Evening star., 1941-04-25
Appeal Held Up
In Maryland
Tax Ruling
Morgan Plans Study
Of Levy Against
Federal Employees

No decision had been reached to-
day on whether to appeal yester-
days ruling of the Maryland State
Tax Commission that the State has
right to tax the salaries Of Fed
eral employees residing in Montgom-
cry County.
10 v. Morgan of Bethesda. the
Districts one-man Board of Tax APP
peals, said he wanted to read the
decision of Chairman Harry o.
Levin OF the State Tax Commission
in denying claims Of four county
residents employed in Washington
that State Controller Millard j.
TaWeS Disseminated against them
in taxing their incomes for the CAL
endar year 1889
The four cases were representa-
tive of more than 100 other petit
tioners, Mr.. Morgan explained His
own case, he said. represented en-
ployes Of the District government
and that OF Henry c. Wood. United
States Senate legislative counsel,
represented Federal employees. The
case of Brig. Gen. Joseph H. Lewis
represented Army and Navy officers
living in Maryland, and the case of
Alexander Tucker, special assistant
to the attorney general, represented
Federal employees with a legal resi-
dence in another State.
Court Ruling Cited.
A Supreme Court ruling that the
salary o. New York Port Author
ity Official was taxable by the Fed.
eral Government was cited by the
commission in dismissing the
Quartet's claim that they were ex-
empt from the State income tax
as Federal employees.
The only valid basis for the i'm
piled immunity of one government
from taxation by the other is the
protection of the government which
it is attempted to tax" the opinion
said.
Where the employees of the Fed
eral Government are concerned, for
example, the Constitution implies
an immunity only to the extent
that the imposition of the State
tax curtail or be injurious to the
functions of the Federal Govern
ment itself.
The exemption which the petit
TONERS claim should be granted
them is soley for their personal
profit and does not concern the
functions of the Federal Govern
ment."
Mr.. Morgan had declared to the
commission that the Public Salary
Tax Act permitted levies on the
salaries of public officials only il
the State did not attempt to tax
them while granting exemptions
10 their own officers or employees"
Claim Overruled.
The commission overruled Mr..
Morgan's claim that his Office was
similar to that of members of the
commission, saying that he, as the
one-man board of appeals, is en-
powered only to hear appeals from
assessments, whereas the MARYLAND
Commission has much broader pow
ers.
Mr.. Woods petition compared
his position to that of the director
of the department of legislative
reference in Maryland. but the COM
mission ruled that Office was not a
public one under the constitution.
IF he we're a Maryland Official
the ruling said, "he would not be
exempt from the tax"
A similar disposition was made
of fuckers contention that his job
was like that of a Maryland assist
ant attorney general Mr.. Lewis did
not press his claim. the opinion
said, that his position was similar
to that of Adjt. Gen. Milton A.
Rockford.
The opinion ruled Jointly in the
four cases on which the commits
sion held a hearing here on Janu-
airy Is.