The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-05-21
EXPLANATION OF
\ SOFT DRINK TAX.
.,on.r Of internal Revenue
Another Diagram Of the
Complicated Regulations
in Force.
WHEN IT IS AND Is NOT

y. r,xable, But MIX Shakes,
pineapple Juice and Coco
Cola Pay Tax.
Nah soda fountain clerks becom-
!, oxpert mathematician, or going
ns irving to- enforce the new tax
a., The government finds that In
.,ries received by the bureau OF
r.arra, revenue and collectors indi-
~. ~ :. Misunderstanding on the part
- not only large portion of the
..u. hut dealers themselves re-
s-ding the tax on soft drinks, which
lama effective May 1. Reports
ssching the bureau are that some
,s.lars are not collecting the tax,
Sh;le others are charging extra PEN
los for drinks which are not tax
eble. =.
m correct these mistakes. the bu-
reau has issued the following official
statement relating to the collection
Icf the tax:
The tax is one cent for each ten
tents or fraction thereof on the
kuount paid at soda fountains. ice
|crAam parlors or similar places Of
business on soft drinks, ice cream,
[,ce.cream sundaes, "or similar ar
|ticles of food or drink when sold
FOR consumption in or in proximity
|to such place of business"
Side Stepping Is Finable.
The purchaser cannot escape 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 under condi-
tons which indicate that it is to be
consumed in or in proximity to the
place of business
When ice cream is sold under con-
ditions which indicate that it wouh
usually be consumed in or in prox.
unity to the premises. the fact that
the purchaser does not consume 1T
there, but carries it away, does not
render it free from the tax. Ice
cream sold in boxes and ice cream
sodas or other soft drinks sold In
pitchers or buckets for home con-
sumption are exempt
Sales of soft drinks, 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.
Il Ice cream or soft drink is the
only refreshment ordered in such
places, the tax applies. Such sales
It soda fountains are taxable even
hough sold as part. of meal.
Buttermik and Matted Milk.
In general, such beverages COM
monty known as soft drinks which !
re compounded or mixed at soda
ountain are subject to the tax. Illus !
rative of these are orangeade, lem
made, pineapple juice, coca cola, !
DOT beer, moxie, phosphates, fruit I
nd flaVoring syrups mixed with |
nam or carbonated water, milk |
makes, matted milk shakes, cream /
nd egg shakes, ice cream, ice cream !
odas Ice cream sundaes, ice cream
ihdwlches, and favored ices.
certain drinks often sold at soda +
'untalns, Ice cream parlors and
mllar places of business are not
9abie. Such beverages are hot
'er tea, coffee, tea, buttermilk, milk, /
u chocolate or cocoa, hot clam
sque, hot tomato bisque, and hot
mato bouillon.
Medicinal Preparations, such as
omo-seltzer, citrate of magnesia, +
cheiie salts, seitlets powders, BIZ
fponate of soda, aromatic spirits
ammonia, EPSON salts, essence OF
psin, etc, sold at the fountain, also
cape the soft drink tax.
NO tax applies on the sale OF bev-
ises SUCH as ginger ale, root beer,
'1ie, mineral water, etc, when
yea from closed containers, be-
use manufacturers tax on such L
hKs has already been levied. I,
$4,000 Fine For POOLING.
ne TAX is on the whole amount of
purchase price. Thus, if a pur-
'ser who treats" friend orders
;. sodas at the same time, each
ing for fifteen cents, the tax is
ee cents, and not four cents. II.
'eSer, he buys one fifteen-cent /,
a and Immediately thereafter pur- Z
ses another fifteen-cent drink, the
IS TWO cents on each sale. {
eaiers are advised to guard sepa- q
customers against pooling their
cnases to escape the tax. The l
ATTY for willfully attempting to t
ue the tax is a fine Of not more 4
u $4,000 or not more than one {
Imprisonment, or both, to- \
ier with the cost Of prosecution.
aies or Ice cream and soft drinks
leiigious, charitable or educa-
AZ societies on special occasions,
| as church festivals, picnics!
are not taxable. Such sales in !
JUS and booths at agricultural :
> racing parks, public exhibit
. circuses, shows and similar !
eS are tayoLIz Z