Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-02-10
Cigarette Tax
Being Studied
In Maryland
Corporation Levy
Also May Be Roised
To Meet Pay Boosts
spseial Dispateh 10 rhs stor


ANNAPOLIS. Feb. 10.-The
possibility of tax on cigarettes and
an increase in the corporation tax
doomed today as legislative leaders
considered steps to close the gap
between State income and ex-
penditures during the fiscal year
beginning July /.
Information laid before a DEM
ocratic steering committee yester-
day indicated the $3.50 million
budget sent to the General AS
sembly by Gov. McKeldin may be
out Of balance by as much as $24.7
million before the Legislature fin-
ishes voting pay raises for State
employees and other added State
expenses.
Consequently, the committee be-
lieves that additional taxes prob
ably will be imperative. It's mem
bers insist, however, that pro-
posals for new taxes must come
from the Governor. =
Now Taxed in Baltimore.
Mr. McKeldin already has been
advised 2-cent tax on cigarettes
would raise IS million a year.
Baltimore City and Baltimore
County now tax cigarettes under
a special grant of power.
Policies under consideration
would either abolish local levies
or put the State rate at 8 cents
and allow subdivisions the return
from l cent.
The corporation tax now stands
at 4 per cent. Lifting it to per
cent would bring in another $3.6
million. according to the Bureau
of Revenue Estimates.
Salary increases already under
consideration account for $7,978,-
$50 of the prospective deficit, and
new demands for pay raises reach
the State House daily.
Assessors Present Request.
The latest was presented yester-
day on behalf of lit assessors and
supervisors Of assessment who are
employed by the State Tax Com
mission but are paid jointly by the
State and local governments.
Another request, amounting to
SIS million, was put to the Gov
ernor by delegation of school bus
contractors. They want higher
rates for transporting school chill
dren.
Although the buses are operated
by the county school departments,
the operators always have been
paid from State funds.
The Governor will meet with
the Board of Revenue Estimates
Monday to review the States
financial outlook. with particular
reference to prospects for more
income from major tax sources
than has been suggested.
Engineer Bill Introduced.
Meanwhile, House Minority
Leader Anders r. Lofstrand. IT..
Republican, of Montgomery Coun-
ty introduced legislation sought
by the Governor to expedite ap-
polntment of a State engineer.
The Governor has said he wants
to name Nathan L. Smith, who
resigned recently as director of
public works in Baltimore County.
Garrett o. Billmire is now State
engineer, but his term expires this
spring.
Mr.. Lofstrand's bill would
change the title to director of
public improvements and place
the salary in the annual budget
instead of the law that estab-
lished the department. The salary
is now fixed a $4,000 year. When
Gov. McKeldin first disclosed his
preference for Mr.. Smith, he sug-
gested $4,000.
The Prince Georges County
delegation introduced bills to:
Make the corrupt pracuices
election law apply to all local and
Statewide referenda, allow the
sale of miniatures" by county
liquor dealers, increase the coun-
TVS debt limitation for improve
ments in special taxing districts
from $1.2 to SIS million and set
up a 7-cent-per-$100 fire tax in
Edmonston.