The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-12-19
THE TREAsURER's DECISION.
He Decides That Warehousemen Must
Pay Tax of One Percentum on
all Commissions.

all COMMISSIONS.
The State Treasurer has rendered
decision that is far reaching and it will
greatly affect tobacco warehousemen in
the State.
Inc decision imposes a tax of l per
cent. on their commissions and as the
warehouses are conducted under laws
enacted by the Legislature of 1870 ana
the fees were fixed at two and one ha't
per cent. on all sales.
A warehouse man was seen this morn
ing by the Times and he declares the
order an unjust an unconstitutional one.
He SAYS he will fight the decision on the
grounds that it is unconstitutional.
me ruling as sent to Ex-Congressman
b. Ii. Bum, of A.ocky Mount, the attor-
new for a large warehouse IN that town
is as follows:
"B. Ii. Bum, Attorney, Rocky Mount,
II. c.:
ear Sir: Yours of the 18th received
and noted. In reply l will say that to-
bacco warehousemen are liable TO tax
under Chapter 294, Laws 1898.
Section 20 of that Act, in so far as IT
bears on the question to be determined,
provides: That on every COMMISSION
merchant, broker or dealer, buying or
selling for another, there shall be inn
posed tax of one per centum ON ms
commissions. a commission merchant is
.one who buys or sells goods on a COM
mission as the agent of others, recelY-
ing rate per centum as his compen-
sation' The business of a tobacco ware
houseman is to receive tobacco on de-
post and sell the same for the deposI-
tor. Fer this he charges certain per
centum on the price received. lie Is
commission merchant according to the
above definition, and liable to the tax
imposed by the section cited, unless there
is some express or implied exemption in
the statute law as to his business. There
is no such express exemption, and as
he is not taxed specially by any other
section, there is none implied.
"The business Of tobacco warehouse
man was taxed specially By Section 30,
Chapter 323, of the Laws Of 1891, and 20
long as the Section remained IN force
one engaged in that business was liable
to no other license tax. 1t was repealed
by Chapter 294, Laws Of 1893. This re-
peal, however, could have no other eff
feet than to exempt him from the tax
imposed by the Section repealed,
and did not affect the tax i'm
posed by any other section Of
Chapter 294, Laws of 1893. Section
20 not being affected by the repeal Of
Section 33, Chapter 323, Laws 1891, a
tobacco warehouseman is subject to its
provisions if he is a commission mer-
chant. This / have before shown. Be-
sides his commission he charges a fee
for weighing the tobacco he sells, and
for auctioneering it. These fees are
not subject to tax imposed in Section 20,
for they are not commissions on the
price of tobacco sold. Weighing and
auctioneering are not necessary parts Of
the business of a commission merchant.
Goods can be sold in any other man
ner agreed upon between the buyer and
seller. Besides they are frequently mat
tiers Of expense and not profit to the
commission merchant. If he ware liable
to any tax for auction fees, it would
be under Section 81, Chapter 294, Of
the Laws of 1898, concerning auction
GERS. My opinion is that he is exempt
from the operation of this Section by
virtue of the provision of Section 22S4
of The Code. A tobacco warehouse
man is therefore liable to a tax Of one
IT centum on his commission, upon the
price of tobacco sod by him, and not
liable to tax Oh Ills fees for weighing
and not auctioHeeri4s it.
Yours very truly,
w. II. WORTH,
State Treasurer.