The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-06-27
SALES TAX RULINGS
ISSUED BY MAXWELL
Continued from rage one)

From ST cents to 81, 3 cents
tax.
On sales in excess of 81 the
merchant will have the advantage
of the fraction in applying the
tax of per cent.
The schedules in this section
are to be given application to
each article of taxable merchan-
disc sold, and not to the cumula-
tive sum of two or more pur-
chases, the section specifies.
The Introductory portion Il
Rule 10, dealing with the aduI-
ton of the sales tax, is as fol-
lows:
"The clear intent of the statute
is that the merchant shall add the
amount of the tax to the sales
price to be paid by the consumer.
1t is recognized as impractical 10
add a tax upon every sale. The
actual tax on six sales of five
cents each does not quite reacn
one cent. If a merchant should
add a tax of one cent on a five
cent sale, he would collect 20 per
cent out of which to pay the tax
of 3 per cent. If he should ado
one cent on a ten-cent article, he
would be adding 10 per cent for
the tax. In addition to these en-
cess charges, there would be the
serious inconvenience to mer-
chants and customers of making
add change on a large number OF
sales. The statute, therefore, re-
uuires that the average equiva-
lent" of the tax shall be paid. "A
compliance with the spirit of the
law requires that something more
than the tax be added to some
sales and something less, or no
tax, on other sales. A general rule
that fractions of a cent be diSre-
garded in favor of the major frac.
ton would be a sufficient and
equitable rule if the total number
of sales were evenly distributed
in taxable brackets.
'This may be approximately
true as to some classes of mer-
chandise, where the sale of the
articles below the taxable line
under this rue would be inciden-
tai. Under this rule, the first tax
able line would be Is 2-3 or II
cents. The total gross sales Of
some merchants below this line is
less than / per cent. The volume
of sales of other merchants below
this line is so large that they can
reach an average of per cent
on total sales only by the use of
a lower break line. The schedules
herein set out are adopted. and
promulgated as the schedule to be
applied by all merchants in the
state for the month of July, 1888.
Before the expiration of that
date, these schedules will either
be reaffirmed or others adopted
ard promulgated for use begin
ming the first day of August.
hulS II UdS 10 Nv Will VIC oN-
vertising of prices and says:
"The act expressly prohibits
any advertisement, direct or in
direct, that the tax is not consid-
cred as an element in the price to
the consumer. 1t further provides
that the merchant may add to the
price of the merchandise the
amount of the tax and that when
so added shall constitute a part of
such price The clear intent is
that the tax shall be constituent
element in the parts that go to
make the price. ="
Some of the other rules are as
follows:
Rule l. Every merchant shall
add to the sales price of merchan-
disc approximately the average
equivalent of the tax of 8 per cent
upon gross sales of taxable mer-
chants according to the terms set
out in Rule IS.
+Rule 2. 1t is optional with
each merchant, or by agreement
with groups of merchants, wheth-
er the tax shall be shown as a
separate charge on each sale of
merchandise. Whether shown as
a separate charge on each sales
ticket or not. it will be assumed
that 3 per cont of the price charg-
ed the consumer is tax and 81
per cent of the price of the mer-
chandise."