Evening star., 1947-11-07
Sales Tax Heads
For Decision in
Maryland House
Measure Passed, 26-2,
By Senate Would Raise
Exemption to ID Cents
By J. B. Zotmon
Ster Staff cerrespendent


ANNAPOLIS. Nov. Gov. Lanes
bill to raise the sales tax exemption
from 9 to Il cents headed for a
showdown fight in the House today
following its approval in the Senate
yesterday.
The Senates 1862 decision came
after administration forces fought
of several proposed amendments
including one to repeal the 2 per
cent levy as of July i, 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
OF 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 a bill which would return to
the counties and Baltimore all sales
tax receipts in excess of s21 ,000, 900
The measure Is now in the Rules
Committee.
Senator's 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 bill which does nothing
to help those who are least able to
pay"
He also attacked what he said
were attempts by sales tax pro-
ponents to make it appear that
those against the levy also oppose
an expanded school program in the
State.
"1t isn't fair" Senator Davis as
serted. There is no connection be-
tween the two. 1t is like saying
When did you stop beating your
wife?'"
Senator Kinble charged that the
bill was an empty gesture because
while it offered 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 81 1,500G COO a year. Yield
from the levy for the fiscal year
ending next June 80 has been esti-
mated at $25, ,000,0 900.
Senator l.. Harold SothoFon, DEM
ocrat, of Prince Georges County,
carrying the fight to hold the bill in
It's present form, said:
mo one detests or abhors the sales
tax more than I 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 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-
ton beyond the proposed 14-cent
figure if the State surplus exceeds
$3,000,O00.
Revenue Increase Doubted.
Earlier, at 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.
| Although the consensus of the
legislators was that the Senate ac-
ton had determined the final is
sue, Delegate Pete Pollack, Demo-
erat, Of Baltimore served notice he
intends to try to tack on his sales
tax repeater as an amendment when
the exemption measure reaches the
floor of the House.
On Wednesday an attempt failed
IN the House to bring the repeal
neasure>to the floor.
Tax on Buses Disputed.
The Baltimore City tax bill kept
the Senate working until the early
hours this morning. A fight de-
feloped In the Senate Judicial Pro-
ceedings Committee over whether
Baltimore was to be given the power
to levy taxes on street cars ano
buses.
The committee voted a favorable
report on the measure without at
taching a proposed amendment that
specifically would exempt from tax
alton the gross receipts of bus
operations.
Almost 100 bills have been intro
duced during the special session
and most of them seem to be moving
through the Legislature at a rapid
rate.
One, however, was drasticaly re-
vised. This bill, an administration
proposal to allot 100000 for con-
struction of a new legislative build
ing or expansion of present facilities
was put through committee wiring
er and emerged as a measure to al
lot only $25o,ooo for specified i'm
provements to the State House.
Air Conditioning Provided.
The S250,000 would be used to in.