Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1917-09-30

lions and partnerships was declared
to include actual cash paid in, actual
cash value of other tangible property
paid for stock or shares, at the time
of payment or January l. 1894, but in
no case to exceed the par value of the
original securities; paid in or earned
surplus and undivided profits used OF
employed in the business, exclusive
of undivided profits earned during the
taxable year.
Intangible Assets
The allowances for intangible as
sets include actual cash value of pat.
ents and copyrights paid in for stocks
or shares at the time of payment,
good will. trade marks, trade
brands. franchise if for bona
fde payments not to exceed the cash
value
It stipulates that such intangible
assets exchanges for securities before
March 3, 1917, not exceeding 20 per
cent of the total shall be included at
value not exceeding a fair cash val
ue at the time of purchase.
New Zone System
In lieu of the house zone tax on
second-class publications the confer
ences included a new zone system, eff
fective July l, 1918. with, different
rates for reading matter and adver-
Using matter with special, but in case
/ ioin
similar publications. Increases a quar-
ter of a cent a pound until July, 1919,
and one-half cent thereafter were pro-
vided Advertising matter exceeding
5 per cent of the total space would
be taxed from one-quarter to pa cents
additional until July. 1919, and from
one-quarter to Az cents more until
July /, 1920; and from three-quarters
to 61a cents to 1921, and from one
half TO cents thereafter. An addi-
tional tax of one-eighth per pound I'M
til July, 1919, and one-quarter of a
cent thereafter on religious, agricul-
tural, fraternal and similar publica-
tionas was adopted.
Letter Tax Restored
The one-cent tax on letters. except
ing drop letters, was restored by the
conferees . A one-cent additional tax
on postal and private mailing cards
was added. The first-class mail in
creases are estimated to raise $780,
100000, and are effective thirty days
after the passage of the act.
The senate provisions eXempting
postage letters written by soldiers and
sailors abroad was retained
Passenger Tax Raised
The conference adopted per cent
in lieu of the senate per cent tax
and the house rate of 10 per cent on
passenger transportation, estimated
to raise from the compromise levy
about s60,0OOOOO instead of $780,
900 under the senate plan. The per
cent tax on freight transportation was
retained, and the tax on express trans
portation was increased so that l cent
would be levied on each 20 cents paid
instead of each % cents. The house
10 per cent tax on Pullman accommo-
dations, cut to per cent by the SEN
ate. was restored and is estimated to
raise s5,OO0.O0O.
luxuries Taxed
In lieu of the house 5 per cent tax
on sales of automobiles by manufac-
turers and the senate federal license
tax on owners, the conferees adopted
per cent tax on all motor vehi-
ufacturers, producers and importers.
Taxes of per cent on manufactur-
ers' sales of musical instruments and
jewelry also were written with a tax
of one-quarter of a cent a foot on
motion picture film.
Sporting Goods
On sporting goods the revised bill
levies per cent on manufacturers
sales, instead of 5 per cent proposed
by the house and 2 per cent by the
senate. The 3 per cent levy also was
adopted for cameries, in lieu of the
senate 2 per cent rate, and chewing
gum manufacturers would be taxed
per cent of gross sales, a reduction
of per cent from the house rate.
The senate 2 per cent manufacture
ers' sales on perfumes and patent
medicines were retained.
Stamp Taxes
The senate 1-cent stamp taxes on
bank. checks was not restored. but its
tax OF / cent on parcel post packages
costing 25 cents or more was re-
, tanned.
!. Other stamp taxes, all made effec-
tive December 1, were retained. and
the house tax on indemnity bonds was
restored
Graduated lnheritances
A new system of graduated inheri'
lance taxes was written into the bill
in lieu of the house plan and despite
the senate's rejection of such taxes
The new rate on inheritance taxes
with those of Americans military ser
, vice exempted range from one-half &c
> l per cent on $4,000 estates to 10 per