Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-08-11
New Maryland Cos Tax
ToCut District Revenue
Continued from First Page

Continued from First Page
changes. aimed at offsetting
the Maryland law.
But Mr.. Back said no con-
illusions have been reached.
We're studying the matter.
but l don't know at this stage
what we'll recommend. II any
thing" he declared.
District gasoline sales have
been causing official concern for
some months. Both sales and
tax receipts have been slump
ing.
Taxable gasoline sales for the
year which ended June 80 were
down more than Is million gal
Ions from the previous year
Gallonage for the year totaled
l9l SOS, 246. compared with
206, 74O.639 in 1856. Only
about S million gallons of this
drop is accounted for by a
special tax exemption for D. C.
Transit System under its
franchise.
Gasoline tax collections for
the last year, Mr.. Back dis
closed. we're down S341,653
from the year before, not even
counting the d. c. Transit ex-
emption expected to amount to
some 100000. The gas tax
in 1886 realized $12.255. 900.
In the past year it yielded only
$11.513.963.
ID. c. Handicapped
The Maryland tax, Mr.. Back
said, doubtless will contribute
further to the downward trend.
The District is virtually
powerless to retaliate against
the Maryland tax. Mr.. Back in
dicated. This is because the
Capital has so little mileage.
Vehicles traversing the District
would only cover some eight
miles at most, and this would
realize so little under a tax of
the Maryland type that it
wouldn't be worth collecting,
the assessor said.
Virginia already has a tax
similar to the Maryland one. as
do some other States. The Vir-
ginia levy has been in force
since 1916.
There is evidence that the
Virginia tax has already done
some of the same kind of dam
age here expected from the new
Maryland law.
A major truck fuel station,
Speed g. Briscoe. New York ave-
nue. and Bladensburg road NE,
recently closed down and moved
to Virginia. The owners blamed
dwindling sales. which they
ascribed partly to the Virginia
tax.
This firm alone paid a Dis
trict gasoline tax of 100000
annually.
Kane Transfer Co.. which
operates a truck feet out of
Washington and Baltimore.
curtailed its fueling here and
began buying gasoline in Vir-
ginia after the Virginia tax was
instituted.
Eugene I. Kane. official OF
the firm, said this has proved
cheaper than fueling here. even
though gasoline is available
here at wholesale and must be
bought in Virginia at retail.
His firm won't be affected by
the new Maryland law, Mr.
Kane said. because the COM
pany can pump gas used in
Maryland in Baltimore.
Shift Necessitated
But firms without Maryland
fueling stations are in less
favorable position. Marvin E
Walsh, vice president and gen.
eral manager Of Safeway Trail
ways. said yesterday the new
Maryland law will compel his
company to transfer fueling of
its Washington-New York buses
from the District to Elkton. Md
This would mean a cut of IS
per cent in the company's fuel
ing here. he said.
Even with the switch. the
company would have to pay
out more for fuel, Mr.. Walsh
said. adding:
We'll no doubt have to. pass
it along to the public with a
fare increase"
Greyhound, which also has
a big garage and fueling station
here, also will be affected by
the new law. II could not be
learned yesterday, however,
whether the company might be
tempted to move its fuel pumps
out Of Washington.