The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-06-06
TAX ON AUTOMOBILES.
FEDERAL LICENSE FEE PRO.
POSED BY COMMITTEE.
Exemption of Popular Priced Motion
Picture Tickets from Revenue Bill
Planned.


tres from amusement taxes aid the
levying of a new federal license tax
on automobile owners ranging from
$3.50 to $25 with reductions for cars
used a year or more, were agreed
upon today by the senate finance conf
mittee in continuing revision Of tn;
house war tax bill.
With its task virtually completed
except for the newspaper and maga-
zine section, the committee tonight ad-
tourned until Monday so that treas
ury experts may spend tomorrowput-
ting the redrafting into legal shape.
The bill probably will be ready for
submission to the senate early next
week.
Tomorrow Senator Simmons. chair
man, and Senator Penrose, ranking
Republican member. will confer jnfor-
mally with representatives Of pub
fishers and postoffice department Of
ficials regarding the proposed Aaxa-
tion Of publications in lieu of the in
creased second mail rates In the house
bill.
Under the committees amendment
all moving picture theatres charging
less than rs cents admission would
escape the tax of cent on each dime
paid, imposed by the house meas.
ure. Senator Penrose championed
this change. urging that the moving
picture house is the poor mans thea
tire. IT was decided to retain the
house plan Of taxing other places
where admission is charged.
treasury experts estimate that there
are 100000 owners of automobiles
subject to the $3.50 tax; 100000 sub
ject to the $40 levy; 100000 in the
$15 class and $4,000 subject to the
$50 rate. The license taxes, payabl
by motor, vehicle owners direct, seake
the place of the. house tax OF pei,
cent, upon manufacturers of such ve-
hicles.
The committees section would pro.
vide:
That on and after July 1. 1917,
special taxes shall be. and hereby are
imposed annually on owners of au
tomobiles and motorcycles, the rate
OF tax to be based on each automobile
or motor cycle as follows:
Motorcycles $3.50; automobiles
listed retail price at time of purchase
not over $500. $3.50; over $500 and
not over $1,000. $40; over $1,000 an
not over 1000. SIS; over $4,000 and
not over $4,000. $40; $4,000 and over
s25.
Provided, that the special taxes
herein imposed shall not apply to
manufacturers and dealers as to un
sold automobiles and motorcycles held
for sale, or to owners Of automobiles
or motorcycles held for sale, or to
owners Of automobiles or motorcycles
used exclusively for business; provid-
ed, further, that evidence of payment
OF the tax shall be by receipt or stamr
to be attached to automobile or mo
eorcycle under such rules and rogula-
tions as may be prescribed by the
commissioner of internal revenue with
the approval Of the secretary of tho
treasury and provided further that the
special tax paid within a fiscal year
shall not be imposed again within that
fiscal year if ownership changes"
A modification to be drafted late:
VIII provide reduction Of 10 PEI
cent. In the license taxes for each
years use Of automobiles up to &
years or maximum allowance OF so
per cent. s'-l.,
An amendment to the income tax
section writer" into the bill today
would repeal the provision of the I'm
derwood act of 1913 providing for
collection Of income taxes at their
source and require those receiving the
taxable incomes to make u direct pay.
ment of taxes to the treasury. AS a
substitute for the present requirement
OF collection at the source, the COM
mittee adopted a new principle of
information at the source'-re1uir-
ing corporations and others under
heavy penalties to report to the treas
ury department the names of persons
and amounts OF income subject to
taxation This plan. the committee
believes, will prevent much evasion.
increase the revenues considerably
and promote honesty i'm the laws oper-
alton. Reports will be required on all
incomes i'm excess of $500 annually.