Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-15
Lee Patterns
Measure After
Law in Virginia
By GENE GOODWIN
Star Stan Correspondent

Star Stan Correspondent
ANNAPOLIS, Feb. 15-Legis-
lation to abolish Maryland's con.
troversial income tax on the sal.
aries Of non-residents was being
prepared for introduction in the
General Assembly today by Dele
gate Blair Lee, Democrat OF
Montgomery County.
Mr.. Lee said his bill would be
patterned after the nonresident
Income tax law in Virginia.
The measure also will be spon.
Isored by Delegate Perry o. WI.
kinson, Democrat of Prince
Georges.
The business income of nom
residents would continue to be
taxed, but the State would no
Longer withhold income taxes
from the wages and salaries OF
non-residents working in Mary
land.
The delegate added, however.
that his bill would provide that
the exemption would apply only
to residents of States or jurisdic-
tons that extended the same
exemption to Marylanders.
If the District of Columbia
should start collecting a payroll
tax from all persons working in
the city, Mr.. Lee emphasized.
Maryland would resume collect
ing income taxes from District
residents working in the Free
! State.
Portion Refundable
Maryland now refunds to the
nonresident income taxpayer
that portion Of his income tar
that he pays to his home juris.
diction. In the case of a Vir.
lginia resident working in Mary
land, the entire amount Of
money withheld is refunded,
since Virginia income tax rates
are higher than Maryland's fat
| 2 per cent.
In the case Of a District resi-
dent working in Maryland, how
ever, the State is able to keep
most if not all the money it
withholds because the District
income tax law provides much
higher personal and dependent
deductions than Maryland.
Mr.. Lee said he feels Congress
this session will adopt a new
District tax program. which In.
cludes a reduction in the per.
sonal and dependent deductions
to a level comparable with those
in Maryland. If that happens,
Maryland's withholding of nom
resident income tax in the
Washington area would be in
the nature of a Christmas Saw
ings Club since. in all but a few
cases, the entire amount with
held would have to be refunded
to the taxpayer.
Only 100000 a Year
Outside of the Washington
area, Maryland is able to gain
only about 100000 a year by
taxing the salaries of non-resi-
dents, Mr.. Lee said. II the
proposed District income tax
changes are approved, this gain
would not justify the expense Of
making the collections, the dele
gate added.
Meanwhile, the bill designed
TO eliminate speculation on pur-
chase Of highway rights-of-way
was introduced in both the
House and Senate last night
AAA0CA AI1ELl duSplCCS.
Senate sponsor of the legisla.
ton, which arose from specula-
ton cases now pending before
the Montgomery and Prince
Georges County Circuit Courts,
is Senate President Louis L.
Goldstein. Speaker John C. Luz
Der introduced the House YER
sion.
Here were some of the other
major developments at the Leg
islature:
/. The House Ways and Means
Committee killed a bill at the
request of the Maryland Asso-
citation of County Commissioners
which would have made State
employees out of all tax assessors,
now supervised and paid by both
the county and State.
Two Tax Aids Killed
2. That same committee, also
under the urging of the county
commissioners. killed two bills
designed to cut farmers taxes,
but kept alive a less drastic tax
cut measure.
The bills which got the ak
would have exempted all live
stock and farm machinery from
taxation. The measure still
breathing increases the tax
exemption for farm implements
from $1,000 to $4,000. All three
bills were introduced by Delegate
Dan Brewster, Democrat of Bal
timore County.
3. The Prince Georges dele
cation introduced a bill to au-
thorize a $2.5 million bond issue
for an addition to Prince Georges
General Hospital, maintaining
that the critical shortage Of
beds there constitutes an emer-
gency.
4. Delegate Charles w. Wood
ward. jr., Democrat of Mont
gomery, proposed a measure to
exempt the nonprof1t Twinbrook
Swimming Pool Corp. from State
and county, taxation.
5. Senator Edward S. North.
rop, Democrat of Montgomery,
last night submitted a joint reso-
luton requesting continuation