96                           JOURNAL OF PROCEEDINGS                  [Dec. 17

(3)   Tax on Admissions

An increase from ¹/₂% to 4¹/₂% in the tax on admissions, effec-
tive June 1, 1969, with revenue from the 4% increase to go to the
General Fund. The original ¹/₂% tax revenue will continue to be
dedicated to the Counties and Municipalities as previously and
with their continuing option to increase this rate for their own
purposes individually.

(4)  Individual Income Taxes

Beginning January 1, 1970, in lieu of the filing of quarterly with-
holding reports and the transmittal of Maryland and Local in-
come tax withheld, all employers whose quarterly withholding
may reasonably be expected to be $300 or more will file and
transmit monthly the tax withheld. The first filing under this
new provision of the law will be for the month of January 1970.
The effect of this change is to advance to Fiscal Year 1970 with-
holding receipts for the months of April and May 1970. This
provides a once only revenue increase for Fiscal 1970.

(5)   Corporation Income Taxes

Effective January 1, 1971 corporations will be required to file
declarations of estimated income tax if their income tax for the
taxable year is expected to be $1,000 or over. The declaration is
due to be filed on or before the first day of the sixth month
following the close of the taxable year at which time at least
one-half of the tax estimated to be payable for the year is due
and payable. This is also a one time revenue increase only in the
Fiscal Year 1971.

All estimates are based on the current tax statutes including the
modifications by the above 1969 Legislation.

In arriving at new estimates, attention has been given by the Board
to all known current economic factors as they will affect revenues through
the Fiscal Year 1971.

Probably the most volatile current economic factor in the National
outlook is the rapidly rising price level of goods and services which will
have considerable direct effect on sales volume and business profits and
will, in turn, affect tax revenues derived therefrom. Other important
factors are:

Curtailment of public, industrial and private construction due to the
shortage of capital and the rising interest rates.

The growing backlog of private housing demand which is becoming
an increasingly important factor in the long-term outlook.

The timing of conclusion of the Vietnam hostilities as it will affect
the Federal Budget and the economy in general.

The eventual Federal Tax Reform Program now being formulated by
Congress. This program includes in addition to proposed Income Tax
reduction, a start toward sharing of Federal revenues with the states.

No estimate can be made of Maryland's share of such revenues until
the enactment of Federal Legislation or the effect of new Federal
Income Taxes rates until this legislation is finalized.