The Belding banner-news. (Belding, Mich.) 1918-1973, 1919-05-07


being placed in containers CT q kind
ordinarily used to so convey the ar
ticles indicated, they are not taxable
F., Beverages taxable. In general,
such beverages as are commonly
known as soft drinks which are COM
pounded or mixed at the fountain
where sold are subject to the tax.
Beverages, though scld at the foun-
tain, if delivered, ready for consump-,
ton from bottle or closed container
and on which a tax has been paid un-
der section 628 of the revenue act OF
1918, are not subject to the tax.
Articles taxable: Examples. The
following articles Of food or drink
are subject to tax within the mean
ing of section $50 Of the revenue act
of 1918: All beverages when COM
pounded or mixed at the fountain,
such as orangeade, lemonade, pine
apple juice, coca cola, root beer, mcx-
lie, phosphates, fruit and flavorine
sirups, compounded 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 soda, ice cream,
ice cream sundaes, ice cream sand
witches, favored ices, and all Other
similar foods or drinks not enumerat-
ed or specified This list, however,
is not intended or considered to be
complete but merely illustrative of
the class of articles subject to tax.
Beverages not taxable. Examples:
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 o.
similar articles of food or drink with
in the meaning of section $50. Such
beverages are exemplified by hot beef
tea. coffee (hot, cold or iced), tea
thct, cold or iced, huttermilk, milk,
hot chocolate or cocoa, hot clam
broth. hot tomato bisque, and hot
tomato bouillon. Ne tax applies en-
the sale Of beverages or drinks such
as gingerale. root beer. moxie, miner
nj water, ETC.. when served directly
from a n-ainer in which case the
manufacturers tnx on such drinks
has already been levied. However
II any of the drinks or beverages
herein mentioned are compounded or
mixed with carbonated water or ex-
tract or other ingredient at the foun-
tain, they are taxable.
Beverages not taxable. Medicinal.
There are certain medicines such as
bromo seltzer, citrate of magnesia,
Rochelle salts. seidlitz powders, BIZ
carbonate of soda, castor OIL Epscm
salts and essence of pepsin which are
often sold at soda fountains, ice
cream parlors and similar places of
business which are not soft drinks or
ice cream products or similar arti-
cles Of food or drink and hence are
not taxable
Tax Paid by Purchaser. Sec. $50:
Such tax shall be paid by the
purchaser to the vendor at the time
of the sale and shall be collected, re-
turned and paid to the United States
by such vendor in the same manner
as provided in section SOP. 4
Payment of tax. The tax is upon
the sale by the vendor to the pur-
chaser and must be paid at the time
of sale by the purchaser upon all tax
able sales made by the vendor.
Return and collection of tax. The
tax imposed must be paid by the pur-
chaser to the vendor and the vendor
must make return under oath, in
duplicate and pay the tax so collected
to the collector of the district in
which the principle place of business
is located on or before the last day CT
each month for the business done dur,
ing the proceeding month. Daily re-
ports shall be kept by the proprietors
or their agents in charge showing
separately the amount received for
each class of taxable transactions
(grcuped according to amount of
sale) and the tax paid thereon. The
collector of internal revenue may in
his discretion require any person re-
ceiving payment for taxes to make
daily deposits of the same so reeeiv-
ed in special account in such bank
as the collector shall designate. The
daily reports of the proprietcrs or
their agents, with copies of their
monthly returns shall be kept on file
in, the places of business Of such pro-
prietors in such manner as to be read
lily accessible to investigating inter-
nal revenue officers. In case the
proprietor of a soda fountain. ice
cream parlor or similar place of bust
ness does not use an adequate cash
register or check system from which
daily and monthly records may be
kept a separate receptacle shall be
used to retain the tax collected by
!. the vendor from the purchaser. Such
receptacle shall be so arranged or
subdivided into compartments suit
able for holding the different amounts
of tax collected in order to facilitate
the compilation of the daily and
monthly records of tax collection.