The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-05-16
CONSUMERS TAX on
SOFT lUxUR|tS
Internal Revenue Department Clari-
fies the Difference of Opinion Be-
two en- Consumer and Dealer.

twlen Consumer and Dealer
Inquiries received by the bureau OF
internal revenue and collectors in-
dictate 4 misundcr standing on the part
or not only large portion of the pIo
lie. but dealers Themselves regarding
the tax on SOFT drinks. which became
effective May | Reports reaching he
bureau are that some dealers are nay
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 off,
cia1 statement relating to the coifec-
ton Of the tax:
The tax Is one cent for each ton
cents or fra ction thereof on the amount
paid at soda fountains, ice cream par
Tors or similar places of business on
soft drink. ice cream. ice cream sun
dacs. 'or similar articles Of food or
drink when sold for consumption in or
lin proximity to such place of business"
The purchaser cannot escape the tax
by stepping outside of the place where
sold 10 consume his soft drink or ice
cream. IsNc cream In cones is taxable.
because sold under conditions which
indicate that II is to he consumed ''in
or ip proximity to the place of bust
ness"
When ice cream is sold under con-
ditions which indicate that 1t would
usually be consumed in or in proxi-
nifty to the promises. the fact that the
purchaser does not consume II ther"
hut carries ii away, does not render II
free from the tax. Ice cream sold in
boxes and ice cream sodas or other
soft drinks sold in pitchers or buckets
for home CONSUMPTION arc 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 a 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.
In general such beverages common
ly known as soft drinks which arc
compounded or mixed at soda foun-
tain are subject to the tax. 1llustra-
tive of these are oranSeade, lemonade.
pineapple juice. coca cola. root beer.
m oxic, phosphates. fruit and flavoring
syrups mixed with plain or carbonated
water. milk shakes, matted milk
shakes, cream and egg shakes. ice
cream. ice cream sodas, ice-creana sun ="
daes.. ~ice~.cressss4 sandwiches, andsaaxor..
ed ices.
Certain drinks often sold at soda
fountains. ice cream parlors and SINH
lar places of business are not taxable,
Such beverages arc hot beef tea.
coffee. tea. butternilk, milk hot
Chocolate or eaena, hot clam bisaue.
hot tomato bisque. and hot tomato
bouillon.
Medicinal preparations such as
hrorno- settler, citrate Of magnesia
rochelle salts, seitlets powders. bicar-
donate OF soda. aromatic spirits of
ammonia EPSON salts, essence of pep
sin. 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. mineral
water. etc. when served from closed
containers, because a manufacturers
tax on such drinks has already been
LEVIED
The tax Is on the whole amount of
the purchase price Thus. If a rur-
chaser who treats a friend orders
two sodas AT the So me time, each sell
ing for Is cents. the tax is 2 cents. and
not 4 cents IT, however. he buys ono
Is cent soda and Immediately there
after purchases another 5 cent drink,
the tax is cents on each sale.
Dealers are advised to guard
separate customers against pool
ing their purchases to escape the
tax. The penalty for willfullv
attempting 10 eTade the tax is
fine Of not more than $4,000 or
not more than one years i'm
prisonment. or both. together with
the cost of prosecution.
Sale of ice cream and soft drinks
by religious. charitable or educational
societies on special occasions such as
church festivals. picnics. etc. are not
taxable Such sales in stands and
booths at agricultural fairs. racing
~
shows and similar places are taxable.