The Greeneville daily sun. (Greeneville, Tenn.) 1918-1920, 1919-05-03
Internal Revenue Service, Nashville,
Tennessee.
Ice Cream and Soft Drinks.


cream sundaes, and soft drinks, and
other similar articles of food or drink
sold at soda fountains and similar
places of business on or after May |,
1919.
The tax is measured by the price
for which the fod or drink is sold. 1t
is on the actual sales price at the rate
of / cent for each 10 cents or frac-
ton thereof of the amount paid for
any of the articles mentioned in sec
ton $50. Each sale ror 10 cents or
less is taxed cent and every sale
for over 10 cents is taxed l cent for
each 10 cents or fraction thereof of
the price.
The tax is upon the whole amount
of the price paid by the purchaser
"When the price is paid at one time
though in payment for several ar
ticles which are the subject of sin
gle transaction of purchase and sale,
the total price paid is the unit for
computing the tax" Thus, if the
purchaser orders two sodas at the
same time, each sold for Is cents, the
tax is 3 cents and not A cents. H.,
however he buys one soda fort 10
cents the tax is 2 cents and if he then
Immediately purchases another 10
cent drink the tax is 2 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 defeat
ing or escaping the tax imposed by
section $50 shall be carefully guard
ed against by vendor, for its employ
ment subjects the purchaser and the
vendor (if he connives IN it, to the
penalties provided in section 1903 OF
the act.
Whether person selling the above
described is conducting a place of bus
mess similar to a soda fountain OF
| ice cream parlor is question depend
ent on the facts in each particular
case. Sales of soft drinks, ice cream
and similar articles of food or DRINK
otherwise taxable, when made in th'
course of his regular business by
travelling vendor whether by means
If a motor vehicle, pushcart or other
w;se) are subject to the tax imposed
nv section $50. Sales of soft drink
ice cream and similar articles by IN
dividuals or organizations, such a
religious, Quotations, or charitable
societies, on special occasions only, a
church festivals, social parties, etc
are not taxable; such sales in stands
booths and similar places, at ayr
cultural fairs, racing parks pubic eH
bibitions, circuses, shows and slmlla
nlaces are taxable. The dlstlncuo
lies in the fact of the sale being mad
by the person conducting a place c
business, even though temporamI!
and merely Incidental sales which ca
not properly be considered business
Sales Of soft drinks, ice cream, ar
similar articles of food or drink a
not taxable when made in course
business at hotl, restaurant cal
+ar;a lunch room, or club house, u
| less such articles are sold separa
| and apart from meals.
| The above section provides that t
! fax shall be levied upon the sale
! "soft drinks, ice cream, ice-crea
| sodas sundaes or other similar
| +;clas Of food or drink, when--soId
! for consumption in or in proXlm'
1 to such places of business. lhlS pl
vision is Interpreted to mean II
when anv of the specified articles
sold in such containers or under Su
Conditions as to indicate that tn
wonld ordinarily be consumed IN
in proximity to the place OF ou3ln'
thew are taxable. Ice cream Sold
cones is taxable. When ice cream
any other similar article is sold J
der conditions which indicate that
usually would be consumed at ~
proximity to the premises the Il
that the purchaser does not 50 {
sumo tilt but carries 1t away does
render it free from tax. When
cream, soft drinks, or similar an'c
of food or drink are sold to be carr
away for consumption at place
in proximity to the place of busint
,,,oh zoo oraarn fond or drink L