4.

Special Tax on Hotels. How to Estimate Rental Value.

The special tax of a hotel keeper is based upon the annual rent or rental value of that portion of the premises which is actually used for hotel purposes. Barber's saloons, billiard rooms, and liquor, cigar, and newspaper stands are the usual concomitants of a hotel, and in assessing the special tax of a hotel keeper, no deduction should be made from the rent or rental value of the entire premises on account of any portion of the said premises being occupied for such purposes.

5.

Special Tax on Boats, Barges, or Flats.

By the last proviso to section 103 of the act in force, (section 74 of the Department Compilation), an annual special tax, in lieu of enrollment fees or tonnage tax, is imposed upon all boats, barges and flats, of a capacity exceeding twenty-five tons, not used for carrying passengers, nor propelled by steam or sails, and which are floated, or towed by tug boats, or horses, and used exclusively for carrying coal, oil, minerals, or agricultural products to market.

The term used exclusively for carrying coal, &c., to market, is understood to apply to those boats employed exclusively in transporting such merchandise from the place of original deposit, or production, to the first place of consignment or sale, as well as from one market to another.

Boats, barges, and flats used exclusively in transporting the articles named between the shore and a vessel, or from one vessel to another, are liable to a special tax under said proviso. This tax, however, is in lieu of enrollment fees or tonnage tax, and should not be assessed upon boats which have already paid taxes under the customs laws.

6.

Manufacturers Selling at Places other than their Factories.

By section 74, of the Act of June 30, 1864, as amended, it is provided that no special tax shall be required for the sale, by manufacturers or producers, of their own goods, wares, and merchandise, at the place of production or manufacture, or at their principal office or place of business, provided no goods, wares, or merchandise, except as samples, are kept at such office, or place of business. This is understood to authorize a manufacturer or producer to sell goods, wares, and merchandise of his own manufacture or production at any time at the places and in the manner above mentioned without paying a special tax as dealer, even though he has discontinued the manufacture or production, and the time covered by his license as a manufacturer has expired.

7.

Special Tax Receipts not Transferable.

Special tax receipts cannot be transferred from one party to another as licenses were. It is only in case of death that the receipt is transferable, and then only to legal representatives. (Letter of Commissioner, Oct. 30, 1866.)

8.

Surplus Earnings not basis of Special Tax on Banks.

The surplus earnings of an incorporated bank is no part of its capital, under the provisions in relation to special taxes; and any excess paid on that basis is remitted on application to the Department. (Letter of Commissioner, Nov. 12, 1866.)

9.

Transfer of Licenses.

Licenses granted prior to act of July 13, 1866, may be transferred and assigned. It is otherwise under that act providing for special tax receipts. (Letter of Commissioner, Nov. 12, 1866.)

10.

Reassessment of Licenses based on Amount of Sales.

In case the rate of tax is increased by the act of July 13, 1866, upon wholesale liquor dealers, (i. e. from $50 to $100) reassessments should be made only in cases where the former license tax already paid is less than $100. Any amounts due within the year beyond that sum is assessed monthly. When the sales exceed $50,000 the total amount of tax for the year should never be more than $50 in excess of one-tenth per cent. of the sales. (Letter of Commissioner, Sept. 13, 1866.)

11.

Commercial Brokers' Special Tax.

The agent of a single manufacturer or dealer is exempt from tax as a "commercial broker," in respect of soliciting orders for such manufacturer or dealer. The agent is also exempt from broker's tax on sales. But the amount of the orders filled by the dealer, through the agent, should be included in the dealer's basis of special tax. (Letter of Commissioner, Jan. 9, 1867.)

12.

Distillation of Spirits from Sour Wine.

The distillation of spirits from sour wine, imported, on which the import duty has been paid, subjects the party to all the requirements

of a distiller as to special tax or otherwise. If he

treats such spirits, selling the article as Cognac brandy, he is also a rectifier, and such rectifying cannot be carried on in the same premises as the distillation. (Letter of Commissioner, Sept. 29, 1866.)

13.

Distillers of Cider, Peach, and Grape Brandy. Distillers of brandy from apples, peaches, or grapes, exclusively, are not required to comply with the conditions imposed upon other distillers. But the tax of $2 per gallon, must be paid on all brandy distilled from lees and inferior wine remaining after the manufacture of inferior wine. (Letter of Commissioner, Sept. 27, 1866.) (See section 12, law of 1867.)

14.

When Brewers should pay Tax as Liquor Dealers.

The special tax required of liquor dealers, is not imposed upon brewers, selling their own products at other places than the brewery; but any amount due as license, must be paid. (Letter of Commissioner, Dec. 1, 1866.)

15.

Construction of Terms "Annual Receipts of Insurance

Agents."

The terms "annual receipts of any person (as insurance agent) shall not exceed $100," refer to the individual receipts of such agent as distinct from the receipts for the company for which he acts; [compensation and not premiums, &c.] (Letter of Commissioner, Nov. 5, 1886.)

16.

Special Tax of Manufacturers and Dealers.

