The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-10-13
Mcmillan, Dowell
Agree Tax Row Is
Without An Issue
Newest Controversy Thru
misunderstanding, Is
Now Admitted
B., I. c. BASKERVILL
The Iimcs-News Bureau
Sir Walter Hotel

NoI SOHIlONSlSy ONSl Vic ooiSo WA
between Willard Dowell, secre-
tary of the State Merchants as
ISOLATION, and Harry Mcmillan
director of the sales tax division
of the state department of rev.
enue, is based largely on mis-
understanding. both of them
agreed. About a week ago Di-
rector Mcmillan issued a new
ruling pointing out the differ
ences between retail and whole
sale sales and warning merchants
that unless a sale was made for
resale purposes, it could not be
classed as a wholesale transac-
ton and hence was subject to
the 8 per cent sales tax. He said
there had been complaints that
many purchasers were trying to
evade payment of the tax by try
ing to get merchants to class
large quantity sales as wholesale
rather than retail sales.
Secretary Dowell, however
who admitted he had not read
the entire statement issued by
Mcmillan, interpreted the state
ment as charging that the mer-
chants were trying to evade col
lection and payment of the sales
tax by CHASING large quantity
transactions as wholesale sales
and took vigorous exception to
these supposed charges. DowelI
declared that the merchants have
been cooperating with the state
and have not been seeking to
evade the tax in any way and
that the reason the revenue from
J it has not been as much as was
estimated was because the sales
tax has been causing many peo'
pie to do their buying in Other
states.
"There is no doubt that thou
sands Of people are now doing
their buying from mail order
houses or are going into Other
states that do not have sales
tax in order to evade payment OF
the taX," Dowell said. "That il
the reason the revenue from the
sales tax has not come up to tht
estimated yield. But it is th'
public, rather than the merchants
who are trying to evade the tax
And at least one state officla
We know of is among those wht
are buying in other states in or
der to avoid paying the sale!
tax"
Director MCMILLAN, however
did not charge that the mer
chants were trying to evade eth
er collecting or paying the sale
tax by CHASING large sales a
wholesale transactions, and 81
pointed out in a statement he is
sued to the press of the state.
"At no time have | said O.
even intimated that the mer
chants of the state have bee,
trying to evade payment Of tn
sales tax" Director McMulla1
said. "On the contrary, | hav'
said repeatedly that the mer
chants have been and still ar
cooperating with us to the hes
of their ability. What / did say
however, was that large pur
chasers, such as manufactures
and industries, were seeking t.
get merchants to sell them larg'
quantities of goods at wholesale
prices so as to escape paying tn
3 per cent sales tax. Scores o
merchants wrote in to US abou
this situation and it was Target,
as the result of these letters ant
the requests from the merchant
that we issued the supplemental!
ruling we did with regard tt
wholesale transactions. The pur
pose of this ruling, too. was JUS
as much to protect the merchants
as to see that the state gets the
tax which is due it, since II 9
large purchaser talks a merchar'
into selling to him at wholesale
and the merchant does it, tht
purchaser escapes payment of tho
tax, but the merchant will have
to pay it just the same. so TIM:
ruling was decidedly to the ad
vantage of the merchants"
Some merchants had not full!
informed themselves with regart
to the differences between retail
and wholesale sales and as re
suit a good many of these were
not sure how to draw the line be
tween these two classes of sales
Mcmillan pointed out. Some
were losing as a result. So the
supplementary ruling was issueC
so that all merchants might know
Just how to class their sales anC
not be imposed upon by large
purchasers.
"If what Director McMulla1
said was that the purchaser
rather than the merchants were
trying to evade payment of thu
sales tax by trying to get mer
chants to sell to them at whole
sale rather than retail prices,
agree with him." Secretar7
| Dowell said. For there arr
plenty of people who are usint
every means possible to evad'
payment of the tax. But / know
that the merchants are co-operat
ling as much as they can and tina
they are honestly trying to live