The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-11-20
COLLECTOR WARNS
IOWA TAXPAYERS
Louis Murphy Says People Must Go
to Government, That Uncle
sam 10 Not Required to
90 to Them.
SOME DEALERS ARE LAX
Many Have Failed to Make Their
Declarations and in conse-
quence Run Risks Of Be-
Ing Prosecuted.

| 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 tax payers must SEND
4 in their remittances without demands
being made on them. Some are undes
the impression that they can wait
| until the government calls for tns
tax. They are required under penal
| ty, to go to the government. however.
Mr.. Murphy's letter to The Gate
City follows:
CALI 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 $500. must pay
1920 for each store, shop or other
place in which tobacco in any form
I is sold. There are 5000 grocery stores
in cities and towns Of over 500 popu-
lation; there are LOO druggists in the
state; there are $500 retail liquor
dealers, and all Of these sell tobacco
in some form There are besides a
few hundred exclusively tobacco
shops and many barber shops and con-
dictionary stores handling over $500
worth Of cigars and tobacco q year.
Notwithstanding the special tax on
these dealers became effective on
November /, and that II the tax Is
unpaid on December /. penalty OF
so per cent will also have to be paid.
not a hundred Of them have sent in
their $780," the collector says.
"Howeyer, dealers In cigars and to-
lsbacco are not alone affected by spe-
cial taxes and are not the only ones
derelict in paying the tax. There
are brokers handling investments,
who must pay SIS; pawnbrokers. who
must pay $33.34 and commercial
brokers. s13.34.
"Then there are theatres, museums
and concert halls, the tax on which
| is graduated according to seating ca
pacity, as follows: $50 seats and un-
der, 1867; ESQ seats to 500 seats,
$685.: 500 to seats, IS; more than
! 500 seats, $66.67.
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
$13.34.
1.-THE amount of tax rs have CIV
en- it In each case is correct. It is
eight-twelfths Of the annual tax, due
! TO the fact that four months OF the
government fiscal year had elapsed
when the tax became effective on No
vember 1.
Banks, private and incorporated.
are taxed on the capital, used or en-
/ ployed during the governments fis-
| cal year, ending June 30, 1914. In
estimating capital, surplus and undi-
yided profits must be included. The
| banker will compute this amount for
the year and then take eight-twelfths
of the total, paying the tax on this at
the rate of $1.0O on each $1,000 OF
capital. For illustration, let 1t be as
h1med a bank on June 30, 1914, had
f. 100000 capital, $4,000 surplus and
s25 900 undivided profits. Tho total
is 1880 Eight-twelfths OF this
amount is $116,666.G7. The tax on
this would be $116.67.
Bankers must, under pain OF PEN
atty. send form filed out before De
cember I.
special taxpayers covered by this
law should at once write the collector
at Dubuque stating what their bust
ness is and asking for form on which
TO make returns. They should then
send the form, filled o.., together
with the amount OF the tax. to the col
lector. 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 1t Is made, and
that they are not supposed to know
tile law until an officer has called
! 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"