New-York tribune., 1919-04-22
Three Methods for
Collecting Luxury
FIX Suggested
National Retail Dry Goods
Association Issues Bull
letin to Serve as a Guide
in A bsence of Ruling

Three different methods by which re-
tallers may collect and keep track of
the luxury taxes on sales of articles
over certain price after May /, are
offered In bulletin just issued to
members of the National Retail Dry
Goods Association. The bulletin Is de-
signed to serve as guide in the alb.
sence of definite rulings from the
bureau of Internal Revenue on the
methods Of collecting the tax.
The first plan offered is that which
SANs q Co.,, New York, expect to
io'iow in collecting tho taNes under
section 9Vl of tho new revenue bill,
applying to wearing apparel, bags and
o'her travelling equipments. picture
frames. lamps, parnsols, etc. This
store plans TO handle the tax without
marking it upon the merchandise in
any way. 50 as to avoid any trouble
IN lguring and rensurlng the tax as
goods are marked up and down for
special sales, clcarances, etc. Every
sales person in each department where
taxable merchandise is sold Will be
provided with card calling attention
to what articles in that department the
tax applies, the rate of the tax 90
per cent? and the retail price of mer-
chandise at which the tax begins to
apply.
Thus if the clerk is selling mems
10 per cent. tax applies to all hats
selling for more than S..
Macy &, Co.'s Method
r. H. Macy & Co., New York and
number Of other large concerns will
handle the taxes as follows:
The sales tickets for taxable mer-
chandise viii bear in addition to the
price OF the article the amount of the
tax written in green ink.
The clerk in making the sale will
write On the salescheck the price OF
the article, the amount Of the tax and
the total.
sales tally and a cross (x( placed M to to
the left side Of the entry.
The Audit Department will credit the
Sales Department with the value of
the articles sold and will credit the
amount of the tax to the Internal
Revenue Department.
1t is deemed advisable that a spc-
clal account be opened for each section
oi the Bill under which it is expected
20 collect taxes, namely, 902, 904, 905
and $50
This method is recommended because
1T Will facilitate examination by the
Government and Will facilitate audit
on the part OF the tax paying houses.
To Use Perforated Tag
The method of the j. L. Hudson Com
pany, Detroit, will closely follow the
plan of Macy's. Tags on taxable mer-
chandise will show the item, price,
amount exempt, the taxable amount
and the amount of the tax. The tag
used will be perforated one, printed
in black on red. One half of the tag
Will go to the customer and must be
returned in case of requested refund
The other half of the tag goes to the
wrapper and is sent to the audit de-
partment. Unless the Bureau Of In
ternal Revenue should object. IIudson's
purposes to make permanent record
according TO Paragraph 904 from these
tags rather than from sales checks.
The sd lescheck itself viii be like the
avoid audit for tax record.
Separate Tax Tag Advised
Nc matter what system Is used, the
bulletin advises merchants to have the
amount of the tax on each sale marked
rs separate item on the sales slip and
urther advises that the tax be marked
by cross, ring, or some other dis
tinguishlng feature 70 enable the audit
ing department to pick out the tax
The tax, according to the bulletin
should not be figured into the total
amount of sales credited to any one
department or to nn individual sales
person for the payment Of commissions,
and all taN items should be kept aepa-
rate IN the saleaperson's record
The bulletin adds that the method
OF collecting the taNea on merchandise
! soid on the lnstallment plan probably
WAl hinge on when the title to tha
ede changea hands Ia most natalls
ment anles the etore retAina title until
the final payment ia made and thia
Will protect the merchants, It ia be.
lieved, from tho neceaeity OF PAYING
taX as eoon as uueh merchandise
Ia eolected
.