•^SV U^i^''^M^^>: i:^ ^iK i. -Xi'y':-'' UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY SUPPLEMENT TO TREASURY DECISIONS (T. D. 2719) TREASURY DEPARTMENT UNITED STATES INTERNAL REVENUE U'S, luhtyyA l^ev^vii^c/ ^f^hi/ REGULATIONS No. 44 RELATING TO THE WAR EXCISE TAXES AND WAR TAX ON BEVERAGES (NONALCOHOLIC) UNDER THE WAR REVENUE ACT OF OCTOBER 3, 1917 WASHINGTON GOVERNMENT PRINTING OFTICE 1918 s GO 1918' u. REGULATIONS No. 44 RELATING TO THE WAR EXCISE TAXES (ON COMMODITIES) AND WAR TAX ON BEVERAGES (NONALCOHOLIC) UNDER Titles VI and III of the Act of October 3, 1917. [Public, No. 50, Sixty-fifth Cougi-ess. H. R. 42S0.] CONTEXTS. Page. General provisions 5 Tax on sale of — Automobiles 7 Piano players .' 8 Moving-picture films 9 Jewelry 9 Sporting goods . . . . ^ 11 Toilet articles 11 Medicinal preparations 12 Chewing gum 14 Cameras T 15 Return of commodity taxes 15 Sirups and extracts 16 Uncarbonated beverages 17 Carbonated beverages 17 Mineral waters 18 Return of beverage taxes 18 Carbonic acid gas 19 Return of carbonic acid gas tax 19 Administrative provisions 20 A ppcndices 23 Index 27 (3) TAX ON SALE OF COMMODITIES. Sec. 600. That there shall be levied, assessed, collected, and paid — Article I. Effective date. — The tax is imposed on all articles sold by the manufacturer, producer, or importer on or after October 4, 1917, even though manufactured, produced, or imported before that date. Art. II. Use of terms. — A " manufacturer " is a person who pre- pares an article in final marketable form and sells or markets it. If goods partly manufactured by one person are further manufactured by another before being marketed to consumers for use, the latter is the manufacturer for the purpose of the tax. This applies, for ex- ample, to bulk goods that require to be bottled or otherwise prepared in order to put them into salable condition. For further illustration see Article XXI. The term " producer " is a broader term than " manufacturer." An " importer " is a person who causes an article to be brought into the United States from a foreign country. A re- tailer may be also a manufacturer, producer, or importer. The term " manufacturer " is used in these regulations for convenience to include also " producer " and " importer." Art. III. Basis of tax. — The tax is on the sale of the articles enumerated, or in the case of positive moving-picture films on their sale or lease, by the manufacturer. The tax is measured by the price for v>'hich the article is sold, except in the case of moving-picture films. It is on the actual sales price, and not on the list price, where that differs from the sales price. A discount for cash or other dis- count made subsequently to the sale, however, can not be deducted in computing the price for the purpose of the tax. Commissions to agents and other expenses of sale are not deductible from the price. If articles are sold at the factory and the freight charges from the fac- tory to the point of delivery are paid by the buyer as a specific item, or if they are sold delivered at a sum less freight charges to be paid by the purchaser, such charges need not be included as part of the price of the goods; but if the manufacturer sells goods at a delivered price and himself pays the freight, he is not entitled to make any deduc- tion on account of the inchision in the price of freight charges. If the price of an article is increased to cover the tax, the tax is on such increased price. Art. IV. When tax attaches : " Sold." — The tax attaches when the article is sold ; that is to say, when the title to it passes from the seller (5) to the binder pursuant to a i)revions contract of sale or upon a sale | without previous contract. When title passes is a question of fact, dependent upon the intention of the parties as gathered from the con- tract of sale and the surrounding circumstances. In the absence of an intention to the contrary the title is presumed to pass upon delivery of the article to the buyer or to a carrier for the buyer. In the case of a conditional sale, where title is reserved until paj^nent of the purchase price in full, the tax attaches upon such payment, or when title passes if before the completion of the paj'ments. In the case of the lease of moving-picture films the tax attaches when the manufac- turer enters into a contract of lease, either express or implied, and pursuant thereto delivers the film to the lessee or to a carrier for the lessee. Art. V. Sales by agents. — A sale by an agent is a sale by the manu- facturer. If the manufacturer has a sales agent or sales agoncy, to whom or to which it nominally sells an article, but retains an interest in the profits from, the resale of the article, the taxable sale is that made by the sales agent or agency. Where a sales agent or distributor is a separate corporation and the sale to it is absolute, with no fur- ther payments or benefits accruing to the manufacturer upon a resale or otherwise, the taxable sale is nevertheless that made by the dis- tributor, regarded as the agent of the manufacturer, if substantially all of the stock of the distributor is held by or for the benefit of the manufacturer. Similarly, in the case of a selling corporation owning substantially all the stock of a manufacturing corporation, which nominally sells all or a part of its product to the selling corporation, the manufacturing corporation is regarded as a manufacturing agent and the taxable sales are those made by the selling corporation. Art. VI. Tax payable by manufacturer. — The tax is to be paid by the manufacturer on all sales made directly by him or through an agent. The tax is payable in respect of a sale made, whether or not the XDurchase price is actually collected, but if articles sold are re- turned and the sale entirely rescinded, no tax is payable, and if paid it is refundable. If an article is sold and thereafter exchanged for an- other article of a higher price, the purchaser paying the difference, the vendor should pay the tax on the second sale, but may take credit for the tax paid on the returned article. On .articles manufactured for a jobber by a foreign manufacturer, the jobber must -psij the tax as the importer. A receiver continuing a business under court order is liable to the tax upon articles produced and sold by him. Where a manufac- turer consigns articles to a retailer, retaining ownership in them until tliey are disposed of by the retailer, the manufacturer must pay the tax on all goods sold to the retailer, as shown by reports to be pro- cured hv him monthly from the retailer. See also Article XXXIX. Art. YII. Sales to the Government or a State. — Articles sold to the GoAernment in the ordinary course of business are taxable. Where, however, the Government supplies a manufacturer with all materials and parts except a small portion furnished by the manufacturer, un- der a contract stipulating that the manufacturer shall be guaranteed a certain profit, no tax is payable, because the manufacturer does not sell the articles. Articles manufactured in plants taken over and oper- ated by the Government are not subject to the tax. Under the au- thority of section 3464 of the Eevised Statutes the tax on articles sold the Government may be remitted in cases within the scope of Eegulations No. 34. Articles sold to a State or a political subdivision thereof for use in carrying on its governmental operations are not subject to the tax. (a) Upon all automobiles, automoljile trucks, automobile wagons, and motorcycles, sold by the manufacturer, producer, or importer, a tax equivalent to three per centum of the price for which so sold ; and * * * Art. 