Evening star., 1953-08-19
9 Plans 10 Cut
Property Taxes
Given Council
County May Offer
Resolution at
State Meeting

Nine methods of relieving the
tax burden on property Owners
in Montgomery County will be
scrutinized by the county coun-
Gil this week.
The council, on Tuesday, Is
expected to adopt a resolution
on the subject, which it will
submit to the State Association
of County Commissioners, meet
ing in Ocean City from August
% through August 80.
The nine means for relieving
the real estate tax load were
prepared by Acting County Man
ager Alex K. Hancock on order
of the council. He submitted
his report yesterday.
Mr.. Hancock suggested three
new forms of taxation as posi-
BILE means of property tax relief.
One, he said, would be for
the State Legislature to grant
the counties the same taxing
powers the State now holds.
Another would be the cre-
alton of a local. gross receipts
tax in connection with. or in lieu
Of, the business personal prop
erty tax.
Would Distribute Load.
Mr.. Hancock explained this
would require businesses that do
not carry heavy inventories or
do not have a great capital in
vestment to share in the local
tax burden.
The third suggestion was pro-
vision for a local occupancy, oc-
cupation or payroll tax to hit
those persons who do not own
taxable properties in the county.
In a rough draft of a suggested
resolution to be submitted to the
State group, Mr.. Hancock noted
that much property in the county
had been acquired by the Federal
Government and is tax-eXempt.
He added that, at the same time.
the county's rapid growth is in
creasing the property tax bur-
den because of the immediate
need for capital outlay and for
greater services required as the
population density increases.
State Changes Suggested.
Mr.. Hancock also suggested
changes in laws governing State
distribution of funds for school
purposes and in Statewide as
sessment laws and procedures.
Among the suggestions for
consideration by the council he
included:
l. Repeal of the law requiring
counties to allot to schools it's
share of the motor vehicle liz
cense receipts in the same pro-
portion property taxes are al
lotted.
2. Changing the school in
centive fund law SO the State
will provide a reasonable. not
a mere token, contribution" for
school construction and will dis
burse the funds on the basis Of
annual enrolment increases
rather than on a basis of total
enrolment.
3. Providing that the State
pay a greater share of school
operating costs out of State
taxes, such as the sales tax.
Would Change Base.
4. A change from the present
aSsessable base to some other
economic factor such verage
family income, or ir in
come in compu, hool
equalization funds.
Mr.. Hancock added that, il
the assessable base continues to
be the factor, the State should
make a survey to determine
whether there is equality of as
sessment throughout the coun-
ties. Inequalities, he added,
should be corrected.
A suit in Montgomery County
Circuit Court at present is chal-
longing the equality between the
counties in property assessments.
The suit alleges property in
Montgomery is assessed higher
than in other areas of the State.
Mr.. Hancock also suggested
that the law requiring assess
ment at full cash value" could
be amended to provide that land
and personal property be as
sessed at fair market value"
or percentage thereof.
The county this year was