28                          JOURNAL OF PROCEEDINGS                 [July 30

EXECUTIVE DEPARTMENT

June 1, 1973.

Honorable William S. James
President of the Senate
State House
Annapolis, Maryland

Dear Mr. President:

In accordance with Article II, Section 17, of the Maryland Constitution,
I have today vetoed Senate Bill 1020.

This bill imposes a tax on motel and hotel rentals and provides for the
proceeds to be used to promote the development of tourism in the State.

During the past session of the General Assembly, I supported the creation
of a fund for the use of State and local governments to develop and
enhance tourism in Maryland. I believe that greater expenditures in this
area will be beneficial to all the citizens of our State.

I have been advised by the Comptroller, however, that there are certain
administrative problems with the implementation of this bill. These prob-
lems arise, in part, from certain inconsistencies between the tax created
by this bill and the Maryland Sales Tax. Moreover, with the addition of this
new tax, motel and hotel owners in certain jurisdictions would be required
to administer three different taxes in connection with the rental of a room.

I have also been advised by the Comptroller of the possibility that
general fund revenues might in the future be available to accomplish the
objectives of this bill. Obviously, it would be preferable to accomplish these
objectives without the imposition of a new tax. Consequently, I am re-
questing the Comptroller, the Secretary of Budget and Fiscal Planning and
the Secretary of Economic and Community Development to investigate the
feasibility of using general funds to promote the development of tourism
in the State of Maryland. Pending this study, it would be undesirable for
this bill to become law.

Accordingly, I have decided to veto Senate Bill 1020.

Sincerely,

MARVIN MANDEL,

Governor.

Which was read.

Senate Bill No. 1020—By Senators Crawford and Staten:

An Act to add new Sections 465 through 470, inclusive, to Article
81 of the Annotated Code of Maryland (1969 Replacement Volume), title
"Revenue and Taxes," to follow immediately after Section 464 thereof, and
to be under the new subtitle "Maryland Travel Improvement Fund," impos-
ing and levying a tax on amounts paid for certain room and building
[[and trailer space]] rentals, providing for the payment and collection of
such tax and the administration and enforcement of provisions of this
subtitle, and for civil and criminal penalties in connection therewith; impos-
ing a limit on the sum of the rates of all taxes applicable to room and
building rentals and providing, in certain circumstances, for the reduction
of rates of tax imposed on room and building rentals by other laws;