The Belding banner-news. (Belding, Mich.) 1918-1973, 1919-05-07
COSTS MORE TO
ENJOY A DISH
OF ICE CREAM
LOCAL DEALERS NOW CHARGE
LUXURY TAX ON ALL ICE
CREAM AND SUNDRIES.

CREAM AND SUNDRIES.
We are in receipt of the following
from Revenue Collector Z. j.. Doyle,
at Grand Rapids, relative to the new
tax on ice cream and like dishes Lo-
cal dealers began charging the war
tax on Thursday, May /, as per the
provisions of the new law
The commissioner of internal rev.
enue made today 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 foun-
tains and similar places of business.
The printed regulations relating
thereto will be issued within week.
ICE CREAM AND SOFT DRINKS
The Law.
Sec. 630 That on and after May
/. 1919. there shall be levied, assess
ed. collected and paid tax of / cent
for each 10 cents or fraction thereof
of the amount paid to any person cen
Quoting a soda fountain. ice cream
parlor or other similar place of bus
mess, for drinks commonly known as
soft drinks, compounded or mixed at
such place of business, or for ice
cream, ice cream soda. sundaes. or
other similar article 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 bus
mess.
Effective date. The tax is upon
ice cream, ice cream sundaes and soft
drinks, and similar articles of food or
drink scld at soda fountains and SIM
liar places of business on or after
May 1, 1919.
Who is a vendor. For the purpose
of the tax and as used in these regu-
lations 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 a pur-
chaser for consumption. Thus, a
vendor may be a manufacturer, job
Der, wholesaler, 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 CT | cent for
each 10 cents or fraction thereof of
the amount paid for any of the arti-
cles mentioned in section $50. Each
sale of 10 cents or less is taxed at /
cent and every sale for over 10 cents
is taxed / cent for each 10 cents or
fraction thereof CT 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 arti-
Cl Nnfhf - - L.
transaction of purchase and sale, the
total price paid is the unit for com
putting the tax" Thus. if the DUR
time, each sold for Is cents, the tax
is cents and not cents. If, how
ever, he buys one soda for is cents
the tax is 2 cents and if he then i'm
mediately purchases another Is cent
drink the tax is cents on the second
sale. which cannot be treated as part
of the first sale. Any means by
which separate purchasers pool their
order fer the purpose of defeating or
escaping the tax imposed by section
$50 shall be carefully guarded against
by the vendor, for it's employment
subjects the purchaser and the vendor
Off he connives in it, to the penalties
provided in section 1908 of the act.
Place Of Business. The tax is upon
the price Of certain commodities paid
to any person conducting soda foun-
tain, ice cream parlcr or other SIM
liar place of business. The words
"other similar place of business" re-
fer primarily to- the character of the
business transacted rather than to
any physical resemblance to the place
where such business is done. Whether
peron selling the above described
articles is conducting place Of bust
ness similar TO a soda fountain or ice
cream parlcr is a question dependent
on the facts in each particular case.
Sales of soft drinks, ice cream anc
similar articles of food or drink
otherwise taxable, when made in the
course of his regular business by a
travelling vendor whether by means
of motor vehicle, pushcart or other
wise) are subject to the tax imposed
by section $50. Sales of soft drinks,
ice cream and similar articles by in
dividuals or organizations such as re-
ligious, educational, or charitable So
cieties on special occasions only, as
chVrch festivals, social parties, etc,
are not taxable: such sales in stands
booths and similar places at agricul-
tural fairs, racing parks, public ex-
hibitions, circuses, shows and imilar
place are taxable. The distinction
lies in the fact of the sale being made
by the person conducting a place OF
business, even though temporarily,
and merely incidental sales which
cannot properly be considered "bus-
mess" Sales of soft drinks, ice
cream and similar articles of food
or drink are not taxable when made n
the regular course of business at a
hotel, restaurant, cafeteria, lunch
room or club house, unless such arti-
cles are sold separate and apart from
meals.
Consumption at place of business
The above section provides that the
tax shall be levied upon the sale OF