Imperial Valley press., 1919-05-23
HOW UNCLE SAM
TAXES OIL FOR
YOUR WHISTLE

Inquiries received by the Bureau of
| Internal Revenue and Collectors in
! dicate a misunderstanding on the part
of not a large portion of the public,
| but dealers themselves regarding the
ftaX on soft drinks, which became Ell
fective May /. Reports reaching the
! Bureau are that some dealers are not
collecting the tax while others are
| charging extra pennies Tor drinks
which are not taxable.
To correct these mistakes the Bu,
| reau has issued the following oiticlal
statement relating to the collectloh
of the tax.
The tax is one cent for each teni
GENTS or fraction thereof on the
amount paid at soda fountains, zee
cream parlors or similar places OF
business on soft drinks, ice cream,
ice cream sundaes, cor similar arti-
cles 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 byl
stepping outside of the place where
sold to consume his soft drink or ice
cream. Ice cream in cones is taxable.
because sold under conditions which
indicate that it is to be consumed
"in or in proximity 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 purchaser does not consume
it there but carries it away, does not
render it free from the tax. Ice
cream sold in boxes and ice cream
sodas on other soft drinks in pitchers
or buckets fer home consumption 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.
If ice cream or soft drink is the
only refreshment ordered in such
places, the tax appl.es. Such sales
at soda fountains are taxable even
though sold as part of a meal.
In general such beverages common.
ly known as soft drinks which are
compounded or mixed at soda foun-
,ain are subject to the tax. Iuustra-
tive of these are orangeade, lemon
AIDE, pineapple juice, coco cola, root
beer, moxie, phosphates, fruit flavor
inc svrups mixed with plain or car
bonaoted water, milk shakes, matted
milk shakes, cream and egge shakes,
ice cream sOdaS, ice cream sundaes,
ice cream sandwiches and avored
ices.
Certain drinks often sold at soda
fountains, ice cream parlors and SIM
liar places Of business are not tax !
able. Such beverages are hot tea, |
coffee, tea, buttermilk, milk, hot
chocolate or cocoa, hot clam bisque,
hot tomato bisque and hot tomato
bouillon. Medicinal preparations
such as bromo-seltzer, citrate of ma
gnesia, rochelle salts, seitlets pow |,
ders, bicarbonate of soda, aromatic
spirits Of ammonia, epson salts, eS-
sence of pepsin, etc, sold at the foun- |
tain alo escape the "soft drink tax. |
No tax applies on the sale of bever-
ages such as ginger ale, root beer, /
moXie, mineral water, etc, when
served from closed containers, be-
cause a manufacturers tax on such !
drinks has already been LEVIED.
The tax is on the whole amount
of the purchase price. Thus, if a
purchaser who Greats" friend or
ders two sodas at the same time, each
selling for fifteen cents, the tax IS
three cents, and not four cents. If,
however, he buys one flfteen-cent
soda and Immediately thereafter pur-
chases another fiftcen-cent drink, the
YAK is two cents on each sale. Deal
ers are advised to guard separate
customers against pooling their pur-
chases to escape the tax. The penalty
for willfully attempting to evade the
tax, is a fine of not more than $lO,- !
900 or not more than one years I'M
prisonment, or both, together with
the cost of prosecution.
Sales of ice cream and soft drinks
by religious, charitable or educational
societies on special occasions such as
church festivals, picnic, etc, are not
taxable. Such ales in stands and
booths at agricultural fairs, racing
parks, public exhibitions, clrcuses,
shows and similar places are taxable.