The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-08-13
SALES TAX IS.
AGAIN REVISED.
UNDER ORDER
New Rules Promulgated
for Those Made Effec-
tive August |

Repeal of the revised rules for
collecting North Cardinals three
per cent general sales tax that
were made effective August 1
was announced by w. d. Dowell
of Raleigh, secretary of the
North Carolina Merchants asso-
citation Saturday.
The order by Revenue Com
missioner Maxwell by which the
revised rules were repealed also
was made effective as of August
l, which Mr.. Rousseau said will
authorize establishments who
charged the sales tax according
to the revised rules to make ap-
propriate refunds.
A copy of the new order of
the state revenue department also
was sent to Mr.. Rousseau by Mr..
Dowell.
The state secretary's memoran-
dunn said: "This virtually repeats
all of the revised rules and regu-
lations promulgated August l.
Advise your merchants and par
ticularly your wholesalers"
Mr.. Rousseau pointed out that
the Charlotte Merchants associa-
ton had submitted vigorous pro-
tests to Mr.. Maxwell before the
revised rules were put into effect.
He added that the retroactive re-
peal is "a victory in the n1er-
chants first real skirmish of the
fight for repeal of the sales tax
levy"
The new order allows the whole
sale merchants to collect the
usual one-twenty-five of one ger
cent wholesale tax on goods sold
to business establishments at
wholesale for consumption in the
operation of their businesses.
The previous order required the
wholesalers to collect the full
three per cent sales tax, and
strong opposition from the mer-
chants, particularly the whole
salers, was aroused. Mr.. Dowell
in an interview here just before
the rule became effective said it
was promulgated "for political
purposes"
The text of Commissioner Max
wells latest ruling, as received
from Mr.. Dowell. was made pub
lis as follows:
Regulation of the department
of revenue amending the revised
rules and regulations governing
the administration, and appllca-
ton of the North Carolina sales
tax.
"85. Classification of whole
sale sales by manufacturers and
wholesale merchants: Manufacturr-
ers and wholesale merchants SELL
ing tangible personal property at
wholesale and at wholesale prlc es,
| in a manner by established trade
: practices classified as wholesale
business, to purchasers to be utll-
lied or consumed by such pur-
chasers in carrying on manufac-
turing, trades, professions. busl-
nesses, or building, heating or
plumbing contracting or in opera
ton of hotels, cafes, restaurants,
office buildings. Institutions
fleets of motor vehicles, etc, are
authorized to classify such sales
as wholesale and subject to the
wholesale rate when sold by q
wholesale merchant. as PROVIDED
| in the rules and regulations OF
this department in effect at the
time of the adoption of the re-
ivised rules and regulations gov
erning the administration OF the
sales tax. The revised rules and
regulations adopted and made eff
fective August 1, 1884, are
amended accordingly.
"Any departure from establish
ed trade practices to secure
wholesale classification. will be
disregarded and sales at retail so
made taxed at the retail rate.
"Merchants doing both whole.
sale and retail business must
keep accurate and separate rec.
ords of wholesale and retail
transactions so same may be
readily checked by this depart
Iment.
"This regulation shall be effec-
Tive from and after the 1st day
&c AUGUST 1894"