The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1919-05-21
EXPLAINING ON :. :
LUXURY TAX DONE BY
FEDERAL OFFICERS
G Complaints Say Proper Tax Is
Not Required by Some Deal
ers.-Where Tax Applies. :" "

Inquiries received by the Bureau
OF International Revenue and Collect
;ors indicate a misunderstanding on
the part of not only large portion
OF the public, but dealers themselves
regarding the tax on soft drinks,
which became effective May /. Re-
ports reaching the bureau are that
some dealers are not collecting the
tax while others are charging extra
pennies for drinks which are not
taxable.
To correct these mistakes the
bureau has issued the following Of
Eticial statement relating to the col
lection OF the, tax. 4335s ~. ......4
I. The tax is one cent for each ten
cents or fraction thereof on the
amount paid at soda foun tains, ice
cream paflors cor similar places Of
business on soft drinks, Ice cream,
Ice cream sundaes, cor similar ar
zticles OF food or drink when sold for
consumption In or In proximity to
such Place OF business. = The pur-
chaser can not escape the tax by
stepping outside of the place where
sold to consume his soft, drink or ice
cream. Fee cream in cones is tax
able, because sold under conditions
which indicate that. IT is to be con-
sumed in or inssproximity to the
place of business When ice cream
is sold under conditions which indi-
cate that it would usually be con-
sumed In or in proximity to the pre-
misses, the fact that the purchaser
does not consume it there but carries
it away, does not render 1t free from
1nn In H,1
ice cream sodas or other soft drinks
sold in pitchers or buckets for home
consum ption are exempt.
Sales of soft drinks, ice cream and
similar articles of food and drink In
club houses are not taxable unless
hold separate and apart from meals.
II ice cream or soft drink is the
only refreshment ordered in such
places the tax applies. Such sales at
soda fountains are taxable even
though sold as part Of a meal. g.
In general such beverages common
ly known as soft drinks which are
compounded or mixed at soda foun-
tain are subject to the tax. Illustra-
tive of these are orangeade, lemon
ade, pineapple juice, COCO cola, root
beer, moxie,~ phosphates, fruit and
flavoring syrups mixed with the plain
or carbonated water, milk shakes,
matted milk shakes, cream and egg
shakes, ice cream, ice cream sodas,
ice cream sundaes, ice cream sand
wiches, and favored ices. %'@
/. Certain drinks often sold at soda
fountains, ice cream paflors and SIM
ilar places tof business are. not tax
able SiacIi beverages are hot beef
tea, coffee tea. buttern1ilk, milk, hot
chocoiate tot cocoa, hot clam bisque.
hot tomato bisque, and hot, tomato
bouilIon. Medicinal preparations
such as bromo-seltzer, citrate of mag
nesia, rochelle salts, seitlets powders,
bicarbonate of soda, aromatic spirits
of ammonia, epson salts, essence of
pepsin, 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. min
eral water, etc., when served from
closed containers, because manu-
facturer,s tar: on such drinks has al
ready been levied. y r. -.
Sales of ice cream and soft drinks
by religious, charitablesor education
al societies on special occasions such
as church festivals, picnics, ETC., are
not taxable. Such sales in stands and
booths at agriculturaf fairs, racing
parks, public exhibitions, -circuses,
shows and similar places are taxable.