The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1921-12-15
sPELL|ER TELLS OF
NEW TAX RULINGS

by LOUIS "A. Spelller, collector OF
internal revenue for the district of
Nevada:
Enactment of new revenue legis-
lation has brought to the Offices
of collectors of internal revenue a
flood of inquiries regarding various
provisions. The revenue act of
1921 became effective on November
%, 1921, unless otherwise provided
for.
ITO avoid error in the prepara-
ton of their returns and later diff
culties with the bureau of internal
revenue taxpayers are advised to
carefully note the changes and when
they become effective.
"The excess profits tax is repeal
ed as of Jan. l, 1922. The rates
for 1921 are unchanged.
"The surtax rates for the calen-
dar year 1921 are unchanged.
The surtax rates for the calendar
year 1921 are unchanged and range
from l per cent on the amount of
net income between $4,000 and
$4,000 to 65 per cent on the
amount of net income in excess of
S1,000,000. For the calendar year
1921 the surtax rates range from
per cent on the amount of net
income between $4,000 and $4,000
to so per cent on the amount by
which the net income exceeds $780,
600.
the exemption allowed for a
dependant is increased from 5000
to $40. Married persons living with
husband or wife and heads of fam
lilies are allowed personal exemp-
ton of $4,000 Gnstead of $4,000,
unless the net income is in excess
of $4,000 in which case the person.
al exemption is only $4,000. The
act provides that in no case shall
the reduction of the personal ex-
emption from $4,000 to $4,000 op-
crate to increase the tax that would
be payable If the exemption were
$4,000 by more than the amount
of the net income in excess of
$4,000. This is to overcome the
disparity in the cases of two tax
payers one of whom is just within
the lower $4,000 exemption and the
other just within the higher $4,000
exemption.
"Single persons and married per-
sons not living with husband or
wife are allowed an exemption of
$1,000. Nonresident aliens are al
lowed an exemption of $1,000.
Persons having gross incomes for
1921 of $4,000 OF over are required
to make a return, regardless of the
of net income.
Provision is made for the repeal
as of Jan. 1, 1922, Of the tax on
stockholders Of a personal service
as such. After the date
such corporations are to be taxed
in the same manner as other cor
porations.
"The income tax on corporations
for the calendar year 1922 and
thereafter is increased from 10 to
12h per cent. The $4,000 exemp-
ton heretofore allowed corpora
tons is to be granted only to those
corporations whose net income is
$4,000 or less.
"Many persons are under the
that taxes on ice cream
soft drinks, etc., monthly returns
of which are required, have been
repealed with the enactment of the
new act. These taxes remain in
force until the end Of the calendar
year 1921.
mo change is made in the tax
on admissions, except that after
Jan. |, 1922, there will be no tax
where admission is 10 cents or less.
Effective Jan. l, 1922, the follow
ing taxes are also abolished: On
instruments, sporting goods,
chewing gums, portable electric fans
thernos bottles, fur articles, pleas
ure boats and pleasure canoes (un-
less sold for more than 5000 tot
let articles, medicines and numer-
GUS articles of apparel.
"on and after Jan. /, 1922, the
tax on various works of art is re-
duced from 10 per cent to per
cent, the tax on candy from per
cent to per cent and the tax on
carpets, rugs, ETC., from 10 per cent
Of sales price in excess of specified
amounts to s per cent Of sales price
in excess Of specified amounts.
"The tax on parcel post packages
is eliminted, effective Jan. /, 1929.
"The new act provides that no