Evening star., 1946-01-09
Boundary Pact
|Jeopardizedby
Gas Tax Plan
Virginia Assembly
To Consider Levy on
Fuel Used by Planes
BY ALEX r. PRESTON,
Star Staff Correspondent.


Star Staff Correspondent
RICHMOND, Jan. 9.-If Virginia
ratifies congressional legislation
a boundary between the
District and this State, airlines
operating from the Washington Ma
tional Airport would not be exempt
ed from proposed fuel tax, meas
ures now pending before the Gen.
eral Assembly reveal.
The Assembly, which convenes for
a 60-day session today, Is expected
to ratify the so-called Randolph bill
recently approved by Congress. That
measure seeks to settle the long dis
puted boundary issue by establishing
the District line at the existing high
water mark of the Potomac River
on the Virginia shore.
Arlington's legislative delegation,
State Senator william D. Medley
and Delegates J. Maynard Magruder
and George Damn are unanimous in
their determination to settle the
boundary dispute at the current
session.
Opposing Stipulations.
A complication has arisen, how
ever, in the Federal Government S
stipulation that aviation gasoline
sold at the airport shall not be taxed
by the Commonwealth, and other
pending Virginia legislation that
5-cent-a-gallon tax be levied on all
gasoline consumed in flights across
this State.
Mr.. Damn and Mr. Magruder said
they are determined that no pro-
posed levy shall interfere with the
boundary settlement. Mr.. Damn.
who formerly was Arlington's dep
uty commissioner of revenue, re-
called that the issue has for many
years created problems connected
with taxes, law enforcement and
kindred jurisdictional problems.
The congressional act which Vir-
ginia now is expected to ratify,
places the airport in Virginia but
gives it the status of Federal res
ervation. The States alcoholic bev-
erage control laws will prevail but
taxing of aviation gasoline is spe-
ciflcally exempted.
The assembly's anticipated en-
actment of parallel legislation would,
at first glance. preclude the COM
monwealth from making any levy
against the fuel. However, the Vir-
ginia advisory legislative council
has recommended to Gov. Darden
passage of other legislation, which
would place cents-a-gallon tax
on all aviation gasoline consumed
in flights over this State, whether
or not stops are made here or the
fuel was purchased in Virginia.
Would Improve Facilities.
A study committee of the council,
headed by Delegate Willis Cohoon,
Suffolk, has proposed the levy which
would be earmarked specifically to
improve aviation facilities in Vir-
ginia, just as motor vehicle gasoline
taxes are used exclusively for high
way construction and maintenance.
Charles r. Fenwick of Arling-
ton, who was member of the
council and now is here in con-
nection with State matters, said
| Virginia'S S ratification of the boun-
dairy dispute might have to be made
with some reservation in connection
with proposed new levy which, in
cidentally, would apply to all opera
tions over Virginia and was not
specifically aimed at the Washing
ton National Airport. Those CON-
panies which operate out of Wash
ington, but do not cross Virginia
territory, would be untouched by
the proposal.
Practibility Doubted.
| While Mr.. Fenwick was among
those who signed the councils re-
port, ne did so with stipulation
that the proposed levy should in no
way jeopardize settlement of the
boundary dispute by conflicting with
Federal provisions. 1t was recalled
he sponsored similar boundary leg
islation in 1912 but Congress failed
to ratify the State law.
Mr.. Fenwick expressed doubt as
to whether the proposed scent tax
can be imposed in the manner sug-
gested. The theory of the plan,
he explained. is to assess airlines
for benefits they would receive,
such as construction of auxiliary
airports, emergency landing fields
and other aids, However, in plac-
ing a levy against operators who
purchase fuel outside Virginia and
do not utilize this States landing
fields for stopovers. there is a ques-
t1on as to whether such companies
could be considered as deriving
sufficiently direct benefits from
aviation facilities here. be Indicated