The Ocala evening star., 1919-05-02
THE TAX ON SOFT DRINKS


Deputy Collector Brown is in re-
ceipt of the following information in
regard to the soft drink tax, from
Commissioner Roper.
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 of one cent for each ten cents or
fraction thereof of the amount paid
for any of the articles mentioned in
Section $50.
Each sale for 10 cents or less is
taxed one cent, and each sale for over
10 cents is taxed one cent for each
ten cents or fraction thereof of the
price. The tax is upon the whole
amount of the price paid by the pur-
chaser when the price is paid at one
time though in payment for several
articles which are subject of a single
transaction of purchase and sale: The
total price paid is the unit for COM
putting the tax, thus: if the purchaser
orders two sodas at the same time
each sold for 15 cents, the tax is 3
cents and not four cents. If, however
he buys one soda for Is cents the tax
is two cents, and if he then immed-
lately purchase another 15-cent drink,
the tax is 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 escap-
ing the tax imposed by Section $40
shall be carefully guarded against by
the vendor, for its employment SUBJ
jects the purchaser and the vendor (if
ne connives in it) to the penalties pro-
vided in Section 1908 of the act.
Articles Taxable
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 COM
pounded or mixed at the fountain,
such as orangeade, lemonade, pineap-
pie juice, coca-cola, root beer, moxie
phosphates, fruit and fiavoring syrup
compounds, 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 sodas, ice cream sundaes, ice
cream sandwiches, favored ices and
all other similar foods or drinks. This
list, however, is not intended or con-
sidered to be complete but merely IL
Illustrative of the class of articles SUBJ
ject to tax.
Beverages Not Taxable
There are certain drinks which are
often sold at soda fountains, ice cream
parlors or similar places of business
which are not regarded as soft drinks,
or ice cream products or similar ar
ticles of food or drink within the
meaning of Section $50 of the reve-
nue. act of 1918, such beverages are
exemplified 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 and hot tomato bouillon.
No tax applies on the sale of bev-
erages or drinks such as ginger ale,
root beer, moxie, mineral waters, ETC.,
when served directly from a contain
Ell, In which case the manufacturers
tax on such drinks has already been
levied. See Section 628 of the revenue
act of 1913. However, if any Of the
drinks or beverages herein mention
ed are compounded, or mixed with
carbonated water or extra or other in
gredient at the mountain, they are
taxable beverages.
There are certain medicines, such
as bromo-seltzer, citrate of magnesia,
Rochelle salts, Seidlitz powder, bicar-
Donate of soda, castor oil, Epson
salts and essence of pepsin, which are
often sold at soda fountains, ice cream
parlors and similar places of business,
whic hare not soft drinks or ice cream
products or similar articles Of food
or drink and hence are not taxable.