Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1919-05-25
OPERATIONS OF
SOFT DRINK TAX
ARE EXPLAINED

WASHINGTON, D. c., May 24.-In-
quiries received by the bureau of in
ternal revenue and collectors indi-
cate a misunderstanding on the part
of not only a large portion of the
public, but dealers themselves re-
garding the tax on soft drinks which
became effective May 1. Reports
reaching the bureau are that home
dealers are not collecting the tax
while others are charging an extra
penny for drinks that are not taxa
BILE
To correct these mistakes the bu-
-reau has issued the following official
statement relating to the collection
of the tax:
Cent for Each Dime.
The tax is one cent icr each ten
cents or fraction thereof on tile
amount paid at soda fountains, ice
cream parlors or similar places
business on soft drinks, ice cream,
sundaes, ''or similar articles of food
Or drink when sold for consumption
in or in proximity to such place of
business" The purchaser cannot es-
cape the tax by stepping outside of
the place where sold to consume his
soft drink or ice cream. Ice cream
in cones is taxable because sold I'M
der conditions which indicate that
it is to be consumed "in or in prox-
unity to the place of business" When
ice cream is sold under conditions
which indicate that it would usually
be consumed in or in proximity to
the premises the fact that the pur-
chaser does not consume it there but
carries it away does not render it
free from tax. Ice cream sold in box
es and ice cream sodas or other soft
drinks sold in pitchers or buckets
FOR hon consurplicJ are exempt,
l.. es of soft drinEs ice cream and
similar articles of food and drink in
hotels, restaurants, cafeterias and
club houses are not taxable unless
sold separate and apart from meals.
If ice cream or soft drink is the
only refreshment ordered in such
places the tax applies. Such sales at
soda fountains are taxable even tho
sold as part of meal.
Fountain Drinks Taxed.
In general such beverages COM
monty known as soft drinks which
are compounded or mixed at soda
fountain are susbject to a tax Il
Illustrative of these are orangeade!
lemonade, pineapple juice, coca cola,
root beer, moxie, phosphates, fruit,
and flavoring syrups, mixed with
plain or carbOnated water, milk shake
matted milk shakes, cream and egg
shakes, ice cream, ice cream sodas,
ice cream sundaes, ice cream sand
witches and Favored ices.
Certain drinks often sold in soda
fountains, ice cream parlors and sim
liar places of business are not taxa
BILE. Such beverages are hot beef
tea, coffee, buttermilk, milk, hot chloe
olate or cocoa, hot clam bisque, hot
tomato bisque, and hot tomato boul-
lion. Medical preparations such as
bromo settler, citrate of magnesia, ro-
chelle salts, bicarbonate of soda, seit-
litz powder aromatic spirits of am
monia, epson salts, essence of pep
sin, etc, sold at the fountain also
escape the soft drink" tax No tax
applies on the sale of beverages such
as ginger ale, root beer, moxie, miner
al water, etc. when served from clos
ed containers because a manufactur-
ers tax on such drinks has already
been levied.
Penalties for Evasion.
The tax is on the whole amount
of the purchase price. Thus, if pur-
chaser who treats" friend orders
two sodas at the same time each
selling for 15 cents, the tax is 3 cents
and not 4 cents. If however, he buys
one Is cent soda and Immediately
thereafter purchases another 10 cent
drink the tax is cents on each
sale Dealers are advised to guard