The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-19
OGDEN RULING
STUNS STATE
TAX OFFICIALS
Confusion Reigns After
acknowledgements View
of Chain Act.

Confusion, worse COMPOUNDED, in
the matter Of collections, and dis
appointment in the hope for rails
ing great revenues we're the reac-
tons on the chain store tax at the
statehouse today, following an in
depreciation of its meaning by At
torney-G General James M. Ogden.
Chairman James E. Showalter, of
the state tax board, expressed as
constituent that ogden should list
long line of exemptions in law
which says the tax must be paid by
all who sell anything, either whole
sale or retail.
Il thought that at last we had
a law from which there were to be
no exemptions" Showalter said. TT
certainly reads that way to the or
binary layman, like myself.
But here comes a lawyer and
sees all sorts Of exemptions in it..
The thing practically is ruined so
far as being a great revenue pro-
Queer is concerned"
Lewis Johnson, who is in charge
of the huge staff charged with is
suance Of the store licenses and
collection of the tax, said he had
not seen the attorney generals
opinion, but that he never did be-
ieve the law would raise the rev.
enue expected Of it.
At the time of its passage it was
touted to add more than 100000
annually to the state funds.
Collections have been coming in
since Nov. II, including back tax
since 1929, and today amount to
only $1O4,541. Some of these pay
ments may have been made by par
ties now exempt under the Ogden
ruling, johnson declared.
Definition of store" which
must be licensed for a so cent fee
and pay the tax as scheduled, is as
follows:
1.-THE term store as used in this
act shall be construed to mean and
include any store or stores or any
mercantile establishment or estab-
lishments which are owned. oper-
ated, maintained or controlled by
the same person, firm, corporation,
o-partnership or association, eth
er domestic or foreign, in which
goods, wares or merchandise of any
kind, are sold, either at retail or
wholesale"
BilPs Author LamentS
This wording is taken directly
from the 1929 statutes, Chapter 207,
Section 8.
Representative H. Curtis Bennett
Dem., Dillsboro) author of the law
was at the statehouse Friday also
lamenting it's application. He is a
member of the state budget commit
tee which today approved the state
tax board Setup for chain store tax
collections until next April
Bennett then anticipates reor-
ganization of the department, with
an eye to reduction of overhead. He
also is discouraged about its pos
sibility as a revenue producer.
my original bill provided $3.50
per store tax on the big chains"
Bennett explained. THAT would
have brought in some money from
those who could well afford to pay
it,
Methods used by the tax board
in the collection Setup were criti-
cised sharply by the author of the
law.
why they just took about 100
ward-heelers, who don't know what
it is all about and sent them out
to list these stores Bennett
charged.
Has Had Many Complaints
when the merchants ask them
when and where they should pay,
they don't even know that. The
blanks ought to have printed on
them that the money must be paid
at the state tax board offices.
1--WE had so many complaints
from the merchants who have been
bothered by those politicians that
I'm almost sorry I fathered the
bill"
The 100 Republicans appointed
to list the stores get 20 cents a
store for each licensed after their
listing. There are twelve district
supervisors at $4,000 a year, and
johnson draws $4,000.
In addition a whole new office
staff of stenograpners, clerks and
other aids has been ensconsed in
a specially built balcony in the tax
board office.