The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-05
TAX REGULATIONS.
CLEAR YEXED POINTS
New Revenue Law Affects
Practically All Luxuries
on Market.
EXPLAIN BOOST IN PRICES
Treasury Department Issues
Detailed Instructions to
Sellers and Consumers.
Special Despdtch to THn Soy.


WASHINGTON, May 4.-Regulations
covering many OF the new taxes in the
and works Of art. that intimately affect
the individual in purchases of Injuries
and works of art In travel and In the
purchase OF automobiles. chewing gum,
&C. have been prepared by the Treasury
Department
These regulations explain the new
taxes In detail and give the consumer
an accurate statement of what he is
expected to pay on purchases and why
The Internal Revenue Bureau has been
besieged with. questions on these SUBJ
jects and with complaints from citizens
who feel that not at all of the boost in
prices is going to Uncle Sam. They are
calling on the Revenue Bureau by thou
sands.
To make the new regulations and the
new taxes as plain as possible the bu-
reau has prepared detailed regula tions
In many respects they are technical
and designed for the guidance of trade
people in collecting the taxes. In large
measure. however. they tell the con-
sumer just what Is expected of him. so
that when his favorite gum or his pet
fishing fly is jumped in price he knows
just how much is the tax.
Three sets OF these regulations are
being made ready. The first covers ex-
else taxes on sales by many ma nufac-
turers. producers and imports al, COW
ers everything from automobiles to soap
powders The second governs collection
Of taxes on art works and Jewelry. The
third on transportation and other facili-
ties,
How the Tax IL PAID,
On excise taxes the regulations pro-
vide:
The tax is levied on automobiles. auto
mobile parts and accessories, musical
Instruments, sporting goods, chewing
gum. cameras, Photographic films and
plates, candy. firearms, shells and cart
ridges, hunting knives, dirk knives and
daggers. electrical fans, thermos bottles,
smokers articles, slot machines, auto
matte weighing machines llveries, hunt
ing garments, fur goods. pleasure boats,
toilet soaps and soap powders.
The tax ranges from 8 per cent. on
automobile trucks and wagons to 100
per cent on dirk knives and daEgers,
The tax Is payable by the manufac-
turer, producer or importer on sales
made directly through him or by his
agent. 1t is measured by the price
for which the article is sold and not
on the list price. where that differs
from the sales price. II the price of
taxable article is increased to cover
the tax the tax Is on such increased
price. The tax is payable on sale
whether the purchase price actually is
collected. Discounts for cash or other
discounts made subsequent to the sale
can be deducted In computing the price
for the purposes of the tax. Commits
sions TO agents and other expenses of
the sale are not deductible.
II articles sold are returned and the
sale resclnded no tax is payable. II al
ready paid 1t may be credited against
the tax included In a subsequent month
ly return.
The regulations define certain articles
which are and are not taxable. Base
ball, football and basketball trousers
and shoes are taxable. but Jerseys and
sweaters are not taxable unless espe-
c!ally made or decorated in such a way
as to Identify them as part of a uniform.
Gymnasium and playground apparatus
are not taxable. The tax on sporting
goods Is 10 per cent
The tax of per cent. on candy does
not include cakes and pastry nor bitter
chocolates, which need the addition of
sugar to make them pleasing to the
taste.
10 Per Cent. on servants' Livery.
The tax OF 10 per cent on liveriee
and livery boots and hats applies to
uniforms OF personal or domestic SER
wants or Of doormen. footmen, pages,
bellooys and similar employees OF clubs.
hotels, theatres, cafes, stores and SINH
lar places" Uniforms of employees of
public service corporations such as rail-
road, telegraph and telephone compa-
MES are not taxable.
The 10 per cent. tax on fur goods is
not confined to wearing apparel Fur
rugs and fur robes are subject TO the
tax
The tax does not attach to the sale
OF an article which Is shipped to a for
eisn destination by the manufacturer
himself or sold by him for export and
exported by the purchaser.
The law requires that monthly returns
and payment of the tax be made on or
before the last day of each month cover
Ing all proceedings for the preceding
month, the first return to cover all
transactions after February "a, 1918,
and before April /. 1919.
The penalty for failure TO make a
return and pay the tax within the time
prescribed is fine OF not more than
1900 and for wilful refusal a fine OF
not more than $4,000 or Imprisonment
d
vendor misrepresents the tax he Is guilty
OF misdemeanor and is liable to fine
OF $1,000 and imprisonment for one year.
The regulations on jewelry and works
Of art provide:
The tax on works of art Is 10 per
cent. and Is on the sale OF such articles
ny any person other than the artist or
70 an educational institution or public
art museum. The tax attaches whether
the sale is made directly by the owner
or through his agent. II made through
an agent the tax Is payable by the
owner, but the agent may make return
ana pay the tax for the owner.
The tax applies to all sales from pri-
Nate owner to private owner or from
private owner to dealer or from dealer
TO dealer or from dealer to private
owner. Sales by the artist are not tax
able
II taxable picture is sold In a
frame the tax attaches to the price for
which the picture and frame are sold.
JeweIry Pays 8 Per Cent.
The tax on jewelry. whether real or
imitation, Is per cent. for which sold.
Jewe.ry il defined as ARTICLES to be
worn on the person or apparel for the
purpose OF adornment. such as brooches.
rings, chains. cum buttons. necklaces,
ioos and shoe buckles. Articles carried
IN handbag or carried In a pocket, such
as cigarette cases. eyeglass cases. pencils.
powder boxes, garter buckles, purses are
taxable as jewelry only II ornamented
WIN precious or semi-precious stones or
limitations thereof. The regulations point
Nuh loia