Evening star., 1947-03-20
New Bill 81 Sps|1s
Defeat Of Lane's S
Sales Tax Plan
Senate Measure Cuts
Income Exemptions,
Raises Alcohol Levy
By J. B. Zotmon
Stor Stoff Correspondent

py }. o. LotmoH
stor stoff Correspondent
ANNAPOLIS, Mar. 20.-De-
feat of Gov. Lanes 2 per cent
sales tax plan appeared immi-
nent today after all the II Dem
ocratic members of the State
Senate offered a substitute pro-
gram.
The unusual development came
last night and involves siX-point
tax proposal designed to raise
s21 100000 a year through revision
of the State income tax and enact
ment of new levies.
The program was submitted
after the sales tax bill was recon-
mitted to the Finance Committee on
motion of Majority Leader L. Har-
old Sothoron.
Also presented to the Senate was
a bill by Senator Roy Tasco Davis
Republican, of Montgomery County
giving the county commissioners the
same authority to tax as that now
exercised by the State.
Opens Way to New Taxes.
Senator Davis explained that his
measure would open the way for new
taxes to be imposed by the county
commissioners in a move to put the
county on pay-as-you-go basis.
The proposed new tax program
for the State includes some of the
recommendations by the Republican
minority in the General Assembly.
1t provides for a reduction in in
come tax exemptions for single per-
sons from $1,000 to $500 and from
$4,000 to $1,000 for married persons.
Exemptions for dependents would
be increased from $400 to $500, how
ever.
In addition, the bill would:
Increase the alcohol beverage tax
from $125 to SITS a gallon
Impose a 20-cent tax per gallon
on wines.
Increase the beer tax from 3 to
IA cents a gallon with an additional
2 cents for each IL ounces in Garrett
County.
Impose a 1-cent tax for each 6
cents or fraction thereof on soft
drinks, with soft drink sirup to be
taxed at rs cents gallon.
Fix a 27cent tax on each package
Of cigarettes and tax of l cent for
each 10 cents or fraction thereof on
tobacco.
No Comment by Lane.
The Governor, who had reiterated
at mis- press conference earlier yes
terday that the proposed sales tax
was the only method which could be
used to defraN the costs of the
States fiscal program, did not COM
ment on the new development.
The IL Senate Republicans had
previously aligned themselves against
the sales levy and several Demo-
cratic Senator including Senator
Sothoron, also. were opposed, thus
assuring its defeat if it came to a
vote.
Senate President Byrnes yester-
day introduced companion meas
ure to the sales tax bill The new
bill calls for imposition of 2 per
cent use" tax. intended to collect
the levy on sales bought within or
without the State or contracted for
within or without the State.
Senator Davis Measure.
Senator Davis (Montg omery
County, bill is a short one and reads
as follows:
The commissioners of Montgom-
cry County shall have, and exer-
else within the limits of said county
all the power to tax to the same
extent as the State has, or could
exercise, said power within the linn
its of said county.
"The said county commissioners
are authorized to provide by ordi-
nance for the imposition, assess
ment, levy and collection of any tax
or taxes authorized by this act"
'The power herein granted to the
county commissioners to tax shall be
in addition to the power to ta1
which they now have and nothing
in this act shall be construed to i'm.
pair or diminish the powers nov
possessed by the said county com.
misSioners."
Pointing out that Baltimore City
now taxes tobacco products, tele-
phone bills and liquor, Senator Davis
said the bill would authorize the
Montgomery County commissioners
to impose these and other taxes, in
cluding levies on income. occupa-
tions, soft drinks. all public utility
bills and corporations.
Without such authority, he added
the county commissioners might
have to increase sharply the present
S1.50 per 500 basic country rea
estate tax in order to meet increased
school and other costs.