The Leon reporter. (Leon, Iowa) 1887-1930, 1914-11-26
COLLECTOR WARNS IOWA TAN
PAYERS.
Louis Murphy Says People Must Go to
Government, That Uncle Sam is
Not REQUIRED to Go to Them,

/
M
The following letter is from Louis
| Murphy collector of international
revenues at Dubuque and explains
many of the phases of the war tax.
One of the important things to re-
member is that taxpayers must send
in theiK remittances without demands
being made on them. Some are under
the impression that they can wait
until the government calls for the
tax. They are required under penal
ty, to go to the government, however.
Mr.. Murpny's letter is as follows:
''All dealers in tobacco Except
manufacturers of tobacco, of cigars,
and dealers in leaf tobacco, who are
otherwise specially provided for)
whose annual receipts from the sale
of tobacco exceed 5000, must pay
1920 for each store, shop or other
place in which tobacco in any form is
sold. There are 5000 grocery stores
in cities and towns of over 500 popu-
lation; there are 1900 druggists in
the state; there are $500 retail Ii
quor dealers, and all of these sell to-
bacco in some form. There are be-
sides a few hundred exclusively to-
bacco shops and confectionery stores
and many barber shops handling over
5000 worth of cigars and tobacco a
year. Notwithstanding the special
tax on these dealers became effective
on November l, and that if the tax is
unpaid on December l, a penalty of
SO per cent will also have to be paid,
not a hundred of them have sent in
their $500" the collector says.
However, dealers in cigars and
tobacco are not alone affected by
special taxes and are not the only
ones derelict in paying the tax. There
are brokers handling investments,
who must pay $25; pawnbrokers,
who must pay $3334, and CONNER
cial brokers, ,$13.34.
"Then there are theatres, museums
and concert halls, the tax on which
is graduated according to seating
capacity, as follows: 250 seats and
under, 1850; $50 seats to 500 seats,
1894; 500 to 500 seats, $50; more
than 500 seats, $685..
Next there are the proprietors of
bowling alleys and billiard rooms
who must pay 1894 for each table
and alley. There are, too the COM
mission merchants, who receive
goods, wares or merchandise to sell
on commission and who must pay
$1334.
"The amount Of the tax as have
given it in each case is correct. 1t is
eight-twelfths of the annual tax, due
to the fact that four months of the
governments fiscal year has elapsed
when the tax became effective on No
vember 1st.
Banks, private and incorporated,
are taxed on the capital, used or en-
ployed during the governments fis-
cal year, ending June ~, 1914. In
estimating capital. surplus and undi-
vided profits must be included. The
banker will compute this amount for
the year and then take -eight-twelfths
the rate of $1.0O on each 1000 of
capital. For illustration, let it be as
sumed that bank on June 80, 1914,
had 100000 capital, $4,000 sur
plus and $25 900 undivided profits.
The total is $4,000. Eight-twelfths
Of this amount is $116,666.67. The
tax on this would be $116.67.
Bankers must, under pain of pen
atty, send form filed out before De-
cember 1.
Special taxpayers covered by this
law should at once write the collec-
tor at Dubuque stating what their
business is and asking for form on
which to make returns They should
then send the form, filled out togeth-
err with the amount of the tax, to the
collector. The whole transaction
must be completed by December to
avoid penalty.
Some taxpayers are under the i'm
preston that they need not pay the
tax until demand for it is made, and
that they are not supposed to know
the law until after an officer has call
ed and explained their obligations. In
this they are sadly in error. They are
required, under penalty, to go to the
government, not the government to
them LOUIS MURPHY.