10 REPORT OF THE COMPTROLLER OF THE TREASURY

RECEIPTS
General Fund.........................	$109,908,646.43	$97,213,825.53
Special Fund..............................	117,222,724.40	113,985,353.83
Federal Fund.....................	19,370,860.25	17,836,852.81
Loan and Miscellaneous Funds	137,666,140.27	149,688,206.24
Total..............................	$384,168,371.35(A)	$378,724,238.41

(A) Included in the total receipts are $76,034,279.00 cash transactions applicable
to advances, budget credits, investment bond sales and miscellaneous re-
funds. These receipts are not to be regarded as operating receipts of the
State Government.

DISBURSEMENTS
General Fund........... ..	$111,446,126.49	$104,664,136.33
Special Fund........................	102,793,204.94	107,555,696.92
Federal Fund ............................	19,088,326.73	16,867,633.66
Loan and Miscellaneous Funds	152,752,909.55	151,281,383.27
Total..........................	$386,080,567.71(B)	$380,368,850.18

(B) Included in the total disbursements are $72,871,757.00 cash transactions
applicable to advances, budget credits, investment bond purchases and
miscellaneous refunds. These disbursements are not to be regarded as
operating disbursements of the State Government.

The State's income tax law was amended at the 1955 Session
of the General Assembly to provide that employers shall withhold
from salaries and wages of employees amounts calculated to take
care of the tax liability of the employees; also, that taxpayers whose
incomes are not subject to withholding shall file declarations of
estimated income and pay taxes quarterly on the basis of such esti-
mates. All taxpayers will still continue to file annually their in-
come tax returns taking credit for amounts paid under their declara-
tions. This amendment to the law became effective July 1, 1955.

This change has made necessary a considerable increase in the
amount of work to be done by our Income Tax Division, but it is
expected the revenue from income taxes will be increased substantial-
ly. The new procedure, it is thought, will reach many persons
who, it is claimed have been escaping taxes in the past. This new
procedure will be helpful to our cash position since the money
will flow into the Treasury quarterly during the fiscal year, instead
of our having to wait until the latter part of the fiscal year for the
greater part of the year's revenue from income taxes.

I shall be very glad to have you ask for any information you
desire, should any of the items in the report be of special interest
to you.

Respectfully,

[signature]

Comptroller.