Evening star., 1921-09-18

act OF 1918. and the substitution of a
per cent manufacturers sales tax
for any of the following articles as Is
in excess of the, price hereinafter
specified as to each such article: Car
pets In excess of 81 per square yard,
trunks in excess Of $35 each. valises.
travelling bags. suit cases, hat boxes
and fitted cases in excess of $50 each,
purses. pocketbooks. shopping and
handbags In excess of IS each; fans
in excess of 81 each. portable light
nxtures. including lamps of all kinds
and lamp shades. in excess of $1O
each.
Selling Price Of Furniture.
1t is also agreed to impose a tax
OF 3 per cent upon the manufacturers
selling price of all office furniture
and httings of mahogany, rosewood
or other imported cabinet woods and
sories: This provision is a substi-
tute for the similar tax provision
proposed by the House
The restoration of the per cent
tax imposed under existing law upon
toilet soaps and toilet soap powders
The House bill repealed this provi-
sion.
The imposition of a new tax of 5
per cent upon all office furniture and
fittings OF mahogany, rosewood, or
Tax ON Art Objects.
The restoration of the 10 per cent
tax imposed under existing law upon
porcelains. and bronzes. The House
bill reduced this rate to per cent.
In the case, of manufacturers sub
1ect to tax Under section 900 doing
both wholesale and retail business.
the existing law permits them to
| lot
upon the basis of their wholesale SELL
ing prices. The House bill repealed
this provision and the finance COM
mittee restores the provision of ex-
isting law.
The House bill permits the deduc-
ton OF a net loss resulting after De-
cember 81, 1920. in any taxable year.
from the net income of a taxpayer
for the succeeding taxable year and
II the net loss is in excess of the net
income Tor such succeeding taxable
year. the amount of the exun in the
next succeeding taxable year. The
nnance committee retain this pro-
vision.
Travelling Mems Exemption.
The deduction in computing net in
come of an individual Of amounts ex-
pended for. meals and lodging by
travelling men and other persons while
away from home in the pursuit of a
trade or business. The House bill also
granted similar exemption.
The limitation of the deduction to
individuals for gifts to charitable and
educational institutions. in comput-
ing the net income. The House bill
granted a similar deduction to part
nerships and corporations
The exemption from making income
tax returns to domestic building and
, loan associations substantially all the
! business of which is confined to max
ing loans to members. The House bill
limited the exemption to such asso-
Citations operated exclusively for the
purpose of making loans to members.
Corporation Returns.
Adopts the House method of treat
ing personal service corporations as
uary 1, 1922.
Permission is granted to corpora
tions required to make consolidated
returns under existing law at their
option to continue to file consolidat ted
returns or to file separate returns for
each subsidiary. This option was
also granted in the House bill.
A tax OF 81: 20 per gallon is imposed
upon distilled spirits withdrawn for
to beverage purposes. This tax is to
be paid by the person responsible for
. such diversion. The House bill also
, contains similar provision.
Cereal Beverages.
Reduces the tax on cereal bever-
ages from Is per cent of the manu-
:: facturer's selling price to 2 cents per
gallon. The House. bill imposed a
tax upon such beverages of cents
per gallon.
, Imposes a tax upon mineral waters
sold at over 10 cents per gallon of
! cents per gallon. The existing law
4 mi a 70 ~
upon natural mineral waters and a
rate of 10 per cent upon the manu-
facturer's selling price in the case of
carbonated waters. The House bill
imposed no tax upon mineral waters.
Imposes a tax of cents per gallon
carbonated or not. Under existing
law such drinks are taxable at a rate
of 10 per cent upon the manufac-
| turcrs' selling price. The House bill
imposes rate Of 2 cents per gallon
; upon carbonated soft drinks and )
cents per gallon upon non-carbonated
soft drinks.
Imposes tax of TX cents per
gallon upon beverage or fountain
sirups used in manufacturing soft
drinks. The House bill imposed a
tax of 10 cents per gallon upon such
drinks.
Imposes a tax of cents per pound
| upon all carbonic acid gas sold by
the manufacturer. producer or i'm
porter of such goods. The. House bill
, contains similar provision.
Repeal OF Soft Drink Tux.
Repeats the tax upon soft drinks,
! ice cream anu similar articles sold at
soda fountains. The House bill also
| repealed this tax.
Exempts eyeglasses and spectacles
] NJ nj q nv fn@
or limitations thereof from the per
cent tax imposed upon all articles
mounted or fitted with precious
metals, etc. The House bill contains
similar provision.
Exempts from the special tax i'm
posed upon users Of yachts or boats
yachts or boats weighing five
net tons or less and not more than
thirty-two feet in length. The House
bill contains a similar provision.
Authorizes the commissioner of in
ternal revenue. with the approval Of
taxpayer, to make final settlement of
tax cases. The House bill contains a
similar provision.
Authorizes the commissioner Of in
ternal revenue, with the approval of
the Secretary, to make regulations
reversing prior regulations without
making the subsequent regulations
retroactive. The House bill contains
similar provision.
Authorizes the establishment of a
tax simplification board to investi-
gate the procedure OF and the forms
used by the bureau Of internal reve-
nue. and to make recommendations
with respect to-. the simplifcation
thereof. The House bill contains a
similar provision.
Provides for the valuation Of a
consolidated return regulations under
the revenue act Of 1917. The House