Evening star., 1961-08-21
Vigiinia Eyes
Special Study
On Revenues
Delegates Ponder
Delay on Taxes
To Extra Session

| RICHMOND, Aug. 81 (AP).-
Virginia's tax problems may
be bundled up for a study by a
Legislative commission and ac-
Ition by an extra session of the
General Assembly next year.
Such a course was being
considered last week by some
Assembly members as happier
alternative to the prospect of
knock-down battles over both
taxes and redistricting at the
regular 1862 Assembly session.
Gov. Almond said last week
that the State must adopt
either a State sales tax or in
come tax withholding plan if
Virginia is going to meet her
capital outlay needs. The two
revenue approaches we're Sug-
gested earlier by the Virginia
Capital Outlay Commission to
finance six-year State build
ing program.
1t appears that the study
and extra session approach
would be more in accord with
the wishes and campaign state
ments of the man who prob
ably will be Virginia's next
Governor-Albertis S. Harrison,
ljr. the Byrd-backed Demo-
cratic nominee.
During the recent Demo-
cratic primary campaign Mr.
Harrison committed himself
Ito the general proposition that
a thorough study of the State
and local tax structure should
be made before the State en-
barks on any major changes
such as adoption of a general
sales tax.
Wary of Sale Tax
Mr.. Harrison's attitude was
one of opposition to the sales
tax, at least for the immediate
| future, and one of hope that
industrial development and an
expanding economy might pro-
duce sufficient revenues from
existing tax sources to stave
off the sales levy.
Among his supporters were
Assembly leaders who defeated
Gov. Almonds sales tax pro-
gram at the 1860 assembly,
and House of Delegates men,
bers running for reelection as
opponents of the sales tax.
The extra session method,
already being discussed by
Assembly sources friendly to
Mr.. Harrison, was given some
impetus by the report of the
State Capital Outlay Commits
sion.
Another alternative in the
tax picture would have the 1862
Assembly adopt legislation en-
abling all cities and counties
to enact their own per cent
sales taxes. This approach is
calculated to furnish the local
tiles with additional revenue
sources and relieve the pres
sure on the State treasury for
more and more financial aid to
localities.
Either the sales tax or the
withholding tax plan would
face rough going in the Legis-
lature, and the third alterna-
tive doesn't have much pol
itical appeal to aSsemblymen
representing money-hungry To-
calities.
Issues Pile Up
The regular 1862 session al
ready faces troubles aplenty
in the legislative redistricting
task required by the State
Constitution. 1t has much
other work to do in the so
days to which it is limited.
In view of this, some As
sembly members feel the most
orderly and least painful ap-
proach would be to:
Get by the regular session
by holding the present tax
lines with a minimum of
change. Have a commission
appointed to make a prompt
review of all tax problems.
Then have the Assembly re-
convene in late autumn or
early winter to devote itself
exclusively to tax matters.
Such a course, they figure,
would spare the new Governor
from any embarrassment in
light of his campaign ut
terances. And 1t also could
produce tax changes in ample
time to meet 1962-64 budget
requirements.