Evening star., 1949-07-30
You ond the D. c. Sales Tox
You ond the D. c. Sales Tox
Merchants Must Keep Accounts
On 7 oxed Sales, Report Monthly
fSepenth of a Series. J

Consolation seeking sales tax
payers should consider the plight
of the merchant. He not only will
pay the tax as a consumer, but
he must set up the bookkeeping
necessary for filing monthly ano
annual returns on the 2 per cent
gross receipts levy.
Even though sales tax officials
are allowing wide latitude in
systems of accounting, enough
confusion already has developed
to assure a heavy aspirin sale
before the machinery is working
smoothly everywhere.
1t is the vendor against whom
the sales tax actually is directed
He is responsible for turning in
2 per cent of his gross receipts
on taxable sales. But the law also
requires him to collect this tax
from the consumer.
Law Requires Registration.
Every person engaged in selling
taxable property and services is
required to register with the as
SCISSOR, under penalty of fine. Sales
| tax officials expect more than
that. They intend that even
wholesalers should register on the
assumption that all such dealers
sometimes make retail sales to
friends or business acquaintances.
Both by their neglect in filing for
registration certificates and by the
questions they are asking. many
retailers are exhibiting an igno-
rance of the new law. These
questions and answers may be of
help both to them and the gen.
eral public: 49,,
@. Must out-of-town businesses
apply for registration?
A. Any business outside the Dis
trict that deals in taxable trans
actions inside the District must be
registered. ~.
@. How often should sales and
use tax returns be made to the
District assessor?
A. A monthly return must be
made by the goth of each month
for the preceding months busi~
ness. An annual return must be
filed by the 3oth day after the ap-
plicable tax year.
Forms Mailed.
@, How does the retailer obtain
tax return forms?
A. They are mailed to him the
first of each month by the Asses
sor. They are not furnished in any
other way.
@. What information is required
on the returns by the Assessor?
| A. The vendor needs to make
only three entries obtained from
his books: % His gross receipts
for the month. less tax returns,
(2) cost of property acquired sub
ject to use tax and 90 total OF
exempt and non-taxable sales.
@. What records must the re-
taller keep to show his gross re-
ceipts and sales tax deductions?
A. Any system desired, so long
as it will support and prove any
element of the return to the salts
faction of sales tax officials.
@. When is the first tax return
due to be filed?
A. The first return is due Sep
tember 20. Retailers should make
their tax payments by check or
money order. payable to collector
of Taxes, District of Columbia"
@. The consumer pays no tax on
purchases under IA cents. How
does the retailer compute this
bracket in his returns?
A. He must include items from
to IA cents in his total gross re-
ceipts and pay tax on them.
Cannot Pay Tax.
@. Can the vendor advertise
that he is paying the tax for the
consumer?
A. No. it is unlawful to advertise
or to grant such a concession
Each offense is punishable by a
$500 fine, six months in Jail, or
both.
@. In most cases, will vendors
be put to much extra trouble or
expense keeping sales tax records?
A. Some sales tax officials be-
lieve the average business can
absorb the extra booking and
auditing work without expanding
its Office force.
@. What If the customer re-
fuses to pay a sales tax in ac-
cordance with legal requirements?
A. The merchant has the same
recourse at law as he would have
for any collectable debt.
@. What is the procedure for
registration of chain stores?
A. Each unit must register
separately, but the returns for al
may be treated jointely.
Semi-Public Institutions. ,
@. Must semi-public institu.
tions register?
!; A. Yes, even though the trans.
action for which the institutions
were founded are tax-exempt
they are required to register te
cover any other type Of retail
sales.
@. What is a semi-public insti'
J tuition
A. It is any corporation, com.
munity chest, fund or foundation
organized exclusively for religious
scientific, +. charitable or educa'