30                           JOURNAL OF PROCEEDINGS                 [Dec. 16

While at a hearing before me some proponents of the Bill described it as a
conservation measure, the Director notes that it "does nothing toward the
reclamation of mined lands" and that Statewide regulation of the mineral
industries with requirements for reclamation of mined lands would be a
much preferable approach than a local tax of this nature. A copy of the
Director's letter is also attached herewith and should be considered a part
of this message.

Another concern which I have over this Bill is that the State itself
uses extremely large amounts of these excavated minerals in constructing
highways. The tax imposed by the Bill may significantly increase the cost
of the materials used in road construction, to the detriment of all of the
people of Maryland.

Finally, it should be pointed out that a similar bill was vetoed by
Governor Tawes in May 1961 for essentially the same reasons which com-
pel me to veto House Bill 908 at this time.

Sincerely,

/s/ Marvin Mandel,

Governor.
Read and Journalized.

THE ATTORNEY GENERAL

Baltimore, Md., May 12, 1969.

Honorable Marvin Mandel
Governor, State of Maryland
State House
Annapolis, Maryland

Dear Governor Mandel:

I have reviewed House Bill 908 which provides for the levy and collec-
tion of a severance tax on sand, gravel or stone of any kind excavated,
removed or quarried in Cecil County. I am approving this Bill for con-
stitutionality. However. I deem it advisable to point out that the Bill
contains certain provisions which, in my view, may necessitate its con-
struction judicially.

Subsection (a) of House Bill 908 imposes a severance tax "for the
privilege of depleting the natural resources" of Cecil County. (Emphasis
supplied.) The activity sought to be taxed is the depletion of these re-
sources, whether by excavating, removing or quarrying. Thus it appears
from a reading of subsection (a) that the tax is a severance tax, but in
subsection (c) the Bill requires the excavator to file a monthly report of
the "taxable sand, gravel or stone excavated, removed or quarried, which
has been sold during the preceding month and pay the tax due thereon".
If the phrase "and pay the tax due thereon" relates only to the resources
which have been sold, it would appear that House Bill 908 imposes a sales
tax and not a severance tax. Thus if this Bill does impose a sales tax,
there could be further questions as to the sufficiency of the title of the
Bill and whether the Bill is directed at a class of persons which is too
narrow. In any case, the Bill obviously lacks clarity as to the legislative
intent.

Sincerely yours,

/s/ Francis B. Burch,
Attorney General.