Evening star., 1947-11-08
Special Session
|Adjourns;;L Lane
Praises Work
SoIes Levy Exemption
Boosted, Baltimore
Tax Powers Increased
Dy .. o. ZQIm0n
Sfor Stuff Correspondent

ANNAPOLIS, Md, Nov. 8.-Mem-
bers OF the General Assembly were
on their way home today with q
flgurative pat on the back from Gov.
Lane for enacting his legislative
program including an increase in
the sales tax exemption from 9 to
IA cents and granting increased tax
ing powers to Baltimore.
He lost his fight, however, to have
Baltimore Transit Co. buses ex-
empted from taxation by the city.
At the end of the, three-day spe-
cial session early today. the Gov
ernor declared:
"It is with a feeling of pride, pride
in its efficient and businesslike ham
ding of the problems laid before it,
that I want to extend to the Gen.
eral Assembly by congratulations
on good job well done.
Cooperation Praised.
I'm the space of a little more than
4S hours, the members of the Gen.
eral Assembly have considered in a
spirit of cooperation and under
standing harmony and have met in
a satisfactory manner, the request
of Baltimore City for additional
powers of taxation to avert a rev.
enue crisis threatening the mu-
nicipality's 1948 budget.
I'm that same short period of
time, they have considered and
adopted a readjustment of the sales
tax levy, and in this case I might
also say. their action was taken in
the main in spirit of understand
ing harmony and with due regard
to their obligations to maintain the
fiscal integrity of the State -"
The sales tax exemption measure
was approved by the House, Ill to 8,
and sent to the Governor after a
two-hour debate during which
delegate John r. Reeves, Republi-
can, of Montgomery County, spear
headed attempts to amend the bill.
One of the five proposed amend
ments submitted by Mr.. Reeves
would have repealed the two per
cent levy as of July l, 194S. Another
would have returned to the counties
and Baltimore all funds collected
from the tax in excess of $21 ,000, 900.
1t has been estimated that the
yield from the tax for the fiscal
year ending June 30, 1948, would
have amounted to about $25, ,000, 900
a year. The new exemptions will
cut this total about $1,500,000.
Big Argument Over Surplus.
The three other amendments pro-
posed by Mr.. Reeves would have ex-
empted food, regardless of where 1t
is consumed; eliminated the ex-
emption of sales Of advertising space
in newspapers, periodicals and bill
boards and radio advertising, and
permitted storekeepers to absorb the
tax instead of passing it on to the
consumers.
Hottest arguments during the
wrangle over the bill were precipi-
tated by the proposal to distribute
to the counties and Baltimore all
sales tax receipts in excess of $2l,-
100000.
The amendment was defeated, 80
to 80.
Immediately after passing the bill,
approval was given a companion
measure to raise the exemption in
the use tax. In its final form, the
sales tax exemption bill contains
provisions exempting food con-
sumed only at home and coal used
for industrial purposes. The sales
tax law previously had exempted
food If consumed off the premises.
The bill takes effect Immediately
after being signed by the Governor.
Action on Other Measures.
The General Assembly also:
Revised the $780, 100000 road bond
issue bill passed at the last session
to permit the State Roads Commits
sion to build dual-lane highways of
the Gov. Ritchie boulevard type.
Voted $125,000 to match Federal
grants for municipal airports.
Rejected bill to permit the Board
OF Public Works to raise the sales
tax exemption figure If the State
surplus reaches 100000.
Defeated bill to permit "frisk-
ing" of persons suspected of car
rying concealed weapons.
Allocated $500,000 to the Board of
Public Works to be used for public
welfare grants as needed.
New U. 5. Envoy 10 Bulgaria