A manufacturer can sell his own products at the place of manufacture, in the manner of a dealer; but nowhere else as a dealer without additional tax; and the sale of any of his products at the principal office in the manner of a dealer takes away his privilege of selling said products, even by samples, at said office, without additional tax. It follows that if he sell his own products at his principal office (not the place of manufacture) as a dealer, all such sales must be included with his sales as a dealer of other merchandise at said office. (Letter of Commissioner, Oct. 26, 1866.)

17.

When Owners of "Water" and other Mills are liable to Special Tax.

The owners of water, steam, grain, and saw-mills are liable to special

tax as manufacturers, if their manufactures exceed $1,000 annually. (Letter of Commissioner, Dec. 18, 1866.)

18.

Special Tax of Butchers and Dealers in Shell Fish.

The law imposes a special tax of $5 upon persons who sell shell or other fish, &c., &c., and there is no provision enabling butchers, whatever amount of special tax they pay as such, to sell fish, by reason of paying said special tax.

The butcher who pays a special tax of but $5 is as much a butcher within the meaning of section 65 as the butcher who pays $10, and is entitled to same immunities of that section. (Letter of Commissioner, Sept. 20, 1866.)

19.

Special Tax of Exhibitors, &c.

The proviso to paragraph 38, section 79, indicates liability on the part of the manager of the company (exhibiting, &c.,) rather than on the part of the owner of the building, under paragraph 37 of that section. (Letter of Commissioner, Nov. 15. 1866.)

20.

Grinders of Coffee, Spices, &c.

The retailers of coffee, spices, or mustard, may after the sale is effected grind the same in small quantities without charge or receiving pay for so doing and incur no liability to the special tax imposed upon the "grinders of coffee and spices. A tax of one cent per pound is imposed upon the roasting of coffee, &c.; and a similar tax upon the same when ground by the manufacturer or dealer. The tax upon coffee, &c., when both roasted and ground is therefore two cents per pound. Any hardship in this is matter, rather for the legislature. (Letter of Commissioner, Nov. 2, 1866.)

21.

Concerning Special Taxes under Act of July 13, 1866.

TREASURY DEPARTMENT, Office of Internal Revenue, }

Washington, July 31,

Attention is hereby called to the changes made in the internal revenue laws relating to licenses, by the act of July 13, 1866, which act goes into effect, so far as special taxes provided for in said act are concerned, on the 1st of August, 1866.

Licenses are abolished, and a "special tax" is substituted therefor. By the provisions of section eighty, it becomes the duty of assessors to re-assess any person, firm, or company, holding license, for any excess of the special tax substituted therefor over the license tax which

has been paid, from the 1st day of August, 1866, ratably, up to the 1st day of May, 1867.

Under these provisions, persons having a license as wholesale dealers in liquor, brewers, distillers, and proprietors of gift enterprises, will be liable to re-assessment from the 1st day of August, 1866. Every wholesale dealer in liquors, for instance, who has paid but $50 for his license, will be immediately liable to re-assessment for the nine months ending May 1, 1867, the amount of re-assessment being $37.50.

A special tax is to be assessed from the same date against distillers of burning fluid and camphene, grinders of coffee and spices, and peddlers of liquors. Peddlers traveling by public conveyances are classed as peddlers of the fourth class Persons whose business it is to manufacture cigars, snuff, or tobacco in any form, should be immediately assessed a special tax as tobacconists, without reference to the amount of their products; but where such persons now hold license as manufacturers, they will not be subject to the special tax until the expiration of their present licenses as manufacturers, unless they are engaged at the same time in the manufacture of other articles, in such manner as to be liable to special tax both as manufacturers and as tobacconists. But no special tax is imposed upon journeymen employed in a cigar manufactory.

Persons now licensed as tobacconists should be assessed a special tax as wholesale dealers when their sales exceed twenty-five thousand dollars. Any person who is engaged in the manufacture or preparation for sale of any articles or compounds, or who puts up for sale in packages, with his name or trade-mark thereon, any articles or compounds, is liable, under the new law, to special tax as a manufacturer.

Producers of ornamental and fruit trees, and charcoal, selling the same at wholesale, by themselves or authorized agents, at places other than the place of production, are exempt from special tax in respect thereof.

All boats, barges, and flats, not used for carrying passengers, nor propelled by steam or sails, which are floated or towed by tug-boats or horses, and used exclusively for carrying coal, oil, minerals, or agricultural products to market, will be assessable under the new law with an annual special tax, from and after the expiration of the time covered by their present enrollment fees and tonnage duties, in lieu of such fees and duties. Such boats, of a capacity exceeding twenty-five tons, and not exceeding one hundred tons, will be subject to a special tax of five dollars, and when exceeding one hundred tons, to a special tax of ten dollars, said tax to be assessed and collected as other special taxes provided for in the act. The above special tax on boats, barges, and flats, does not, however, affect the liability of the proprietors to special tax as express carriers or agents, when doing business as described in paragraph fifty of section seventy-nine of the act of June 30, 1864, as amended by the act of July 13, 1866.

Wholesale dealers are required, as soon as the amount of their sales