'VIII. Automobiles. — The tax is 3 per cent of the price for which automobiles, automobile trucks, automobile wagons and motor- cycles are sold by the manufacturer. An automobile is a self-pro- pelling vehicle, usually designed to run on a road, containing the means of propulsion Avithin itself. An automobile adapted for use on a track is subject to the tax. An automobile truck or wagon is an automobile used primarily for transporting articles. A motorcycle is a motor-driven bic^'cle. Art. IX. Automobiles: Scope of tax. — To come within the scope of the tax a machine must be a vehicle or conveyance, that is, designed primarily for the transportation in or upon it of persons or property. Tractors for pulling agricultural implements, motor-driven machines for pulling vehicles around factories and railway stations, and motor- driven machine guns are not automobiles or automobile trucks. A self-propelled fire engine, at least if designed to carry only such persons as are necessary to drive it, is not spoken of and is not to be regarded as an automobile. If, however, it is specially designed to carry firemen not employed in or a})out the driving of the machine, it must be regarded as falling within the scope of the statute. On the other hand, automobiles and automobile trucks equipped as hook and ladders, hose carts, etc., for the use of firemen are taxable. A chassis is an automobile within the meaning of the statute, and the tax is payable by the manufacturer of the chassis. Where a person other than the manufacturer of the chassis completes and sells an automobile, the tax must be paid on the com]:)lete car less any tax already j^aid on the sale of the chassis. A usable, substantially com- pleted automobile produced by assembling new parts of trucks and cars is subject to the tax. . 8 Art. X. Automobiles: Articles not taxable. — Used or second-hand iuitoniobiles are not subject to the tax. So-called truck units, in- tended to be attached to pleasure car chassis so as to convert them into trucks, are not taxable when sold separately. If sold in com- bination with a new chassis, however, the tax is imposed on the price of the complete truck. A motor unit, designed to be attached to a bicycle so as to make it self-propelling like a motorcycle, is not tax- able when sold separately, but when sold attached to a bicycle or to a children's buckboard the complete vehicle is snl)ject to the tax as a motorcycle or automobile. A tractor which has no body or pro- vision for carrying the load, but is intended to haul trailers, is not taxable. If it has a body, no matter how small the carrying capacity, or is designed for attachment, permanent or temporary, to a two- wheel trailer in such a way as to carry part of the load, it is subject to the tax as an automobile truck or wagon. If sold in combination with such trailer, the tax is on the total price. A four-wheel trailer, complete in itself, having no connection with an automobile except the necessary coupling wdien drawn by it, is not subject to *the tax. Automobile bodies, side cars for motorcycles, speedometers and other attachments and accessories to automobiles and motorcycles, are not taxable when sold separately, but they are when sold as part of an automobile or motorcycle or of its equipment, whether standard or not. (b) Upon all piano players, graphophones, phonographs, talking ma- chines, and records used in connection with any musical instrument, piano player, graphophone, phonogi'aph, or talking machine, sold by the. manufacturer, producer, or importer, a tax equivalent to three per centum of the price for which so sold ; and * * * Art. XI. Piano players and talking machines. — The tax is 3 per cent of the price for which piano plaj^ers, graphophones, phono- graphs, talking machines, and records used in connection with any musical instrument, piano player, graphophone, phonograph, or talking machine are sold by the manufacturer. Accessories to such articles, other than records, are not taxable unless sold in combina- tion therewith. A piano player is a device designed to play a piano mechanically and may be separate from the piano or incorporated in it. The device and the piano together are sometimes known as a player piano. The tax is upon the piano player and not on the com- plete player piano, unless the price of the player embodied in the player piano can not be separately determined. Toy talking ma- chines are taxable. Dictagraphs and dictaphones and automatic organs are not subject to the tax. (c) Fpon all moving-picture films (which have not been exposed) sold by the manufacturer or importer a tax equivalent to one-fourth of 1 cent per linear foot ; and (d) Upon all positive moving-picture films (containing a picture ready for projection) sold or leased by the manufacturer, producer, or importer, a tax equivalent to one-half of 1 cent per linear foot; and * * * Art. XII. lEoving-picture films. — The tax is one-fourth of 1 cent for each linear foot of unexposed moving-picture films sold by the manufacturer, and one-half of 1 cent for each linear foot of positive moving-picture films, containing a picture ready for projection, sold or leased by the manufacturer. The tax applies to the first sale or lease of new positive moving-picture films, and not to the second or any subsequent sale or lease. It does not attach to films first sold or leased 'prior to October 4, 1917. Printed or hand-lettered titles or subtitles used in connection with a picture production constitute part of the film and should be included in the length of the film upon which the tax is computed, but if such titles are in the form of separate slides or announcements the tax does not attach. The tax does not apply to repairs of positive films, but does to the negative film used in making such repairs. Where a laboratory simply does the me- chanical work of producing the positive print, charging the owner of the negative for the materials used and services rendered, such laboratory will not be regarded as the manufacturer of the fiJm. The tax is upon the sale or lease by the owner of the film. The labora- tory, however, shall keep a record of all such films produced, with, the name of the owner and the length of the film, such record to be available for examination by internal revenue officers, and shall fur- nish monthly to the collector of internal revenue of the district in which it is located a signed statement giving such information. There is no exemption from tax in the case of moving-picture films used exclusively for educational, charitable, or religious purposes. (e) Upon any article commonly or commercially known as jewelry, whether real or imitation, sold by the manufacturer, producer, or importer thereof, a tax equivalent to three per centum of the price for which so sold; and * * * Art. XIII. Jewelry. — The tax is 3 per cent oi the price for which any article commonly or commercially known as jewelry, whether real or imitation, is sold by the manufacturer. All articles, among others, which have been specifically classified as jewelry by the Board of United States General