106                        JOURNAL OF PROCEEDINGS                  [Dec. 17

The new estimates were based on the latest available collection trends
and the motor vehicle traffic outlook as it best can be determined at this
time from available current data on the coming pattern of motor vehicles
usage and the economic outlook in general.

Probably one of the most important factors in the outlook is the effect
of the present efforts of the National Administration to arrest inflation
by slowing down consumer demand. This will influence the motor vehicle
economy as well as construction and other sectors of economic activity.

Motor Vehicle Fuel Taxes increased over Fiscal 1968 by about 7% in
the Fiscal Year 1969 to a total of $104,441,000 for that year. This rate of
growth has been maintained so far in the current Fiscal Year 1970. There
is now, however, a noticeable new trend toward the usage of small "Econ-
omy" cars; perhaps as a result of the increasing traffic congestion which
may become more pronounced if highway construction is curtailed. In
view of this changing picture, current estimates of this revenue are based
on an annual growth of 6% for the Fiscal Year 1970 and of 5% for the
Fiscal Year 1971. Motor Vehicle License Revenue increased by more than
a third in the Fiscal Year 1969 due to the one-third increase in License
Plate Fees beginning with the 1969-1970 registration year. It now appears
that a normal increase of about 4% annually should be expected in the
Fiscal Years 1970 and 1971. Motor Vehicle Fines, Operators' Licenses
and other fees are expected to continue previous annual growth trends.

As of June 1, 1969, the rate of the Motor Vehicle Titling Tax was
increased from 3% to 4% coincident with an increase of from 3% to 4%
in the Retail Sales and Use Tax brackets. This additional 1% Motor
Vehicle Titling Tax will, however, be used in the General Fund and the
Highway Fund will continue to receive only the proceeds of the former
3% tax.

The initial increase in this revenue in the early months of the Fiscal
Year 1970 has been less than proportionate to 1/3 increase in the tax rate.
However, more collection experience is needed before a very clear picture
of the long-term trend can be obtained. On the basis of this initial experi-
ence, it appears that no change is needed in the present Fiscal Year 1970
budget estimate of $33,000,000 from the 3% tax made a year ago and the
subsequent estimate of $11,000,000 from the 1% increase for the General
Fund. This revenue may, like the Gasoline Tax, be affected by the current
trend towards the purchase of small "economy" cars. It may also be
affected by any increase in unemployment which would lead to curtailment
of auto purchasing by consumers.

Although this is a very volatile revenue and difficult to predict very
far in advance, it is expected to show some increase in the Fiscal Year
1971 when the economy should be on an upgrade after a temporary slowing
down in 1970.

Real and Personal Property Taxes

The Department of Assessments and Taxation, on November 19, 1969,
made new estimates of the current assessable basis of the State.

Following are its new estimates of the State Assessable Basis to-
gether with the projected State Levy at the current 1969-1970 State Tax
Rate of 20¢ per $100.