Evening star., 1947-11-12
Tax Study Group
In Virginia Asks
Further Probe
Unable to Finish Job;
Urges Commission
Set Up by Assembly
BY the Associofed Press

BY the Assoeiofed Press
RICHMOND, Nov. 12.-The legis-
lative commission created to study
State and local taxes, admitting its
inability to undertake thorough
investigation because of limitations
OF time, and money, recommended
today that the next General Assem-
bly, provide special commission for
the purpose
p Among the major suggestions
made by the commission were an
increase in the maximum authorized
license tax of water, heat, light and
power. companies from Il per cent
to l per cent; that cities seek
permission from the General Assem-
bly, to amend their charters to
provide for the levy of a payroll tax
and that some change should be
made to liberaliZe gasoline tax pay
ments for streets in cities and towns.
The commissions report to the
Governor skirted any question of
general retail sales tax and drew a
seven-page dissent from Robert B.
Tunstall of Norfolk, member.
Failure Seen Emphasized.
Mr.. Tunstall expressed his agree
ment with the proposal to create a
special commission to study State
and local taxation. But he added,
this recommendation merely en-
phasizes the failure, candidly ad-
mltted and in some part explained,
OF the present commission to exc
cute the mandate entrusted to it by
the General Assembly"
The report which was prepared,
he said, confirms my conviction
that in view of the inadequacy Of
the time and material available for
study by the commission, 1t, should
not have been made"
The report called attention to
budget requests for the 1o48-1950
blennium which amount to more
than $66,000,000 in excess Of reve-
nues which can be expected will be
paid into the general fund" and
this means that the requests must
be denied to the extent that they
exceed the expected revenues, or the
revenues of the State must be in
creased by the levying of additional
State taxes"
State Aid Is Favored.
Would it not be better" the COM
mission asked. for the State to
continue its past and present policy
OF increasing State aid to the local.
tiles for (free schools, welfare,
health) functions of government
rather than to adopt the policy Of
imparing the general fund of the
State treasury by making urear-
marked appropriate to the LEGAL
tiles or of turning over to the local.
tiles some of the subjects of taxa
ton which are not taxed. by the
State?" s
I'VE have seen that in thescounties
the expenditures for schools and
public welfare account for over 80
per cent of all county expenditures,
and that both of these functions are
financed jointly by the State and
the localities. ..,
THUS, 1t is apparent that il State
appropriations for these purposes are
materially increased, whether from
existing State revenues or from
existing State revenues augmented
by increases in State taxes, it is
difficult to see the necessity of still
further increasing State taxes in
order that nonearmarked State
grants to the counties may be made
greater This is on the assumption
that substantial matching is not
made compulsory"
Proposals of Commission.
The commission stated, however,
that the same thing is not true with
respect to the larger cities, whose
estimated total additional revenues
needs amount to more than $15,000,-
900.
To remedy this, the commission
with Mr.. Tunstall dissenting-sug-
gested:
l. That the cities may ask the
General Assembly to amend their
charters so as to authorize the
levy of payroll tax.
2. That the General Assembly
increase the maximum authorized
license tax on water, heat, light
and power companies from one
half OF l per cent to per cent.
3. That the State provide the
localities with the books and rec
ords involved in the recording of
deeds and wills and in the admin
istration of estates.
Gas Tax Distribution.
4. That in the distribution of the
State gasoline tax a more liberal
provision should be made for streets
in cities and towns, and that the
base on which the payments are to
be computed should be broadened
to include the idea of the sec
ondary highway or street"
5. That nf a sales tax be enacted
by the General Assembly. "the di-
vision of the proceeds between the
State and the localities should be
based upon the governmental serv-
ice which each level of government
Is expected to provide In the light Of
the adoption of such tax"
Assistance Sp preparation of the
report was given to the commits
sion by representatives OF the League
of Virginia Municipalities and the
League of Virginia Counties, and
several recommendations made by
these organizations were included
among those made by the legislative
body.
Indian Head School