Appraisers shall be deemed to be jewelry. Jewelry includes ornaments made of gold, silver, or platinum, or any imitation thereof, and precious or semi-precious stones, or imitations 54383°— 18 2 10 thereof, used for personal adornmenl. An article may be jewelry although serving a useful as well as an ornamental purpose. Art. XIV. Jewelry: Articles taxed. — Among others, the following articles are deemed to be jewelry when intended to be carried on the person and made wholly or in part of gold, silver, or platinum, or having the appearance thereof: powder boxes, vanity boxes, stamp boxes, match boxes, cigarette cases, cigar cases, eyeglass cases, chains and holders, pencils, lorgnettes, card cases, vinaigrettes, handkerchief holders, garter, belt, and shoe bucldes, suspender slides, charms, em- blem pins and buttons, insignia of fraternal societies, mesh bags, meniorandum books, lip salve cases, eyebrow pencils, cigar cutters, compasses, key chains, key rings, and similar articles. This list is by no means intended to be exhaustive, but merely to give a general notion of the wide variety of articles taxable. Art. XV. Jewelry: Watches. — Watches not iised solely for utility purposes are taxable. A watch, irrespective of how it is to be worn, is taxable as jewelry if its case or any attachment sold with it is orna- mented with precious or semi-precious stones or with any ornamenta- tion other than engraving or engine turning. A watch, whether or not otherwise taxable, is subject to the tax if sold with a metal brace- let. A wrist watch is not subject to the tax when sold with a, leather band, webbing, or silk ribbon, if neither the w^atch nor such attach- ment is ornamented with precious or semi-precious stones or other- wise than by engraving or engine turning. Ajit. XVI. Jewelry: Articles not taxed. — The following are not considered to be jewelry: silver tableware, eyeglass fi-ames, plain opera and field glasses, clocks, fountain pens, rosaries and other purely religious emblems, military and naval insignia required to be worn, and unadorned hair combs made of rubber, shell, or celluloid. Parts of jewelry, including mountings, unset stones, and pearls tem- porarily strung are not taxed when sold for further manufacture find resale, but are when sold to a customer for personal use. No tax attaches to the sale of pieces of jewelry in combination if the tax has already been paid on the pieces separately, but if the tax has not been paid on part of the combination it attaches to the sell- ing price of that part. Wliere a manufacturer mounts diamonds belonging to a jeweler, the latter is liable to the tax on the entire article as the producer, but where a jeweler provides a mounting for a private customer's stone he should pay the tax on the price of the mounting. Merely repairing for a customer jewelry owned by him is not taxable. 11 (f) Upon all tennis rackets, golf clubs, baseball bats, lacrosse sticks, balls of all kinds, including baseballs, footballs, tennis, golf, lacrosse, billiard and pool balls, fisbing rods and reels, billiard and pool tables, cliess and checker boards and pieces, dice, games and parts of games, except playing cards and cbildren's toys and games, sold by the manu- facturer, producer, or importer, a tax equivalent to three per centum of the price for which so sold ; and * * * Art. XVII. Sporting goods and games. — The tax is 3 per cent of the price for which tennis rackets, golf clubs, baseball bats, lacrosse sticks, balls of all kinds, including baseballs, footballs, tennis, golf, lacrosse, billiard and pool balls, fishing rods and reels, billiard and pool tables, chess and checker boards and i^ieces, dice, games and parts of games, except playing cards and children's toys and games, are sold by the manufacturer. Sleds, snowshoes, skis, and skates are not taxed. Parts of sporting goods and accessories not enumerated are not taxable if sold separately. Heads and shafts of golf clubs are not taxed until combined and* sold as complete clubs. Parts of games are taxable, and if used in a complete game sold as such the tax attaches, even though the parts have been separately taxed. The game of cribbage is taxable as a whole, although it consists partly of playing cards on which a tax has been paid. Balls of all kinds are taxable, including balls for putting the shot. Card games to be played by adults as well as children, other than ordinary playing cards, are subject to the tax. (g) Upon all perfumes, essences, extracts, toilet waters, cosmetics, petroleum jellies, hair oils, pomades, hair dressings, hair restoratives, liair dyes, tooth and mouth washes, dentifrices, tooth pastes, ai'omatic cachous, toilet soaps and powders, or any similar substance, article, or preparation by whatsoever name known or distinguished, upon aU of the above which are used or applied or intended to be used or applied for toilet purposes, and which are sold by the manufacturer, importer, or producer, a tax equivalent to two per centum of the price for wliich so sold; and * * * Art. XVIII. Toilet articles. — Tlie tax is 2 per cent of the price for which perfumes, essences, extracts, toilet waters, cosmetics, pe- troleum jellies, hair oils, pomades, hair dressings, hair restoratives, hair dyes, tooth and mouth washes, dentifrices, tooth pastes, aromatic cachous, toilet soaps and powders, and any similar substance, article, or preparation, by whatsoever name known or distinguished, if used or applied or intended to be used or applied for toilet purposes, are sold hj the manufacturer. Soaps advertised or held out as suitable for toilet purposes are taxable. Containers of perfumes, if billed and shipped separately, raw materials, and floor oils, floor wax, kitchen soap powders and other articles ordinarily used for household and not for toilet purposes, are not subject to the tax. Concentrated essences 12 sold to dniogists and mamifactnrers for making toilet articles, but not for use as such, are not subject to the tax. See also Article XXI. (h) Upon all pills, tablets, powders, tinctures, troches or lozenges, sirups, medicinal cordials or bitters, anodynes, tonics, plasters, lini- ments, salves, ointments, pastes, drops, waters (except those taxed under section three hundred and thirteen of this Act), essences, spirits, oils, and all medicinal preparations, compounds, or composi- tions wiiatsoever, the manufacturer or producer of which claims to have any private formula, secret, or occult art for making or prepar- ing the same, or has or claims to have any exclusive right or title to the making or preparing the same, or which are prepared, uttered, vended, or exposed for sale under any letters patent, or trade-mark, or which, if i?repared by any formula, published or unpublished, are held out or recommended to the public by the makers, venders, or proprietors thereof as pi-oprietary medicines or medicinal proprietary articles or prepax'ations, or as remedies or specifics for any disease, diseases, or alfection whatever affecting the human or animal body, and which are sold by the manufacturer, producer, or importer, a tax equiva- lent to two per centum of the price for which so sold ; and * * * Art. XIX. Medicinal preparations. — The tax is 2 per cent of the price for which pills, tablets, powders, tinctures, troches or lozenges, sirups, medicinal cordials or bitters, anodynes, tonics, plasters, lini- ments, salves, ointments, pastes, drops, waters, essences, spirits, oils, and all medicinal preparations, compounds or compositions what- soever, are sold by the manufacturer ; provided that (1) The manufacturer claims to have any private formula, secret or occult art for making or preparing them ; or (2) The manufacturer has or claims to have any exclusive right or title to making or preparing them ; or (3) They are prepared, uttered, vended, or exposed for sale under any letters patent or trade-mark ; or (4) They are held out or recommended to the public by the makers, venders, or proprietors thereof, either (a) as proprietary medicines or medicinal proprietary articles or preparations, or (b) as remedies or specifics for any disease or affection whatever affecting the human or animal body. Aet. XX. Medicinal preparations: Scope of tax. — Every medicinal preparation, compound, or composition which is embraced within one or more of subdivisions (1), (2), (3) and .