The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-05-07
SODA FOUNTAIN
PUZZLE SOLVED
That Is, If You Are. Good Enough at
Arithmetic to Make the Additions
and Multiplications
Fast.
PARTIES MAKE A TOTAL
But Each Successive Buyer Pays a
New Tax to Uncle Sam, and
Everybody Continues to
Damn the Kaiser.

The commissioner Of internal reVe-
nue. has made the following state
ment in the nature of tentative rul-
ing with reference to the collection
OF the tax upon soft drinks. ice
/ cream and similar articles sold at
soda fountains and similar places OF
business.
| The printed regulations relating
thereto will be issued within week
| The law
Section s3O-That on and after
May l, 1919, there shall be levied,
assessed, collected, and paid a tax
of one cent for each ten cents or
fraction thereof Of the amount paid
to any person conducting soda
fountain, ice cream parlor, or other
similar place of business, for drinks
commonly known as soft drinks, COM
pounded or mixed at such place or
business, or for ice cream, ice cream
sodas, sundaes, or other similar
articles of food or drink, when any
of the above are sold on or after such
date for consumption in or in
proximity to such place OF business.
Soda Fountain Goods
Effective date.-The tax is upon
ice cream, ice cream sundaes and
soft drinks, and similar articles or
food or drink sold at soda fountains
and similar places of business on or
after May /, 1919.
Who is a vendor.-For the purpose
of the tax and as used in these regu-
Ilations the term vendor" means an
individual, partnership, association.
or corporation engaged in the bust
ness of selling any of the articles
enumerated in section $50 to pur-
chaser for consumption. Thus,
vendor may be manufacturer, job
Der, WHOLESALERS, retailer. trustee In
bankruptcy, receiver, or peddler.
Rate of tax.-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 one cent
for each ten cents or fraction there
OF of the amount paid for any OF the
articles mentioned in section $50.
Each sale for ten cents or less Is
taxed one cent and every sale for
over ten cents is taxed one cent for
each ten cents or fraction Thereon OF
the price.
me tax is upon the whole amount
when the price is paid at one time
though in payment for seVeral
articles which are the subject OF
single transaction OF purchases ana
sale, the total price paid IS the uni.
/ for computing the tax. mus II
the purchaser orders two sodas at
the same time, each SOLD Tor nIteen
cents, the tax is three cents ana not
four cents. If, however, he buys one
soda for fifteen cents the tax is TWO
cents and If he then Immediately
purchases another fifteen-cent drink
the tax is two cents on the second
sale. which can not be treated as
part Of the first sale. Any means
| by which separate purchasers pool
| their order for the purpose OF de-
feating or escaping the tax imposed
| nv section $50 shall be carefully
guarded against by the vendor, for
! its employment subjects the pur-
chaser and the vendor or he con-
hives in it, to the penalties provided
I in section 100 of the act.
Push Cart is Place Of Business.
Place of business-The tax is
upon the price of certain commodi-
| ties paid to any person conducting
n soda fountain, ice cream parlor, or
other similar place of business. Inc
words "other similar place of bust
ness" refer primarily to the charac-
/ tor of the business transaction rather
than TO any physical resemblance to
| the Mace where such business is
done. Whether person selling the
laboye described articles is conduct
1 ing n place of business similar TO a
soda fountain or ice cream parlor Is
a question dependent on the facts in
! each particular case. Sales OF soft
drinks ice cream, and similar articles
| of food or drink otherwise taxable,
when made in the course OF his reg
lular business by travelling vendor
whether by means OF motor
vebicle pushcart, or otherwise) are
subject to the tax imposed by section
I62o Sales of soft drinks, ice cream
and similar articles by individuals or
organizations, such as religious, edu-
cational or charitable societies, on
snecial occasions only. as church
Festivals, social parties, etc., are not
taxable such sales in stands, booths
and similar places, at agricultural
fairs. racing parks, public exhibit
ltions, circuses, shows and similar
nlaces are taxable. The distinction
! lies in the fact of the sale being
made by the person conducting a
place of business, even though te7l-
porariIy. and merely incidental salcs
which can not properly be consider
ed business Sales of soft drinks.
/ ice cream. and similar articles CT
GOOD or drink are not taxable wnen
made in the regular course OF bust
ness at a hotel, restaurant, cafeteria,
lunch room, or club house, unless
such articles are sold separate and
apart from meals.
viii You Take II Home?
Consumption at place of business.
The above section provides that
the tax shall be levied upon the safe
of "soft drinks, ice cream. Ice cream