Evening star., 1948-08-10
TaxParIeyStirs
Talk in Virginia
|0f Extra Session
Commission Studying
Problem Plans to
Meet Next Week
By the Asseeiossd Press

RICHMOND, Va, Aug, 1o.-A
decision of the Legislative Tax Study
Commission to convene here next
week has aroused speculation on
the possibility of a special session
of the Virginia General Assembly
to consider tax problems.
State Tax Commissioner c, H.
Morrissett disclosed yesterday that
the new 2l-member Commission on
state and Local Revenues and
Expenditures will meet at II am.
August Is in the Capitol, In line
with Gov. Tuck's recent request for
an early start on its work.
There were indications that the
Governor had In mind the question
of new revenue for schools, partlcu-
larlv for construction OF school
buildings.
Work Speeded Up.
The General Assembly resolution
which created the study commission
directed a report not later than
November IS, 1949. Ordinarily a
commission of this kind would not
begin its work until fall at the
earliest and probably not before
next spring.
Gov. Tuck declined to comment
on the possibilities Of a special ses-
sion in the winter or spring. He
also withheld remarks on the week
end conference of educators at
Fredericksburg, which proposed a
meeting between the Governor and
group representing laymen and
school people to discuss the State
school situation.
| 1t was learned, meanwhile. that
four plans for revenue-raising are
being discussed at the Capitol and
probably will be considered by the
study group.
The groups chief assignment Is
to recommend ways and means
whereby Virginia counties and cities
can erect new school buildings. The
localities have said they cannot
meet construction needs out of cur
rent tax sources. In several in
stances. voters have rejected bond
issues for school buildings.
Backed by 13 Counties.
Thirteen Virginia counties. plus
the city of Bristol, now have in
dorsed sales tax to provide that
money.
A 2 per cent general retail sales
tax has been proposed, coupled with
a simultaneous reduction in the
lowest State income tax rate Under
the 1948 revision of income tax laws.
Virginians are to pay per cent on
the first $4,000 of net income. These
tax revenues go entirely to the
States general fund.
| Another proposal being discussed
today would provide for a State
bond issue of about $20000.0o0. to
create a pool from which Virginia
localities could borrow for school
construction.
A third scheme under discussion
is that proposed during the l94s
General Assembly under the Yates
Irvine bill. This would call for
retail sales tax limited to a two-year
period. with all proceeds turned over
to the localities.
Wholesale Tax Discussed.
! A fourth plan discussed is that
advocated by Delegate Robert
Whitehead of Lovingston for a sales
tax administered at the wholesale
level.
| 1t was expected that the tax study
commission would be divided into
subcommittee, with principal at
tention directed first at finding out
exactly what the localities need in
the way OF new revenues. Once
picture has been obtained of State
and local taxes and revenues, the
commission can begin work on the
second part of its assignment, to
make such recommendations as it
deems proper to bring about i'm
provements in Virginia's tax system,
its expenditures and general fiscal
poiiciaS