The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1919-05-09
THE LUXURY Tx.


enue made the following statement
in the nature of tentative ruling
with reference to the collection of
the Luxury Tax under Section 904
of the Revenue Act of 1918.
The printed Regulations relating
thereto will be Issued within the next
ten days.
Section 9O4 of the Revenue Act of
1918 imposes tax upon certain ar
ticles sold at retail in excess of a spe-
cited price. The tax is paid by the
consumer to the vendor and cannot
be absorbed by the vendor in the sale
of tax is 10 per cent of the amount
of the article This tax has been re-
ferred to as the Luxury Tax" 1t
is effective May /, 1919, and the rate
paid in excess of the price specifical-
ly mentioned in the Act when such
article is sold by the vendor.
Merchants will be required to rem
der returns covering the tax collected
during given month and although
their records shall be kept in such
manner as to indicate the tex receiv
ed on each sale, the form of monthly
return required of them shall show
simply the aggre gate amount collect
ed under each subdivision of the sec
ton of the law, that is, the total
amount of tax collected on sales of
mems and boys hats, under one
head, and women's and misses hats,
bOr &c n
head, and so on. This monthly re-
and filed by him with the collector
turn must be sworn to by the vendor
for tthe district in which the vendor
has his principal place of business.
The return must be filed on or before
the last day of the month following
the one in which the sales were made
In other words, the return covering
the Collector and the taxes paid on or
sales made in May must be filed with
before the last day of June.
The tax under this section is meas
ured by the price for which the arti-
Gle is sold 1t is on the actual sales
price and not on the list price, wheer
that differ sfrom the sale price. The
tax cannot be included in the price,
but must be billed as separate item.
If articles are purchased which are
subject to tax and are subsequently
returned TO the vendor, the sale be-
ing rescinded, no tax is payable. If
the tax has been paid it should be re-
funded to to the purchaser and the
vendor may take credit therefor
against the tax in the subsequent
monthly return. If a taxable article
is sold by the vendor and later ex-
er price, the purchaser paying the
changed for another article at high
difference, the purchaser must pay
the tax on the second article on sale
and the vendor shall give credit or
paid 'on each of the taxable articles
refund to the purchaser of the tax
returned and take credit therefor
and include it in his subsequent
monthly return.
The tax attaches when the article
is sold, that is to say, when the title
to it passes from the vendor to the
purchaser.
Ordinary repairs or alterations are
not taxable The unit of measure
ment in determining the price for the
purpose Of the tax on carpets and
rugs is the square yard. All lineal
yardage therefore must be converted
into square measure, and fringe will
not be considered in computing the
yardage.
The method of keeping accounts
by merchants shall disclose the total
number and amount of sales of each
of the taxable articles. including any
credits or refunds, and the books of
every person liable to tax shall be
open at all times for the inspection of
examining revenue officers.
In computing the tax fractional
part of a cent shall be disregarded
unless it amounts to one-half cent
or more, in which case it shall be in
creased to full cent