(4) in the preceding article is subject to the tax. If, for instance, an article is made or prepared by a manufacturer claiming to have a private formula, secret or occult art for it, it is taxable, even though it is not pre- pared, uttered, vended, or exposed for sale under any letters patent or trade-mark, and it is not held out or recommended to the public as a proprietary medicine or medicinal proprietary article or prepa- ration, or as a remedy or specific for any disease or affection of the 13 liiiman or animal body. Preparations made in accordance with formulas contained in the United States Pharmacopoeia and National Formiilar}' by pharmaceutical manufacturers, when not held out or recommended as proprietary medicines or medicinal proprietary articles or preparations, or as remedies or specifics, are not subject to the tax; but if so held out or recommended they are taxable, although not identified by any name, trade-mark, or otherwise. Art. XXI. Medicinal preparations : Who is a " manufacturer." — Within the meaning of this subdivision a manufacturer or producer is a person who prepares an article or has it prepared and sells it, and who identifies the article by a commercial name, trade-mark, or trade name, or by other means, or holds out or recommends the article as a proprietary medicine or medicinal proprietary article or prepara- tion, or as a remedy or specific. If the article or its container has on it both a trade-mark or trade name of one manufacturer and the indi- vidual or business name of another, the owner of the trade-mark or trade name will be deemed the manufacturer. If the article or its container has on it both the commercial name of the article and an individual or business name, the latter will be deemed to designate the manufacturer. A person who is emplo.yed to make an article and receives for it the cost of materials and labor, plus a specified profit, shall be considered a manufacturing agent, and the person who pro- cures the preparation of the article will be considered the manufac- turer. Wliere the owner of a* formula contracts with a manufacturer to prepare an article according to such formula and to deliver it to him in complete, salable form', the labels bearing the formula owner's name, he is considered- the manufacturer. A person who bottles or otherwise prepares an article, and merely for advertising purposes places on such article the name of any dealer who may handle it, shall be deemed the manufacturer if the names of both persons appear, but if only the dealer's name appears he shall be deemed the manufac- turer. " Held out or recommended " includes representation by any means, personal canvass and statements on the labels, in pamphlets and in advertisements, or otherwise. A holding out or recommenda- tion intended for physicians only is a holding out to the public. Art. XXII. Medicinal preparations: Articles included. — The word " medicinal " is applicable to any substance adapted to cure or alleviate disease or pain. Accordingly, a medicinal preparation is a prepara- tion of any substance whatever intended to be applied for the cure or mitigation of pain or disease. Many articles or substances which are not usually considered as belonging to materia medica may be- come taxable medicinal preparations by being held out or advertised as remedies for diseases affecting the human or animal body. Boric acid when sold under a trade-mark as a medicinal prei)aration is tax- able. Licorice put up in sticks, lozenges, or in other forms suitable 14 for medicinal purposes and sold under ;i trade-mark is subject to tho tax. Food preparations as distinguished from medicinal preparations are not taxable. The taxability of a medicinal preparation is deter- mined by the manner in which it is prepared or the way in which it is put upon the market. If an article is advertised under the name or trade-mark of the manufacturer, or any name in the possessive case is used on the label or on the literature describing the medicinal prep- aration, or the name of the manufacturer is made a part of the name or title, or any intimation is otherwise given that the article is of dis- tinctive origin, the tax is imposed. Wliere medicinal preparations are sold under what appears to be or what is intended to be a trade- mark appropriated to the article, the tax attaches. Printing on the labels the directions and indications for use, the dosage, and other similar matter, will not alone render preparations made under a standard formula taxable, provided the preparation is not held out or recommended as a proprietary preparation or as a remedy or specific. Where medicinal preparations are sold under labels which do not indicate that the formula is published they will be considered to be prepared under private formulas, unless proof is submitted that the formula is not secret. The tax applies to a medicinal preparation held out by the producer to the public as a proprietary medicine or as a remedy for disease, although it is prepared by a process which merely refines a natural substance. A " specific " may be adapted for the prevention of disease or for its cure. Art. XXIII. Medicinal preparations: Waters exempted. — Artificial mineral waters, not carbonated, sold by the manufacturer, producer, or importer in bottles or other closed containers, carbonated waters manufactured and sold by the manufacturer, producer, or importer of the carbonic acid gas used in carbonating the same, and natural mineral waters and table waters sold by the producer, bottler, or imiporter in bottles or other closed containers at over 10 cents per gallon, all of which are taxed under section 313 of the act of October 3, 1917, are not subject to the tax under this subdivision if intended for use soleh' as beverages. (i) Upon all chewing gum or substitute therefor sold by the manu- facturer, producer, or importer, a tax equivalent to two per centum of the price for which so sold ; and * * * Art. XXIV. Chewing gnm. — The tax is 2 per cent of the price for which chewing gum or any substitute therefor is sold by the manu- facturer. Substitutes include any imitation designed to take the place of chewing gum. Where chewing gum is covered with candy or otherwise combined with another substance, the tax is on the Avhole article. 