The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-06-02
NEWSPAPERS OPINIONS
MEET THE SALES TAX


Come July /, and the people of North Carolina
are to be introduced to the new sales tax law
and the intricate features thereof but beginning
today the merchants are to adjust themselves to
the requirements of the new law regulating hours
of work for women clerks. This law limits the
working hours of any female clerk, salesady or
waitress to not than 10 hours IN any one
day or more than SIS hours in any one week. This
law, however, applies only to towns and cities OF
5000 population. Meantime, the merchants will
have plenty of occupation in working out the de-
tails of the sales tax law, and expert Sook-keep-
ing will be the order of the day. The law requires
that merchants shall pass the tax on to the con-
sumner, but any merchant who might advertise the
fact that he is complying with this particular fea-
ture, is liable to fine to cover "misdemeanor"
The tax levy on all gross sales, except upon ex-
empt articles, is three per cent.
First off all retail merchants must license
for doing business, paying therefor the sum of one
dollar year. but that is the smallest part about
it. After obtaining the license, the merchants must
make a monthly report to the Commissioner of
Revenue, showing the amount of their total gross
sales, and at the time pay to the said Com
missioner a sum equal to three per cent of their
total sales. If the amount of the tax should be
less than $40 per month, the report and payment
of tax shall be made quarterly and If the amount
of the tax shall be less than SO per quarter, the
report and payment of the tax shall be made an
nually.
Separate records must be kept sale CT COM
modties upon which tax is levied and on that
score much confusion is ahead for dealers. Every
merchant who sells con credit" must make ap-
plication to the Commissioner for permission to
report only his cash sales and credit sales upon
which money is collected" and thereafter report
and pay taxes on such sales, only. And when along
comes the man woman who wants to trade IN
an old automobile, or radio for new one, the
dealer would have to pay the tax on the entire
sales price of any article he may sell (unless the
article be sold on credit and the dealer be grant
ed the permission of reporting credit sales sepa-
ratey), but that when dealer repossesses an ar
ticle or accepts a trade-in secondhand article
in selling new article he will not have to pay
the tax on the secondhand article when that is
sold if he keeps a record of same
Chain stores which operate more than so units
in the state, are soaked for three times the tax
they have previously paid. The basic license tax
or merchants who deal in typewriters, adding ma
chimes bookkeeping machines, addressograph ma
Chimes refrigerating machines, etc, was reduced,
but all such dealers will have to pay tax upon
the gross sales of such articles of three per cent
the same as all other retail merchants.
Then come in the peddlers Their tax has been
reduced, upon which fact The Carolina Retailer
wakes wroth. By what process of reasoning, it
disgustedly suggests the legislature thought it
could collect three per cent tax upon sales made
by peddlers who keep no books or records, and
who are here today and gone tomorrow, passes
understanding Under the law fixed for peddlers
thew will pay from $40 to $25 annually for the
privilege of competing with bona fde merchants
of the community whereas under the former law
these same vendors paid tax of from $25 to
800 according to the class of vehicle used) to
the state county. and city in which they operated
Neither county nor city is permitted to levy any
tax under the sales tax section of the act; there
fore these political subdivisions will suffer loss
in revenue by virtue of this change in the pedder
taxing section.
| These are but samples of the provisions of the
sales tax law, and it develops that the merchants
have not abandoned purpose to contest the con-
sttutionalty of the laws. 1t is editorally advised
by The Retailer that the merchants refrain from
any court action until after the law has been Of
fcially interpreted by the Commissioner of Reve-
nue.. who is to promulgate rules and regulations
| for its enforcement, and meantime, the merchants
will make definite decision about the contest at
! their meeting to be held in Winston-Salem, this
month And a pretty situation will be developed
in case the supreme court of this state should de-
eide as courts in other states have decided-that
the sales tax law is Unconstitutional" Such a
thing might happen.-Charlotte Observer.