Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-11-24
Montgomery County
Tax Dispute Seems
Headed for Court
Toxpoyers Association
To Meet Tomorrow
To Plan Action

o lOU ACI1On
The ruling of Attorney General
William c. Walsh of Maryland on
the Montgomery County tax yer
controversy appears headed for a
court test under the auspices of the
Montgomery County Taxpayers As
ISOLATION.
Curtis j. Ireland, association
president, said the Board of Direc-
tors would meet at pm. tomorrow
at the Kewood Country Club to
plan what action should be taken.
but indicated that the courts would
be asked to decide whether or not
taxpayers were being assessed double
by the provisions of Chapter 387 of
the acts of the 1899 Legislature.
The chapter provides, among other
things, that in all counties or NUM-
cipalities where the taxable year is
not specifically set by statute. the
calendar year shall be the taxable
year. Baltimore and Anne Arundel
Counties and Baltimore city have
the calendar year specifically de-
signated as the taxable year, but
Montgomery and the 20 other
counties in the State do not, and
thus come under the provisions of
the new law, Attorney General
Walsh explained in ruling to the
noorS of Commissioners
County Will Be Ahead.
Walter K. Bachrach, another
member of the Taxpayers Associa-
ton, said that "if the courts rule
against the taxpayers, it will mean
that the county will be ahead some
thing over 81 900 900 and that tax
payers of the county, whether or
not they sell their property this
year, will be out the same amount
and will have paid double. taxes for
an entire semiannual period"
County officials claim, however,
that designation OF the taxable
wear as the calendar year will not
affect the taxpayers because no
change was made in Montgomery
County's budget act, which provides
for making expenditures on fiscal
year running from July / to June 3d..
he held. Thus, while the taxable
year under the new law will be from
January 1, 1910, to December 81,
1910. the taxes collected will run the
county until June 30, l941. as in
the past, Mr.. Walsh explained. The
taxpayer is not being taxed double.
for any part of year, he said, be-
cause there is only one tax levy
each year and only one tax collec-
ton each year.
Lose Six Months Taxes.
The point raised by the associa-
ton is that heretofore taxes have
been paid with the understanding
they covered the fiscal year, or
through June 30. The new law
specifically states. they are now paid
only for the calendar year, or
through December 81. While the
effect is not felt until the adjust
ment of taxes when property Is
sold, the association claims, hun
dreds Of properties are sold every
week and over q period OF years
most of the property in the county
will have changed hands. with q
resulting Gloss" of taxes for a six
month period.
Under the fiscal year system, a
person selling a property on Decem-
Der l would receive a refund from
the purchaser of taxes for the re-
mairder of the year, amounting 10
seven months. Under the new cal
endar year plan, the seller would re.
ceive a refund only until the END
of the calendar year, or one montn.
While the calendar year policy OF
adjustment is not uniform, some
title companies recently have made
tax adjustments on calendar year
basis instead of the old fiscal year
basis.
In answer to an inquiry from Mr..
ireland as to whether the 1910 levy
covered the fiscal year, 1940-1, Presi-
dent Thomas E. Hampton OF the
county board replied that the min
utes of the board meetings stated
the levy was made "for the year
1910" and covered expenses and
charges for the fiscal year beginning
July /, 1910, and ending June 50,
194l." The wording in the minutes
was the same this year as In prev1-
Gus years, he said.
fractional Levy Authorized.
Chapter 387 also authorizes q
fractional levy should the county
board elect to make one, but the at
torney generals opinion advised 1t
was not necessary.
County officials said that had q
fractional levy been set for the last
six months of this year, the county
would have been unable to operate
after January /. About 81 1000 900.
or half the budget, would have been
needed during the first six months
of 1941, and the county's borrowing
Is limited by statute to $500. 600 in
sny one year. No funds would have
been available for operating ex-
penses until taxes started coming in
next July.
Another angle cited by county Of
ficials was that State taxes always
have been adjusted on the same
fiscal year basis as county taxes, al
though the States taxable year has
always ended December 81. BY long
standing practice, a person pur-
chasing q property on December l
refunded the seller seven months
county and State taxes, despite the
fact that the State taxes were actu-
ally paid only one month beyond the
sale date. Chapter 387, which was
part of Governor O'Conor's tax re-
organization program, merely brings
the county taxable year into con-
formity with the State taxable
year, it was claimed.