The people's voice. [volume] (Helena, Mont.) 1939-1969, 1949-03-11
The 800 Excise Tax Payable
To the State of Montana

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Chapter Al of the Laws of 1899,
provides as follows:
"Section Is. The Montana liquor
control board is hereby authorized
and directed to charge, receive and
collect at the time of the sale and
delivery of any liquor as authorized
under any provision of the laws of
the state of Montana an excise tax
at the rate of eight per centum of
the retail selling price on all liquor
SO sold and delivered. The Mon
tana liquor control board shall retain
the amount of such excise tax re-
ceived in a separate account and
shall deposit with the state treas
urer, to the credit of the general
fund, such sums so collected and re-
ceived not later than the tenth 10)
day of each and every month"
Neither the Board of Liquor Con-
troll or the administrator got around
to observing this law until about
May, 1945. During the years 1910,
1941, 1912, 1943, 1914 and 1915.
they were collecting the excise tax
on the Cost price" and not upon
"the retail selling price,, as required
by law. On or about May, 1945,
some one awoke from a long sleep
and an attempt was made to con-
form to the law. But the retail
price could not be raised under the
of the OPA. The Liquor
Board, therefore, retained its old
method of assessing the excise tax
against the 1'cost price" and paid the
balance due the state out of its own
profits until May 1, 1947. The ac-
countants employed by the commit
tee estimate the loss to the state
from this failure to observe the law
to be approximately $4,000
Those responsible for the loss should
be compelled to make it good
On Dec. 10Th, 1913, Mr.. Reed,
the present administrator for the
Montana State Liquor Board, as
shown by Voucher No. 9870, bought
for .$2,O85.60, Caballera Brandy con-
sisting of 564 bottles (4/5 quarts).
There appears no purchase order for
this liquor and the transaction was
not recorded in the minutes of the
board. The liquor was disposed of
by sale of 324 bottles shipped to
Store No. 116 and 240 bottles
shipped to Store No. q both in
Butte, Montana.
The Voucher shows payment to j. |
L. Bjorstad, of Glasgow, Montana, |
/ lumber dealer who does not hold
! liquor license.
Mr.. Reed informed the auditors of
he committee that he purchased the
liquor on the approval of the attor
ley for the board and that the liquor
vas a part of 100 cases originally
old to one George Allen, and that
I. l.. Bjorstad loaned money on it
o Allen.
The board lost 27c per bottle on
he transaction, computed as follows:
Selling price per bottle $3.65
Less $50 excise tax ---------------- .27
Net selling price at Butte 1888
Cost per bottle ---------- 1858
Net loss to Montana per bot. S .27 /.
Net loss to Montana on the trans
action: 564 .27 equals $152.28
The transaction above mentioned s
yas not only in direct violation of
he laws of Montana, but the state
uttered a loss of $152.28. This S
ind of business must be condemned {
nd those responsible required to re- $
nburse the state for the loss suf-
cred. {
Other examples of losses under the
xcise tax are as follows
The state of Montana suffered a
,ss of $61,532.26 under the excise
TX charged on the liquor handled
trough the Montana Liquor Board
Y Tom Alley, the Egans, and others /
lring the war when there was an T
legged scarcity of good liquors and S
hen the state of Montana permitted S
lie purchasing of liquor by said in a
viduals outside the state of Mon t
ma. This liquor was brought into a
ontana by paying the $3.50 MAKEUP i
provided by the board and as ex t
aimed under the previous headings. e
he loss of approximately $50 was N
lie to the difference between 80 s.
l the COST of the liquor and go s.
the SELLING PRICE. The diff I
renee of 80 was paid by the Mon Il
ma Liquor Board resulting in the Ii
id loss to the state of SCI, 532.26. ii
Another example of miscalculation 81
the excise tax resulted in an ex- 81
ssive payment of the tax to the b
ate Treasurer of 1888, 020.85. This a
t. %