15 U) Upon all cameras sold by the manufacturer, producer, or im- porter, a tax equivalent to three per centum of the price for which so sold. Art. XXV. Cameras. — The tax is 3 per cent of the price for which cameras are sold by the manufacturer. Process and motion-picture cameras are subject to the tax. A camera sold without the lens is taxable, but not a lens sold separately. Toy cameras are taxable if capable of taking a picture. ^ Sec. 601. That each manufacturer, producer, or importer of any of the articles enumerated in section six hundred shall make monthly returns under oath in duplicate and pay the taxes imposed on such articles by this title to the collector of internal revenue for the district in which is located the principal place of business. Such returns shall contain such information and be made at such times and in such man- ner as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulations prescribe. Art. XXVI. Return of tax on commodities. — Each manufacturer of any of the articles hereinabove enumerated must make monthly returns under oath in duplicate and pay the taxes imposed on such articles to the collector of internal revenue for the district in which his principal place of business is located. The returns shall be made on Form 728 (Appendix A). Instructions for preparing will be found on the back of the form. The returns are to be rendered and the tax paid on or before the last day of each month covering the transactions of the preceding month, the first return to cover all transactions since October 3. 1917. ^"^Tiere articles are sold over a period of time under an agreement for a quantity rebate, the tax, if originally computed on the gross price, may be adjusted in the re- turn for the month in which the price is finally determined. Branch houses should in general make reports to the parent house, which is liable to make monthly returns of the sales of the branch house. An itinerant manufacturer should make return and pa}^ the tax to the collector of the district where the sales are made. The books of every person liable to the tax shall be open at all times for inspection by examining internal revenue officers. TAX ON SALE OF NONALCOHOLIC BETEKAOES. Sec. 313. That there shall be levied, assessed, collected, and paid — Art. XXVII. General provisions. — In general Articles I, II, and IV to VII inclusive of these regulations apply to this tax as well as to the tax on the sale of automobiles, etc. (a) Upon all prepared sirups or extracts (intended for use in the manufactiu'e or production of beverages, commonly known as soft drinks, by soda fountains, bottling establishments, and other similar places) sold by the manufacturer, producer, or importer thereof, if so sold for not more than $1.30 per gallon, a tax of 5 cents per gallon ; if so sold for more than $1.30 and not more than $2 per gallon, a tax of 8 cents per gallon ; if so sold for more than $2 and not more than $3 per " gallon, a tax of 10 cents per gallon ; if so sold for more than $3 and not more than $4 per gallon, a tax of 1.5 cents per gallon ; and if so sold for more than $4 per gallon, a tax of 20 cents per gallon ; and * * * Art. XXVIII. Sirups and extracts. — The tax is based on the price for which prepared sirups or extracts, if intended for use in the manufacture or production of beverages, commonly Imown as soft drinks, by soda fountains, bottling establishments, and other similar places, are sold by the manufacturer. See also Article III. The pos- sible selling prices and the corresponding tax per gallon in each case are as follows : Price. Tax. Not more than $1.30 per gallon 5 cents. Between $1.31 and $2 per gallon 8 cents. Between $2.01 and $3 per gallon 10 cents. Between $3.01 and $4 per gallon 15 cents. More than $4 per gallon 20 cents. Art. XXIX. Sirups and extracts: Use of terms. — A "prepared sirup " is a simple sirup with flavoring and perhaps other materials. A simple sirup, which is not taxable, is a preparation of sugar and water or rock candy and water. An " extract " is a preparation sup- posed to possess the characteristic property or virtue of the original substance in concentrated form, and includes essences, flavoring ex- tracts, and the like. A " soft drink " is a nonintoxicating beverage, containing less than one-half per cent of alcohol. " Other similar places " include all places where soft drinks are sold. (16) 17 Art. XXX. Sirups and extracts : Scope of tax. — Foam, concentrates, acid solution, cocoa paste, ginger ale paste and emulsions, and ordi- nary household extracts like vanilla, are subject to the tax when sold if intended for use in the production of soft drinks. Extracts in- tended for use for culinary purposes or in the manufacture of ice cream are not taxable. "Sundae dressings," used exclusively for pouring over ice cream, are not taxable. Prepared sirups and ex- tracts used by rectifiers of spirits and as bar flavors are not taxable. An extract sold to another extract or sirup manufacturer for use in the production of a prepared sirup, which is to be sold as such, is not subject to the tax, but the manufacturer of the prepared sirup must pay the tax. No tax is imposed upon sirups or extracts, as such, used by the maker for further manufacturing purposes and not sold by him. (b) Upon all unfermented grape juice, soft drinks, or artificial mineral waters (not carbonated), and fermented liquors coutaiuing less than one-half per centum of alcohol, sold by the manufacturer, producer, or importer thereof, in bottles or other closed containers, and upon all ginger ale, root beer, sarsaparilla, pop, and other carbonated waters or beverages, manufactured and sold by the manufacturer, producer, or importer of the carbonic acid gas used in carbonatiug the same, a tax of 1 cent per gallon ; and * * * . Art. XXXI. Grape juice and other uncarbonated soft drinks. — The tax is 1 cent for each gallon of unfermented grape juice, soft drinks, and artificial mineral waters, not carbonated, and fermented liquors containing less than one-half per cent of alcohol, sold by the manu- facturer in bottles or other closed containers. The tax is none the less payable because a tax may have been paid on extracts or pre- pared sirups enterings into the manufacture of such soft drinks. The manufacturer may be a bottler or the proj)rietor of a soda fountain. Carbonated fermented liquors containing less than one- half per cent of alcohol are to be classed as carbonated beverages and not as fermented liquors within the meaning of the statute, and are accordingly not directly taxed unless manufactured and sold by the manufacturer, producer, or importer of the carbonic acid gas used in curbonating them. Sweet apple cider is taxed if it contains less than one-half per cent of alcohol and no added sugar. Art. XXXII. Ginger ale and other carbonated beverages. — The tax is 1 cent for each gallon of ginger ale, root beer, sarsaparilla, pop, soda water, and other carbonated waters and beverages manufactured and sold by the manufacturer of the carbonic acid gas used in car- bonatiug the same. The tax attaches when the person who (a) manufactures and (b) sells such waters and beverages is also (c) tho 54383°— l.S 3 18 maniifnctnror. producer, or importer of the carbonic acid gas used in their manufacture. A soda fountain proprietor manufacturing his own carbonic acid gas must pay tlie tax on the carbonated drinks dis- pensed at such fountain. Carbonated waters or beverages are