fortified under the provisions of the aforesaid act approved October first, eighteen hundred and ninety, as amendments thereto, any brandy or wine spirits used in the manufacture or fortification of said wine, otherwise than is provided for in said act and its amendments, or who shall rectify, mix, or compound with distilled spirits or other materials, except as provided in this act, such grape brandy, fortified wines or wine spirits unlawfully recovered therefrom, shall, on conviction, be punished for each offense by a fine of not less than $200 nor more than $1,000. But the provisions of this section and the provisions of section thirty-two hundred and fortyfour of the Revised Statutes of the United States, as amended, relating to rectification, or other internal revenue laws of the United States, shall not be held to apply to or prohibit the mixing or blending of pure sweet wines fortified under the provisions of this act with each other or with other wines: Provided, That the pure sweet wines fortified under the provisions of this act may be used in the manufacture of cordials, liqueurs, and similar compounds on which an internal revenue tax of 24 cents a gallon is imposed, and otherwise the provisions of section thirty-two hundred and fortyfour of the Revised Statutes of the United States shall remain in full force and effect." Special taxes. SEC. 3. That on and after November first, nineteen hundred and fourteen, special taxes shall be, and hereby are, imposed annually as follows, that is to say: First. Bankers shall pay $1 for each $1,000 of capital used or employed, and in estimating capital surplus and undivided profits shall be included. The amount of such annual tax shall in all cases be computed on the basis of the capital, surplus, and undivided profits for the preceding fiscal year. Every person, firm, or company, and every incorporated or other bank, having a place of business where credits are opened by the deposit or collection of money or currency, subject to be paid or remitted upon draft, check, or order, or where money is advanced or loaned on stocks, bonds, bullion, bills of exchange, or promissory notes, or where stocks, bonds, bullion, bills of exchange, or promissory notes are received for discount or sale, shall be a banker under this act: Provided, That any postal savings bank, or savings bank having no capital stock, and whose business is confined to receiving deposits and loaning or investing the same for the benefit of its depositors, and which does no other business of banking, shall not be subject to this tax. Bank which, in addition to its banking business, acts as trustee, receiver, executor, or administrator, or engages in underwriting or promoting new enterprises or refinancing old enterprises, or buys and sells securities on its own account for profit, is taxable upon the total amount of its capital, including surplus and undivided profits, unless it be shown that a specific portion of its capital is used in such other business and that such use does not constitute banking; mere showing that a specific portion of the capital, including surplus and undivided profits, is used in such other business is not alone sufficient to show that such capital is not used in banking. (Fidelity Trust Co., of Baltimore, v. Miles, 258 Fed., 770; T. D. 2895.) Tax on bankers is constitutional. (Real Estate Title Insurance & Trust Co. v. Lederer, 229 Fed., 799; T. D. 2306; Anderson v. Farmers 140184°-20-49 The capital, surplus, and undivided profits of a trust company doing business as banker invested in stocks, bonds, and securities are treated as used and employed in banking within the meaning of section; tax imposed is upon so much thereof as is used in the banking business. (Anderson v. Farmers Loan & Trust Co., 241 Fed., 322; T. D. 2460.) Instructions as to the preparation of special bankers' lists. (T. D. 2045.) Method of arriving at undivided profits to be entered into the basis upon which tax on bankers is to be computed. (T. D. 2064.) Basis upon which special tax imposed on bankers shall be computed defined. (T. D. 2125.) Character of investment has no bearing upon question of amount invested; can not be said as matter of law that capital, surplus, or undivided profits can be segregated from bank's other assets. (Real Estate Title. Insurance & Trust Co. v. Lederer, 229 Fed., 799; T. D. 2306.) Bank which, in addition to main business of examining and insuring real estate titles, carried on savings bank business, which it kept separate from its other business, was not taxable upon the total amount of capital, surplus and undivided profits used in the insurance business, amount used in banking business as such only being subject to tax. Title Guarantee & Trust Co. v. Miles, 258 Fed., 771.) Second. Brokers shall pay $30. Every person, firm, or company, whose business it is to negotiate purchases or sales of stocks, bonds, exchange, bullion, coined money, bank notes, promissory notes, or other securities, for themselves or others, shall be regarded as a broker: Provided, That any person having paid the special tax as a banker shall not be required to pay the special tax as a broker. Special tax liability as broker is not incurred on account of a person negotiating purchases of stocks, bonds, etc., solely for himself. (T. D. 2263.) Third. Pawnbrokers shall pay $50. Every person, firm, or company whose business or occupation it is to take or receive, by way of pledge, pawn, or exchange, any goods, wares, or merchandise, or any kind of personal property whatever, as security for the repayment of money loaned thereon, shall be deemed a pawnbroker. Fourth. Commercial brokers shall pay $20. Every person, firm, or company whose business it is as a broker to negotiate sales or purchases of goods, wares, produce, or merchandise, or to negotiate freights and other business for the owners of vessels, or for the shippers or consignors or consignees of freight carried by vessels, shall be regarded as a commercial broker under this act. Real estate agents engaged in negotiating upon a commission purchases and sales of real estate, collecting rents, etc., do not incur liability as brokers. (T. D. 2083.) Special tax in case of local agents, sales representatives, and others operating on a commission basis; commission merchants. (T. D. 2107.) Fifth. Custom-house brokers shall pay $10. Every person, firm, or company whose occupation it is, as the agent of others, to arrange entries and other custom-house papers, or transact business at any port of entry relating to the importation or exportation of goods, wares, or