Evening star., 1947-07-03
D. +. Merchants
Meeting! toP|an
Sales Taxi Policy
Seek to Avoid
Seizure of Trucks
By Maryland

Faced with possible seizure Of
their delivery trucks if they fail to
cooperate Washington merchants
were meeting today with their legal
and accounting experts in an effort
to formulate procedure for collec-
tlon of the Maryland sales and use
taxes.
A definite policy had not been
established, check of major de-
partment stores showed, but spokes-
men indicated some plan would be
devised to collect the 2 per cent
levy on purchases by Maryland res
ldents who wanted their packages
delivered.
A veiled threat of confiscation of
their vehicles was made to the mer-
chants yesterday by Walter E. Ken
nedy, chief of the Retail Sales Tax
Division of the Maryland control
ler's office He spoke at forum held
by the Washington Board of Trade
IN the United States Chamber of
Commerce Building.
Policy Not Crystallized.
"A policy hasn't crystallized vet"
Edward D. Shaw, executive secretary
OF the Merchants and Manufacture
ers Association said. THE competi-
tive situation is what makes it COM
pllcated. When you have one group
subject to law, and another not, it
makes it difficult"
Mr. ShoU cold 1a
able procedure would be decided on
a group basis, with major depart
ment stores, for example, following
similar practices.
Executives of all stores checked
today reported they were studying
the problem. Several said their first
knowledge of the magnitude of the
collection task for establishments
doing large delivery business in
Maryland suburbs came at yester-
days meeting.
Seizures Held Possible.
Il don't know yet exactly how
we'll do it. but, obviously, we'll COM
ply with the law an official of one
of the large stores said.
Mr.. Kennedy pointed out the pos
sibility of truck seizures by Mary
land authorities if Washington
stores refused to collect the tax for
the State.
1T is not with any idea of making
threats or trying to impress you
that am big fellow with State
police force to pick up your trucks,
that I come before you" he told
more than 500 businessmen.
Pleads for Cooperation.
THAT is not my intention. But
there is no question of doubt that
can sequester these trucks when
they make deliveries" he continued.
Il do not approach the problem
from that angle. I am asking for
your cooperation"
The tax chief acknowledged some
criticism was due the controllers
office for sloWnesS in preparation
of rules to be followed by merchants
and said that while Marylands law
parallels that of certain sections Of
several other State tax measures, it
does not duplicate any other single
State tax code.
Il prefer the criticism for being
too slow rather than for plunging
ahead with rules and regulations
too hastily drawn" he said.
Clears Up Points.
He made clear, however, that II
a Washington resident makes a
purchase from a Maryland store
ard the seller delivers the goods to
a Washington address, there would
be no tax involved. There also
would be no tax, he explained, if
the Maryland seller sent the mer-
chandise to the Washington ad-
dress either by common carrier or
by mail.
Washington merchants who sell
to Maryland residents and make de-
liveries with their own trucks must
collect the States use tax and
make returns prior to the 18th of
each month on all such sales, he
said. If delivery is by mail or by
common carrier. however, the re-
sponsibility to pay the use tax rests
with the purchaser.
In instances where a Maryland
resident purchases goods and takes
possession in the Washington store,
there is no way the District mer-
chant can be held accountable, Mr..
Kennedy admitted. He said the
purchaser would be held liable for
a use tax on such out-of- State pur-
chases but acknowledged this would
be hard to enforce where small pur-
chases were involved