Evening star., 1947-03-30
Maryland Boost
In Income Taxes
Is Sent 10 Lane
House Approves Bill,
1870; Governor
Signs Sales Levy
BY a stoff corr..pond.nt Of Tn. s,or

ANNAPOLIS, Mar. 29.-The
House of Delegates today quickly
passed and sent to the Governor g
bill to increase the State persona
and corporate income taxes after
hearing a hint that it may not be
necessary to collect the increases.
Effective in 1949 on income earned
the previous year, the personal in
come tax rate will be raised from
2 to rs per cent while the corporate
rate will 90 from is to per cent.
There was no argument on the
bill, which was requested by Gov
Lane. It passed by a vote of q
to 90
Majority Leader Pumphrey told
the House that If the States 2 pei
cent sales tax brings in more reve-
nue than expected, 1t is possible
that the income tax boosts will not
be needed.
Declaring that returns under the
new rate would not have to be
made until April Is, 1949, Mr.
Humphrey said the next session OF
the Legislature Which meets Janu-
ary of that year could review the
matter.
Lane Signs Sales Tax Bill
While the General Assembly was
putting the final touches on his tax
program, Gov. Lane signed into
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 to
the o,00o-a-year income tax
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 ac-
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
ure 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 Assembly's calendar of all
major legislation. The Legislature
Is scheduled to adjourn Monday.
In other legislative actions, the
House with 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 tahling
1t was beaten down. sss.s
Mr.. Elgin, who comes from
Hagerstowra, the home of Gov Lane,
was campaign manager for J. Mil
lard Tawes In last years primary
for the Democratic gubernatoriaI
nomination.
In supporting Mr.. Dempsey's mo-
ton, Anders r. Lofstrand, jr., Re-
publican, of Montgomery County,
said he would have to vote against
the bill because it was ripper
legislation, and I'VE 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 aNegedly were intended to oust
county Democratic incumbents. The
bill passed 80 to %.
The Senate passed a bill calling
for expenditures totaling Sl1 ,695 ,00(
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 1895. 900 capital improve
ments bill.
This measure, assured of approval
In the House, would set up loar
to pay for necessary improvements
at the University of Maryland anc
other State institutions. It calls fol
State real estate tax in 1948 anc
1949 of IL cents on the $100 valua-
ton, to be increased to 35 cents
in 1850 and thereafter. The State
real estate tax now Is 10 cents pei
$1o0.
Pumphrey Cites Need for Funds.
On the income tax increases, Mr.
Pumphrey 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 ur
in some manner.
without this BILL" he said, "tc
bolster its income, Maryland might
find itself in a sorry plight since
the funds have already beer
pledged.
There is a possibility, I cannot
say a strong probability, that the
income tax increase may not be
used but the administration feel;
it is necessary to have something
to reinforce its program and pre-.
vent any disaster. sa
There is plenty of time to test
the sales tax and see what viii
develope before the next Legis.
lature meets"
To Act on Appointments.
The Senate, as its last big Job
is now scheduled to meet Monday
afternoon and act on Gov. Lanes
green bag" appointments.
The capital improvements bill is
the administrations substitute fol-
the postwar improvement program
funds for which were used in bal
ancing the 1948-49 budget. The
Board of Public Works decided that
only the most necessary" work
would be undertaken in the i'm.
mediate future.
The total for the University oi
Maryland would be s5,242,O0O, in.
cluding:
Purchase of land at College Park
$4,000; completion of building.
now under construction at College
Park, S495 900; construction of new
power plant at College Park, $780,.
600: construction of engineering
chemistry and physics building II