Evening star., 1957-12-25
Big Taxloss
Seen in Sears
Case Ru|inq

n 1907 ruiing Of the Makyiand
Court OF Appeals could cost the
state and its Subdivisions nearly
$40 million Q year.
That's an estimate by the
State Tax Commission % the
annual loss OF tax revenue which
could result from q decision
10y the states highest court in |
favor Of the Sears. Roebuck and
Co. \
Specifically. the high court
said 10 was discriminatory for
the state 10 assess 0earg in |
ventoTies at market value while |
allowance was made for In |
hationary influences In real
estate assessments.
II real estate 10 assessed at q |
percentage Of its market value. |
the appellate judges said. the
same yardstick should be APP
piled to personal property as
sessments. They sent the Sears
case back for Q reduction In the |
company's inventory tax.
OiIlclals Are Upset
The ruling. u applied general |
lly, could reverse taxing pro-
cedures which have been inl
effect In Maryland since the |
state Tax Commission was
created In 1914.
The implications Of the court
ruling had State tar and fiscal
officers tearing their hair. They
considered asking for Feargu-
ment Of the case before the
court Of appeals. taking II to
the United States Supreme
Court or asking Gov. McKeldin |
to call Q special session Of the |
Legislature.
Finally II was decided to |
mark time until February In |
the belief the 1858 General |
Assembly win put the tax sit |
uation back where Il was. The |
legislature could do this by |
authorizing assessors 10 treat |
personal property differently |
than real estate.
II the Legislature does not |
change the law as the court |
interpreted 1t. the Tax Com |
mission viii undoubtedly be in |
volved In Q great many law
suits aimed at reducing tax |
levies on al forms Of personal |
property.
Huge Loss Estimated
The Tax Commission esti- |
mated . maximum revenue |
loss Of t22.s million could re-
suit II the real estate yardstick |
Is used In assessing al other |
property, including farm ma.
chinery. bank shares. railways
and public utilities.
The breakdown Of this maxi
mum loss 10 SIS million 70 the
counties. ee.e million to Halti.
more City and e8.6 million TO
the State itself In direct taxes
and equalization losses.
The commission figured the
minimum revenue loss 70 the
State and its subdivisions ct
97.e million. This n based on
application Of the court ruling
to business stocks and inven-
tories only.
The breakdown Of the mini |
mum loss Is tl.4 million to the
counties. t3.6 million to Balti.
more and sac million to the
State.
Based on the 1857 taxable
basis. the following minimum
and maximum tax revenue
losses could occur In the ccun-
ties as Q result Of the ruling: |
Allies any. s77.SSo-$2s4 |
Anne Arundel. t2o, ,Se3- -e2se..
2oe: Baltimore, S73s.796-ti,-
462. .eo6: Calvert. tl.520-$2s,.
ll6: Caroline, t3,5l5-442,l0l: |
Carroll. S34.2el = $l23. asa: |
Cecil. $21, ,493 -9l5l,l56:l
Charles. Sll.053-&37. .00e; Dor
chester. tl7,see -$1o0.57O:I
Fred e rick. S33. $780, $224, ,753; |
Garrett. ss.S52-s7e.64s: Har-
ford. t2l.7l2-$2o4.l36.
Howard. S7,s75 : $s7,4i3: |
Kent. t9.377-t50.4lT: Mont
gomery, tl26.293 = $7l5,190; |
Prince Georges. Sl23 ,Se6- $685.
100: Queen Annes. &6, ,o3e- 902,-
202: st. Marys. tl2,264-$34.-
TAI: Somerset, Si,907-t33, ,554; |
Talbot. $9.e4e-$76, ,940; WASH |
ington. $e2, ,257-s2e9 ,ieo: Wi.
comico. t24.l7e-t1ee. .036: wor-
cester. sl4.so4-s7e.74s.