The Columbus dispatch. (Columbus, Miss.) 19??-1922, 1920-04-21
statesmen OF
OIL STOCK TO
BE HARD HIT
Heavy Tax Imposed After May First
Under Provisions of New
State Law.

The recent legislature, whether in
tentionally or not, seems to have put
sellers of oil and other stocks out of
business, by imposing on each stock
salesman what looks like prohibi-
tive privilege tax.
The new privilege tax law, which
goes into effect on the first day of
May next, will require each person
who sells stock to pay a privilege tax
in each town, village and city in which
he undertakes to sell the same, and
this tax is fixed at 500 in towns un-
der 5000 inhabitants; 5000 in towns
over $4,000 and less than 5000 in
habitants; and $500 in all towns and
cities of 5000 and more inhabitants.
This is the state privilege tax, and
in addition, each municipality may
impose and collect one-half as much
as the state tax.
Under this law person desiring to
sell stock in the City of Columbus,
for example, would have to pay
privilege tax Of S450 for the privi-
lege of selling in Columbus alone.
The tax is for ore year, but if the
seller leaves Columbus and goes, say
TO Meridian or Vicksburg, he would
have to pay the same tax in each of
those cities. In fact, he must pay
the tax in each town or city, accord
ing to its size, no matter whether he
sells for one day or for one year in
such place.
The law seems to be very broad in
its application, and APPARENTLY takes
in the man who has charge of the
headquarters office, as we'll as each
man selling in the field.
Another drastic provision of the
law is the penalty for selling without
first obtaining a privilege license.
This penalty applies to all persons
liable to pay the privilege tax, and if
he makes one single sale on and af-
ter May 1st next, without first pay
ing the privilege tax, the Tax Collec-
tor is required by the law to collect
double the amount Of the tax. The tax
a.
lcollector has no option he must col
lect double amount Of the tax or be
himself liable for same, no matter
whether the salesman was in ignor-
ance of the law or not.
| Thus a salesman caught selling in
Columbus without license would
have to pay $500 state tax and $500
city tax.
There are hundreds of stock sales
men travelling the state, engaged in
selling oil stocks, mining stocks, au-
tomobile stocks and the like, and the
sheriffs and town marshals general
ly will welcome the chance which this
law offers, to make them pay up or
clear out. The personal selling is
liable, and if his company does not
pay the tax, he must pay it himself
The tax must be paid, and paid in ad-
vance Of a sale, or the seller will have
to pay double tax.
This privilege tax has nothing to do
with the "Blue Sky" permit, and the
salesman must pay the tax whether
his company has permit or not.
Questions is as follows: "On each
broker, or agent, engaged in buying
or selling notes, bonds, or stocks, or
any securities, in towns or villages of
less than 5000 inhabitants, $4,000.
Same in towns or cities Of over g.
900 inhabitants and less than 5000
$4,000.
On each broker, agent, engaged in
buying or selling notes, bonds, stocks
or other securities, in cities of more
than 5000 inhabitants, $300.00.-The
Jackson Daily News.