Free trader-journal. (Ottawa, Ill.) 1916-1920, 1917-06-02
MOVIES ESCAPE NEW
j. 5. TAX BUT AUTOS
WILL Be HARD HIT
SENATE LEViEs AssESSM ENTs
AGAINST CARS, RANGING FROM
7.5C to s25, AND LEAVES CINE.
MAS OFF SCHEDULE.

shinrton, June 2. Exemption O.
popular price rowing picture theatei
from amusement taxes and the lie y
ing OF new federal license tax OF
automobile owners, ranging from
$3.50 to s25, with reductions fer ear.
used a year or more, were agreed up
on today by the Senate finance com
mittee in continuing revision ri he
House war tax bill
With its task virtually completed
except from the newspaper and ma a.
zine section, the committee last night
adjourned over until Monday so that
treasury experts may spend today
putting the redraiting into leea
shape. The bill probably will be ready
for submission to the Senate carly
next week.
Conference with Publishers.
Today Chairman Simmons anl
Senator Penrose. ranking Repu hlicar
member. will confer informally with
representatives. of publishers ans
postolIlce department officials regard
ing the proposed taxation OF publ
cations in lieu OF the increased sec
ond-c,ass mail rates in the House bill
Under the committees amendment
all moving picture thcaters chargin.
less than Is cents admission woulC
escape the tax of / cent on each dime
paid imposed By the House measure
Senator Penrose championed this
change. urging that the moving pic
ture house Is the poor mans theater
1t was deyided to retain the House
plan Of taxing other places Where
admission is charged.
Treasury experts estimate there arc
l,t0D,G00 owners Of automobiles sub
ject to the $3.50 tax. 76o,900 subject
to the $40 levy, l,2l9,o00 in the 81,
class and 23i 900 subject 10 the $2c
rate. The license taxes, payable by
motor vehicle owners direct. take the
place Of the House tax OF per cent
upon manufacturers of such vehicles.
Schedule OF Rates.
The committees section would pro.
vide.
That on and after July |. 1917,
specia, taxes shall be. and hereby
are, imposed annually on owners OF
automobiles and motorcycles. the rate
Of tax to be based on each automobile
CT motorcycle rs follows:
Motorcycles, $3.50; automobiles,
listed retail price at time Of purchase
not over $500, $780, ever S5G0 and
not over $1,000, $40; over $1,000 and
not over $4,000, SIS; over $4,000 and
not over $4,000, $2' $4,000 ard over,
25.
Provided that the special taxes
herein imposed shall not apply to
manufacturers and dealers as TO I'M
sod automobiles and motorcycles held
Tor sale, or to owners OF automobiles
or motorcycles used exclusively for
business; provided further, that evi.
dence Of payment of the tax shall be
by receipt or stamp to be attached
to automobile or motorcycle, under
such rules and regulations as may be
prescribed by the commissioner Of in.
tefnal revenue, with the approval of
The Secretary OF the Treasury; and
provided further. that the special tax
paid within fiscal year shall not be
imposed again within that fiscal year
if ownership changes"
Reduction for Used Cars.
A modification to be drafted later
will provide Il reduction Of 10 per
cent in the license taxes for each
years use OF automobiles uD to five
years, or a maximum allowance Of
30 per cent.