The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-05-06
rho Commissioner Of Internal Reve-
~. Makes a Tentative Ruling
on the Collection Of
Luxury Taxes.
NOT REPAIRS AMI FRINGE
a,,t the Reports Must Be In Good
shape, and tho Calculations
properly Made First Of
Every Month.

Tho COIululG0AOAASA
hos made the following state
~ IN he nature of a tentative
n,i;ne with reference to the collec-
ION of the luxury tax under section
~ ~ tbe venue act of 1918:
The printed regulations relating
.hareto will be issued within he
next ten days.
,o1s imposes a tax upon certain
astic,es sold at retail in excess OF a
anaciaed price. The tax is to be paid
hy The to the vendor and
IN e NOT be absorbed by the vendor
IN the sale Of the article. This tax
has been referred to az the luxury
tavn II is effective on May l, 1919,
and the rate. OF tax IS ten per cent
~ the amount paid in excess OF the
price specifically mentioned IN the
act when such article Is SOLD by the
vendor.
Merchants Must Make Return.
Merchants will be required to rem
der returns covering the tax col
ieeted during a given month and al
though their records shall be kept in
such manner as to indicate the tax
received on each sale, the form Of
monthly return required of them
shall show simply the aggregate
amount OF tax collected under each
snbdiyision of the section Of the
law that is, the total amount Of tax
collected on sales of mems and boys
hats. under one head, and women's
md misses hats. bonnets, hoods, etc.,
lnder another head, and SO on, fol-
owing the classification by subdivi-
kion of the section. This monthly
keturn must be sworn to by the ven-
4. Sor and filed by him with the collec-
- Ior for the district in which the ven
Ior has his principal place of bust
Il. less. Return must be filed on or be-
IA Ibre the last day of the month follow
nahg the n in which the sales were
made. In other words, the return
bvering sales made in May must be
eld with the collector and the taxes
ar aid on or before the last day of
"a une.
Computing the Tax. !
az The tax under this section Is
lDs Measured by the price for which b
70 2rticle is sold. 1t is On the actual
uales price and not on the list price,
Where that differs from he sale
Price. The tax a not be included
b. the price but must be billed as q
~eparate item.
If articles are purchased which are
lubject TO tax and are subsequently
returned to the vendor, the sale being
: tescinded, no tax is payable. II the
lax has been paid it should be re-
funded to the purchaser and the
5.-fendor may take credit therefor
20otgainst the tax in the subsequent
III honthly return. If a taxable article
sold by the vendor and later ex-
hanged for another article at q
4 higher price the purchaser paying
ne difference, the purchaser must
lay the tax on the second sale and
be vendor shall give credit or refund
an the purchaser of the tai paid on
An nRch of the taxable articles returned
nd take a credit thereto, and in
Jude it in his subsequent monthly
kturn.
Repairs and Fringe Not Taxable.
The tax attaches when the article
peh} sold, that is to say, when the title
( 4 II passes from the vendor to the
e atrchaser,
es Ordinary repairs or alterations are
taxable. The unit of measure
'hL ent in determining the price for
rla1 e purpose OF the tax on carpets
q rugs is the square yard. All
,rns cal yardage therefore must be CON
rted into square measure, and
ocp nge will not be considered in com
ing the yardage.
% he method of keeping accounts
merchants shall disclose the total
ss noer and amount of sales Of each
lnd tne taxable articles, including any
reg dlts or refunds, and the books of
sia1 ry person liable to tax shall be
n at all times for the inspection
ne examining revenue officers.
! Ia computing the tax a fractional
~, OF a cent shall be disregarded
one tss 1t amounts to one-half OF a
licn or more, in which Ease it shall
increased to a full cent.