The Monticellonian., 1919-05-09
ALL SOFT DRINKS BECOME TAXABLE
 MAY FIRST
Collector Of Internal Revenue Explains S0ft-drink Tax which Became Effective May 1st.

Little Rock, May 8-Due tc
 confusion in the initial opera.
 tion and collection of the new
 tax on soft drinks which was effective May 1, Jack Walker Collector of Internal Revenue, today issued the following state ment:
 All soft drinks are taxable. Drinks that are bottled and put in containers ready for serving without further mixing or com pounding are taxpaid by the manufacturer or bottler and there is no additional tax due on such drinks when sold at a fountain; in other words, deal CTS are not required to collect direct from the consumer any tax on bottled drinks when sold. It is, of course, expected that the bottlers tax should be pass ed on to the consumer, but there Is no direct payment by the con sumer on bottled drinks.
 l
 "The soft drink tax that is paid by the consumer is on all beverages which are compound ed or mixed, and on ice cream when sold, at the soda fountain, ice cream parlor, or similar places of business for consump- tion in or in proximity to such places of business, but does not include coffee, tea, buttermilk, milk, hot chocolate, clam broth, and the like, nor does it include medicinal preparations sold at fountains. Including in taxable beverages are phosphates, root beer, coca cola, when mixed or compounded at the fountain, milk shakes, ice cream. iee cream sundaes, etc.
 "The tax is based upon the whole amount of the price paid by the purchaser and is at the rate of one cent on each 10 cents or fraction of the sale price. When the price is paid at one time, though for several arti- cles which are the subject af a single transaction of purchase and sale, the total price paid is the unit for computing the tax. Thus if the purchaser orders two sodas at the same time, each sold for 15 cents, the tax is 3 cent and not 4 cents. If how ever, he buys one soda for 15 cents the tax is 2 cents, and if he then immediately purchases another l5 cent drink the tax is Z cents on the second sale which cannot be treated as a part of the first sale. Any means by which purchasers pool their order for the purpose of defeat ing or escaping the tax shall be carefully guarded against by the vendor for it's employment subjects the purchaser and the vendor, if he connives in it, to heavy penalties,
 Printed regulations will be furnished within a short time to all dealers in the state", said Collector Walker. land person having questions not covered n lhe senerai regulations should make inquiry of the Collector direct.
 Collector Walker said that dealers should keep daily records showing separately the amavnt received for a.sh sla.s of tax able transactions, grouped ac- cording to the amount of the sale and that the tax should be turned over to the government, on or before the last day of each inshth Tor the business done during the preceding month. He stated that suitable forms will be furnished to dealers be. fore the first due date fer l~. turn. sse particular method for accounting for this tax is pres- cribed by the Department and any method is acceptable that clearly shows the tax due aa. cording to the groups indicated.