Evening star., 1952-08-28
State Property
Tax End Urged
For Maryland
SobeIIoff Report Sees
Move as desirable
Goal for the Future

Eventual elimination of tht
State property tax is the major
recommendation contained in {
report released today by Mary.
lands Commission on Admins
trative Organization.
This is the body set up by Gov
McKeldin in March, 1851, to study
administration and organization
of the State Government. Il
sometimes is called the Sobellofl
Commission, after it's chairman
Simon E. Sobellof. -.
The commission, in it's thiro
report since the study began. re.
ported that State use of the prop.
erty tax has been declining ir
recent years, whereas it is the
major source of revenue fol
counties, cities and towns. Al
present, the commission noted, the
property tax accounts for only
three per cent of the States
tax revenues.
"GoaI for the Future"
It's elimination as a State tax
is "a desirable goal for the fu-
ture." the commission asserted.
Before it's elimination, however,
there are several problems which
must be resolved, the commission
stated. One involves State grants
in-aid to counties for public edu-
cation. Another concerns retire
ment of outstanding bonds.
The report suggests that a new
educational grant formula be de-
vised or some means be developed
to assure continued maintenance
of machinery for equalization of
property assessments between
counties.
Recommendations on Bonds.
In addition, the commission OBJ
served that the property tax now
is pledged to retirement of State
tax and cannot be eliminated
until outstanding bonds are re-
tired. It recommends discontin-
uance of pledging of this tax for
future bond issue.
Generally. the commission said,
the present State-local financial
pattern does not require admin
istrative changes. It did. how
ever, make eight other recon-
mendations. They were:
CD That local governments
should be encouraged to finance
their operations through locally
collected taxes and that addi-
tional revenue, if necessary, be
raised through increase of local
taxing powers rather than further
State assistance;
(2) The Statesshould withdraw
from licensing certain local busi-
nesses and permit this levy to
go exclusively to counties and
municipalities;
90 That the admissions tax,
now levied by the State and dis
tributed to local governments, be
authorized as a county and mu-
nicipal tax and collected locally;
Taxes on Amendments.
a. That local governments, if
the need arises, be authorized to
consider taxes on amusement ma
chimes, hotel rooms, tobacco prod
ucts, and parking meter fees;
go That, except for taxes dis
cussed in preceding recommended
tions, the levy and collection of
all taxes at present imposed solely
by the State be reserved for the
State, with the revenues being re-
tanned by it or shared with local
governments as the General As
sembly deems advisable;
CO. That all local governments
should be required by general law
to raise a minimum amount of
revenue per capita through locally
levied taxes before they become
eligible to receive shared taxes
from the State;
CD That present laws author
izing payment of shared taxes to
special districts and taxing areas
be repealed and that only coun-
ties and municipalities receive
shared taxes from the State;
Sole Agency Urged.
(S) That recently established
machinery for gathering infor-
nation relative to local govern
ment be simplifled and improved,
and that the Fiscal Research Bu-
reau be the sole agency for receiv-
ing such reports.
The commissions 41-page report
noted that the State currently
distributes about $40 million to
local governments in Maryland
and pointed out that this is more
likely to increase rather than de-
crease.
The report declared that Mary
land raises Seven-eighthS of all its
revenue, with the remaining eighth,
or approximately $40 million, COM
ing from Federal grants-in-aid.
The major State sources are the
income tax, sales tax and gaso-
line and motor vehicle revenue
The State property tax provides
little more than $40 million.