Evening star., 1947-07-02
Confusion Rules
In Many Sales
Collections
Nearby Merchants
Say Week Is Needed
To Know Levy Effect

n W %S
!. To Know Levy Effect
Nearby Maryland merchants to-
jday entered the second day of i'm
|. posing the new State 2 per cent
sales and use tax on purchases
with confusion predominating most
transactions
!. After a 1-day trial yesterday most
agreed that:
1 A week and perhaps longer must
!felapse before the effect of the levy
on their businesses will be known.
Sales on large items of from S25
up including radios and refrigera-
, tors probably will be hurt.
i Consumers of articles selling for
less than $40 will not find a trip
into Washington worthwhile in an
attempt to evade the use tax which
nevertheless, is assessable.
ID. C. Merchants Forum.
Washington merchants who have
large or considerable patronage
from Maryland residents and who
are required to assess the tax will
hold an open forum this afternoon
TO discuss the new Maryland levy.
+. Businessmen throughout Metro
politan Washington have been in
Vited to attend the meeting at the
United States Chamber of Com
merce under auspices of the Wash
ington Board of Trade.
Walter E. Kennedy, chief of Re-
tail Sales Tax Division of the Mary
land controllers office, and Edward
F. Ingelbert, his assistant, will out
line provisions of the new retail
sales tax and use taxes. They will
explain how out-of-Sta merchants
are to make use tax returns on pur-
chases by Maryland residents.
The first day of operation of the
new tax law yesterday found most
merchants in the nearby areas COM
plying or attempting to comply al
though some professed ignorance Of
the requirements of the law and
were awaiting official notice from
the State which they said has never
been received.
Unaware of Tax.
A food counter in a Hyattsville
10-cent store and small candy store
nearby were unaware that they
should impose 1-cent tax on pur-
chases of more than 9 cents until
approached by newspaper reporter.
In Bethesda, an electrical dealer
said woman who lives in Washing
ton cancelled her order for an auto
matte laundry drier because the sale
Is subject to tax. -
A Bethesda restaurant operator ex-
pressed the feeling of many that the
tax is more of nuisance than a
hinderance to business. He said
there was no noticeable decrease in
the number of customers and he
Joined others in declaring the levy
will be expensive for businessmen
to collect.
A dealer in automobile tires in
Bethesda said some cusomers re-
fused to buy and said they would
make their purchases in Washing
ton.
The Montgomery County Liquor
Dispensaries in Silver Spring and
Bethesda did not escape the levy
although operated by one of the
States political subdivisions.
The F. w. Woolworth Co. five and
ten cent store in Hyattsville was
giving stubs containing four por-
tions called a sales tax memoran-
dunn which declared, "One cent has
been collected and you are entitled
to purchase merchandise not ex-
ceeding SO cents without paying ad-
ditional tax" Stub is not good in
any other store and not transferable.
An electrical appliance store in
the 5000 block of Rhode Island ave-
nue., Hyattsville, reported it lost its
first sale for a $247 refrigerator
when a woman customer came in
and said she would buy it in the
District
C. H. Hoffman, owner of the store,
said he tried to convince her that
she would have to pay the use tax
in the District anyway. She said
she would not do it.
Calls Business Normal.
Sylvan Deitz, owner of Deitz's
Department Store. Hyattsville, said
business yesterday was about nor
NAL. His store has petition against
the sales tax which customers now
are asking to sign. Heretofore, he
said, most were hesitant about sign
ing it.
Some residents pointed out that in
restaurants where customers for
rnerly could buy cup of coffee and
two doughnuts for Is cents they
now are buying each item individ-
ually at cents each to avoid pay
ing the one-cent sales tax on totals
over nine cents.