Salt Lake evening Democrat. [volume] (Salt Lake City, Utah) 1885-1887, 1885-11-23
INTERNAL REVENUE SHOWING.
Two Millions short in Tax Receipts
OH Distilled IiquOrs-TObaccO
Mnkes a Slight Increase.

Two Millions short in Tax Receipts
on Distilled LiquOrs-TObaccO
Makes n Slight Increase.
WASHINGTON, November 22.-The annual
report of the Commissioner of Internal
Revenue shows the total receipts from inter
nal taxation for the fiscal year ended June
Both, 1886, were Sl12,42l ,121, as compared
with S121 ,59O,039 for the previous year. II
was estimated the receipts for the last fiscal
year would be about $115, 100000, and they
fell over $2,0O0,000 short of the estimate re-
sulting from seven months extension al
lowed for the expectation of distilled spirits
in bond, on which the tax was due. There
are now about 100000 gallons of distilled
spirits abroad which, to find a market,
WILL HAVE TO DE BE-IMpoRTED.
This, with more than 10000, 900 gallons that
had, on June 30th last, been in bond for
three years or longer under the seven
for assuming that the receipts for the cur
rent fiscal year would aggregate at least
S115,OOO,O00. A table giving the receipts
during the last two fiscal years shows that
there was decrease of S9,39f, III in the col
Lotions on spirits, and an increase of S145,-
banks and bankers. The total decrease was
S9,l6S,919. The largest collections were
made in Illinois, amounting to 1923 1866 /;
Kentucky second, S14, S42 ,475; New York
third, $13, 23,6i5; Ohio fourth, $12,565, GIG;
Pennsylvania fifth, S7,31 ,2O9; Missouri
sixth, $6,376,165 and Indiana SEVENTH
$4O31, 1866.
THE SMALLEST COLLECTION WAS MADE IN YER
MONT,
Amounting to $29S90. The total receipts
for the first quarter of the present fiscal
year were S28, 1910, 7i9, being an increase of
So, SG6 over the collections during the cor
responding period of the previous fiscal
year.
The cost of collection for the present fis-
cal year was, S4,455,4 30, against S5,OO6 9l4
for the previous fiscal year.
The total expenses of the service during
the past year were about 80 per cent of the
amount collected.
Six hundred and twenty -four violations of
the Internal Revenue law have been re-
ported by revenue agents during the year,
234 persons have been arrested on their in
formation, property to the value of $171 ,052
has been reported for seizure, and $50, 1863 for
assessments for unpaid taxes and penalties.
The Commissioner recommends an in
crease in the number of revenue agents.
THE REPORT OF THE TOBACCO INDUSTRY
For the fiscal year shows gratifying results
Not only has there been small increase in
the amount of taxes collected, but there has
and an unusually large increase of the guam
tity of these products exported to foreign
countries. The number of grain distilleries
registered during the year was ,195, of which
only 9lS were operated.
The Commissioner invited special atten-
ton to the necessity of legislation having
for its object the taxing of all fractions of
gallons of distilled spirits, and says the oper-
alton of the present system of taxation has
resulted in loss of very appreciable
amount of revenue. He adds that the plan
has been adopted at several large distilleries
of substituting packages of ten gallons
capacity and upwards in place of the spirit
barrel of ordinary size, for the sole purpose
apparently of obtaining the benefit of the
untaxed fraction rs frequently as possible.
The Commissioner also recommends pro-
visions of the law under which grape brandy
, products are permitted three years storage,
their product in the special bonded ware
house to be made applicable to distillers OF
brandy from all fruits.
THE QUANTITY OF DISTILLED SPIRITS
| In the United States except what may be in
the Customs bonded warehouses, on the first
day of October was 90,107,326 gallons, anG
| the average stock of each retail liquor dealer
in the United States il estimated ut 100 gal
Ions. There was n decrease of l,69O,0li
assessments on distilled spirits made during
| the past year from the amount assessed the
/
ton of distilled spirits three years ago wal
less than ii was four years ago, and because
large quantities of spirits on which the tai
had become due were bonded for export ant
suffered to remain in the warehouse without
| payment or assessment of tax for n period no
exceeding seven months. Abiding to the re
importation of exported spirits, the Com
missioner says: Besides 7,OO0,0OO gallons o
domestic spirits on which the internal rev
enue tax has never been paid, which re
manned in store in foreign warehouses ut thu
distillery warehouses 10,229,473 gallons. o
spirits, which had 10 remained for perio'
exceeding three years from the date of entr.
of deposit. II appears that under an Opinion
of the Attorney General of December 9th
1884, such spirits US are covere'
by transportation bonds or expectation
bonds are allowed TO remain in the distil
lery warehouses during a term REASONABLE
necessary in the process of expectation
even after the expiration of the three years
limit fixed by the warehousing bond. Thi
time was limited by my predecessor, wit
the approval of the then Secretary of tn
Treasury, TO seven months. Not being abb
To see the necessity for SO long time TO nc
complish the transportation of spirits TO
port of export, have, with the approval q
the present Secretary,
REDUCED THE TIME TO THIRTY DAYS,
And 40 limited the time within which sue
bonds may be filed, M to collect the tax
mr. before the expiration of the time (thre
: years) with which the spirits may remain
ihe observation-disclosures. The only time no,
, obtainable in excess of the three years
|, that which occurs through necessary deia
/, in enforcing the payment OF the tax
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