The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1863-08-04
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SYNOPSIS OF DECISIONS MADE BY
THE SECRETARY OF THE TREASU-
,RY, UNDER THE TAX LAWS.

THE SECRETARY OF THE TREAsU-
RY, UNDER THE TAX LAWS.
Auctioneers are not liable to pay upon sales
| made for dealer who is registered and taxed and
at the place of business of such dealer. Auc-
tloneers are required with this exception, to pay
tax of "a per cent on all sales made
4ccoaats.-Open book accounts are to be taxed
according to their true value on 1st July, that
value to be ascertained by the Assessor in the
best manner practicable, under the circumstances
OF each ease, by the oath of the taxpayer and
any other available evidence.
| assessors may be recommended, but cannot be
appointed by District Collectors, as the power to
appoint such is confined to State Collectors.
articles tared by Sec 1st-If any of the arti-
cles taxed by Sec. lst cf the Tax Act are sold by
any person firm whose business is required to be
registered by Sec 5th, the proceeds of such sales
will be subject to the same tax as that imposed
upon the sales Of other articles by the same establish
ment. That is, the payment Of the adj ualoren,
tax OF = per cent. upon such articles does not
exempt the proceeds of their sale afterM ards from
the tax of 23 per cent. under Soc 5.
Bo"kers.-An insurance company, in receiving
and paying out the revenues of State university
is regarded merely as dsbursng agent, and not
banker, and is, therefore, not subject to the
tax on bankers.
Bonds.-Tbe interest on Confederate bonds is
taxable as income under Sec s, Act 24th April,
1868. (see credits)
Brokers are taxed by Sec. upon their com
missions as income.
Cdule.-By section II, the value of all neat
cattle, horses mules and asses, not used in cultiva
ton, is taxed per cent, to be returned on 1st
November, and tax paid on lst January next
Conon-No value is fixed on cotton by the De-
ic tha 6utv Of tbo Ill
the cotton, when he makes return, to return it at
its true value, according to quality and the locality
| in which it may be situated If too low valua-
tion should thus be placed upon it., in the estma-
tion Of the Assessor, it will be the duty of that
officer in each particular tax district, to place such
value upon it, as the quality of cotton would
demand in that market under ordinary circum-
stances of SALE That is, under circumstances of
voluntary and enforced sae The samc rule will
apply to the articles of wool and tobacco as well
as to every other taxable article Cotton of the
growth of any year prior to the year 1868, in the
hands of manufacturers on 1st July, is liable to
pay tax Of 8 per cent Manufacturers selling
their own fabrics by the piece, and other articles,
are subject to be taxed as wholesale dealers Also.
to pay tax on their income-and joint stock COM
panies and corporations to pay certain portion of
annual earnings set apart dividend and reserve
fund, according to the per centum yielded on the
capital stock.
Cotton in Confederate States hypothecated for
goods in Europe, is liable to tax under Sec. lst.
The goods so obtained, that is, their gross sales,
also liable to 23 per cent tax when sold in the
Confederate States. If first sold by an auctoneer,
wholesale dealer, or commission merchant, the
proceeds will be chargeable with % per cent tax,
and an additional % per cent. will be paid by the
next person selling, and so on, until they reach
the consumer. The net profits made by each
bre Hrpo IL IL L.
taxed as income under See. s, if the income of
the seller, from all taxable sources, exceeds $500
Cotton factors are commission merchants in con-
temptation of the law.
Commission Merchants and others taxable un-
der Sec s. Oath April 1868 The specific tax is
for the year ending 3lst Dec 1861 and the liability
to pay the per centum in gross sales or profits
attaches from and includes the 9th April, 1868,
the date of the act.
Credits-Sec. 1st, taxing credits, is to be con-
strued in connection with 8, taxing incomes.
The scheme of the law is to lay an alternative tax
of one per cent on capital, or 5, 10, or Is per
cent on incomes. 1t is not designed to tax capi-
tai and again the interest; and this is the idea
veyed by the law when speaking Of credits " upon
which the interest has not been paid" All interest
received during the year 1868 is subject to in
come tax, and capital tax is, therefore, designed
to be laid upon the credits producing that interest
The rule thus furnished, it follows that the one
per cent tax is not laid credits upon which the
interest has been paid and due up to lst July; but
when the interest has not been paid, the tax falls
upon the capital.
'.Vaue of credits is construed to mean the |
principal and interest, if not paid, of all solvent
credits, and the estimated value of CT edits |
that the holder will swear not worth the prin |
cipal and interest "Credts employed in busi- !
ness the income of which is taxed under the act" |
are exempt from the capital tax of l per cent !
To be entitled to exemption, the credits must form |
part of and be exclusively used in carrying on the |
business, and the money derived from them must
also be so exclusively used when collected. In
case of Confederate and State bonds and stocks, |
where the interest is payable at stated periods, and
has been paid up to the last stated period when it
fell DUE and the 1st of July intervenes before the
next stated period arrives the credit is not taxed
as capital but the ,ehote interest during the year
must be returned as income on 1st January next !
Credits include all unIiquidated demands, such as
open accounts due and unpaid, which to be
taxed according to their true value, on July 1st,
1863
Currency.-The words "other currency" as
used in section 1st are construed 20 mean all in
dydual or corporation notes issued for circulation,
and generally received and used as currency or a
medium of trade in any community in the Con-
federate States.
DistiRers.-All persons or partnerships who
dstiH or manufacture spirituous liquors for sale,
are distillers within the meaning of Art s, Sec.
- tba,d r. |