Evening star., 1949-05-29

completed, but it Is believed the
various types Of businesses will be
taken up at different sessions.
The discussions probably will
not begin before next week when
District officials will be likely to
know enough about the new law
to explain it to those 1t will affect
the most.
It also will be necessary for
Mr.. Dent to get in touch with
Maryland and Virginia merchants
In connection with sales made to
District residents under the use
tax provisions. The law also re-
quires a per cent use tax on
items bought outside the District
for use here.
State Cooperation Sought.
When Maryland's 2 per cent
sales tax went into effect in 1947.
Maryland authorities speedily OBJ
tanned the cooperation Of WASH
ington merchants and manufac-
turers. Items bought here for
delivery in Maryland were taxed
by the Washington merchants and
the money turned over to the
neighboring State.
Now, Mr.. Dent will have to
work out q similar plan with
Maryland merchants. Washington
residents who make purchases In
Virginia and take the merchan-
disc with them will avoid pay
ment of a use tax in that State
but are conscience-b bound to pay
the District a use tax If they
bring the merchandise here.
Maryland and Virginia mer-
chants probably will agree readily
to collect use taxes for the Dis
trict government from Washing
ton customers who want their
purchases delivered here. WASH
ington merchants will collect no
sales tax from Virginians who
purchase for delivery in Virginia,
but they will collect from pur-
ehasers for home delivery in
Maryland.
Marylanders who make pur-
chases in Washington and take
their purchases with them will
pay the District sales tax. If they
purchase for home delivery. WASH
ington merchants will collect the
Maryland use tax as they are now
doing.
Liquor Evasion Watched.
Meanwhile, Mr.. Pearson ex-
planned that there is q loop-hole
In the new liquor tax provision
that will have District officials
on watch for possible evasion. The
new law exempts from the tax
increase any bottles Of liquor al
ready covered with the present tax
stamps and on shelves.
I. Dealers in liquor. however. will
be required to pay the difference
between the old rate and the new
Of any unused stamps they may
have on hand after August /.
The difficulty Mr.. Pearson said,
is that the District has no more
Of the old stamps and cannot get
delivery Of the 100000 new
ones for two months. It would be
possible, he said. for q dealer to
stock up q large supply OF liquor
with old-rate stamps on hand
place the bottles on the shelf and
thus avoid the increased tax rate.
He said each dealer would be
required by the Alcoholic Bev-
erage Control Board to furnish
a statement Of unused stamps OF,
hand. This information could
be used as q check against such
stockpiling.
The new one-cent-a-pack ciga-
rette tax, which also goes into
effect August /. will require each
retailer Of cigarettes to obtain q
IS license. Each package will
have to be stamped or marked
with machine imprint. The
stamps, Mr.. Pearson said. viii be
sold to retailers at q rate OF 81
worth Of stamps for 30 cents.
This viii give the retailers . 10
per cent cut Of the tax collected. !.
Customers win save 10 cents .
carton by buying before August
4