The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-04-05
Type Of Sales
Tax, Collecting
Plan Is in Doubt
Assemblymen's Big gest
Problem Is Enforce
ment Machinery
By J. c. BASKERVILL
The Times. News bureau
Sy Walter Hotel


RALEIGH. April 5.-Now that
the house finance committee has
clready decided 20 bring out a
revenue hill calling for a 2 pc"
cent general sales tax. there il
no longer any d0uht that tn" gen
cral sales tax will become the ba-
IS for the discussion Of the safes
tax issue But il Is not II Ogethcr
certain that the house Will accept
the recommendation OF The finance
committee with regard O = gen
elaI sales tax. In fact, there =
strong sentiment among 4 good
many members Of the house in IA
vor Of Il luxury or selected COM
modities tan and it il regarded as
certain hat IN effort will be
made ~ this group to substitute
the luxury tax plan for the gen
pr al sales tax as recommended by
the committee.
Still another matter that Is Civ
inc the finance committee trouble
right now and destined to become
a real problem when it gets to the
floor of the house, is the machin-
cry FOR collecting either general
sales tax or a luxury tax. 1t is
generally agreed that the ma
chinery for the collection of q
general sales tax Is going to be
complicated. Another factor that
is going TO add to the compleXity
Of a general sales tax is that the
merchants are insisting that it be
made mandatory upon all mer-
chants to pass the tax along 10
The consumer and that real teeth
be put in this provision. If this Is
not done, the merchants maintain
that the large chain stores and
other large stores will advertise
that they will pay the tax nd
thus force the smaller merchants
out of business.
In fact, it was learned here yes
terday that the lobbyists for the
merchants and drug stores that
heretofore have been trying TO
prevent the finance committees
from recommending any form OF
sales tax, are now concentrating
on the committees in an effort to
get the necessary provisions into
the law to compel the merchants
to pass the tax along to the con-
sumerS, with heavy penalties 10
be imposed upon any merchants
that fail to do this or that do alb
sorb the tax.
The subcommittee that has been
working on the machinery for col
Letting the proposed general sales
tax has already made it a miSde-
meanor for any merchant to alb
sorb the tax. thus making it man
datory. But q good many mer-
chants are insisting that the bill
impose a heavy fne on any mer-
chant or corporation that tries to
absorb the tax. Some are even
suggesting that fine Of 81. 900
be imposed on any firm that fails
to conform with the provisions in
the law that requires all of the
sales tax to be passed on to the
buyer. It is not known what the
committee will actually write into
the bill when it is reported to the
house today, but it is believed
that a definite penalty will be pro
vided in an effort to prevent the
absorption of the sales tax by the
merchants. .... e.. o..
1t is generally agreed that Rep
resentative Tam c. Bowie Of Ashe
county and his bloc that is op-
posed to any form of sales tax,
will make an effort to prevent the
adoption of any sales tax plan IN
the house, Most opinion here,
however, is that the Bowie bloc
has dwindled to the point where
it cannot hope to get q majority
and thus prevent the adoption OF
any form Of sales tax. 1t IS beng
recalled that two years ago, Mi.
Bowie spent several weeks IN Ra5
leigh working for the adoption OF
& luxury sales tax for the support
Of the six months school term and
that he and Josephus Daniels
were among the most vocative ad-
yocates of the luxury tax outside
of the members of the luxury sales
tax group in the general assembly.
This group was headed by A. D.
MacLeans in the ,. house and by
Senator Hinsdale of Wake in the
senate. . 1 log. .-.-.. a'. -.
Two years, ago the house had q
large majority in favor Of a lux
ury sales tax and a smaller ma
iority in favor of general sales
tax and voted to accept either, al
tho the senate held out against
both ferns and refused to, con-
cur. This time the senate Is con
ceded to be in favor of general
sales tax. with most of the oppo-
sition to either form being in the
house. 1t is believed that the
house will eventually accept
general sales tax. however, ..