The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Sunday, January 1, 1995                TAG: 9501010054
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY MASON PETERS, STAFF WRITER 
                                             LENGTH: Long  :  112 lines

TAX CONCERNS SPUR COOPERATION SUBMERGED-LAND ISSUE WILL TEST HOUSE-SENATE COMPATIBILITY

An unexpectedly chummy New Year is spinning up between the Republican speaker-to-be of the N.C. House of Representatives and state Sen. Marc Basnight, Dare County's Democratic president pro-tem of the Senate.

And all because some Outer Banks boat owners and marina operators got jittery about possible new taxes.

For the past two years, before Republicans won control of the House, Democratic Speaker Daniel T. Blue Jr. of Wake County has not been exactly buddy-buddy with Basnight. The two strong leaders of the General Assembly have different styles and agendas and, quite often, it showed.

Then, after the November GOP sweep, legislative worry-warts began predicting even more General Assembly tension in 1995 between Basnight and state Rep. Harold J. Brubaker, an Asheboro Republican who will be the new speaker.

``It's not going to happen,'' said Basnight on Friday. Basnight still has a two-vote Democratic majority in the state Senate.

``I think you'll see a lot of bipartisan cooperation in the new legislature,'' Basnight added.

The speaker and the Senate pro-tem control legislative traffic between the two houses, and since no bill can pass unless it is approved by both, the system works better when the two top traffic cops are friendly.

Boat owners and marina proprietors inadvertently got some of the peace-keeping efforts started a few weeks ago. They buttonholed General Assembly members about proposed legislation to tax ``Public Trust'' waters around marina docks and private boat anchorages.

Several marina operators and waterfront business spokesmen have said that tax would be disastrous because the revenue burden would have to be passed on to customers.

But last week, as a result of the tax fears of coastal marine interests, an unexpected display of bipartisan harmony developed, along with promises of cooperation between Republicans and Democrats in the new General Assembly that will convene on Jan. 25.

Environmental groups have been pushing for taxes on state-owned waters used by private interests, such as boat owners or marina operators. The taxes would be on water around some marina docks and waters used for anchorages off private property.

The environmentalists contend that under ancient legal interpretation, such waters are ``in the public trust'' and should yield revenue when used by commercial interests.

``Some of us feel strongly that we must stand up against those who argue that there is no place in nature for human beings,'' said Harry Schiffman, who for 17 years has been the proprietor of the busy Salty Dawg Marina in Manteo.

``I don't think we should tax small business operators at marinas or at boatbuilding establishments,'' said Basnight last week, echoing a comment he made when the submerged-land issue first developed.

``But if a builder or a developer puts in a marina simply to sell more houses or condos, then perhaps we should look at it as a source of new revenue,'' Basnight added.

Schiffman is one of 10 citizens with marine interests appointed by Basnight to a special submerged-lands study commission.

Another 10 members of the special study group were supposed to have been named by House Speaker Blue in time for the full committee to report to the new session of the General Assembly. That will be the date that Brubaker takes over as the new Republican Speaker and Blue becomes another minority Democrat in the House.

But Speaker Blue, with his lame-duck term due to end in a little over three weeks, has made no move to appoint his 10 members of the submerged-lands commission.

During their recent talks with legislators, some East Coast boat owners and marina operators expressed fears that the new Republican speaker ``will appoint a bunch of mountain-county Republicans to the committee and they'll be more than anxious to tax us eastern boaters,'' in the words of one Elizabeth City recreational sailor and marina operator who didn't want to be quoted.

But unexpectedly last week the anti-tax group got a measure of reassurance from a spokesman for Brubaker as well as a new commitment from Basnight that he is opposed to the idea of taxing ``small waterfront businessmen.''

``I can assure you that the new speaker wouldn't pack the submerged-lands committee with appointees who have no familiarity with marine problems on the East Coast,'' said John Baldwin, a spokesman for Brubaker.

Baldwin, for 10 years a top GOP trouble-shooter, is running Brubaker's ``transition office'' for Republicans who will take over the House on Jan. 25.

``As a matter of policy, Speaker Brubaker will not fill any existing legislative vacancies until after the new session begins,'' Baldwin added. ``We want to cooperate and work with the Democrats in the best interests of the legislature.''

While Blue could, if he chose, make his own last-minute appointments to the submerged lands committee, few House Democrats expect him to act in a way that could be construed as continuing his feud with Basnight.

``Speaker Blue has always had his own mind and I wouldn't guess what he's likely to do, but remember in a few days he'll be sitting in the House just like any other minority Democrat,'' said Rep. Vernon G. James, D-Elizabeth City.

``And by the way, I thought enough of `Bru' Brubaker to put him on my Agriculture Committee when I was chairman,'' added James, who will step down when the new legislators are sworn in.

James, who served his first legislative term in World War II, retired from the House this year so that his friend and fellow Democrat, Pasquotank County Commissioner William C. ``Bill'' Owens Jr., could run for the 1st N.C. House Seat.

Owens won and last week he, too, said he was pleased with the efforts at cooperation that he had experienced with the new Republican leadership.

``I've known Harold Brubaker for many years through various state efforts that we shared,'' said Owens, ``He invited me to join a group of new legislators on a special indoctrination trip to Washington after the election.''

Owens, after he is sworn in, is considered a likely candidate to be one of the 10 House members on the submerged-lands committee. by CNB