Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-07-10
SPECIAL FAXES
PllI|uI||DN JULY
Internal Revenue Depart.
rnent Busy With Occupa-
tional Tariffs. .

special government taxes, provided
1or IN h revenue act Of 1921, among
which. are the occupationalt taxes. are
now being collected .by! the fnternal
revenue department Of the state. The
force at the branch ONCE in this city
a been busy for several days with
inc returns. all OF which must be
MED oylJuly 81. Forms for making
the returns are available at the office
OF the Collector Of Internal Revenue
IN Fargo n the branch Offices in
Grand Forks and jamestown.
Return of the capital stock tax Of
! mes corporations, must be made
on Form 701, n foreign corpora
tons, 7os. Form IL is used for max
ing return of the miscellaneous occu-
pauonal and the tobacco manufac-
turer's special tax. Regulations "a.
governing the collection of the CAPT.
tai stock law. Regulations SO govern
ing the collection Of the miscellane4
Gus occupational taxes and Regula-
tons 8 governing the collection OF
the tobacco manufacturers special
tax also may be obtained upon re-
quest of the Office OF the collector
fees. -,
The revenue act provides that
every domestic corporation shall pay
annually a special excise. tax with
respect to carrying on or doing bust
ness equivalent to 81 for each $1,000
OF SO much of the fair average value
OF it's capital stock for the preceding
. year ending June 80, as is in excess
of $4,000. In estimating the value OF
the capital stock, the surplus and un-
divided profits shall be included.
II Every foreign corporation shall
pay annually Especial excise tax. with
respect to carrying on Or doing bust
ness in the United States, equivalent
Ito 81 for each $1,000 pf the average
amount of capital employed in the
transaction Of its business in the
United States, during the preceding
year ending June 80"
The basis of the tax in the ase OF
a domestic corporation is carrying
on or doing business in the capacity
of a corporation or association. Quot
ing from the Capital Stock Tax Regu-
lations No. "a, The words carrying
on or doing business must be given
every ordinary and natural. signifca-
ton. Business is a very comprehen-
sive term and embraces whatever o
cupies the time, attention or labor OF
men for the purposes Of livelihood OF
profit. In other words business nee
~essarily involves the idea of gain
Every domestic corporation must
make a return on Form TOT. ever
though the law may indicate that ii
is exempt from the AK. The ques-
ination. by the Commissioner Of In
ternal Revenue. E.
The basis Of the tax in the Ease OF
a foreign corporation is carrying ton
or doing business in the United
States" A foreign corporation is
carrying on or doing business in the
United States if it maintains an agent
or an Office Or warehouse in the Unit.
ed States, or in any other way enters
the United states for the purpose OF
its business. %, e1
Following are the miscellaneous oc.
cu%pational taxes: Brokers, $50;
pawnbrokers. 800; ship brokers
$50; customhouse brokers, $50. Pro:
prietors of theaters, museums and
concert halls where a charge for ad'
mission Is made. having a seating ca
a tar, Of $50: having a seating capa
city Of more than ESQ and not *
ceeding 500, 800; having a seating
capacity exceeding 500 and not ex
ceedins 500. $3.50: having a seating
capacity Of more than $50, 5000. :,
Circus proprtetors are required t.
pay a tax of $500; proprietors 0
bowling alleys and billiard rooms ar
required to pay SO for each alley o
table; proprietors of shooting gal
~leries, $40; proprietors Of riding
academies, 500. ~
Persons carrying on the bushes
Of operating or renting passenee
automobiles for hire are required t,
pay. $40 for each such automobil,
having "a seating capacity Of NOR
than two and not more than seven
and $40 for each such AUTOMOBILE
having a seating capacity of NOR
than seven.
Section 1908 Of the Revenue Act o
1921 imposes a tax upon the use o
4 yachts, pleasure boats, power boats
sailing boats and motor boats will
fixed engines, of over 5 net tons
length over 30 feet. Numerous in