Evening star., 1937-09-10
Sales TO Government.
SECTION Is.
Receipts From Investments.

SECTION Is.
Receipts From Investments.
ta) Persons who buy and sell or hold
securities for investment or speculs-
ton. If such buying, selling or holding
does not constitute trade. business or
vocation. are not subject to the pro-
visions of said title and are not re-
ouired to report their receipts as gross
receipts. However, If such buying and
selling or holding of securities consti-
tutes his ordinary or regular trade.
business or vocation. such persons are
subject to the provisions of said title,
and are required to report the re-
ceipts therefrom as taxable gross re-
ceipts under said title.
(b) Income from stocks bonds or
other securities or investments, or
bank deposits, except interest or evil
dences of indebtedness given in con-
nection with business and bank depos-
its maintained in connection with
business, are not gross receipts.
SECTION Is.
Receipts ef Borrowed Money or
Property.
(a) Receipts of borrowed money is
not taxable to the borrower, nor is
the receipt of the payment thereof to
the lender, and notes taken in evidence
Of money loaned are not taxable as
gross receipts. except that when such
notes are sold and transferred. the
profit realized thereon must be report
ed as taxable gross receipts.
OBJ Receipt of borrowed merchan-
disc is not taxable to the borrower,
nor is the return of borrowed merchan-
disc to the lender, except that any
profit derived by either party in such
transaction is taxable to the person
receiving the same, and must be re-
ported and the tax computed thereon.
SECTION Ii.
Receipts From the Leasing or Use
of Personal Property.
(a) The leasing of personal property
N business, and the rental received
from the leasing of personal property
Il gross receipts and must be reported
and the tax computed thereon.
(b) Where n person operating .
Axicab or automobile rents the same
for stated sum, such person Is
engaged in business, and the total
amount received by such person as
fares must be reported and the tax
computed thereon. In such instance
he nf no 10 vi
mobile also is engaged in business. and
the rentals received by the owner
from the operator must be reported
BIZ him and the tax computed thereon.
tc) Where person, not the owner,
operates taxicab or automobile
snder an arrangement whereby he
paws the cost of gasoline, oil and other
charges necessary TO the legal opera
ton of said taxicab or automobile
Except owners license, registration
fee and tangible property tax thereon)
and pays to the owner certain per-
centage OF fares as rental. such opera
tor is engaged in business and the
total amount received by such operator
ss fares must be reported and the tax
the owner also is engaged in business
and the rental or commission received
by the owner must be reported by him
and the tax computed thereon.
td) Where a person, not the owner,
operates taxicab or automobile
under an arrangement whereby the
owner pays the cost of gasoline, oil
en -
legal operation of said taxicab or auto
mobile Except the operators license
fee, and pays 10 the operator or
permits the operator to retain a
certain percentage of fares collected
by the operator as compensation for
his services, the owner of said taxicab
or automobile is engaged in business
and the total amount of the fares coll
lected by the operator must be reported
hv the owner and the taxes computed
thereon In such instance, the
operator is not engaged in business
and is not required to report or pay
the tax upon the commission paid tc
him by the owner
(e) The provisions of paragraphs
~b). (c) and Id of this section per-
tanning 10 the rental and use of taxi
cabs and automobiles apply to the
rental and use of all personal property
under circumstances similar TO those
set forth in said paragraphs.
SECTION Is.
Hotels.
The operation OF a hotel or inn i.
business under said title. and thu
gross receipts from such operation
must be reported Provided. however
that II any person operating a hote
shall advance any sum or sums for OF
on account OF the patrons of sale
hotel, such sums. less any profit from
said advancement, when repaid shal
not be considered gross income. anc
may be deducted from the tota
amount received from patrons by tn,
person operating said hotel. and tn,
remainder shall be reported as pros.