Evening star., 1953-03-06
GoIdstein Asks
Sales Tax Split
ForCountyUse
Assembly Group
70 Study Proposal
For 2096 Share
BY the AsseeIosed Press


BY the Asseeioisd Press
ANNAPOLIS, Mar. 6.-Senate
Majority Leader Goldstein today
proposed giving Baltimore and
the counties 20 per cent Of the
State sales tax.
Mr.. Goldstein threw a bill dis
tributing that much Of the pro-
ceeds Of the 2 per cent levy
on retail sales into an expanding
satchel of tax measures under
study by the Legislature.
He suggested returning one
nth of the tax to the county
or Baltimore City-in which
1t was collected.
Estimated Sc Million Pot.
On the basis Of estimates for
the next fiscal year, that would
mean a $6 million pot for the
subdivisions to split.
It also would cut that much
Of a hole in revenues on which
Gov. McKeldin depended to
balance his 1953-54 budget Of
$195 million. For that reason,
even II the bill passed, its effect
might be postponed another
year unless appropriations were
cut accordingly.
AT the same time Minority
Leader Kimble introduced the
administrations bill to increase
the pay Of State policemen.
The Goldstein measure was
sent to the finance committee,
which he heads.
An older tax bill, one to al
low o reduction automatically
when revenues exceed estimates,
was due for another picking
apart by the full Senate. One
bloc Of Democrats originated it,
and It was under obliique at
tack from q member of an op-
posite faction.
81 Million Cushion.
The bill. sponsored by the eco
nomy-minded bloc Of II Demo-
cratic senators, who lost a battle
for Senate control when the ses-
sion opened. would turn back to
the taxpayers each year all sur
plus State funds above 81 mil
lion, which would be kept in the
treasury as a cushion fund.
The first SO million in surplus
above the cushion fund would
60 for reducing the State prop
erty tax. Any remainder Of the
surplus would be used for in
dividual income tax reductions,
providing there was enough for
q general cut Of at least 5 per
cent.
That's what the DILL provides
now, with amendments tackled
on by the Senate Finance Com
mittee and already approved by
the Senate.
AS it was originally introduced,
1t provided simply that all sur
plus funds above 5 per cent
would 60 toward reducing the in
come tax.
Ferry Sale Approved.
In other action. the Senate
Finance Committee yesterday re-
ported favorably on a resolution
directing the State Roads Com
mission to sell Immediately five
Chesapeake Bay ferries, which
became idled when the Bay
Bridge opened last July. Senator
w. Mason Shehan, Democrat, of
Talbot County, one Of the spon-
sors Of the resolution, charged
it has been costing the taxpayers
more than $3.50 a day for the
commission to maintain the idle
feet.
However, when the measure
came to the Senate floor, Sem
ator Harry T. Phoebus, Repub-
lican, Of Somerset County sue
ceeded in delaying consideration
Of the move until Monday night
because he wants to prepare an
amendment. Senator Phoebus,
along with Senator Paul j.
Bailey, Republican, of st. Marys
County, is sponsoring a bill call
ing for. use Of the boats In a
new ferry system in the lower
bay, between CriSheld in Somer-
set County. Point Lookout in st.
Marys County and Lewisetta. Va.
See 81 Million Annual Loss.
The State Roads Commission
said it has held up sale Of the
boats because the Senate asked
it to last year. It also contends
that . lower-Bay terry system
would be q $1-million-a-year
money loser.