Evening star., 1937-07-06
Alcoholic Beverages, Candy,
S.Ht Drinks Would Also
BE Levied Upon.
.REDRAFT EXEMPTS
MEDICINE, CLOTHING
Committee May Make Changes in
These Provisions-Action
Seen Soon.
BY ]. A. O'LEARY.

hollc beverages. soft drinks, candy and
confectionery would be subject to the
2 per cent sales tax if the Senate Dis
trlct Committee approves the tenta-
tive redraft of the omnibus local tax
bill. submitted to Chairman King by
the legislative drafting experts today.
Au medicines and clothing are ex-
empt but in regard to the exemption
OF food detailed definitions were writ
ten into the measure. specifying that
the. exemption would not apply to
food consumed on the premises where
1t is prepared.
These detailed provisions, however
still are subject to possible change
when the committee is called together
by Chairman King, probably late to.
day, to ratify the phraseology of the
amended measure.
Meanwhile, indications are that
Senate consideration of the tax meas
ure cannot be sought before THURSDAY
or Friday. And. with the Supreme
Court debate already under way, il
appears that action on the local reve-
nue. bill will have to depend on
whether unanimous consent can be
obtained to temporarily lay aside the
court issue. Even if such an agree
ment can be obtained a demand for
the regular order" would bring the
court bill back before the Senate
again if the tax bill leads to lengthy
debate.
Exemptions Defined.
The general definition of food prod
ucts exempt from the tax twhen not
consumed on the premises) includes
cereals and cereal products, milk and
milk products, oleomargarine, meat
and meat products, fish and fish prod
ucts, sea food and sea food products
eggs and egg products, vegetables and
vegetable products, fruit and fruit
products, spices and salt. sugar and
sugar products other than candy and
confectionery, coffee and coffee substi-
tutes, tea, cocoa and cocoa products.
The clothing exemption applies to
wearing apparel for any part of the
body"
The text also carries an all-inclusive
exemption ''of all medicines"
In connection with the sales tax.
the revised bill retains the $40 annual
license fee for all business establish
ments, which was a part of the busi-
ness privilege levy of the House bill.
The sales levy is described as a tax
OF per cent of the gross receipts of
retailers for the privilege of doing
business. 1t directs that the tax shall
oe collected by the retailer from the
consumer in so far as that can be
done, but there is another provision
authorizing the Commissioners. if they
see At, to arrange for the collection
OF the tax by fixing canceling revenue
stamps.
Retailers Obligation.
The bill makes it unlawful for any
retailer TO advertise or hold out to the
pubic. directly or indirectly, that the
tax or any part thereof will be as
sumed or absorbed by the retailer
or that 1t will not be added to the
selling price, or that it will be re-
funded.
Payment Of the tax to the District
is made direct obligation of the re-
taller, who would have to file a
monthly statement of his gross re-
ceipts with the assessor and nav the
tax on the 18th day of each month on
gross receipts for the previous month.
In technical legislative language it is
described as a tax on the sale of
tangible personal property, and tan
gible personal property" is described
as meaning personal property which
may be seen, weighed measured, felt,
touched or is in any other manner
perceptible to the senses, and shall
be taken to include also all sales of
admissions to any place of amusement,
including moving pictures, theaters,
theatrical performances, shows, cir
cuses, athletic events, boxing and
wrestling contests, concerts, amuse.
ment parks, piers, swimming pools,
bathing establishments and fairs"
The annual $40 permit could be re.
voked by the Commissioners on hear.
ing for failure to comply with the pro-
visions Of the measure.
The assessor is empowered to make
an additional assessment of tax due
If he is not satisfied with the return
OF retailer. There also are penal
ties for failure to file returns.
A borrowing provision permits the
Commissioners to obtain money from
the Federal Government until the end
OF the fiscal year.
The committee may consider at to-
days meeting whether to apply the
tax to small purchases, or to fax a sale
price at which it would start, such As
10 or Is cents.
Discussion of the bill is expected to
center around the increase of 81 per
hundred in the tax on all land in
the District, improved or unimproved,
which was substituted for the House
proposal to increase the regular tax
rate from $1.50 to $1.70 on real estate
as whole, land and improvements.
While the House plan would have
taken $2,500,000 from property own.
ers toward meeting the $1,000, ,ooo
deficit that faces the city, the senate's
land tax will collect $4,80O,0 1000 from
real estate, or major part of the
deficit.
Senator King made known he
will file minority report in opposition
to the action of majority of his com.
mittee in attaching to the District tax
bill the Tydings national resale price
maintenance measure. This amend
ment likewise is expected to prolong
debate on the tax bill.
Although Senator King also opposed
substitution Of the sales tax and land
levy for other features Of the House
bill he does not plan to file . minority
report on these amendments
j.