The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-05-19
SOFT DRINKS
TAX CAUSE OF
MANY MISTAKES

Inquiries received by the Bureau OF
Internal Revenue and Collectors mol
cate misunderstanding on The part
of not only a large portion OF the pup
lie but dealers themselves regarding
the tax on soft drinks. which became
effective May I. Reports reaching the
bureau are that some dealers are not
collecting the tax while others are
charging extra pennies Tor drinks
which are not taxable.
To correct these mistakes the bu-
reau has issued the following official
statement relating to the collection OF
the tax.
The tax is one cent for each ten
cents or fraction thereof on the amount
paid at soda fountains. ice cream par
lors or similar places Of business on
soft drinks. ice cream, ice-cream sun
does, "or similar articles OF food or
drink when sold for consumption in or
in proximity to such place of business"
The purchaser can not escape the tax
by stepping outside of the place where
sold to consume his soft drink or ice
cream. Ice cream in cones is taxable,
because sold under conditions which
indicate that it is to be consumed in
or in proximity to the place OF bust
ness" When ice cream is sold under
conditions which indicate that it would
usually be consumed in or in proxim-
ity to the premises, the fact that the
purchaser does not consume it there
but carries it away, does not render
it free from the tax. Ice cream sold In
boxes and ice cream sodas or other
soft drinks sold in pitchers or buckets
for home consumption are exempt.
Sales of soft drinks, ice cream and
similar articles of food and drink in
hotels, restaurants, cafeterias and club
houses are not taxable unless sold sep
arate and apart from meals. If ice
crem or soft drink is the only re-
freshment ordered in such places the
tax applies Such sales at soda foun-
tains are taxable even though sold as
part of a meal.
In general such beverages common
ly known as soft drinks which are
compounded or mixed at a soda foun-
tain are subject to the tax. Illustra-
tive of these are orangeade, lemonade,
pineapple juice, coco cola, root beer,
moxie, phosphates, soft and flavoring
syrups mixed with plain or carbonated
water, milk shakes, matted milk, cream
and egg shakes, ice cream, ice cream
sodas, ice cream sundaes. ice cream
sandwiches and favored ices.
Certain drinks often sold at soda
fountains, ice cream par1ors and SIM
liar places of business are not taxable.
Such beverages are hot beef tea, coffee,
tea, buttermilk, milk. hot chocolate or
cocoa, hot clam bisque, hot tomato
bisque and hot tomato boullon. Medi-
cinal preparations such as bromo-selt
ger. citrate of magnesia. rochelle salts.
seidlets powders. bicarbonate of soda,
aromatic spirits of ammonia, EPSON
salts, essence of pepsin, ETC., sold at
the fountain also escape the soft
drink" tax. No tax applies on the sale
of beverages such as ginger ale, root
beer. moxie, mineral water, ETC., when
served from closed containers, be-
cause a manufacturers tax on such
drinks has already been levied.
The tax is on the whole amount of
the purchase price. Thus, If pur-
chaser who treats a friend orders
two sodas at the same time, each SELL
ing for Is cents, the tax is cents. and
not cents. If, however, he buys one
15-cent soda and Immediately there
after purchases another 15-cent drink,
the tax is 2 cents on each sale. Deal
ers are advised to guard separate Gus
toners against pooling their purchases
to escape the tax. The penalty for
willfully attempting to evade the tax
is fine of not more than $4,000 or
not more than ones years imprison-
ment, or both, together with the cost
of prosecution.
Sales of ice cream and soft drinks
by religious, charitable or educational
societies on special occasions such as
church festivals. picnics, etc. are not
taxable. Such sales in stands and
booths at agricultural fairs, racing
parks, public exhibitions, circuses.
shows and similar places are taxable.