Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-05-25
HOW To COLLECT
SOFT DRINKS TAX
FULLY EXPLAINED
Internal Revenue Department
Issues an Official Statement.
Clearing Up Some Points.
Not Clear in Law.

For the purpose of clearing up
some of the Misunderstanding which
have existed both on the part of
dealers and the public, regarding the
collection of revenue tax on soft
drinks, the internal revenue depart
ment has issued the following official
statement:
The tax is ! cent for each 10 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
daes, cor similar articles of food or
drink when sold for consumption in
or in proximity to such place of bust
ness" The purchaser cannot escape
the tax by stepping outside of the
place where sold to consume his soft
drink or ice cream. Ice cream in ConaS
is taxable. because sold under condi-
tons which indicate that it is to be
consumed lin or in proximity to the
place of business When ice cream
is sold under conditions which indi-
cate that il would usually be con-
sumed in or in proximity to the prem
ises, the fact that the purchaser does
not conSum 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 con-
sumption 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
separate and apart from meals. If ice
cream 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 COM
monty known as soft drinks which
are compounded or mixed at soda
fountain are subject to the tax Illus
trative of these are orangeade, lemon
ade. pineapple juice. coca cola, root
beer, moXie, phosphates, fruit and
flavoring syrups mixed with plain or
carbonate water, milk shakes, matted
milk shakes. 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 parlors and SIM
liar places of business are not tax
able. Such beverages are hot beef
tea, coffee, tea. buttermilk, milk, hot
chocolate or cocoa. hot clam hisGue,
hot tomato bisque and hot tomato
bouillon. Medicinal preparations such
as bromo seller. citrate of magneSia,
rochelle salts. hicarhOnate of soda,
aromatic spirits of ammonia, EPSON
salts, essence of pCpsin. etc, sold at
the fountain also escape the soft
drink tax. 10 tax applies on the sale
of beverages such as ginger ale, foot
beer, mineral water etc. when served
from closed containers, because 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 / cents. the tax is 3 cents and
not cents IT, however, he buys
one cent soda and Immediately
thereafter purchases another IS cent
drink, the tax is cents on each sale
Dealers are advised to guard separate
customers against pooling their pur-
Chases to escape the tax. The penalty
for wilfully attempting to evade the
tax is a fine of not more than $4,000
or not more than one 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, crcuses,
shows and similar places are taxable.