Evening star., 1947-06-29
bt24 THE SUNDAY STAR, Washington, D. c.


oline and other fuel on which a tax
already is imposed by the State,
medicines; new or used automobiles
and trucks; real estate; livestock,
poultry, vegetables and other farm
products If they are sold by the
person who produces them or by
his employees: railroad tickets and
bus and streetcar fares: telephone
bills and kilograms, and fertilizer,
lime, seeds, feeds for livestock and
poultry and other products used for
agricultural purposes.
If you buy a new or used house
or lot, you won't pay any sales tax.
But if you are building or repairing
a home or garage, you must pay a
tax on the materials used.
Personal Services Exempt.
Personal services, such as those
rendered by doctor or dentist, also
are exempted. But your gas and
electricity bills are taxable.
Liquor, although already taxed by
the Federal and State governments,
is in special category and will
bear sales tax as we'll, according
to a ruling by the Maryland at
torney generals Office.
1t is the only commodity sold
directly to the public through dis
pensaries operated by several county
governments, including Montgomery
Officials of the Montgomery liquor
dispensary system said the tax will
apply on the total purchases made
by a customer.
A survey CT stores in Montgomery
/ County showed they have completed
plans for keeping track of the tax
they must charge on each article.
the storeAeepers, however, intend
TO advertise the fact that the sales
| tax goes into effect Tuesday. All
expressed the belief that the buying
public knows all about it.
Temporary Slump Expected.
Some expect a temporary slump
in their sales, but they think Gus
toners will continue to patronize
their regular stores after they real
ize it won't pay to spend car fare
to buy in Washington.
AS companion measure to the
sales tax law, the Maryland Legis-
lature passed another law called
! the use tax. It provides that if you
Suy anything out of the State that
you intend using in Maryland, you
must pay the same tax as you would
if you bought the article in Mary
land.
State officials have admitted, how
ever, that this will be difficult to
-enforce. In addition, Washington
stores have. made no plans to collect
it.
Every storekeeper in Maryland
must get license from the State
controllers Office in Baltimore be-
fore he can collect the sales tax.
Liable to SIS Fine.
If he doesn't have license by
Tuesday and starts collecting the
tax anyway, he is liable to a $25
fine.
Blanks are available at the Office
of the clerk of the Circuit Court in
Montgomery County Courthouse at
Rockville and at the Prince Georges
County clerks Office in the court
house at Upper Marlboro. They
must be filled out and sent to Balti-
more.
So far, several hundred license
forms have been issued in Rockville,
according to officials there. No estl-
mate could be obtained of the num-
Ger of blanks issued in Upper
Marlboro. -.....
Mr.. Lacy said about $4,000 ap-
plications for licenses have been re-
ceived to date. These represent less
than 't1alf the estimated $4,000 store
keepers in Maryland, he said.
Mr.. Lacy emphasized that his
Office intends to enforce the law
"in a spirit of cooperation. There
will be no brow beating"
The tax is expected to produce
approximately s18,400,o00 annually,
most of which will be used for
schools.
officials said Maryland is the 21st
State to adopt the sales tax.