Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-05-01
NEW MERCHANTS LICENSE.
YEAR BEGINS TO-DAY
Must Keep Accurate Record OF All
Purchases for Purposes
Of Taxation
INCREASES STATE REVENUE
Rate Is Not Raised, but New Law
Aims to Secure More Complete Re-
turns as Basis for Greater Equality
OF Taxation.

OF Taxation.
To-day begins the new merchants
Incense year, subject. after June Is. to
we purchase recordation amendment
japproved by the last General Assem-
ibly:: The license year begins May 1
and ends April 80, 1917.
Although the merchants lobby at
the last Legislature was powerful
enough To prevent any increase in the
lCoihmonwealth will make the best Of
the single significant amendment that
ran the gauntlet-the section reuuir-
Ing merchants to keep an accurate
hS' OF their purchases and TO return
such purchases. under oath, as the
basis for the license tax
In the past. commissioners of the
revenue and boards of review have
been extremely liberal In their appli-
cation OF .he law as regards the re-
porting OF purchases. So icnient was
the enforcement of the law that thous-
lands OF merchants were permitted to
report annual purchases not in excess
Iof ,0o0-obvously a volume which Il
peanut merchant would have had TO
leXceed TO make living. Merchants
reporting this minimum were taxed
|only IS year.
While the IS tax on purchases not
in excess of $1,000 remains unchanged
lit is safe to say that under the new
possible to come In this class Few
will be able to qualify for the $1,000
class. upon which the tax is SO.
WILL. ISSUE AMENDED AND
MORE RIGID HETEROGENEOUS
Auditor Moore has been at work for
lsome time drawing up amended and
moro rigid intcrrogatores designed to
put the new law into effect to the let
ter. The intcrrogatories will come
from the printers this week. and will
at once be supplied to the commission
ers OF the revenue. II Will become the
duty OF merchants To MI out these
iinterrogatories under oath. within the
next two months. since the law re-
.Quircs them to be returned flied out
to the local boards of review. by July
II.
In the numerous committee hearings
held during the last Legislature on the
merchants tax bills. the merchants
made much OF the point that the State
can materially increase it's revenue
from merchants licenses without in
lcreasing the rate. by the simple cx-
lpedicnt of intorcinE correct returns IT
purchases Some Of those who APP
peared before the committees made
the statement that the increase from
the application OF such plan would
be anywhere from $4,000 to $4,000
year.
THAT is the figure tho merchants
| themselves named" said Auditor
Moore. discussing the matter. at Ia
not the purpose Of this Office to be
loverzcalous or make any law a hard
ship. hut 1t does purpose 10 see that
the law is carried out as intended by
the General Assembly. 1t is now up
to tho merchants to make good their
promises. The new heterogeneous
have been prepared with this cud in
view"
AMENDED LAW FOLLOWS
SUGGESTIONS OF MERCHA NTS
The amended law following the suE-
gestion OF the merchants themselves.
requires that each merchant keep his
invoices and a record in ink OF all
purchases and from whom made. The
record Is TO be always open to the
Inspection Of the taxing officers. The
report of purchases, II is provided.
shall be taken from this record As to
whose accuracy the merchant shall
make OATH
If merchant fail 10 keep such rec
ord, the amended law provides. he shall
pay minimum State license tax of s25
in addition TO such tax az may be
| later ascertained by the local board
| Of review by such investigation OF his
purchases as it deems proper. The
| minimum State license tax OF S25 here
provided does not apply to licenses
| granted merchants In the license year
| beginning May !. 1916. and ending April
80, 1917, for the reason that the new
| law does not become effective until
! June Is. or until after the new license
! gear Is underway.
On the back OF the new interroeatory
| appears q statement of the new regu-
iations for the guidance of the mer-
chants and the taxing officers. 1t
| leaves no doubt as TO the intention of
! the Commonwealth to make full use
! of the new amendment.
! The statement reads in part:
4 Il
ed under oath by the merchant. Re-
| fusal 10 do 80 subjects him to q fine
! Of not less than $50 nor more than
$40.
| INTER WILL
! RE CAREFULLY REVIEWED
These interrogatories TO be reviewed
and their accuracy examined into by
! the Local Board OF Review and the
| Examiner OF Records. with the right OF
| either TO examine books of account.
papers and other records Of the mer-
| chant. and TO summon the merchapt or
any other person having the informa-
ton, to testify under oath respecting
| the merchants purchases.
! The Commissioner OF the Revenue
must administer the oath and must not
receive interroGatories not sworn to-
He must also certify that he did adj
minister the oath. lie must also ex-
anime the records. hooks papers. ETC.
OF the merchant to ascertain IL the re-
port OF purchases is correct, and where
the merchant has no record of pur-
chaSes or invoices which will show his
purchases. the commissioner should, In
ascertaining the correct purchases
give careful consideration to the an
swers made by the merchant respecting
expense for rent, rental value Of prem
Uses expense for employees. etc, which
will be a guide in determining whether
the purchases are correctly reported
as the amount OF expense under which
a merchant does business will indi-
cate whether the probable profits upor
the purchases he reports Will justify
the expenses he bears I'm carrying or
the business The Commissioner of the
Revenue is responsible upon his Of
ftcial bond and will be held so for MOI
faithfully performing his duty in as
certa lining the correct purchases of 6