Evening star., 1946-10-02
taxation Plan Reform
Urged by Commission
After Maryland Study
By J. B. Zotmon

Sweeping revisions in the
Maryland tax system and the
division of revenue between the
State, counties, incorporated
towns and cities and Baltimore
city are proposed in a report by
the Maryland Commission on
the Distribution of Tax Reve-
nues, made public today.
II the recommendations had been,
in effect for the fiscal year ended
June 80, the report stated, counties,
Incorporated towns and cities would
have been allocated $6,239 ,964.24
more than they actually received
during the period.
Baltimore would have received
total Of $6,444, ,448.89 more than its
actual ALLEGATION and the Maryland
State Fair Board would have re-
ceived $l15,492.73 from racing reve-
nues. At present the fair board
receives $4,000 year from tracks.
Increased ALLEGATION.
A major portion of the proposed
increase in State revenues and a
corresponding Jump in fund alloca-
tions to the various counties and
incorporated municipalities would
result from changes in the racing
tax.
Described in the report as 'bris-
ting with inequalities to the racing
industry, the State and the locaIi-
ties" the tax would be 'modernized"
and brought in line with the major
ity of the States where racing is a
major industry.
To correct the present condition,
the commission recommended aboli-
ton of the tax on net revenue at
all tracks; a reduction from 5000
to $1,000 for each racing day in
the license fee on mile tracks and
an increase in the tax on the pari-
mutuel pool for all tracks to per
cent. Mile tracks in the State are
now subject to 2 per cent tax
on the pari-mutuel pool.
Montgomery County, for example,
would have received $152 1920 and
the Prince Georges County $162,-
231.23 At present, the commission
said, there is no distribution of
racing revenues to any State locali-
ties except Baltimore County.
Funds Unification Asked.
Turning to education, the report
recommended the elimination of the
various funds which now make up
basic State aid to local units and
their replacement by two funds, one
providing $400 per classroom unit
per year for each county and Bal
timore City and the second allocat-
ing to each county and Baltimore
City $40 per year for each pupil in
attendance.
Total basic State aid in educa-
ton during the fiscal year just
ended, according to the commits
sion, totaled $5,714,005. The pro-
posed changes would increase this
figure to $9,O46,8 $50.
A further breakdown showed that
Montgomery County's ALLEGATION
would have been increased from
$685., ,133 to $544,560. The Prince
Georges County ALLEGATION would
have been $683 $50 as compared
with the $454, $50 which was actually
allocated.
The report also recommends the
establishment Of a formula" for
State aid Ii constructing and i'm
proving the quality Of school build
ings. -
The commission proposed that for
each cent levied by municipality to
finance school construction, the
lState would add an amount sufficient
to provide 81 per pupil in attendance
up to q mixiInum of q scent tax
levy.
For example. one-cent levy In
Montgomery County on a 1945 basis
would produce $18,310.20. The State
would contribute SIG, 1870. A five-
cent levy, on the same basis, would
produce $91 ,551 with the State con-
Itributing an additional $83, 3,689.
In Prince Georges County, &C