Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-08-01
TAX ON GASOLINE
AND AUTOMOBILES
House Ways and Means Com
mittee Agrees on Initial
Rate of $40.
PRICE OF CARS TO DETERMINE
Owners Will Be Compelled to
Pay Whether Machines Are
Used or Laid Up.
PRICE OF CARS TO DETERMINE

WASHINGTON. July 2l.-A tax on
gasoline and an excise tax on the
use Of automobiles were ador.ed by
the Ways and Means Committee to-
day for the $1,000, ,0oo.C 900 revenue bill
The gasoline tax will be . cents q
gallon. TO be paid by the producer or
manufactures. The automobile tax
which is in addition 10 the 10 per cen,
tax on manufacturers sales agreed
upon yesterday, will be paid by the
owner OF the car. and Will range from
SO on "a $500 ear 20 $40 on p car cost
ing between S4,5or and s5.aOc.
Motor trucks will pay according to
Tho same schedule AZ automobiles. On
motorcycles there viii be "a fat tax OF
50 4 gear. Another tax probably Will!
he devised TO hit the dealers iu used
cars.
These we're the oaly items on the
Treasury Departments LUXURY liz. tina.
were discussed by the committee to-
day. In order 20 expedite action en- the
other items. the committee authorized
Chairman Kitchin TO appoint a sub
committee to go over the lis, and d.
termire what other subjects. II any.
should be taxed. The committee. con-
sistins Of Representative Hull. o..
Tennessee. Helvering. os Kansas. un.;
Moore. OF Pennsylvania. was directed
20 r~rort 10 the fun committee ..ot
later than Saturday of this week
TAN BASED on ORIGINAL
SELLING PRICE OF CAR
Two Important things in connection
wi:h the automobile lax are TO he
w al -,r-,
according to the detail list price OF
the car at the time of manufacture .
There will he no deduction for the
age OF the car nor Tor the length OF
lime l. has been in use. Hence. Il car
costing s3.rao in 1910 will pay just
as much rs 4 laiS model costing the
same amount.
In the second place. the tax will be
an excise TAX. and will have to ba
paid by the owner whether it Is in
use o, not, Car owners who might
think they could evade pavment OF ,hc
tax BY laying ;he car up in the garast.
stripping il ot it's tires and putting
IL out OF service. VIII be mistaken
the revenue collector VIII get them
just the same. because they own :hc
car even II il can't run around the
block.
The schedu,. o, taxes agreed uno,
IS rs follows: cars costing $500 ~ !e.S.
SO: between $500 and $50 sl5: he
tween S75G and $1,000. $50. between
slco0 and sl."oo, $50; between s!,5co
and $1,000. $40: between $4,000 an.
$500. $50 between $500 and $1,000
500: between S3.U0E and So 800. $50: he
tween $500 and si.o0n. s!Hc: between
$4,000 and s,5Gn sl.0. between $500
and >. 900, $40.
In other words the tx increases
$40 for every $500 after tie 81 GOO
price is passed. until II reaches $1,000.
when the increase Is AT tn. rate OF
$50 or every additional $500 of the
cars cost. The ,ax on car costing
$4,000 would be $3.50. while tire t1>
on a $4,000 car would be- $3.50.
The committee has no illusions about
,hc identity of the persons who %iil
pay the gasoline tax. Although tie
section PROV! !drs ,hat il shall Il. pa!c
10y The manufacturer or producer. tr:r
committee IS fully Gognizant NJ tre
the consumer ana ultimately mast ~.
paid by The car owner Who buys tho
gasoline. Notwithstanding this fac;.
the committee is of the opinion shat
such an eventual.ty might not be al
together Ar unmixed blessing. Ger t.
micht lead to a marked conservation
in th, use of gasoline and the rimira
ton Of q very considerable amount of
Chairman Kitci'n takes issue wita
those WHO insist upon having stN
war-rrotits tax in the bill. Answer