Theodore R. McKeldin, Governor                   1655

VETOES

TITLES AND MESSAGES

Senate Bill No. 58—Manufacturers' Tax Exemption

AN ACT to repeal and re-enact, with amendments, Sub-sections (23)
and (24) of Section 8 of Article 81 of the Annotated Code of
Maryland (1956 Supplement), title "Revenue and Taxes", sub-title
"What Shall Be Taxed and Where", providing that when any
county or municipality, other than the City of Baltimore, has
granted a tax exemption or partial tax exemption on certain tools,
implements, machinery, manufacturing apparatus or engines, raw
materials and manufactured products, the tax exemption shall
not be rescinded or modified without the consent of the General
Assembly.

April 15, 1957.

The Hon. Louis L. Goldstein
President of the Senate of Maryland
The State House
Annapolis, Maryland

Dear Senator Goldstein:

I am returning unsigned Senate Bill No. 58 of the 1957 Session
of the Maryland General Assembly.

This bill is designed to deny to Counties and Municipalities, with
the exception of Baltimore City, the direct right to rescind or modify
tax exemptions or partial exemptions previously granted on manu-
facturing tools and machinery.

It would require each such County and Municipality to first obtain
from the General Assembly the right, by special statute, to so rescind
or modify.

While I look with favor on the practice allowing such tax exemp-
tions as an inducement to the location and retaining of industrial
establishments, I cannot approve the restriction which this Bill
would impose on political subdivisions in regard to their own tax
bases.

We must bear in mind that real estate and property taxes are and
long will continue to be the primary sources of County and Municipal
revenues.

We must keep before us the fact that the problems of balancing
County and Municipal budgets and meeting County and Municipal
needs are the problems of County and Municipal officials—not those
of the General Assembly or the State Administration.

We must assume that the fiscal officials of these civil divisions
are responsible men and women, capable of weighing requirements
against anticipated revenues in any given year, of judging what must
be appropriated to support essential services and what legal exemp-
tions can be retained or eliminated.