Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1919-05-13


(Ofloial Statement by Treasury Department.
RATE OF TAX. The tax 10 measured
BY the price for which the food or drink
10 sold. It 10 ON the actual Gales price
ct the rate Of / cent for each ten cents
or fraction thereof Of the amount paid
for any OF the articles mentioned In
Section $50. Each sale for ton cents or
less 10 taxed one cent, and each sale for
over ton cents IL taxed one cent for each
ten cents or fraction thereof Of the price
the tax ID, upon the whole Of the amount
Of the price paid BY the purchaser when
the price 10 paid at one time, though In
payment for several articles which are
the subject Of single transaction OF
purchase and sale, the total price paid
ID tho unit for computing the tax, thus,
II the purchaser orders two sodas at the
same time, each sold for fifteen cents,
the tax 10 three cents and not four cents,
II, however, he buys one soda for fifteen
cents, the tax 10 two cents and II be I'm.
mediately purchases another fifteen
cent drink the tax Ia two cents on the
second sale which cannot be treated as
part of the first sale. Any means by
which separate purchasers pool their
order for the purpose Of defeating or
escaping the tax imposed by Section $50,
shall be carefully guarded against by the
vendor for its employment subjects the
purchaser and the vendor II he connives
10 1t, to the penalties provided In Section
1908 Of the ACT.
ARTICLEs TAXABLE. Examples, the
following articles Of food or drink are
subject TO tax within the meaning of
Section $50 of the Revenue Act Of 1918.
All beverages when compounded or
mixed at the fountain such as orangeade,
Lemonade, pineapple juice, coca cola, root
beer, moxie, phosphates, fruit and flavor
ing syrups compounded or mixed with
carbonated water or plain water, milk
shakes In any form, matted milk shakes
In any form, cream and egg shakes,
ice-cream, ice.cream sodas, ice.cream
sundae, Ice cream sandwiches, favored
Ices and oil other similar foods or drinks.
This list however is not intended or
considered to be complete but merely
illustrative of the class Of articles sub.
jeot to tax.
BEVERAGES NOT TAXABLE. Ex.
amples: There are certain drinks which
are often sold ct soda fountains, Ice
cream parlors or similar places Of busi-
ness which are not regarded as soft
drinks or ice cream products or similar
articles of food or drink within the
meaning of Section $50 of the Revenue
Act of nineteen. ghteen. Such bever-
ages are exemplifled by hot beef tea,
coffee, hot, cold or iced, tea, hot, cold or
iced, buttermilk, milk, hot chocolate or
cocoa, hot clam broth, hot clam bisque,
hot tomato bisque and hot tomato
bouillon. No tax applies on the sale of
beverages or drinks such as ginger ale,
root beer, moxie, mineral water, etc.,
when served directly from container
in which case the manufacturer tax on
such drinks has already been levied, see
section 828 of the Revenue ACT of 1918.
However II any of the drinks or bev-
erages herein mentioned are compounded
or mixed with carbonated water or ex-
tract or other ingredient at the fountain,
they are taxable beverages, but taxable
as medicinal preparations. There are
certain medicines such as bromo seltzer,
citrate of magnesia, rochelle salts,
seiditz powders, bicarbonate of soda,
castor oil, epson salts and essenio oil
pepsin which are often sold at soda
fountains, ice-cream parlors and similar
places of business which are not soft
drinks or ice.cream products or similar
articles of food or drink and hence are
not taxable.