Baltimore daily commercial. [volume] (Baltimore, Md.) 1865-1867, 1865-12-18

Treasury DEPARTMENT, !
OFFICE OF INTERNAL REvESUR,
WASHINGTON, D. c., December 49, 1865. J
It is provided by section 81, as amended by the act
OF March 3, that on all repairs OF carriages engines
cars other articles when such repairs increase the
value Of articles so repaired ten per cent. over
duty of three and and three ths of per cent on
such increased vsue shall be levied, collected and
The terms other articles" rs used in the clause
which have quoted above was clearly intended to
include all manufactured articles subject to excise
duty when manufactured and made, or sold, or con-
sumed, or used and are liable to be assessed for
tax on increased value, when the same are 80 repair
ed as to increase their value ten per cent? aud up
wards.
To determine when a lax accrues in case of re-
pair, three distinct points are to he considered;
lst. The precise article or thing repaired.
ID. The amount of value added
Sd. The ratio or per cent. oi spch added value TO
the entire value Of the article after having been
paired.
1t is clear that the law contemp plates evying tax
on the engine, boiler, the car the carriage other
article whatever it may be- as unit upon its entire
value, though many Of the parts which enter into
their structure manufactured in themselves and
a tax may have been paid upon them before they
we're Incorporated into the engine boiler, ear, &C.
such as axles. tires, springs, wheels, castings &c.
II any of these parts, which the law regards and
treats as manufactures in themselves, become broken
or worn out, and ertirely n W parts are made and
substituted in tho place of the old, the broken or
worn out parts, such parts are To be taxed as new
work the same when used in repairs ~ when made
tor ne'e car carriage, boiler engine or other art
clr, machine or instrument.
If a railroad company puts a car, or an engine, or
boiler into repair shop Tor general or special re-
pair, such repair, including parts supplied, if
any, are to be regarded rs pertaining to the entire
engine or boiler, rather than TO the single part
or 70 the particular parts which may be the subject
OF repairs; and tax unless the cost of max
ng such repairs equals or exceeds 9ne-eeventh of
the value of the car engine, Or boiler after the
pairs have been made.
But if such repairs increase tho value of the whole
ten per centum or upwards, or If the cost of making
the repairs including labor and materials employed
equals one-eleventk of the value of the thing repair
ell. tax and is TO be paid the cost of
pairing, though materials and paTts may have preTi-
ously been assessed and o tax paid thereon.
The general rule which | would give in relation to
repairs is this When the article repaired is unit,
though made of taxable parts, repairs to be
garded pertaining to the unit If the repairs
upon ship the hull as finished, including inner and
ripper works, constitute the unit. If engine,
everything pertaining to the engine, creeping ths
boiler which the law regards and provides for taxing
especially.
If car ia repaired the repair pertains to such car
an entirety including all its parts-the body. the
Wheels the aXles, the SPRINGS &c.
This rule will in all cases be observed, unless the
owner chooses divorce tho union existing between
the parts and sends the disoined divorced and sep
arate parts to the machnst artzan to be restored
or made good from wear or injury, and rctitted to
take its accustomed place. In the latter case the
machinist must report the article repaired and the
question of liability to tax will depend upon the
ratio Of increased value to the entire value of the
article repaired.
The law having prescribed no mode Of estimating
the increased value Of an article repa red for
without sale Of the same, either before after the
repairs made, the cost of repairing has been
sumed by this office, the measure of value
which the tax shall be assessed.
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