Evening star., 1947-03-30
Boost
In Income Taxes
Is Sent 10 Lane
House Approves Bill,
1920; Governor
Signs Sales Levy
BY Stoff CORRESPONDENT Of The Stor


ANNAPOLIS, Mar. 20. Th
House of Delegates today quickl,
passed and sent to the Governor ,
bill to increase the State persona
and corporate income taxes afte
hearing hint that it may not b.
necessary to collect the increases.
Effective in 1949 on income earne,
the previous year, the personal ip
come tax rate will be raised from
2 to 2.5 per cent while the corporal,
rate will 60 from is to per cent.
There was no argument on tn
bill. which was requested by Gov
Lane. 1t passed by a vote of g.
to 20.
Majority Leader Pumphrey tolt
the House that if the States 2 pc
cent sales tax brings in more reve
nue. than expected, it is possibl,
that the income tax boosts will no
be needed.
Declaring that returns under tn,
new rate would not have to b,
made until April Is, 1949, Mr.
Pumphrey said the next session O
the Legislature Which meets Janu.
arys1 of that year could review tn,
matter.
Lane Signs Sales Tax Bill.
While the General Assembly wa.
putting the final touches on his ta1
program, Gov. Lane signed intt
law the 2 per cent sales tax bill
keystone of the revenue program.
The $18, 400, ,000-a-year levy will be
effective next July l, in contrast tt
the $6,5O0,000-a 0-a-year income ia,
boost which will be deferred until
1949.
Gov. Lane at a Saturday evening
ceremony signed $50 measures
among them an act calling for trial
in Maryland courts OF Virginians &C,
cused of illegal oystering in the
Potomac River.
The House also passed with no de-
bate Senate bill to impose 2 per
cent tax on goods purchased out
side Maryland for use in the State
Mr.. Pumphrey explained the meas
.re is intended to protect merchants
in counties with border areas
where there is no sales tax.
Assembly Calendar Cleared.
Approval Of both bills clears the
General Assemblys calendar of all
major legislation. The Legislature
is scheduled to adjourn Monday.
In other legislative actions, the
House with a minimum of debate
passed Senate measure ousting W.
Lee Elgin as commissioner of motor
vehicles on June 80.
An attempt by Thomas F. Demp-
sey, Democrat, Of the 3rd Baltimore
District, to kill the bill by tabling
1t was beaten down. Nasr- g
Mr.. Elgin, who comes from
Hagerstown, the home of Gov. Lane
was campaign manager for j. Mil
lard Tawes in last years primary
for the Democratic gubernatorial
nomination.
In supporting Mr.. Dempsey's mo-
ton, Anders r. Lofstfand, jr., Re-
publican, of Montgomery County
said he would have to vote against
the bill because it was ripper
legislation, and Eve of Montgomery
County are well acquainted with
that term"
Refers to Democratic Charges.
He referred to frequent charges
made by Democratic delegates that
bills sponsored by the all-Republi-
can Montgomery delegation consti-
tuted ripper" legislation because
they allegedly were intended to oust
county Democratic incumbents. The
bill passed 80 to %.
The Senate passed bill calling
for expenditures totaling $11 ,695, ,00C
for capital improvements through
out the State.
The Senate droned through its
last Saturday meeting of the 1947
session, getting rid of legislative
leftovers and passing the admins
tration's $11 1,695, 900 capital improve
ments bill.
This measure, assured Of approval
in the House, would set up a loan
to pay for necessary improvements
at the University of Maryland and
other State institutions. 1t calls fol-
a State real estate tax in 1948 ano
1949 of IL cents on the S100 valua-
ton, to be increased to 35 cents
in 1850 and thereafter The State
real estate tax now is 10 cents pei
$100.
Pumphrey Cites Need for Funds.
On the income tax increases, Mr.
Humphrey noted that the Sherbov
Commission report had provided FOL
distribution of additional State
funds to cities and counties and the
State would have to make that uE
in some manner.
without this BILL" he said, "tt
bolster its income, Maryland might
find itself in sorry plight since
the funds have already beer
pledged.
There IS a possibility, I canno
say a strong probability, that thu
income tax increase may not bt
used but the administration feel!
it is necessary to have something
to reinforce its program and pre-
vent any disaster.
There is plenty of time to tes
the sales tax and see what viii
develop before the next Legis
lature meets"
To Act on Appointments.
The Senate, as its last big Job
is now scheduled to meet Monda,
afternoon and act on Gov. Lane
green bag" appointments.
The capital improvements bill i
the administration substitute TO
the postwar improvement program
funds for which were used in bal
] ancing the 194S-49 budget. TIL,
Board of Public Works decided tha
only the most necessary" worl
would be undertaken in the i'm
mediate future.
The total for the University O
Maryland would be IS ,242 600, in
cluding:
Purchase of land at College Park