not taxable when the manufacturer buj^s his carbonic acid gas and pays the tax of 5 cents per pound. See also Article XXXI. (c) Upon all nntui-al mineral \,nters or table waters, sold by the pro- ducer, bottler, or importer tliereof, in bottles or other closed containers, at over 10 cents per gallon, a tax of 1 cent per gallon. Art. XXXIII. Natural mineral waters. — The tax is 1 cent for each gallon of natural mineral waters or table waters sold by the pro- ducer, bottler, or importer in bottles or other closed containers at over 10 cents per gallon. A mineral water sold just as it comes from the groiuicl, except for filtration, is subject to the tax. Distilled waters, aerated waters, and artesian well waters sold for drinking purposes are subject to the tax. A "bottler" is the producer or any person who puts a liquid in bottles or other closed containers and sells it. Sec. 314. That each such manufacturer, producer, bottler, or importer sliall make monthly returns under oath to the collector of internal revenue for the district in which is located the principal place of busi- ness, containing such information necessary for the assessment of the tax, and at such times and in such manner, as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulation prescribe. Art. XXXIV. Ueturn of beverage tax. — Each manufacturer, pro- ducer, bottler, or importer of any of the articles hereinabove enu- merated must make monthly returns under oath in duplicate and pay the taxes imposed on such articles to the collector of internal revenue for the district in which his principal place of business is located. The returns shall be made on Form 726 (Appendix B). Instructions for preparing will be found on the back of the form. The returns are to be rendered and the tax paid on or before the last day of each month covering the transactions of the preceding month, the first return to cover all transactions since October 3, 1917. AYhere articles are sold over a period of time under an agreement for a quantity rebate, the tax, if originally computed on the gross price, may be adjusted in the return for the month in which the price is finally determined. Branch houses should in general make reports to the parent house, which is liable to make monthly returns of the sales of the branch house. An itinerant manufacturer should make 19 return and pay the tax to the collector of the district where the sales are made. The books of every person liable to the tax shall be open at all times for inspection by examining internal revenue officers. Sec. 315. That upon all carbonic acid gas in drums or other contain- ers (intended for use in the manufacture or production of carbonated water or other drinks) sold by the manufacturer, producer, or importer thereof, there shall be levied, assessed, collected, and paid a tax of 5 cents per pound. Sucli tax shall be paid by the purchaser to the vendor thereof and shall be collected, returned, and paid to the United States by such vendor in the same manner as provided in section five hundred and three. Art. XXXV. Carbonic acid gas. — The tax is 5 cents for each pound of carbonic acid gas in drums or other containers sold by the manu- facturer, if intended for use in the manufacture or production of car- bonated water or other drinks, including fermented liquors contain- ing less than one-half per cent of alcohol. Carbonic acid gas used in drawing beer from containers, or in the operation of refrigerating plants, or in preserving food products, or in the manufacture of bev- erages containing one-half per cent or more of alcohol, is not subject to the tax. In all cases of sales of carbonic acid gas for use other than in the manufacture of carbonated water or other drinks, the manu- facturer must prominently stamp on or affix to the container a warn- ing, as follows: "Federal tax not paid. Unlawful to use in the manufacture of beverages." Whoever disregards such warning is liable to prosecution as provided in Article XL. Art. XXX VI. Eeturn of carbonic acid gas tax. — The tax is to be paid to the manufacturer by the purchaser of the carbonic acid gas at the time of sale, and the former must collect the amount of the tax and make monthly returns under oath in duplicate on Form 726 (Appendix B) and pay the taxes so collected to the collector of internal revenue of the district in which his principal office or place of business is located. Instructions for preparing will be found on the back of Form 726. The returns are to be rendered and the tax paid on or before the last day of each month covering the transac- tions of the preceding month, the first return to cover all transactions since October 3, 1917. See also Article XXXIV. AD3IIXTSTEATiyE rROYISIONS. Sec. 1007. That (a) if any person, corporation, partnership, or association has prior to May ninth, nineteen luuulred and seventeen, made a bona fide contract with a dealer for the sale, after the tax takes effect, of any article (or, in the case of moving-picture films, such a contract with a dealer, exchange, or exhibitor, for the sale or lease thereof) upon which a tax is imposed under Title III, IV, or VI. or under subdivision thirteen of Schedule A of Title VIII, or under this section, and (b) if such contract does not permit the adding of the whole of such tax to the amount to be paid under such contract, then the vendee or lessee shall, in lieu of the vendor or lessor, pay so much of such tax as is not so permitted to be added to the contract price. The taxes payable by the vendee or lessee under this section shall be paid to the vendor or lessor at the time the sale or lease is consum- mated, and collected, returned, and paid to the United States by such vendor or lessor in the same manner as provided in section five hun- dred and three. The term " dealer " as used in this section includes a vendee who purchases any article with intent to use it in the manufacture or pro- duction of another article intended for sale. Art. XXXVII. Transfer of burden of tax. — If a manufacturer has prior to May 9, 1917, made a bona nclo contract with a dealer for the sale after the tax takes effect of any article upon which a sales tax is imposed, and such contract does not permit the adding of the whole of such tax to the amount to be paid under such contract, then the dealer shall pay so much of such tax as is not so permitted to be added to the contract price. This applies to contracts with a dealer, exchange, or exhibitor for the sale or lease of moving- picture films. The term " dealer " does not refer to or include a purchaser for his own use, unless such use is the manufacture or production of another article intended for -sale. A foreign govern- ment, or a State or any political subdivision thereof, buying or leasing an article for its own use is not a dealer, nor in the case of moving-picture films is it deemed an exhibitor or exchange. This section permits an adjustment of the tax between the manufacturer and dealer, but it does not affect the liability of the manufacturer to return and pay the tax to the Government. Art. XXXVIII. Payment and return. — The taxes payable by the dealer hereunder shall be paid to the manufacturer at the time the sale or lease is consummated, and such manufacturer shall collect the amount of the tax from the dealer and shall make monthly returns (20) 21 under oath in duplicate on Form 728 (Appendix A) or Form T26 (Appendix B) and pay the taxes so collected to the collector of internal revenue of the district in which his principal office or place of business is located, as directed in Article XXVI and Article XXXIV. Sec. 1008. That in the payment of any tax under this Act not pay- able by stamp a fractional part of a cent shall be disregarded xmless it amounts to one-half cent or more, in which case it shall be increased to one cent. Art. XXXIX. Computation of tax. — ^In computing the tax a frac- tional part of a cent should be disregarded unless it amounts to one- half cent or more, in which case it should be increased to a full cent. Sec. 1004. That whoever fails to make any return required by this Act or the regulations made under authority thereof within the time prescribed or who makes any false or fraudulent return, and whoever evades or attempts to evade any tax imposed by this Act or fails to collect or truly to account for and pay over any such tax, shall be sub- ject to a penalty of not more than $1,000, or to imprisonment for not more than one year, or both, at the discretion of the court, and in addi- tion thereto a penalty of double the tax evaded, or not collected, or accounted for and paid over, to be assessed and collected in the same mamier as taxes are assessed and collected, in any case in which the imnishment is not otherwise specifically provided. Art. XL. Penalties. — In addition to the penalties provided above other punishment for failure to comply with the law and regulations is prescribed by section 3176 of the Eevised Statutes as amended and by other sections of the internal revenue laws. Sec. 1005. That the Commissioner of Internal Revenue, with the ap- proval of the Secretary of the Treasury, is hereby authorized to make all needful rules and regulations for the enforcement of the provisions of this Act. Art. XLI. Promulgation. — In pursuance of the statute the fore- going regulations arc hereby made and promulgated and all rulings inconsistent herewith are hereby revoked. Daniel C. Eoper, Commissioner of Internal Revenue. Approved May 31, 1918 : L. kS. RowE, 'Acting Secretary of the Treasuiy. APPENDIX A. p y ilE D STATES isTKi;.s*t RBTXSTyt WAR TAX ON COMMODITIES (.TlU* VT, ti«llcn3 col Bad iCl, Aal Oit, 3, U17.) Rtiam <4 mam^adaa, pnJucer, or taiperUrfor tht TnotA r^inf* ret^ets. felf eftdt. Ac. ; t MOUHI Of 5*L£S i AAtE j K. (AJ PiSs. tsUets. f^xcJeri.A l.^ (/) Cktaint (ten 1 (J) CantroJ^ .-. . > J An» a nit^ tsi d ue {aifa anai rr t in more !) ) -. -.. -..- ; -^ ... .. . — .,_.... — anJ Tr": OiJlari '._S^ ^_ / nlermly stttar (or a^rm) tiad lit foregtini Is a Out retem «/ Uu amooni «/ acr attt* taxvtt At ifni iwiV wammJtUti Att jscia iht ^hosfnamti manufati:ir9, pniauT. or /mpcrier /or tkt monUi dott $laUJ. SaorAts and tuhttriltJ htfon roe dUt J^ of ..— , 19 SigntJ , ™_- ! DO NOT DETACH WAR TAX CN COMMOOmES DONOT«tACM (Ts>k^> ^'Cru^o eco K>d eoi, Ae( Oct. 3, i^.7. ) Atem ^ mam^Qdanr. prsdixer. «r impcrkrixn (he tmnih of ... 19 fOS CASHIEJ IN COlUCrOrS OFTKI CZdUt r&tu ftad Addraefl 4tenr«.) i . '!JLVOOKru?S»L£S {a) Atdomohila, tnAnre^la. cfc — I S (il PiaTKptaiiert.erapJtop/K'XM.dt.]..^ (f) Mocir^ptat;i«jVtrj{n^crpeseJ'L.. — . ((/) PailUee mosint pidnit fjm» 1 ] l<.aft RJkTS 3% \t.aft. n ( g) Peef^ ImttaUon Jaetin /^ (/> Tmnts rac^eU. gsij tfait, tte^ (l) Prrfumu. tsst nt ea, eft (A) Pifli. tahltti. p«pJ«r*.cfe (/) €hca,trt$ giUK {/) Ceman AMOU.->it OF SALES fUTE AmeaM af ftu i/uz (m/^r jnwcmf to tfer£) . _- anrf v ^ ifeg cra I «.-!- / eaUJi/ Old ififj (t a hue iop'j t4 tfx Urtjvfni moorn r^um. SCTt.—Seri hots ffx ortginal emJ dirpfhat; qf iJih rritcm cut (At featfS, fnpalti jUUJ In. telth the amouni &r ta^ due^ to tht Stpwi- VO NOT D£TACa WAR TAX ON COMMODITIES OO NOT C£TACH CT1U9 VI, &3Clluii3 tXCaai eoi, Aa UtL 3, IC17J NOTICE Bt lotVriT of llie Art of OcroVer 5. I9I7. il-e nmoun! of tai jliowtj hv t^il rrtura lo Sf -lue i» hef^y ■actM lad m*Je piytMc on tV.r ^jbrnisjioo of tKi» felim «nH ml [s'r/ ifiaii ir,; l^it djy of ibe mfrnlb followinj ibf mo-ih !or which tSe r«yra U made. Who-vex Uili Co pay •■jch i4i wSen du* rlicrcby b«&ma lij^blc to • pen»!ty of pfi ceol ol the cmotnt cf ite i»x pLi ialt/at 4t tii i*tc ol I pc/ ceni p« moalii K^d mci peotJty EQuit b« «dJc«l to tlie r^'^'-'t «t the IaX wcu paid. t * DANIEL C. ROPER. _ Commluiona o/ Inlcinal Raenu$. ^ Amount cf taz pafj (fnter omount fn ur>rJs) _ , Tui-iyT wlJUnL-r i.> i-.- J'^ ' jJIrrij In noosn »;,.»•.■. .t a Li avt si uBuokor Addtiiit uuwiiiiav:, pl«u« auks pie^r cbuifOik WOKTM AND AMOUNT OF TAX Co bo Clied In b7 tox^v*' For the moTdh o/ ^,!9 . end -[^ Dollars S .. OFFICE OF COLLECTOR OF INTERNAL REVENUB ColtutoT cf tntcTfic! fiatniM (23) 24 APPENDIX A. (Back.) INSTRUCTIONS 1. TVhatJs taxod.— A t.ix at tho raU-e Ajxrifiod is Imposed on iho following clawoe M co^)mo.^iti'^9, sold by (hf mcnufacturcr, ducor, vr uuport'Cr (and with respect to class (rf), also upon those leoocd by tlie maQufactiiror, producor, ' , or unporter): ARTICLES!. ■}? (a) Automobiles, motor cycles, etc. — Automobilea, automobile trucks, automobile wagons, and hiotor cycle?. (6) Piano |it»yers, graphophonos, etc.— Piano players, gniphophonr*^, phonngraphf, talking it:;irhuie?, and rt-oor^B used in ctnnortioii wiLu ajiy musical iii^lruinenf., piruio player, < pniphophoDo, phoijopraph, or talking-machine. , .......-.: (c) Movlng-pU'turo films i^h^'^^po^'^n ^ • ' " ' ' L. (d) Positive movIiiK-plcture lllmf* (oontaininy a picture ready for projection) (e) Je*yo!ry.— Any article commonly or oominerciaUy known as jewelry, whether real or imitation. (/) Tennis rackets, golf clubs^ etc.— Tti. lis racket", #*iU clubs, baseball bati, lticros.«e sticks. bally of all kind.>), including bi^sebalU, ioot balls, tennie, golf, lacro^so, billiard and pool , balls, fiahiiig rodi and reeJs, billiard and p'wl Ublea, ch«.-^3 and checker boards and piece:?, dico, games and parts ol garner, except playing cards and children'? toys and c^mc-s. {g) Perfumes, essences, etc. — If used or applied or intended to be used or applied for toilet purposoa, txsrfumos, esijonces, extracts, loilet waters, cosmetic?, petroleum jcllie-^, bair oib, pomados, hair dressin^^, hair rcytoratives, hair dyea, tooth and raouth washcf^, denti- Irice.-*, tooth pai'tos, aroQiatic cachou:*, toilet e'japs ana powdery, or any similar oubiitanco, article, or preparation by whatsoever name knuwii or distinguished. (^) Pills, tablets, powders, etc. — rills, tabh-te, puwdere, tiiieturfs, troebea or lozengc-a, sirups, Medicinal oirdiala oy bitters, auod\^K■s, tonice, plflfiters, linimcatM, sahra, ointmenta, paste**, drops, watens (except natur.il mineral watera or table waters, artificial mincnil wst-^rei (not carbonated) and carbonated waters, taxed under Sec. 313of tuch act of October S, 11*17), CPscncee, spirits, oil?, and all inedicinal prepanitiona, compounds, or compoeitiona whatsoever, the manufacturer or pn>iucer of which claims to have any private formula," secret, or occult art for making or preparint,' tho same, or has or claims to hm'e any exclusive right or titio to the making or prejianng the same, or which are prepared, utteied, vended, or exposed for sale under any lettere patent, or txade-mark, or which, if prepared by any formula, published or unpublished, are held out or recopimended to tho public by the makers, vendefs, or proprietors thereof as proprietary medicines or medicinal proprietary trticleSjOr preparations or ati remedies or specifics for any diaease, difieaeee, or affectioo wh^atevcr affecting the hrmian or anima! body. (i) Chewing gum .or tubptitute therelor ^.. — .