Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-10-27

II III
~ Der 4 will be taxed under the new
war revenue bill according to the
opinion handed down by the treasury
department. This is the new feature
of the war revenue tax as applied to
automobile.
Preliminary rulings of the treasury
department on the automobile proyi-
sions in the war revenue bill given at
the request of the National Automo-
bile Chamber OF Commerce were re-
ceived here wednesday. These rulings
were secured for the. information OF
manufacturers, wholesalers and others
so that the automobile industry might
know the viewpoint of the officials OF
| the Internal Revenue Office Of the
Treasury Department at Washington,
| d. G.
General Question,
| -Sertain questions of general nature
we're asked at the first interview. and
the decisions while not official and
subject to changes and final confir-
nation will serve as guide. The In
formation was given by P. S. Talbert.
chief of the law division, and DR.. Gu
mer Brenizer of the War Tax Division
to counsel and general manager Alfred
Reeves of the National Automobile
Chamber of Commerce The following
statements issued by the chamber are
based on the interview:
The Rulings
!. /. Manufacturers are taxed three
per cent on their selling price Of cars
sold on and after October 4.
2. Pure wholesalers and combined
wholesalers and retailers are taxed
IL per cent on their selling price on
all cars held and intended for sale on
October 3, but not probable1.
3. The tax becomes due when the
automobile sale is made, and sale
means when the title to the car passes
from the seller to the buyer. This is
legal matter and is nos governed by
where the car is, that is whether 1t is
actually in the hands of the manufac.
turer or the seller or in transit be.
tween them.
4. The tax is levied on the price
the seller gets for the car, not the list
price unless actually sold for that.
When the price is paid part in money
and part in other consideration "a
second hand carl, the tax is levied on
price and not on actual money receiv-
ed. -.
Government Sales Free "
5. BY virtue of the old statute, re-
lating to purchases by the government
of taxable articles, the treasury is in
clined to rule that cars sold to the
United States government are not tax.
able. However, cars sold to foreign |
governments are taxable. "
s. The treasury is inclined to hold
that chassis is an automobile, and |
therefore taxable as such without wait. !
ing for a body maker to equip 1t with
a body.
z. II the so-called branch house is
a distinct and separate corporation !
from a manufacturers corporation,
even though - manufacturer holds
the majority or the whole of the
branch corporation stock, then the
manufacturer is not liable for any
taxes incurred by the branch. In 9TH |
er words, the branch will be consider
ed wholesaler.
Extras
8. The treasury department Is in
clined to rule on the question Of ex.
tras, that when such extras are ship
ped with the car and make one sale,
the manufacturer shall pay the tax on
the full amount. If the car is shipped |
regular, however, and a set of wire |
wheels purchased extra, or another
body, such extras would not be taxed. |
9. The treasury department does |
not look with disfavor on the plan Of |
averaging the tax so that the amount |
of the tax paid by the ultimate buyers |
OF certain type Of car shall be the |
same irrespective of the sliding scale I
of discounts allowed various classes |
of dealers. They agree that it would /
be fairer to the retail buyer. The de.
rartment is interested in the tax
which the manufacturer pays on his |
car sales, and not in the form in which |
be. passes ii to the ultimate consumer.
To avoid Misrepresentation the ulti.
mate purchaser should not be billed I
with an item labeled war tax unless /
1t is the exact amount. There is no /
objection to the billing being marked I
ito cover the war tax" and SUM |
charged on each car to go through all
transactions, and the total of which at I
the end of the year will be approx
mately the amount which the manufac-
turer has to pay to the government
Secondhand Cars
10. While the matter is still under
consideration the treasury department /
+ a