Evening star., 1947-10-25
$5,137,566 Paid
ByMaryIand in
School Rebates
State Education Aid
To Localities Rises
$3,0S1 .43S in Quarter

eoee1AAiliS po,1ooJoto 4OI Vic IA oe dso3
ter of the current fiscal year, Mary
land officials today disclosed $5,137,-
566 already has been paid to locali-
ties for State-aid-to-education. The
school rebates represent $3,0S1 .438
more than the first three months Of
last fiscal year.
A report of Controller James j.
Lacy shows that the retail tax has
produced $3,498, ,238 SO far although
the so-called use tax on out-of-State
purchases amounts to only $2,36e.
Chief Deputy Controller James
O'C. McCusker explained, however,
that much of the use tax, which was
estimated to yield $458,000 for the
entire year, is being collected by
Washington merchants and credited
as sales tax.
Sales Tax Estimates Jump.
The sales tax now is estimated to
produce between $25,000, 900 and $780,
100000 annually after having orig
inally been estimated to produces
$18, 400, 900 when the law was en-
acted, according to the Maryland
Public Expenditures Council.
General fund collections for the
entire year had been estimated at
$49, 9,590,5 Mr.. Lacy's Office reported.
Special fund revenues, estimated for
the year at $43,616,374 reached
$9,328,524 during the first quarter.
Special fund tax money is assigned
for particular purposes, such as
roads.
Mr.. McCusker said alcoholic bev-
erage revenues were $1,384,187, or
$776,12 less than those received dur
ing the same period last year.
Many of the individual figures give
little indication of the result at the
end of the fiscal year because OF the
varying periods in which the bulk OF
them is received, Mr.. McCusker said.
Other than the sales and alcoholic
beverage taxes, larger items already
collected are the following: Fran
chise on gross receipts, $1,799, $50;
gasoline, $4,543, 900; motor vehicle,
$778,963; fitting, $924,064; horse
racing, $240,529 and inheritance,
1896, ,234.
IL Million Aid Rise Seen.
The Public Expenditures Council
said total State-aid-to-education
funds to be given localities are ex-
pected to be $12,325.752 more this
year than in the previous fiscal
period.
The council asserted that "if the
counties and Baltimore City were to
maintain the educational standards
made possible through this State
assistance, it would be necessary for
them to increase their property taxes
from II cents, as In the case OF
Baltimore City and Baltimore Coun-
ty, to 1927 as in the case of Calvert
County"
Based on the Board Of Public
Works estimate of 1945 population,
each man. woman and child IS OBJ
ligated to pay $500 in sales taxes
per year to meet the minimum
$18, 100000 required by the State
budget. If the total revenues are
$25,0O0, 900 at the end of the year,
however. the per capita contribution
will be $12.22, the council said.
The council declared that most Of
the counties will receive more back
for education than they pay in sales
tax if the total is $18, 100000, but
If the yield is more than $25, ,0O0, 900
only four counties would get back
more than they pay.
Spreads Burden Wider.
"This is no free gift" the council
declared. 1.-The sales tax spreads the
burden wider than property tax
but 1t is still true that Maryland's
taxpayers are paying $25, ,000, 900
more State taxes than in 1947.
"A more equitable tax system Is
needed in Maryland Under proper
system. there is little doubt, as the
council has pointed out before, that
most of our local units could then
finance their own services and re-
duce State subsidies to minimum.
At present the only redress for tax
payers is to insist that public ex-
penditures be kept down to the mini
mum essential to provide efficient
governmental services"
The council produced a table in
dicating county by county and for
Baltimore the amount each locality
would produce to yield a $25,000,0O0
sales tax total, the equivalent in
property tax rate for that particular
county, the increased State-aid to
education to the locality and the
equivalent property tax in the county
for such aid. The respective figures
for Southern and Central Maryland
counties were as follows:
Anne Arundel, $916,5OO, $1.1O.
S718, ,408 and 81 cents; Calvert, $12S,-
ia, ST go, S181 1888 and $2.27; Charles.
$215,219, $1.47. $3o6,464 and $2.l0;
Frederick, $70O,353. 90 cents, $5o7,-
1856 and 81 cents; Montgomery, ST.
466, 400, SO cents, s1,030, 400 and 40
cents; Prince Georges, 81, ,466, 400, 90
cents, 81, ,304 and SO cents: st.
Mary's, $3o5,5oo, s2.62, $163,o52 and
$1.40.