-. ..- ,- ^.^ - 3 per cent of tho price f. wliich eold. S per cent of tho prico (o which bold. \ cent ppr linear foot. I rvnt per linear foot. 3 p( r cent of tho prico lor which y-'ld. 3 prr cent of tho prico 'oi which sold- 2 per cent of the price tor which sold. 2 per cent of the price for which bold. (J) Cameras. 2 per cent of tho price for which sold. 3 per cent of the price for which sold. 2. When tax takes effect, — October 4, 19l7. The first return should covei' all taxable commodities sold or leased from October 4to31, niciu?ivo., , „ j . . 3. Wlio arc required to make rettims and pay tax,— Every manufacturer, producer, or imporier who Sells, and m the caae •of cla55 (rf) who pcUa or leases, any of the above commodities. 4. Wbeu must returns be made and taxes paid.— On or before the laat day of November, 1917. and of each month thereafter Each return must co\er all the taxable transactions of the preceding month. - . . ' - • 6. To whom shall returns be made and tax paid.— To the Collector of Internal Revenue of tho district in which the principal ofEce or place of business of the manufacturer, producer, or importer is located. "(The address of tho, Collector is et;imi>€d on the tace of the return.) , , . , . , l j 6. Amount of sales,— (a) For all commodities, except classee (c) and (d), enter the net quantitj' of sales during the month, deter- mined by deducting from the gross quantity of sales during such month any quantity Kcld during any previous month on which the lax toa^ paid au4 which hae been returned or for which credit hae been-allowed for any other reason. (6) For moving-picture fijms of-class (c) enter the total number of linear feet sold during the month, and for mov-ing-picture time of class (i) enter the total number of linear feet sold or leaaed during the month. ,,, , ^ . . . ,^ ^ 7. Computation of tax.— In computing the tax a fractional part of a cent should be dropped umeee it amounts to one-half cent or more, in which case it should be injcreaaed to 1 cent. 8, cate ; 9. $1,000, or imprisonment for not more than one year, of both. For penalty for failure topaytax,9ee*'Notice"on£aceof receipt* DANIEL C, ROPER, Caanswiioner of InUrnal Revenue approved: L. S. ROWE, , ^ 4iiling jSecretvy o/tht SCy^^^** 25 APPENDIX B. tTNlTEJ) STATES I.ntEKNaL HEVENU^ 6m UutrucUosj «b bkck •WAR TAX ON BEVERAGES (Title 111, Soctiooj il3 and 315. Act Oct. 3, 1917) RUum of manufadurcT, producer, or impartef for Ournonth of . ,» (Eats' 11UB0 tsd addfui ftt>0T«)' \of djtrlct &ad date o! psynwat./ ARHOfS QyAWTTTT SOLD RATE AMOUNT OF TAX {•; PREPAJLEO SIRUPS OR EXTXACTS NO. ULIOKS SOU bi«r>U. '■ ICt, AMOUIfT OF TAS { DO>0TO£TACU WAR TAX ON BEVERAGES DOKOTDr?ACM e I n, S«cUbIB 313 ikOd 3LS, Act Oct. 3, 1017} iidum t4 manufccbtrtr, productr, or imfioTier for the rmtdh of _., /9 Foi cASHin ra coaECPJry ornct (V«t«Bam««aj addiiB tlwre) bik OM Ml (Ma t>d.UI, unofs QUAfTITT BOLD | »ATE AMOUm or TAX (.)PR£PAR£D5IRlP5 0t EXTRACTS K9. CAUOKS SOLO |Kri«|«C*L AKOIWT OF TAX f. «; ») 5^ A*U crKfcW -Oi»rf (tHkm) Cp-iOta) *.— BO 1.0 AT N^mm,a^tl-V>rnt» JO . .IS J0 X 9^1 10 J5 Wrf « fciOJu. A.. •* i»cr M a«to ^ l£»,amtt2.90^aSom>,a^'$3M (/> OWT/c«tf/«irt/fW. •»•(*» (P«A) 1 ptTt^!<^ 1_ _. Mnrr U«n F1 '" jm infbn 'IxwvrfVtA'iK e lAtC ol I pa cut pet tagsth ud luch pco<y miut b< kdd«(l nd DOt late/ iIaq the lut dey of |K« oiool)) folbwini :h tai wbco due lh«rebx locun a p^njjry of 5 MONTH AND AMOUfrT OF TAX to b9 Ci:ed let by tazpA^eff to (be «»auat ot tbc tu wbea pud. k DANIEL C. ROPER. — Antottnt cf lax paid {enter amount In trorjs) U O LI for the monih of ... .and r^ DoUara S . , 19 TupAyn will £otv» ip»et, II >t b Bui toWfed i oun* OC •ddfcu U l&ooncct, pleaM bwIm jvopci cbMgqft ^ OFr;CE OF COLLECTOR OF I NTERNAL REVENUE Rutlud fio^rttuUt CfiU^r 9! Iniernid Rteenm 26 APPENDIX B. (Back.) INSTRUCTIONS 1. \rhat Is taxed.— A'ta:c st the mtos specified on tho face ct the return in imposod upon tlie following articIWBold bj- the manu. facturcr, producer, or iaiporter liereol, except as otiierwise stated iu claracs (6) aud (c): (a) Soft drinks (not carbonatodV — Soft drinks, iirtificinl mineral waters (not carbonated), fermented liquors containing lea» than oue-haU per centum , is rec;uiTed to mrJke returns ajid p.n* the tax. K\<-ry manufacturer, produ'cer, or impcner who sells any carbonic twid gas of clasa (d) a required to collect tl'.t amount oi the ta-\ thereon from tlie purchaser and to m'al:e returns aud pay over'iho full amount of the ta.K that is retiuircd to be so collected. , 4. When must returns be made and taies paid. — Ou or before the laat day of November, 1917, and of each month thereafter. Each return must cover the entire taxable business of the preceding month. 5. To -whom shall returns be made and tax paid or paid over.— To the Collector of Internal Revcntic of the district in which js located the principal office or place of business of the manufacturer, producer, bottler, or importer. (The address of the collector ia stamped on the face of the return.) 6. Quantity of sales.— Enter the net quantity of sales during tho month, determined by deducting from the, gross quantity of Bales during Euca mopth any quai;t:ty sold during any previous month on tc'iicltftftai-uusyatVi and whicii has been retiuned or for which credit haa been 4Jlowed for any other reason. 7. Compu tatlon of tax,— In computing tho tax a fractional part o{ a cent is tQ be disregarded unless it amounts to one-halt cent or iuore, in which ca^^e it is to be increased to 1 cent. 8. Penalties.— \\'hoever fails to submit a'retum within the time prescribed in paragraph 4 is subject to apeaalty of not moro than $1,000, or imprisonment for iiot more than one year, or both. . ^niocver fails to collect the tax upon carbonic .acid gas of class (d) and .to pay it over witllin the time prescribed is subject to tho rfamepenalties, in addirSon to a penalty of double the amount of the tax* Forpenaltylorfailiuetopay tax, see note on lace of receipt, ^ _ ^ • - - DANIEIr G. 'BOPES, Comniisiorw of Jniernat Rexeivae. /tpproved: 1. S. EOVTE, INDEX TO REGULATIONS NO. 44. [References are to articles.] Accessories to automobiles and motorcycles, taxability 10 IMusieal instinmients, talkincr machines, etc., taxability 11 Acid solution, taxability 30 Adjustment of tax 26,34,37 Advertisement of medicinal preparation as determining manufacturer 21 Determtnin,^ taxability 1 22 Aerateil waters, taxability " 33 Agent, " manufacturing a.gent " defined 21 Sales by 5, 6 Agricultural implements, tractors for pulling, as constituting aiitomo- biles 9 Anodynes, taxability, etc 19-23 Apple cider, taxability 31 Aromatic cachous, taxability IS Artesian well Traters, taxability 33 Artificial mineral waters, taxability 23,31 Assembled automobiles, taxability 9 Attachments to automobiles and motorcycles, taxability 10 Automatic organ.'?, taxability 11 Automobiles, attachments and accessories, taxability 10 Chassis 9 Definition 8 Rate of tax 8 Scope of tax 9 Taxability 8,10 "Automobile truck or wagon," definition 8 Balls, taxability 17 Baseballs, taxability 17 Bats, taxability 17 Basis of tax on commo. ■%.\^''^r-M^rUt