by several amendments
affixed in the Senate by Senator Sted-
man Prescott Of Montgomery County
and concurred in by the House on q
motion by Cantrel.
In its original draft it prohibited
only the county commissioners from
becoming party to such contracts
but Prescott amendment will make
it applicable to all county officials.
Another amendment strengthening
the bill would require the County
Board to advertise for bids on al
projects involving the expenditure o1
$500 or more. The original measure
set $1,000 as the minimum expendi'
ture for projects on which bids would
have to be advertised.
A fine of not more than $1,000 OF
imprisonment in the House Of Cor
rection for a period not exceeding
one year is provided for violations Of
the act.