The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-04-19
co AND DO LIKEWISE
Make the Liquor Dealers Pay the Full Purchase
Tax---Suprems Court Opinion Sus-
tanning i.

miSStODerS OF ITeueli county NiiieH wa
commented upon in this paper one day
last week, is of so much Importance to
the state at large that it is printed be-
low in full.
Its great importance lies in the fact
that il sustains the county commission
crs OF Ircdel in requiring a liquor deal
or to pay the full purchase tax upon the
entire cost Of his liquor without deduct
ing the seven ghths or thercabout that
goes to the Government from the dis
tiller.
The full purchase tax levied by the
State if paid is only five cents on the
gallon, State and county, whereas the
Federal Government levies $1.10 per gal
Ion, and of that five cents due the State
and county for purchase tax large por-
ton of the retailers have been paying
only clio of one per cent, the difference
to the State and county treasures has
been thousands and thousands of dollars
which can and ought now to be collected
1t is the duty of the county commission
ers in every county to take the same ac-
ton that the Iredcll commissioners have
taken.
If they do not do So the State authorl-
ties whose business it is should make
close investigation of the whole matter
Here is the text of the opinion, writ
ten by Judge Clark, and unanimously
agreed in by the other Justices OF the
Supreme Court:
ID. j. Williams, appellant VS.. COMMlS-
sioners of Iredell county l.. c. Cald-
well for appellant; Armfield & Turner
and w. G. Lewis for appellee.
CLARK. c. j. This is an action sub
mitted without controversy under the
Code Sections SCI and 500 with proper af-
fidavit. as there required, that the con-
troversy is real and that the proceedings
are in good faith to determine the rights
of the parties.
Upon the facts agreed it appears that
the plaintiff, a retail liquor dealer, in
July. 1902, returned to the County Com
misisoners the total amount of his pur-
chases of liquor for the preceding six
months, as required by Section SO, Chap
ter 8, Laws of 1901, to be $500, being at
the rate of 15c per gallon, which would
make his purchase tax, at two per
eentum, sixteen dollars for State and
county. The defendants, the said County
Commissioners, declined to receive said
returns and summoned the plaintiff be-
fore them, as authorized to do by Section
SIS, Chapter Z, Laws of 1901, who stated
that he had estimated the whskey at
15c per gallon, which was the cost of the
same less 81 10 u. S. Internal Revenue
tax paid thereon by the distiller from
whom he had purchased the same, and
which he had deducted" 1t further APP
peared from the facts agreed that 1.-THE
price paid to the distiller by the plain
tiff was $1.25 per gallon, which amount
includes the $1.10 u. s. Internal Revenue
tax which was paid to the government
by the plaintiff for the stamp to be
placed upon each gallon of whiskey pur
chased from the distiller, the stamp tax
being made out in the distillers name
and upon his withdrawal papers. BY Or
ders of the County Commissioners, the
clerk of said board was ordered to add
the $1.1O per gallon to the total purchase
by plaintiff as returned by him, and to
turn over the assessment thus corrected
to the sheriff for collection. This in
creased the plaintiffs taxes from SIG to
$133 3S. He demanded that the addition
should be struck off, but the defendants
refused TO do so.
There is no prayer for Judgment, and
indeed it is not required in this form of
proceeding Even when a complaint is
filed, it is held immaterial if the prayer
for relief is omitted, or if the wrong re-
lief is asked, for the court will give any
relief to which the facts alleged and
proved entitle the party to receive.
Clark's Code G Ed Sec. 233 CD and
cases cited. The plaintiff evidently de.
sired a mandamus to compel a correc-
jurisdiction of the court, but His Honor
held that the facts agreed entitled him
to no relief and that the sheriff should
proceed to collect the $133.33, the amount
of tax assessed against him by the Coun-
ty Commissioners.
1t being agreed that "the price paid to
the distiller by the plaintiff was $1.25 per
gallon" the purchase tax was due upon
that sum. 1t may be inferred from the
facts agreed that the $1.10 was advanced
on the whskey to enable the distiller to
pay the United States tax, but that is
immateral The distiller could not sell
and deliver the whiskey till he had paid
the government tax of $1.10 under penal
ty of an Indictment in the Federal court
u. S. Rev. Stat 1851 Gas amended); see
also sections 3259-S7. The purchaser did
not have possession of, nor title to the
whiskey and power to sell it till he had
paid. whether at the time or part IN adj
vance, $1.25 per gallon, and that being the
purchase money, to enable him to get it
the purchase tax is payable thereon, i. e.
five cents per gallon to State and county
combined instead of clio of one cent per
gallon actually paid. We were told at
the bar, that this evasion of the State
Revenue Law has been widely prevalent
If so, there are large amounts of reve-
nues of which the State and counties
have been illegally deprived, and which
1t was and is the duty of the proper Off
GERS to collect, for clearly in such cases
less than one-eighth of the tax legally
due has been paid.
1t was argued to US that the tax of two
per cent, if levied upon the $1.25, would
be tax upon the United States govern
mental agency But $l25 was the pur-
chase price and it is immaterial to the
purchaser and to the State how much of
this was for material how much for labor
or how much for tax, or whether the pur-
4 oils I