Evening star., 1947-11-07
Sales Tax Bill Heads
For Showdown Fiqht
In Maryland House
By J. B. Zotmon
Stor Stoff Correspondent

ANNAPOLIS, NOV. 1.-GOV. Lane
bill to raise the sales tax exemption
from 9 to IA cents headed for a
showdown fight in the House today
following its approval in the Senate
yesterday.
The Senate's 26-2 decision came
after administration forces fought
off several proposed amendments,
including one to repeal the 2 per
cent levy as Of July l, 1948. This
proposal was defeated, 1911.
One of the bills provisions would
exempt food sold for consumption
at home. Under the present law,
food is exempted only if consumed
off the premises. Another item ex-
empted under the bill is coal used
for industrial purposes.
Baltimore Tax Powers Approved.
Also approved by the Senate was
a bill giving Baltimore increased
taxing powers-announced purpose
for calling the special session of the
General Assembly Wednesday.
Meanwhile, the House defeated a
move by Delegate Oliver R. Guyther
Democrat, of st. Marys County, to
suspend the rules and bring to the
floor bill which would return to
the counties and Baltimore all sales
tax receipts in excess of S21 900, 900.
The measure is now in the Rules
Committee
Senators Roy Tasco Davis, Repub-
lican, of Montgomery County and
Robert B. Kimble, Republican, of
Allegany County, spearheaded the
fight against the sales tax exemp-
ton bill.
Davis Says 1t Won't Help Poor.
In the two-hour debate, Senator
Davis declared:
This bill doesn't mean anything
to the ordinary taxpayer. No essen
tials of life cost less than Is cents
and I refuse to be inveigled into
voting for a bill which does nothing
to help those who are least able to
pay"
Senator Kimble charged that the
bill was an empty gesture because
while it offered a tax reduction on
one hand 1t imposed new taxes on
thousands of workers and school
children who buy their lunches and
eat them In the Office or at school" "
Sothoron Upholds Present Act.
It has been estimated the measure
would reduce income from the sales
tax by about ST 500 900 a year. Yield
from the levy for the fiscal year
ending next June 80 has been esti-
mated at $25, 100000.
Senator L. Harold Sothoron, Dem
ocrat, Of Prince Georges County,
carrying the fight to hold the bill in
its present form, said:
mo one detests or abhors the sales
tax more than do and the people
of Prince Georges and Montgomery
Counties feel the same way. But I
cannot bring myself to impede or
destroy the State program now. I
did all I could in the last session to
defeat the tax and I promise I shall
do all in my power to defeat it at
the 1949 session"
In another action, the Senate re-
jected bill which would have al
lowed the State Board of Public
Works to raise the sales tax exemp-
tion beyond the proposed 14-cent
figure If the State surplus exceeds
50 ,o00, 900.
Revenue Increase Doubted.
Earlier, at a hearing on the bill
before the Senate Finance Commit
tee, Walter E. Kennedy, head of the
sales tax division of the State con-
troller's Office, said he expected no
substantial increase in revenue as a
result of the home consumption
provision.
He added the provision was placed
in the bill to eliminate competitive
discrimination between merchants
He explained that In Ocean City,
for example, the owner of a hot
dog stand would collect the tax for
food sold to person sitting on a
stool but would not collect the tax
on a person standing on the board
walk in front of the stand, under
the present law.