MARVIN MANDEL, Governor                      1795

Letter from State Law Department—H.B. 387.

May 7, 1969.
Honorable Marvin Mandel
Governor of Maryland
State House
Annapolis, Maryland 21404

Re: House Bill 387
Dear Governor Mandel:

As requested by you, we have reviewed for constitutionality
House Bill 387. It is our opinion for the following reasons that this
bill is in conflict with Article 15 of the Maryland Declaration of
Rights and Article III, Section 29, of the Maryland Constitution and,
therefore, should not be signed into law.

House Bill 387 adds new Sections 572-1 to 572-10, inclusive, to
the Code of Public Local Laws of Allegany County. These sections
provide generally for levying a distribution and production tax on
natural gas, or other gases, taken from the earth in Allegany County.
This is a county tax and all receipts gained from the imposition of
this tax are to be accounted for and paid into the General Funds of
Allegany County.

It is our opinion that this bill violates the equality and uniform-
ity provisions of Article 15 of the Maryland Declaration of Rights
because Section 572-1 (i) creates an exemption from taxation for
State purposes upon the gas, the property rights attached thereto,
and all the values created thereby while like properties in other coun-
ties of the State would continue to be subject to State taxation.
Section 572-1 (i) provides as follows:

"During the period of expiration and the period of active pro-
duction of gas, the tax hereby imposed is in lieu of all other taxes
upon the gas, the property rights attached thereto or inherent
therein, and the values created thereby, upon all leases or rights
to develop and operate any lands for gas, the values created
thereby and the property right attached thereto or inherent
therein. After the period of active production of gas and during
such times as no gas is being produced, the general property tax
laws shall prevail as to all property rights and values." (emphasis
supplied)

Article 15 of the Maryland Declaration of Rights states in per-
tinent part that:

"..... the General Assembly shall, by uniform rules, provide for
the separate assessment, classification and subclassification of
land, improvements on land and personal property, as it may
deem proper; and all taxes thereafter provided to be levied by
the State for the support of the general State Government, and
by the Counties and by the City of Baltimore for their respective
purposes, shall be uniform within each class or subclass of land,
improvements on land and personal property which the respec-
tive taxing powers may have directed to be subjected to the tax
levy; yet fines, duties or taxes may properly and justly be im-
posed, or laid with a political view for the good government and
benefit of the community."