Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1881-04-30
Ruling Regarding Tobacco.
The following letter is Of interest
to dealers in leaf tobacco in all
parts of the country:
TREASURY DEPARTMENT,
OFFICE OF INTERNAL REVENUE,

TO dealers IN zeal TOBACCO III all
parts of the country:
TREASURY DEPARTMENT.,
OFFICE OF INTERNAL REVENUE,
WASHINGTON, ID. G. March l6.
Hon. John r. House, CgdrksUiLIe,
Tenn.-SIR: AS per request con-
tained in your letter of the 9th in
stant, 1 inclose copies of circular
No. 230, which contains the amend
ment to the eighth subdivision of
section 3, 244 of the United States
Revised Statutes, approved June
16, 1880, and the general construc-
ton given by this office to that
amendment. Various questions
have been proposed by correspon-
dents relative to their privileges
and liabilities under this amend
ment. In response, the following
rulings have been made:
First-The act of June 16, 1880,
was not intended to confer any
special benefit upon persons who
were already engaged in the bus
mess of handling leaf tobacco, or to
relieve them from any portion of
the special tax which they were re-
quired to pay. It was intended to
enable persons who grow small
patches of tobacco primarily for
their own use, to dispose of any
surplus so grown by exchanging or
selling it to country stOrekeepers
who would be authorized to buy it
in the hand of those persons and to
sell or dispose of it to leaf dealers,
manufacturers of tobacco, snuff and
cigars, and to exporters, provided
the annual sales did not reach 25,-
600 pounds, by the payment of a
special tax of only S..
Second-A leaf dealer who. ham
dies tobacco under a S. special tax
stamp otherwise than is specially
provided in the act of June IS, 1880,
renders himself liable to pay the
special tax of leaf dealer under
the general provisions of the law
imposing a tax on leaf dealers, al
though he has or may handle less
than $4,000 pounds during the pc
riod for which the special tax is
paid.
Third-PersOns who are engaged
in buying, selling, or shipping and
consigning leaf tobacco in cOmpe-
tition with other leaf dealers, as. it
is put up'and prepared and receiv-
ed and handled at tobacco ware
houses, are liable to pay a special
tax as leaf dealers under the provis-
ions of the sixth subdivision of
section 3,244, United States Revised
Statutes, and not under the proviS
ions of the act of June IS, 1880.
FOurth-The act of June Is, 1880,
authorises and directs the Commits
sioner of Internal Revenue in case
any person has paid special tax of
five dollars, ard shall have been
found to have handled more than
$4,000 pounds of leaf tobacco in any
one special tax year, to assess such
person for the difference between
the special tax paid by him and the
special tax of twenty-five dollars
imposed on dealers in leaf tobacco.
The liability of any person 10 such
an assessment will be fixed and de-
termined when his sales or con-
signments for sale on commission
should have reached the limit of
$4,000 pounds within the period
of time for which he has paid
a special tax. If the limit is reach
ed prior to the commencement of
the next special tax year he will be
liable to an assessment, and the
amount of the assessment will be
the difference between a special tax
at So and special tax at $25, COM
puted for an entire year, or pro rata
for the period of the liability to
special tax, to-wit: For a whole
year, $25 for nine months, $15; for
six months, so, and so on. When
a liability has thus been ascertained
it is to be entered on Form % and
reported to the Office of Internal
Revenue for assessment.
GREEN B. RAUAf, Commissioner.