Evening star., 1948-01-18
Sales Tax Wins
New Court Test
In Maryland
Judge McWiIIioms
Declares Levy Is Not
Subject to Referendum
BY the Asseeiofed Press

bt me Associofed Press
ANNAPOLIS, Jan. 1.-THE Mary.
land retail sales tax emerged un-
marked from its second court battle
today when Circuit Judge william
]. McWilliams ruled it does not
have to be submitted to a referen-
dunn.
Samuel j. Fisher, one of the at
torneys for the group seeking the
referendum, said in Baltimore he
would have to study Judge McWil-
liams' decision carefully before adj
vising his clients whether to take
the case to the Maryland Court of
Appeals.
Robert L Black of Norbeck, pres
ident of the Maryland Economic
Council, said the council would
continue its campaign to assure
the people of Maryland an oppor-
Etunity to vote on the sales tax"
Suit Filed by Four Taxpayers.
"If this cannot be done in o
Statewide. referendum, he de-
clared, I'VE will carry the fight into
the next election for Governor,
other State officers and members
of the General Assembly"
Four taxpayers, all members Of
the economic council, had asked
the Anne Arundel County Court
for an order to force a referendum
on the 2-per-cent tax at the gen.
eral election in November
Judge McWilliams turned down
their bid with the ruling that rev.
enue and appropriation measures
are inseparable. AS result, the
tax is not subject to referendum
under the Maryland constitution.
$4,000 Signatures Obtained.
That was the opinion of Attorney
General Hall Hammond when he
suggested that the Secretary Of
State refuse to acknowledge refer
endum petitions last spring. The
Economic Council had figured prom
inently in campaign which gained
more than $4,000 signatures to petit
tions.
With his decision today, Judge
McWilliams upheld demurrer to
the taxpayers suit by Mr.. Ham
mond.
The petitioners were Mr.. Black,
Alfred T. Truitt, Salisbury; Herman
L. Mills, Hagerstown, and Henry ].
Starr, Westminster.
Appropriations Defined.
"It must be apparent to all liter
ate people that any State govern
ment has two basic functions" the
i Judge declared, ITO raise money and
to spend it for the common good.
Since the money can't be spent until
it is collected, these two functions
are for all practical purposes in
separable."
The term appropriation" means
the allotment of funds for a specific
purpose. he said.
But is cannot be supposed that
the trainers of the referendum
amendment intended a situation
which would clothe the, legislative
act allotting funds to some specific
purpose with a halo of sanctity and
a garment of immunity and leave
its alter ego, the legislative act pro-
viding funds which give life and
effect to the act of allotment, to the
tender mercies of any group Of dis
gruntled taxpayers with enough
energy and initiative to prepare and
circulate a petition.
Indeed, 1t is difficult to imagine
more effective method of sabo-
tagging the State government than
to deprive 1t of its anticipated rev.
enues."
Up to Governor and Legislature.
The theory of the tax and the
use of its revenue may be disputed,
the Judge continued, but these are
matters for the Governor and Leg.
islature to decide.
The stability of government re-
quires that "a fiscal policy for any
given biennium ought to be
impregnable to the kind of attack
made here" he added.
| Some of the contentious of Car
roll H. Albaugh and Samuel ].
Fisher, attorneys for the petition
ers, were "argumentum ad popu-
lum," Judge McWilliams said. These
concerned the effect of the lazy on
taxpayers and businesses in the
border counties.
This was the second time the
sales tax was thrust into court.
Judge E. Paul Mason in Baltimore
held the measure constitutional last
year, after a charge that it was in
valid because Gov. Lane had "co-
creed" the General Assembly in
passing it.