Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-11-04
AMPL|F|CAT|ON OF
AUTOMOBILE TAX
Treasury Department Rulings
Point Out Methods for
Collecting Revenue.
ASSESSMENT is 8 PER CENT
Dealers Holding New Cars
After October A, Were
Taxed ~ Per Cent.

Inc treHSury department mas nlaue
several additional preliminary rulings
concerning the war revenue tax on
motor vehicles. amplifying and ex-
planning the rulings obtained by the
national automobile chamber OF COM
merce says Motor Age. The new rul-
ings do not alter materially the 9TH
ers and cover such specific points as
the method of charging the tax TO the
consumer. the floor tax, the tax on
used cars. The method of handling
taxes on cars sold on conditional bills
Of sale and chattel mortgages thru
these rulings. which are the result of
interviews with Deputy Commissioner
G.. Il. Fletcher of the international
revenue office; e. C. Johnson, solicit
tor of the international revenue Of
flee: p. s. Talbert, chief of the law
the wal tax division, are only prelim-
fnary and subject to change. They
are:
1-Manufacturers selling new cars
end trucks on and after October 4.
1917. pay tax OF per cent on the
manufacturers selling price. This lie
on the price received by the manufac-
turer for the car and not the list price
unless actually sold for that.
How the Tax Is Applied.
2-If the manufacturer passes the
tax on. the treasury department be-
tieves the price the manufacturer gets
Tor the car should include the present
price Of the car plus the tax collected
For example, II the maker sells the
car for $500 plus the war tax Of s24
making the selling price 1924 with no
reference to the tax. the government
will assess the-tax Of per cent on
1924. For the manufacturers to re-
ceive the full $500, plus the war tax.
his billing price would have to be
SS24.T4 OF which per cent, or S24-
"a is paid to the government. The
makers price, therefore, would be 81
per cent Of the total charge to the GUS
toner. This appears to be n tax on
tax. but the treasury department rules
that the tax is on the gross amount /
the manufacturer receives and the tax |
Is part of that amount, even though |
later paid over to the government
3-Wholesalers or combined whole |
salers and retailers holding now cars
or trucks for sale at the opening OF |
business, October 4, must pay IL |
per cent on what is paid to the manu- {,
facturer for them. However. no tax /
Is assessed on cars or trucks sold and !
delivered prior TO May Q, 1917, where |
the title has been retained as security |
Dealers who do both wholesale ana |
retail business must pay IL per
cent tax on all new cars held October
whether subsequently sold at whole
sale or retail.
Used Cars Not Taxabl
fused cars are not taxable
whether held by manufacturers or
wholesalers.
5--Chassis are considered motor
cars and are taxed accordingly.
6-If the manufactures or whole
saler-retailer sells a taxable car or
truck to a dealer under contract
made prior TO MAY Q, 1917, then no
matter what the contract may say
about taxes, the dealer who buys the
car or truck must assume the tax and
pay II TO the seller who will in turn
pay 1t to the government
THE manufacturers tax acorues
when the car or truck is sold, and this
means when the title to the merchan-
disc passe5 to the buyer, whether by
the physical transfer of property or
the bill OF lading representing It.
Therefore. the title passes when the
merchandise is delivered to a carrier
who is the agent of the buyer or the
blu of lading Is put in the mail or de-
livered to hank.
S-A car delivered on chattls
mortgage Is sale when the title
passes and not when the mortgage is
paid off
Some Cars Exempted.
Cars or trucks sold to the gov
ernment probably will be released
from the tax, though the person maxi
ing the sale must make application to
the treasury department Tor an order
releasing the article from the tax
Cars and trucks sold to foreign gov.
ernments are taxable.
10-Branch houses in district and
separate corporations from the manu-
facturers' corporation do not subject
the manufacturer to taxes incurred
by the branch.
1l-Where extras are shipped with
car and make one sale. the manu-
facturer is taxed on the full amount
but where cars are shipped standard
and extras added these would not be
taxed.
12-The treasury department does
not look with disfavor on the plan Of
averaging the tax so that the amount
paid by the ultimate buyers of a GER
tain type Of car shall be the same. ir-
respective of dffetent discounts
given various classes of dealers.
1S-Wholesalers should make re-
turns on the floor tax with checks ,
covering the proper amount before i
November 2, 1917. The payment may
hA AOtA al - i .