Evening star., 1947-06-29

der a bona-fide contract which
placed absolute obligations on the
purchaser to buy and the seller to
deliver at definite named price. -
Under the ona-fide contract rule,
q person merely on the waiting
list" for a new automobile, refrigera-
tor or washing machine would have
to pay tax on the article if it is
delivered after the new sales-tax
law goes into effect, the controller
said.
Officers of the Baltimore Retail
Merchants Association said they
had noted no buying rush on the
part of customers to beat the tax
before Tuesday.
How Tax is Figured.
The tax Is figured this way:
cent on an article costing between
and so cents, 2 cents if the article
costs between 81 cents and 81 and
an additional / cent for every So
cent bracket over ST.. Anything
costing less than cents will not
be taxed.
Nor will there be a tax on your
groceries or on the cone you buy
at the frozen -custard store. because
they will be eaten away from the
store where they were bought. Meals
in restaurant, however, will be
taxed.
Other exemptions include gas
oline and other fuel on which 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 a 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 a special category and will
bear sales tax as we'll. according
to ruling by the Maryland at
tornev generals office.
It 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 customer.
A survey of stores in Montgomery
County showed they have completed
plans for keeping track of the tax
they must charge on each article.
The Storekeepers. 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 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 a companion measure to the
sales tax law, the Maryland Legis-
latlpe passed another law called
the use tax. 1t provides that If you
buy anything out of the State that
you intend using in Maryland. you
must pay the same tax as you woulc
if you bought the article in Mary
land.
State officials have admitted, how.
ever. that this will be difficult tt
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 s25 Fine.
II he doesn't have q license by