HERBERT R. O'CONOR, GOVERNOR. 1985
GASOLINE TAX FUND.
HOUSE BILL 490.

AN ACT to repeal and re-enact, with amendments, Section
14 of Article 89B of the Annotated Code of Maryland (1939
Edition), title "State Roads", relating to the amount allo-
cated to Frederick City and the incorporated towns of Fred-
erick County from the "One and One-half Cent Lateral
County and Municipal Gasoline Fund. "

This legislative enactment would have diverted a portion of
the lateral gas tax funds in Frederick County to the incorpo-
rated towns. The sum of f 11, 500 would have been lost to the
County Road Building program and would have seriously
affected the post-war plans of the County, I was informed.
The Farm Bureau, the State Grange, the County Roads Board,
the Board of County Commissioners, Frederick Chamber of
Commerce and the Frederick County Branch of the Automobile
Association all requested the Governor's veto.

GROSS RECEIPTS TAXES.
SENATE BILL 413.

AN ACT to repeal and re-enact, with amendments, Sub-section
(b) of Section 95 of Article 81 of the Annotated Code of
Maryland (1943 Supplement), title "Revenue and Taxes",
sub-title "Gross Receipts Tax", relating to the method of
allocating gross receipts to Maryland.

Senate Bill 413 has presented most perplexing questions in
connection with gross receipt taxes payable by public carriers.
Because of the possibility of serious impairment of State reve-
nues from this source, I have granted hearings and held con-
ferences with all interested parties in regard to this enactment.

The history of this particular bill is a most interesting one.
The (State Tax Commission, in a commendable effort to estab-
lish uniformity in the method of allocating taxable gross re-
ceipts to this State, caused the introduction of this bill. The
present Commission followed the leadership of Judge William
L. Henderson who, as Chairman of the State Tax Commission,
initiated steps by which all parties in interest would be ac-
corded similar treatment and could have a definite formula by
which they could determine the amount of their gross receipts
which would be subject to the Maryland tax. The proposal
provided that authority be delegated to the Tax Commission to
establish regulations as to the handling of operating revenues.

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