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DELEGATE ROBIE: Thank you.
THE CHAIRMAN: Delegate Beatrice
Miller.
DELEGATE B. MILLER: Chairman
Case, I have just a clarifying question.
In the first place, I am not quite sure
how your reply yesterday to Delegate
Maurer's question on section 8. 01 (a) ap-
plies, in terms of whether or not the taxing
power could be exercised by an elected
school board, if such an elected school
board were exercising powers. Since I am
not an attorney, I do not understand what
the definition of legislative power is.
For instance, a school board which sets
teachers salaries, which sets policies for
the schools, are these legislative powers?
DELEGATE CASE: No. Legislative
powers are powers to make laws and my
answer to Delegate Maurer's question was
simply this — if it was Delegate Maurer;
I have forgotten now — that if the General
Assembly could constitutionally set up a
school board and provide that its member-
ship should be elected by the people vested
with the power to make laws about any
and all subjects pertaining to schools, then
in my judgment, the General Assembly
could also grant to that board the power to
tax.
THE CHAIRMAN: Delegate Miller.
DELEGATE B. MILLER: It is a little
bit far fetched, but is it possible then that
the state school board could be given such
a taxing power?
THE CHAIRMAN: Delegate Miller, I
am not sure you understand Delegate Case.
He had a small important word at the be-
ginning of his sentence. It was "if." I do
not think he was suggesting to you that
that would be done.
DELEGATE B. MILLER: My question
was, under the definition — I see. You are
saying in effect that even the state school
board at the present time does not have
such legislative power?
DELEGATE CASE: It does not.
I have been a member of that board, and
I have some knowledge of it.
THE CHAIRMAN: Delegate Miller.
DELEGATE B. MILLER: I have an-
other question, please.
In section 8.02-2, when you talk about
exemptions, exemptions with respect to any
tax imposed by the State shall be made,
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do you mean just the State, or do you
mean the State and its subdivisions?
DELEGATE CASE: Just the State.
THE CHAIRMAN: Delegate Miller.
DELEGATE B. MILLER: My third
question is: Did your Committee at any
time consider under section 8.02 an alterna-
tive method of relief for the farmers?
DELEGATE CASE: I think you would
have to be a little more specific. We dis-
cussed the problem in great detail, and I
would guess that perhaps in that discus-
sion there was some, or there were al-
ternatives suggested. If you will give me
exactly what you have in mind, I will be
glad to comment on it.
THE CHAIRMAN: Delegate Miller.
DELEGATE B. MILLER: I was think-
ing perhaps of a kind of tax rebate or tax
writeoff which we have granted to the el-
derly, rather than getting involved with
the question of land, which has proved such
a difficult one.
DELEGATE CASE: Yes, Delegate
Miller, we not only discussed those, but \ve
discussed the general theory as held in
some states, and which was advanced here
last time, that taxes be deferred until the
sale of the property, and then at that time
the property would be subject to reassess-
ment, for say a period of five years back,
taxes calculated to what they would have
been if the property had been assessed and
collected at that time.
The reason we did not go for that is, as
you know, the General Assembly this year
in enacting the Agnew-Hughes tax plan,
has imposed for the first time the capital
gains tax, so the farmer will be hit with
this tax, which he never would have been
before as far as state taxes are concerned.
So for this and other reasons these credits
and deferred credit procedures are tremen-
dously different, but they are not a consti-
tutional dimension anyway, but these were
all considered.
THE CHAIRMAN: Are there any fur-
ther questions, Delegate Miller?
DELEGATE B. MILLER: Yes, Mr.
Chairman, I have one final question. The
question of special exemptions for corpora-
tions has come up several times in the com-
mittees of this convention. I find no place
in the recommendations of the State Fi-
nance any mention of this. Have you con-
sidered it — and if so, why did you omil
any reference to it?
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