Evening star., 1940-03-24

to extend the time for payment of
the tax for period not to exceed
six months. A period Of limitation
upon assessment and collection also
Is provided. Except for false or
fraudulent returns, the tax imposed
shall be assessed within two years
after the return was filed and no
proceeding in court without assess
ment for the collection of such taxes
shall be begun after the expiration
Of such period.
II the taxpayer omits from his
gross income an includible amount
in excess of Is per cent of the gross
income listed in his return, the tax
may be assessed, or q proceeding
In court begun at any time within
five years after the return was filed.
In the case of false or fraudulent
return with intent to evade tax, or
of failure to file q return, the tax
could be assessed or court proceed
ings started at any time.
For willful violations of the law
fines up to $4,000 or imprisonment
up to one year, or both, are pro-
vided. The measure also provides
fines up to $500 for each day Of
failure to file a return, pay the tax
or keep such records as are re-
quired.
Retail Sales Tax.
The retail sales tax portion OF the
combination tax provided In the
new bill calls for:
l. A 2 per cent tax on the gross
receipts received from the sale with
IN the District Of tangible personal
property at retail.
2. A 2 per cent tax on the use,
storage, or consumption within the
District of any articles which If pur-
chased in the District would have
been subject to the sales tax. This
tax would be reduced by any retail
sales tax paid on such article with
out the District. The use tax would
not apply, however, to Cd property
acquired IN any month which does
not exceed $25 In aggregate value,
and CD property brought into the
District by non- res. lent for his use
or enjoyment while temporarily in
the District, unless such property is
used in conducting non-transitory
business activity within the District.
Here are the items exempt from
the sales tax:
l. Sales immune from taxation
under the Constitution or laws of
the United States.
Meals Not Exempt.
2. Sales Of food and food products
for human consumption off the
premises. This exemption does not
apply to meals, whether consumed
on or of the premises where sold,
nor to candy, confectionery, alco-
holic beverages, soft drinks and
sodas.
3. Sales of medicine for human
consumption and use.
4. Sales of motor fuel, except that
this exemption shall not apply to
sales OF motor fuel purchased for
any other purpose than the use in a
motor vehicle operated or intended
to be operated in whole or in part
on District highways.
S. Sales to or by the governments
of the United States and the Dis
trict
6. Sales Of newspapers and peri
odicals.
7. Sales of materials incorporated
in any structure building, or project
constructed by a contractor for the
United States or the District, or any
agency thereof.
Tangible Personal Property.
The term tangible personal prop
erty" means personal property which
may be seen, weighed. measured,
felt, touched or is in any manner
perceptible to the senses. This in
cluded sales of electricity. sales of
gas and sales or admission to any
place of amusement, including mov-
Ing pictures, theaters, theatrical
performances, shows, circuses, ath-
letic events, boxing and wrestling
contests, concerts. amusement marks