Baughman v. Herwig

Offutt, J., delivered the opinion of the Court. Under the laws of Maryland, prior to the passage of chapter 521 of the Acts of 1022, known as the “One Uent Gasoline Tax Bill,” motor vehicles were taxed for the privilege of using the public streets, roads and highways of this State in accordance with a schedule of fees based upon the horse power of the vehicle estimated under a prescribed formula, the use to which the vehicle was to be put, the character of the vehicle, or a combination of these elements. Under that schedule the license fees for different classes of vehicles differed, and that difference was roughly proportioned to the damage, wear and tear occasioned by the use of such roads and highways by the different classes of motor vehicles. By the “One Oent Gasoline Tax Bill” a new method of taxation was introduced which imposed, in addition to the fees assessed by the schedule above referred to, a tax of one cent per gallon on all gasoline sold within the State for use in the operation of motor vehicles, and not intended for exportation from the State.

Inasmuch as the amount of gasoline consumed in the operation of motor vehicles over the highways of the State would bear a direct ratio to the extent of such use, as well as to the weight of the vehicles and the speed at which they were driven, that tax was also propor ⁵⁸² t-ion to the damage, wear and. tear on those highways resulting from their use by such vehicles. That act did not contemplate that the scheme of taxation imposed by it should be permanent, but it was a temporary expedient enacted to raise funds to make good a deficit of $1,179,555.07 in the Maintenance and Reconstruction Fund of the State Roads Commission and under its provisions, when the fund collected under it equalled that sum, the tax would no- longer be imposed, and in any event it would no't be exacted later than January 1, 1924. In connection with the “One Cent Gasoline Tax Bill” the Legislature enacted chapter 522 of the Acts of 1922, known as the “Two Cent- Gasoline .Tax Bill,” which was designed to create a permanent scheme for the taxation of the privilege of operating motor vehicles over the public roads, streets and highways of the State, and that plan Avas intended to be in substitution for and not in addition to the then existing methods of taxation. That such Avas- the intention of the Legislature Ave think is clear from the language of the title, the preamble, and the body of the statute.

So much of the act as need be considered here is thus described in its title: • “An act to provide a portion of the revenue necessary for the maintenance and reconstruction of the public highways of the State by imposing a tax on motor fuels as herein defined, to be paid by dealers as herein defined; with certain rights to refunds as herein set forth; regulating the sale of such fuels, providing for the report of sales of such motor fuels, for the collection of said tax by the Comptroller, and for the disposition of the revenue derived therefrom; providing also for the raising of another portion of the revenue necessary for the maintenance and reconstruction of the roads and public highways of the State by the charging of fees for markers and certificates of registration for motor vehicle's, and providing a method of determining the charge per horse power which shall constitute the basis of such fees; providing for the license fees to be paid for solid tire vehicles.” ⁵⁸³ Til the preamble the intent and purpose of the aet is set out in the following terms: “Whereas, The present system of charging license fees for the registration of motor vehicles was designed in part to equalize the burden of maintaining and reconstructing the public roads and highways of the State of Maryland by imposing said burden upon those deriving special benefits therefrom; and “Whereas, The method of raising revenue for said purpose as outlined in this act will more equitably and generally distribute such burden; and “Whereas, It is deemed that there is a direct relation between the use of highways by a motor vehicle and the quantity of motor vehicle fuel consumed in furnishing the motive power thereof, as well as a direct relation between the weight of the motor vehicles using such highways and the distance which such motor vehicle will travel by such motive power per unit of weight; and “Whereas, It is deemed that the weight of the motor vehicle and the distance traveled have a direct bearing on the damage to the highways and the wear thereof; and “Whereas, It is deemed that the speed at which the motor vehicle is driven over the highways has a direct bearing on the damage to the highways and the wear thereof; and “Whereas, Laws now in force or enacted have taken into consideration the effect of the weight of the motor vehicles and.the speed they attain; and “Whereas, It is deemed proper by the Legislature that the aforesaid burden of maintaining and reconstructing the public roads and highways of the State . should be equitably and generally distributed among those who will be benefited more directly by the expenditure of the revenue derived from this act; and “Whereas, Such a result in the judgment of the Legislature will be accomplished by levying a tax on the quantity of motor fuel purchased for use in propelling motor vehicles on the public roads and highways of the State as hereinafter provided, which said ⁵⁸⁴ tax shall he deemed a substitute iii part for the taxes and license fee now provided by law as moré, particularly set out in this act; and “Whereas, It is considered and deemed that a tax levied upon each gallon of motor vehicle fuel purchased for use-in motor vehicles is the equivalent of and in its practical effect a license fee and tax upon the motor vehicle itself, and the measure of the use of the highways is in .direct relation to the amoirnt of motor vehicle fuels consumed in furnishing the motive power of motor vehicles, and with the license fees and. taxes provided by other laws of the State of Maryland, the tax herein provided more nearly renders perfect the proper compensation to be paid by the motor, vehicles for the use of facilities provided at great cost for the class for whose needs they are essential and whose operation over the highways are peculiarly injurious.” The act itself provides, first, for the collection of a tax of twG< .cents per gallon on all gasoline sold in the State for use in the operation of motor vehicles and not intended for exportation from the State, second, for the application of the fund collected under said tax to the reduction of the fees or taxes imposed by then existing schedules in such ratio as the fund thus collected would bear to the fund collected under such schedules; and third, for the imposition of certain fixed definite and additional fees for certain classes of motor vehicles, which are very carefully described. In the body of the act, in the statement of these provisions, various expressions are used which tend-to illustrate and interpret its intention as declared in its preamble, such as the following: “If double the amount of net revenue computed as aforesaid derived from the one cent tax on motor fuels shall exceed the net receipts from the registration of gasoline propelled motor vehicles during the aforesaid }:>eriod, the Governor shall promptly certify that fact to the Commissioner of Motor Vehicles, and from and after January 1, 1924, the registration fees im ⁵⁸⁵ ■posed by article 56 of the Code of Public General Laws in the case of gasoline propelled vehicles equipped icith pneumatic tires shall no longer he charged or collected, hut in lieu thereof the Commissioner of Motor Vehicles shall charge and collect a registration fee of $1.00 in the case of a gasoline propelled motor vehicle equipped with pneumatic tires owned by a resident of this State and intended to be operated herein. But if twice the sum received from the one cent tax on motor fuels computed as aforesaid shall be less than the net receipts from the registration of gasoline propelled motor vehicles during the same period, then the Governor shall ascertain the ratio which the difference bears to such net receipts from registration, and shall apply such ratio to the 60 cent per horse power now charged in the case of the registration of a gasoline propelled motor vehicle equipped with pneumatic tires, and shall thereby determine the number of cents per horse power which would be necessary to make up such difference. If ihe result is a fraction of a cent per horse power, then the next nearest and greater whole cent shall be taken.

The Governor shall, no later than November 1, 1923, certify the figures so ascertained to the Commissioner of Motor Vehicles,