The midland journal. (Rising Sun, Md.) 1885-1947, 1945-02-02
REAL ESTATE AND INCOME TAX
REDUCTIONS EFFECTED

REDUCTIONS EFFECTED
Governor Herbert r. O'Conor in
his Budget Message to the General
Assembly provided for reduction
of 33 1872 on individual incomes,
earned or from investments, for the
next year, THUS avoiding the return
to the statutory rates of 20 on ordi-
nary and s % on investment income.
Under the financial plan which 1
have developed" Governor O'Conor
declared, II am proposing decrease
in the State tax on real estate from
IL cents to IL cents for the fiscal
years 1946 and 1947. This is the
lowest rate since 1861.
When this Administration took
Office in 1899, the Bonded Debt of the
State was $4S,157,OO0. Since that
time, the debt has been reduced by
$21,007,O 900, reduction of 43%.
The Bonded Debt as of today, Is ST.
10000, which represents the very
small percentage of % a on the cur
rent taxable basis of the State.
My general policy has been to use
SURPRISES to reduce taxes In an effort
to relieve tie heavy burden of taxes
necessarily imposed by the enormous
cost of the World War. Following
this policy, reductions were effected
during the 1942-43 biennium that re-
suited in savings to the taxpayers OF
the State of $6,S64,975.28 from the
income tax, plus $4,379,211.70 from
the State real estate tax.
"In the current biennium similar
action towards tax reduction by the
State Administration resulted in fur
tker savings of S6,324,715.07 to the
| taxpayers as the result of the reduc-
ton of the income tax and from the
continuation of the lowered real es
tate tax. Thus, over the four years,
total of $17,559,9O2.05 was saved
to the taxpayers of Maryland as the
result of the use of surplus funds,
which had been accumulated in part
through economies and savings re-
sulting in reversions to the State
Treasury There will be further saw
ings from the Income Tax reduction
of one-third applicable to 1914 in
comes"
Referring to postwar construction,
Governor O'Conor declared that 'Pro
jects totaling approximately $12,-
10000 have been selected for early
construction and l shall present to
your honorable body bills authoriz-
ing these construction projects and
providing for financing the cost
thereof. shall recommend the finan-
cling of this program by bond issue
of only $5,075,00O, the remainder
being supplied from the State surplus
and the previously established Post
War Construction Fund.
Requests by the various depart
ments, boards, commissions and in
!stitutions and fixed charges, amoGnt-
ed to $1I7,S59,o53.7O
Il have carefully reviewed these
requests and have weighed the desir-
ability and necessity for allowances
against the imperative need TO keen
the cost of operating the State Gov
eminent at minimum when is re
CURED for the administration of es-
sential services, and l am recon-
mending General and Special Funds
appropriation totaling $112,733,590-
10. Tis represents a reduction of
$5,1O5,463 from the amounts re-
quested by the various State agencies.
1T is worthy of special note that,
although the total increase in Gener-
al Funds appropriations, which ag-
gregate $57,S51,000, is $691, zoo; it
has nevertheless been possible to pro-
vide very substantial necessary in
creases in this budget, totaling $5,-
5S5,336 for State Hospitals, for the
Public School System and the State
educational institutions, for the con-
servation of our natural resources,
for health and the initiation of the
medical care program, and for the
States correctional institutions"
The following increases were cit
ed by Governor O'Conor.
Public Schools, $2,113,112 oman
datory); Mental Disease Hospitals,
$906,3S3; University of Maryland,
S713,7S7; Public Health, $155,127;
tuberculosis Sanatoria, S289,68O;
State Forests & Parks, $175,418;
State Teachers Colleges. $278,311;
Morgan College, S87,69S.