Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-05-21

Bureau Explains
Tax on Soft Drinks

Washington. May 2l,--Iuquiries re-
ceived by the bureau OF Internal reye-
nue. and collectors indicate a misun-
derstanding on the part of not only a
large portion ~ the public. but dealers
themselves regarding the tax ON soft
drinks, which became effective MAY 1.
Reports reaching the bureau are that
some dealers are not collecting the
tax While others are collecting extra
pennies for drinks which are not tax
able.
To correct these mistakes the bu-
goau has issued the following state
ment relating TO the collection OF the
tax:
The tax liz J cent for each 10 cents
OF fraction thereof on the amount paid
at soda fountains, ice Cr,am parlors OF
similar places of business Oh soft
drinks, ice cream, ice cream sundaes
'or similar articles of tuod or drink
When sold for Consumptlon in or in
proximity TO such place Of business"
The purchaser can not escape the tan
by stepping outside of the place where
suid to consume his soft drink or ice
cream. lcecream In cones is taxable
because sold .nder conditions which
indicate that 1t Is to be consumed in
or in proximity 10 the place OF bust
ness" When ice cream is sold under
conditions which indicate that II would
usually be consumed In or In proXim
ity To The premises. the fact that the
purchaser does not consume IL there
put carries IL away does not render 1t
free from the tax. Ice cream sold in
boxes and ice cream sIdas or other
soft drinks sold in pitchers or buck
cts for home consumption are exempt.
Sales of soft drinks. ice cream and
similar articles of food and drink IN
hotels. restaurants, cafcterias and CLUB
houses are not taxable unless sold
separate and apart from meals. II ice
cream or "a soft drink is the only re-
freshment ordered in such places the
tax applies Such sales at soda foun-
tains are taxable even tho sold as part
of Il meal.
In general such beverages commonly
known as soft drinks which are com
pounded or mixed at soda fountain
are subject to the tax. illustrative al
these are orangeade, lemonade, pine
apple Juice, coca cola roo; beer, moNie,
phosphates, fruit and flavorinS syrups
mixed with plain or Carbonated water.
milk shakes. cream and egg snakes
ice cream. ice cream sofas, Ice cream
s,mdaes. ice cream sandwiches, and
favored ices.
Certain drinks often sold at soda
fountains, ice cream parlors ana sum
liar places of business are not taNapie'
Such beverages rc hot beef tea, cor
fee. tee buttermilk, milk, hot choco-
late or cocoa. hot clam hlsQuc not
tomato bispue and hot tomato pouii-
Ion Medicinal! preparations Such as
bromo- settler citrate of magnesia, ro-
chelle salts. scillets powders. blcar-
bonate of Soda aromatic spirits OF
ammonia, epson salts, essence of pep
sin. etc, sold al the fountain also
escape the soft drink" tax. No tax
apnljes on the sale of beverages such
as ginger ale. root beer, uivNie' MN
eral water, ETC. when served lroti'
closed containers, because manu-
facturer's tax on such drinks mas al
ready been levied
The tax is On the whole amount OF
the purchase price. Thus, II Il pur-
chaser who treats II friend orders
two sodas at the same time each sen
ing for Is cents. the tax IL . cents anu
not cents. #. however. he buys one
II cent soda and Immediately thereaf-
ter purchases another i cent drink.
tho tax is > cents on each sale. Deal
ers are advised 10 guard against seP
arate customers poolin; their pui
chases to ESCAPE the tax. The pehait'
FOR wiifully attempting 20 ethde the
tax is a fine vi not more IMAM slo''o0
or not more than one years itpflAoii
ment or both. together with the COSY
of prosecution.
sales of ice cream or soft drinks oy
rol,oious charitable or educational So
cieties on special occasions Su'h q"
church festivals, picnirs. etc" are no.
t,yab,e Such sales in stands an"
hooths at agricultural fairs. racing
parks public exhibitions circ"ses'
shows and similar places are 'aNa''N'