Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-06-20
DENOUNCES REPORT
OF AUTOMOBILE TAX
Finney Says Ways and Means Com
mitttce Of Congress Has Reached
No Such Agreement
AUTOMOBILES NOT LUxuRIEs
Can BE Proved That They Are War
Time Necessities, Says President
of State and City Associations Of
Automobile Dealers.

Tho reported decision, as sent from
and Means Committee OF the National
House of Representatives. which places
the automobile in the luxury class. is
misleading" stated ]. L. Finney. presi-
dent of the Virginia Automobile Deal
ers' Association and the Richmond Au-
tomobile Dealers Association, yester-
day THE executive committee of the
National Dealers Association has em-
phatically denied the report. inasmuch
as the automobile dealers of the
United States could at any time, prove
that the automobile is not a wartime
luxury, but rather a wartime neces-
sity."
The article to which Mr.. Finney had
reference states that, upon June s.
the Ways and Means Committee OF
the House drafted revenue bill. i'm
posing heavy taxes upon all luxuries.
1t further stated that the automobile
industry was regarded as luxury
manufactury.
THE committee also decided. the re-
port continues. that automobiles. ex-
cept those in government service, be
classed as !uXuries and should bear a
heavy tax in proportion to their cost.
The tax imposed in last years bill of
3 per cent on the sale price will be
more than doubled. 1t Is understood.
This tax was estimated to produce
about s25.oooooo and the committee
feels that 100000 900 or S15,o00,0 900
should be realized from this source.
The proposal to impose a Federal Ii
cense from $50 to $500 is also being
considered by the committee.
This was decided upon by the COM
mittee in considering the various
sources of revenue that may be levied
upon to get the ss,o0o,ooo.ooo to be
raised"
MANY SALES LOST AS
RESULT OF REPORT
This statement is emphatically de-
Richmond and the automobile men
throughout the country. states Mr..
Finncy. I'VE can trace. here in Rich
mond," he declared, "forty-odd sales
which have been lost by our dealers
as a result Of this ill-founded rumor.
One OF our customers who had pos
sessed her car for less than month
came into a Richmond store to sell on
the day on which the report was pub
lished and. when she was questioned
as to her reasons. declared that she
was unable to meet such an increased
taxation.
The automobile dealers OF Richmond
are not blaming the newspapers which
published this article. but direct their
remarks at the source of the rumor.
1t is possible that the sense of the
conversation with one of the members
OF the Ways and Means Committee is
correct. Insofar as it touches upon the
heavy taxation Of luxuries but / dare
say that this conversation was neither
to the effect that the automobile was
considered n luxury. nor that such
rate of taxation would be imposed.
The Richmond Automobile Assoc
citation asks that the Richmond pub
lie disregard wild rumors OF an at
tempt TO put an increased taxation upon
the automobile. because the commit
tee has made no decision and it Is
likely that three or four weeks will
e!apse before 1t is definitely known
what Will be done The Richmond
dealers are resting secure in The be-