Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1886-02-26
The One Hundred Pounds Exemption
Of Tobacco.

AN INTERESTING MATTER FOR FARMERS
TO BE INFORMED ON.
The internal Revenue law permitting
farmers to sell tobacco to certain people
and to limited mount, is very little IN
derstood by our farmers generally. The
following is the section Of the act which
grants the privilege:
''That hereafter the special tax of a
dealer In manufactured tobacco shall not
be required from any farmer, planter, or
lumberman who furnishes such tobacco
only as rations OR supplies to his laborers
or employees in the same manner as other
supplies are furnished by him to them ;
Prouaded, That the aggregate of the sup
plies Of tobacco SO by him furnished shall
not exceed in quantity one hundred
pounds in any one tax year: that is. from
the first day of May in any year until the
tbirtieth day Of April in the next year ;
And provided further, That such farmer,
planter OF lEm herman shall not be, at the
time he is furnishing such supplies, en-
gagged in the general business of selling
dry goods, groceries, Or other similar sup
plies in the manner Of a merchant or
storekeeper to others than his own en-
ployees or laborer5
Internal Revenue Commissioner Miller
has issued circular explaining the mean
ing and intent of this section. In it he
says:
1t will be observed that this exemption
from special tax is not general one. 1t
ia limited conclusively to three classes Of
persons, to-Wit: Farmers, planters, ard
lumbermen; and that this exemption to
~ 81, Sc I'd
limited. This tobacco is to be sold or fur
nished only as rations Or supplies to the
employees or laboreTs Of said farmer,
planter, Or lumberman. The sales must
not exceed in quantity one hundred pounds
in any Bpecial-taX year and the person who
makes the sales must not be engaged IN
the general business of selling dry goods,
groceries, or other similar supplies, in the
manner of merchant or storekeeper, to
Others than his own employees or labor
ers.
In applying these provisions. this office
has ruled:
/ A tenant who rents land for money
rent. or for certain stipulated amount
of cotton, corn. or other products, is Inc
farmer CT planter, and he will be entitled
10 tie exemption from special tax IT be
shall sell manufactured tobacs3o to bis own
iao0rera or employees whom be may hire
to work fer Him. he nWner OF the land
would not be entitled to eng exemption
by reason of having so leased hls land.
2. In case the owner OF the land enters
into u partnership with one Or more per-
SOILS, EACH agreeing to furnish or pay a
share OF the expenses and to divide the
crop At the end If the year, the firm would
| be The farmer OR planter as contemplated
by this law, and the firm would be eatbied
to exemption should it make 9ueh sales OF
tobacco to its employees or laborers.
s. IN The case of lumberman, the
conditions OF exemption must be strictly
complied with. He n2Gt furnish the to-
bacco as supplies, and must COS be angag-
ed in the general business Of selling dry
goods. groceries, or o. her similar supplies,
In the z..anner Of merchant or storekeep-
er, 10 oti;eis than his own employees or
lsborer5.
4 Any farmer. planter, or naberman
E2ho furnishes to bis IaboreTs or employees
| more than one hundred pounds bf tobacco
i'll any special tag year. shall be liable to
pay special tax as a dealer in manufacture
ed tobacco.
S. This provision of law must be ecn~
strued literally. No exemption from pay
ment OF special tax is made for other
persons than farmers, planters, and lum-
bermen.
Jos. S. MILLER,
Commissioner,