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tions which may be subject to State taxation. The State tax is
nearly always paid simultaneously with the county tax, according
to the terms of the tax bill, which shows amount due to the county
and amount due to the State. It does not appear that the county
officials, who are authorized to receive county as well as State taxes,
ever receive county taxes and allow the State tax to remain unpaid.

Proper system of accounting between the localities and the
State should require the immediate placing to the credit of the State
the amount due the State and the maintenance of a separate fund.
But a practice has been followed in the counties by which the State
money is deposited with county funds and commingled with county
funds. Each payment of State taxes by the property owner requires
an entry on the State account kept by the local collector, and intri-
cate and complicated bookkeeping is the result. The attention of
this Commission has been directed to the fact that in some counties
the State's account is not kept separate from the county's money,
but is used by the county for the local need and expenses, and that
the State's need of the money is considered secondary. In one
county when the local funds were inadequate for the time being it
became necessary to use this money and the State had to wait
months before the same was received.

Just as soon as the property owner receives the benefit of the
discount on State taxes the State is entitled to this money. Sec-
tion 36 of Article 81 (Revenue and Taxes) provides that the col-
lector of State taxes in Baltimore City shall make daily deposits of
money to the credit of the State Treasurer, but no provision is made
for the manner of the deposits of local collectors and in many cases
settlement is made but once. This method has resulted in a dis-
count system of collection, which is discussed fully in the report of
the special commission submitted to the Legislature of 1914.

Examination of the last Comptroller's Report reveals that a
large percentage of current taxes is not collected in any current
year, and the following compilation is submitted. In the first column
is set forth the amount of money that the county should have paid
to the State, and in the second column the amount actually paid
within the fiscal year by said county on account of State taxes;
the third column shows the actual percentage of collection of taxes
by the county as compared with the levy.