The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-05-05
LITTLE PROTEST
TO TAX PLACED
ON SOFT DRINKS
Kruger Interpretates Law
Providing for Additional
Charge at Soda Fountains.

According to soda fountain operat-
prs, Richmond patrons are paying the
recently added war tax to drinks with
little complaint. The act providing for
The tax went into effect May /, and
since that time the consumers have
been paying from ! to 2 cents addi-
tional on the 10 and 15-cent drinks.
For the information of those who
are not yet familiar with the provi-
sions of the law, The Palladium prints
The following Interpretation of the law
by Peter J. Kruger, collector Of in
ternal revenue, with offices in In
dianapolis:
RATE OF TAX-The tax Is meas
nred by the price for which the food
Or drink is sold. 1t Is on the actual
BALES price at the rate OF cent for
each 10 cents or fraction thereof OF
the amount paid for an Of the articles
mentioned In Section $50. Each sale
TOR 10 cents or less Is taxed l cent
and each sale for over 10 cents Is
taxed ! cent for each 10 cents or frac-
tion 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 articles
which are the subject of single trans
action Of purchase and sale. The
total price paid Is the unit for comput-
Ing the tax; thus, II the purchaser or
ders two sodas at the same time and
each sold for the is cents the tax is
B cents and not cents. If, however,
he buys one soda for Is cents the tax
ls cents, and If he then Immediately
purchases another Is cent drink the
ka- e nanfa ~, he aoaord Ia rvhfaI,
cannot be treated as part OF the first
sale.
Any means by which separate pur-
chasers pool their order for the pur
pose of defeating or escaping the tax
imposed by Section $40 shall be care
fully guarded against by the vendor,
Tor its employment subjects the pur-
chaser and the vender IL he conniyes
In 1t to the penalties provided in Sec
lion 1908 Of the Act.
ARTICLES TAXABLE-Example
The following articles of food or drink
are subject to tax within the meaning
Of Section $50 of the Revenue Act of
1918: ALI beverages when compounded
DR. mixed at the fountain, such as Or
Rngeade, Lemonade, Pineapple Juice,
Coca Cola, Root Beer, Moxie, Phos-
pilates, Fruit and Flavoring Sirups
compounded or mixed with carbonated
water or plain water, Milk Shakes In
any form, Cream and Eggs Shakes,
Ice Cream. Ice Cream Sodas, Ice Cream
Sundaes, Ice Cream Sandwiches, Flaw
pred Ices and all other similar foods
or drinks. 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-Ex-
amples: There are certain drinks
which are often sold at soda fountains,
Ice cream parlors or other similar
places OF business which are not re-
garded as soft drinks or ice cream pro-
ducts or similar articles of food or
drink within the meaning of Section
$50 Of the Revenue Act of 1918. Such
beverages are exemplihed by Hot Beef
Tea, Coffee. hot, cold or iced Tea, hot,
cold or iced Buttermilk, Milk, Hot
Chocolate or Cocoa, Clam Broth, Hot
Clam Bisque, Hot Tomato Bisque and
Hot Tomato Bouillon. No tax applies
on the sale OF beverages or drinks
such as Ginger Ale, Root Beer, Moxie
Mineral Water, etc., when served di
rectlly from a container, in which the
manufacturers tax on such drinks has
already been levied. See Section 62s
of the Revenue Act of 1918 However
IF any of the drinks Of beverages here
in mentioned are compounded or mix
ed with carbonated water or extract
or other ingredients at the fountain
they are taxable.
BEVERAGES NOT TAXABLE =
Medicinal: There are certain medi
ctaes such as Bromo Settler, Citrate o.
Magnesia, Rochelle Salts, Seidlit;
Powders, Bicarbonate of Soda, Casio
Oil, EPSON Salts and Essence of Pep
sin which are often sold at soda foun
tains, ice cream parlors and simila
places of business which arc not sof
drinks or ice cream products or sim
1lar articles of food or drink and henc,
ara not taxable.