The Wilmington morning star., 1941-02-07
Finance Committee Deals
Death Blow to Admins.
tration Amendment
BY CHARLES w. DANIEL

LII OAA1AAeAIAI1 W.
RALEIGH, Feb. 6.-R-The joint
finance committee today dealt an ap-
parent death blot to an administra-
ton amendment to the 1941 revenue
act which would have exempted all
foods for home consumption from
the general sales tax.
The committee rejected in a rever-
brating voice vote a motion by Rep
resentative Vogler of Mecklenburg to
adopt the 'all OUT exemption amend
ment for home foods, and directed
study Of proposed sales tax changes
to a subcommittee.
Vogler alone carried the losing col
ors of the Broughton-blessed exemp.
tons bill in the face Of heated at
tacks by Senators Brooks of Durham,
OBerry Of Wayne and, Sanders OF
Alamance and Representatives I'm
stead Of Orange and Poole of Moore.
1t was upon motion Of O'Berry
that the sales tax issue was shunted
to subcommittee. Chairman Bryant
of the house committee declined i'm
mediately to name the study group,
Upon motion of Brooks, the sub
committee will make las accurate as
possible" an estimate of how much
revenue the state may anticipate
from a straight two per cent sales
tax On all items, with absolutely nc
exemptions"
Brooks said he had asked for the
estimate on all items, including the
nine articles which were exempted in
1887, along with copies Of the Bible.
Opponents of the foods exemption
proposal have said the flat two pei
cent tax will return more revenue
than the straight three per cent tax
because of better collections.
| Even as the committee handed the
administration it's first real setback
of the current session, it voted upor
motions of Brooks to reconsider its
vote changing the ration Of intangi-
BILE tax distribution and not to ACT
finally on the question of intangible
revenues until after the sales tax
subcommittee has made its report"
The committee yesterday had acted
to increase from so to 80 per cent til
amount of intangible revenues, now
collected by the state, to be returned
to the counties. The amount Ct the
increase to counties and the loss, il
turn, to the state would approximate
$500, 900 yearly, revenue department
experts said today.
Vogler, in presenting the admins
tration amendment to the budget bu
reau's original foods exemption sec
ton Of the 1871 revenue bill, said the
move was aimed ito carry out tn
governors pledge of removing thu
tax from the home table,"
The Mecklenburg representative
| secretary of the North Carolina Re
tail Merchants association, previous
| yhad presented a bill exempting al
foods from the tax. The budget bu
reau had drawn an amendment tt
the revenue act which would remove
94.1 per cent of foods from the levy
Upon suggestion of Revenue Com
missioner Maxwell - who said tina
the So per cent difference n the
two measures would bring in bu'
$50, 900 a year and would not be
worth the trouble" which woulc
come to the department in attempts
at collection-the department, will
the approval of the administration
offered an amendment to the bureau
bill making it consistent with Vog
ler's "all out measure.
1t was the total" amendment
which the committee rejected today
in sending the 94-per cent bill to the
subcommittee.