Evening star., 1946-03-15
Oil Companies
10 Pay Gas Tax
Rise, Tuck Says
Legislative Review
Pedicts Motoists
Will Sove s. SOC, 900
BY the Associated Press

~ me Assoeiofed Press
RICHMOND, Va, Mar. k.-Goy.
Tuck predicted last night that the
OIL companies viii absorb the one
cent increase in the State gasoline
tax voted by the recent General
Assembly.
should the prediction, made in
the course Of radio broadcast re-
viewing the work of the 1916 Lepis-
iature, be realized, Virginia motor.
lists would be saved an estimated
$3,oOO,OOO, an amount equivalent to
the revenue 1t Is estimated the in
crease will yield the State.
The Governor, in addition to pre-
oictlng that the companies which
resisted this tax will absorb it," also
forecast similar increases in gasoline
taxes by other States within the
next few years.
Plans License Fee Cut,
He reviewed the background of his
Recommendation to the Legislature
on revising road taxes, which. in
addition to the gas tax increase
provided for a reduction in private
auto license fees, repeal OF the
2 per cent gross receipts tax on
contract and common truck carriers.
and an increase in their license
charges.
Increased appropriations for ed.
ucatlon and health were cited as
other major accomplishments of the
session. along with a pollution con-
troll law. The Governor also noted
that the Assembly "felt called upon
TO deal with some labor problems"
and declared:
while I am Governor. I shall
throughout my entire term resist
any move from any source which
tends to interrupt our public services
or to deprive our people of other
facilities which are necessary and
indispensable to their health, hap
piness and safety. And this will be
irrespective Of whether my actions
In SO doing may at the time appear
unpopular and regardless of how
powerful these disturbing influences
may be-"
The Governor said the road tax
reVlsions were perhaps the most
controversial questions disposed of.
Road Upkeep Costs Cited.
The prosecution of the war ne.
ceSsitated serious Interruptions in
the plans for both the construction
and repair of our roads," he said.
AT the same time, we found that
the cost OF doing this work had
increased so per cent. Obviously.
unless our excellent highway sys-
tenn was to be allowed to deteriorate.
additional road funds had to be
provided. Another obstacle was en-
comtered in undertaking to enforce
a tax of 2 per cent on certain gross
receipts Of truck carriers domiciled
IN other States.
In the solution of these prob
lems, 1 suggested revision of the
highway tax structure by increasing
the tax on motor fuels cent per
gallon, which still leaves our tax
as low as that imposed by any
Southern State East of the Missis-
sippi River. .
In view of this increase in the
gasoline tax shared by the out-of-
State carrier and in the interest
OF preserving harmonious relation.
ship with the other States on the
great Eastern seaboard, 1 recon-
mended that the gross receipts tax
be abolished. Also that the license
tag tax of domestic contract car
rlers be increased one and a half
times, that of domestic common
carriers OF freight be increased two
and a half times, and that of the
private car owners reduced 20 per
cent. The General Assembly adopted
the suggested plan with the excep-
ton that the tag tax for the private
car was reduced Is per cent.
Carrier Tax Abolition.
To have continued this form of
taxation (the 2 per cent gross re-
ceipts taxi on trucks from other
States, which is not applied to our
Virginia truckers by any other
State in the Union, would have put
Virginia in an indefensible position
and at the mercy of the tax author
tiles OF the other States.
In my opinion, such action would
not only have stifled the Virginia
trucking industry, which is import
ant to the State, but would have
had serious repercussions on other
Virginia business"
The net effect of the legislation.
he said, would be to increase high
way revenues by about $500, 900.
which will partially offset increased
construction costs. The proceeds
from the extra cent tax was ear
marked for the secondary roads.
Gov. Tuck called attention to an
increase of nearly 5000 900 voted
Tor public schools, conditional ap-
preparation of 100000 for free ele-
mentary grade textbooks and a like
sum added to the transportation
fund for the counties.
The address was carried over ra-
dio stations in Richmond, Lynch
burg, Danville and Roanoke. Trans
criptions of the speech will be car
ried later by other stations in
Washington, Charlottesville, Nor
folk, Winchester, Harrisonbure and
Suffolk.