Evening star., 1946-10-02
Maryland Tax
Reforms Urged
Commission
Offers Plan to Give
Cities and Counties
Greater Income Share
By J. B. Zotmon

y
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 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 alloeated $6,239, ,964.24
more than they actually received
during the period.
Baltimore would have received q
total of $6,444 ,448.89 more than its
actual ALLEGATION and the Maryland
State Fair Board would have re-
ceived $115,49273 from racing reve-
nues. At present the fair board
receives $4,000 year from tracks.
Declaring that the State, counties,
incorporated towns and Baltimore
City are In an era of rising costs,
the report placed the responsibility
of raising additional revenues on
the State government.
Would End Inequities.
Although making no attempt to
foresee future economic develop
ments, the commission said its pro-
posals are designed to meet require
ments of the near term future" and
correct "clear inequities in the pres
ent situation"
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-
{. tling with inequalities to the racing
industry. the State and the locali-
ties" the tax would be "modernized"
and brought in line with the major
1ty of the States where racing is
AAoJoA 441oAobA j.
Ask Betting Tax Boost.
To correct the present condition,
the commission recommended aboli-
ton OF the tax on net revenue at
all tracks: reduction from $1,000
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 a 2 per cent tax
on the pari-mutuel pool.
Under these recommendations, ac-
cording to the commission, substan-
TALLY more revenue would have
been paid to the State during the
last 81 years and in practically
no instance would the State have
received less than it actually got
The commission pointed out that
in the fiscal year ended June 80,
racing revenues totaled SIS, LOG, 1888 .66
If the proposed changes had been
IN effect during the year, the rev.
enues from both mile and half
mile tracks would have totaled $6,-
834 4,240.68.
Allegations Proposed.
OF the total proposed racing rev.
enues for the 1856 fiscal year
$3,I7,120.34 would have been al
located to the State general fund,
$115,492.73 to the Maryland State
Fair Board, $1,557, ,41256 to Balti-
more City and the remainder to the
various counties and incorporated
towns.
Montgomery County, for example,
would have received $152, 1920 and
the Prince Georges County $162,-
231.2 At present, .the commission
said, there is no distribution of
racing revenues to any State 1ocali-
ties except Baltimore County. AL
location Of racing revenues were
recommended as follows:
:, All tax revenue received from the
mile tracks should be paid into the
State general fund, Half of these
revenues then would be allotted to
the counties and Baltimore City on
the basis of the latest population
figures. The county ALLEGATIONS
would be subject to a further divi-
sion between the county and its
incorporated towns on the basis of
population.
Revenues from the half mile
tracks also would be placed in the
State general fund, with one-half
to be retained by the State, one
fourth to be allocated to the coun-
ties, Incorporated towns and Balti-
more City in the same manner as
the revenue from mile tracks and
the remaining one-fourth to be al
located to the State Fair Board for
the promotion of State and county
fairs.
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 $5.714,00a. The pro-
posed changes would increase this
figure to $9,046,860
A further breakdown showed that
Montgomery County's ALLEGATION
would have been increased from
$382,133 to $544,560. The Prince
Georges County ALLEGATION would
have been $683,8s0 as compared
with the s454isSo which was actually
allocated.
In addition. two incentive funds
were proposed under which the
State would pay the difference
between what the counties raised
by special tax levies to pay increased
teachers salaries and the amount
actually required to pay these sal
aries. The minimum tax levy would
be / cent, which would increase
teachers salaries $50 annually, and
q maximum levy OF 5 cents to pro-
uido az, ay,pfio1 increa ca mar teacher