The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1865-11-30
INTERNAL nEvrNuE DnoIsION.

mode ofdetcrmining increased values
Of manufactured articles under sections
ninoty.four' and nincty-ave, and the
persons liable for thctax ODE assessed
thereon:
The ninety fifth section Of the act OF
juno 30, 1861, provides "that when
ever n Manufactured article, on which
an excise orimpost duty has been paid,
is increased in value, or more complete
ly fitted Tor use or sale, by being po-
li8hed, painted, vanished, waxed, oil.
d,gildod, ,clcctrotypcd. galvanized plat
ed, &C.. the tax is 10 be levied, collect
cd and paid upon the am mount of such
increased value"
The conditions stateAin the section
authorizing this mode of ofassessing tho
tax arc: 1st, the article must be q
manufactured article Cd, an impost
or excise duty must have been pre-.
viously paid thereon; Sd, the article
must be one not specially provided for
under any other section Of the law |;
and 4th, the original character or pnr-
pose for which the article was intend
ed to be used must not be changed.
When all of these conditions concur;
the tax is properly assessed on the in
creased value. Ifone or moro Of these
conditions arc wanting if the article
is not manufactured article, or if no
tax has been paid upon it, or If it is
specially provided for otherwise, or if
the original character or purpose for
which it was intended to be used is
changed, it can not properly be taxed
under section ninety-fve on increased
value.
Tho law itsclfponts out the mode Of
asecrtaining the increased valuc for all
purposes Of this. section. 1t declares
that the amount Of such increased val
uc is to be ascertained by deducting
flOm the value Of the finished article
when sold or relieved for sale, delivery
Or consumption. the cot or value of
the original article 20 the person, firm,
or 60 onpapy liable to The duty imposed
on the increased value thereof.
Take an. example; A buys an un-
finished article. for which he pays
taree dollars more completely finish
cs or fits it for use or sale by any of
the processes enumerated in section
nincty-fvc, at a cost Of two dollars and
a half; adds a profit Of twenty-five
per ccnt.-one dollar and thirty eight
cents-and sells the article for six dol
lars and eighty eight cents.
Now, with the rule given above, the
problem is one very easy Of solution.
Dcducling from the price of the-fnish-
cd article when sold--six dollars and
eighty eight cents, the cost Of the ori-
ginal article-three dollars, we have
three dollars and eighty eight cents,
the increased value, on which q tax of
five per cent. is t. be assessed and paid.
But suppose like article is sent by
some dealer or other person to A, to be
finished, &c, and returned, and b re-
ceivcs two dollars and fifty cents for
the material and labor he expends up
on the article in finishing it, &C., but
does not know the cost of the original
article, or the price for which the fin
ished article is 10 be sold, no sale yet
having been made, what is the increas-
ed value of this case? How is it to
be determined, and who is liable for
the tax?
l am aware that It is strongly con.
tended that the increased value in this
case is merely the 80 80 which B re-
ceives for finishing, &C., that this sum
B should return, and pay the tax there
on oftwelve cents. Not so. 1t does
not satisfy the requirement of the law.
1t taxes A on 81 So more than his
ncighbor, with whom he comes in COM
petition, pays upon, and it is by the
same amount Il short return to the
Government
The law makes provision for such
cases as this. 1t regards the fnisher,
&c, as the employe, furnished with
materials or part thereof, paid On
manufacturing, making or finishing
the goods, and returning them, when
so made or finishe !, TO the owner. In
such cases the law regards the owner
as the manufactures or producer-the
party liable for the tax on the finished
article when sold or removed for sale,
delivered for consumption. His sales
constitute the bases Tor the assessments;
the value from which the cost on the
original article is to be deducted to as
certain the increased value.
The fnisher &c, has ONLY 10 return
the amount of his work for each month,
and name in his returns the party or
parties for whom the labor or finishing
is performed These returns are to bo
sent to the assessor Of the district with
in which the parties reside or have
their place of business for whom the
finishing, &c, is performed, that he
mas forthwith proceed TO ascertain the
amount Of increased value; according
to one of the modes | pointed out, that
the tax due thereon may be paid by
the party or parties liable for the tax.
Sections SO and 93 clearly authorize
this mode Of assessment, and provide
Tor such cases.
If, however, it is more convenient
for the parties Interested, that the tax
shall be assessed upon and paid by the
tinishcr, 10 be collected afterward by
him from the owner, as authorized by
the eighty-third section, then the in
creased value may be determined by
deducting from the fair market value
of the finished article, the market value
of tho nriminnl article. These values