Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1919-05-02
ICE CREAM AND
SOFT DRINK TAX
One Cent For Each Ten Cents or
Fraction Must Be Paid on
Each Sale
PENALTIES ARE HEAVY
FOR VIOLATIONS
All Soft Drinks and Ice Cream Prod
ucts Come Under Scope of New
Revenue Bill

One of the provisions of the new fed
eral revenue law that will effect every
| body and which ought to go Il long way
toward reducing the deficit which I'm
Gle Sam has been pilimg up, on account
| OF war necessities and the countless
eXtrayagances that went along with it,
European jnnkets without end and lack
of business management generally. is
| the new tax on ice cream and soft
drinks.
These commodities were doubtless
claSsed by the trainers of the law as
lamong the luXuies and the tax GER
tainly might as well be on them as on
anything else Of general consumpti0n
The tax is measured by the price for
which the food or drink is sold 1t is
on the actual sales price at the rate of
| cent for each 10 cents or fraction
thereof of the amount paid for any Of
the articles mentioned in Section G30
Each sale for 10 cents or less is taxed
| cent and each sale over 10 cents is
taxed | cent for each 10 cents or frac-
ton thereof of the price. The tax is
upon the whole amount of the price
paid by the purchaser when the price
is paid at one time though in payment
for several articles which are the sub
ject Of single transaction Of purchase
and sale the total price paid is tt unit
for computing the tax. Thus, if the
purchaser orders two SodaS at the same
time each sold for u cents, the tax is
3 cents and not cents If however,
he buys one soda for - cents the tax
is , cents and then if he Immediately
purchases another - cent drink the tax
is cents on the second sale which can
not be treated as part of the first sale.
Any means by which separate pur-
chaserS pool their orders for the .pur-
pose of defeating or escaping the tax
imposed by Sec. 630, shall be carefully
guarded against by the vendor for its
employment subjects the purchaser and
the vendor. if he cOnnives in it to the
penalties provided in Section 1908 of
the Act.
The following articles Of food or
u
meaning of Section 630 of the Revenue
Act of 1918: All beverages when com
pounded or mixed at the fountain, such
as orangcade. lemonade, pineapple
iuice, COCO cola. root beer, mOXi phOS-
pilates. fruit and favoring syrups com
pounded or mixed with carbonated
water or plain water milk shake in any
form, matted milk shakes in any form,
cream and egg shakes, ice cream, ice
cream sodas. ice cream smdaes, ice
cream sandwiches. favored ices, and all
other similar foods or drinks. This
list, however. is not intended or consid
cred to be complete but merely illustra-
tive of the class of articles subject to
tax.
There arc certain drinks which are
often sold at soda fountains, ice cream
parlOrs. or similar places Of business
which are not regarded as soft drinks
or ice cream products or similar arti-
cles of food or drink within the mean-
ing of Section 630 of the Revenue Act
of 1918. Such beverages are eXempli-
fed by hot beer, tea, coffee, hot, cold or
iced tea hot, cold or iced buttermilk
hot chocolate on cocoa, or ~clam broth.
hot clam biSGue, hot tomato biSque, and
hot tomato bullion.
No tax applies on the sale of bev-
erages or drinks such as ginger ale
root beer. moXie mineral water, etc.
when served directly from container
in which case the manufactures of
such drinks has already paid tax
(see Section 62S Of the Revenue Act Of
1919. However if any of the drinks
or beverages herein mentioned are
compounded or mixed with carb0nated
water or extract, or other ingredient at
the fountain they are taxable bev-
cragcS There are certain medicines
such as brOmOSeltZer. citrate of mag
nesia. rochelle salts. sedlitZ powder.
bicarbonate Of soda, castor oil, EPSON
salts. and essence of pepsin which are
often sold at soda fountains, ice cream
parlors and similar places of business
which are not soft drinks or ice cream
products or similar articles of food or
drink and hence are not taxable.
The commissioner rules that ice
cream served with meals at restau-
rants. hotels and cafeterias is not sub
ject TO tax.
DEATH OF MRS. s. BUNTON