merchandise, shall be regarded as a custom-house broker. Person or firm holding himself or itself out to the public as a customhouse broker is required to pay tax. (T. D. 2321.) Sixth. Proprietors of theaters, museums, and concert halls, where a charge for admission is made, having a seating capacity of not more than two hundred and fifty, shall pay $25; having a seating capacity of more than two hundred and fifty and not exceeding five hundred, shall pay $50; having a seating capacity exceeding five hundred and not exceeding eight hundred, shall pay $75; having a seating capacity of more than eight hundred, shall pay $100. Every edifice used for the purpose of dramatic or operatic or other representations, plays, or performances, for admission to which entrance money is received, not including halls or armories rented or used occasionally for concerts or theatrical representations, shall be regarded as a theater: Provided, That whenever any such edifice is under lease at the passage of this act, the tax shall be paid by the lessee, unless otherwise stipulated between the parties to said lease. Motion-picture theaters classed as taxable. (T. D. 2040.) Special tax liability on account of operation of air domes. (T. D. 2217.) Proprietors of theatrical troupes traveling with carnival companies required to pay special tax. (T. D. 2223.) (T. D. Penalty where seating capacity is returned as smaller than it actually is; effect of increasing seating capacity after payment of tax. 2775.) Tax liability where plays or performances are given in hall or armory only occasionally; liability of owners or agents of theatrical troupes giving performances in halls for which taxes have not been paid by owners or lessees. (T. D. 2314.) Seventh. The proprietor or proprietors of circuses shall pay $100. Every building, space, tent, or area where feats of horsemanship or acrobatic sports or theatrical performances not otherwise provided for in this act are exhibited shall be regarded as a circus: Provided, That no special tax paid in one State, Territory, or the District of Columbia shall exempt exhibitions from the tax in another State, Territory, or the District of Columbia, and but one special tax shall be imposed for exhibitions within any one State, Territory, or District. Special tax liability of circuses stated. (T. D. 2183.) Eighth. Proprietors or agents of all other public exhibitions or shows for money not enumerated in this section shall pay $10: Provided, That a special tax paid in one State, Territory, or the District of Columbia shall not exempt exhibitions from the tax in another State, Territory, or the District of Columbia, and but one special tax shall be required for exhibitions within any one State, Territory, or the District of Columbia: Provided further, That this paragraph shall not apply to Chautauquas, lecture lyceums, agricultural or industrial fairs, or exhibitions held under the auspices of religious or charitable associations. Exemption of lecture lyceum, with special reference to the Redpath Lyceum Bureau. (Redpath Lyceum Bureau v. Pickering, 251 Fed., 49; T. Ds. 2448, 2684.) Ninth. Proprietors of bowling alleys and billiard rooms shall pay $5 for each alley or table. Every building or place where bowls are thrown or where games of billiards or pool are played and that are open to the public, with or without price, shall be regarded as a bowling alley or a billard room, respectively. Tenth. Commission merchants shall pay $20. Every person, firm, or company whose business or occupation it is to receive into his or its possession any goods, wares, or merchanidse to sell the same on commission shall be regarded as a commission merchant: Provided, That any person having paid the special tax as a commercial broker shall not be required to pay the special tax as a commission merchant: Provided further, That this provision shall not apply to commission houses run upon a cooperative plan. Schedule of articles and occupations subject to tax. (T. D. 2035.) Digest of rulings under war-revenue act of June 13, 1898, identical with, or essentially similar to, the special-tax provision of this act, published for convenience in construing. (T. D. 2046.) Liability as commission merchants of the customers of various firms through their method of handling goods of these firms. (T. D. 2084.) Special tax as commercial broker or commission merchant. (T. D. 2107.) Tax liability of leaf-tobacco dealers making sales of leaf tobacco for others on commission. (T. D. 2296.) Tobacco dealers and manufacturers. SEC. 4. That on and after November first, nineteen hundred and fourteen, special taxes on tobacco dealers and manufacturers shall be and hereby are imposed annually as follows, the amount of such annual taxes to be computed in all cases on the basis of the annual sales for the preceding fiscal year: Dealers in leaf tobacco whose annual sales or transfers do not exceed fifty thousand pounds shall each pay $6. Dealers in leaf tobacco whose annual sales or transfers exceed fifty thousands and do not exceed one hundred thousand pounds shall pay $12, and if their annual sales or transfers exceed one hundred thousand pounds shall pay $24: Provided, That dealers in leaf tobacco whose annual sales or transfers do not exceed one thousand pounds shall be exempt from the tax herein imposed on dealers in leaf tobacco. Dealers in tobacco, not specially provided for in this section, whose annual receipts from the sale of tobacco exceed $200, shall each pay $4.80 for each store, shop, or other place in which tobacco in any form is sold. Every person wnose business it is to sell, or offer for sale, manufactured tobacco, snuff, cigars, or cigarettes shall be regarded as a dealer in tobacco: Provided, That no manufacturer of tobacco, snuff, cigars, or cigarettes shall be required to pay a special tax as a dealer in manufactured tobacco, snuff, cigars, or cigarettes for selling his own products at the place of manufacture. Manufacturers of tobacco whose annual sales do not exceed one hundred thousand pounds shall each pay $6. Manufacturers of tobacco whose annual sales exceed one hundred thousand and do not exceed two hundred thousand pounds shall each pay $12. Manufacturers of tobacco whose annual sales exceed two hundred thousand and do not exceed four hundred thousand pounds shall each pay $24. Manufacturers of tobacco whose annual sales exceed four hundred thousand and do not exceed one million pounds shall each pay $60. Manufacturers of tobacco whose annual sales exceed one million. and do not exceed five million pounds shall each pay $300. Manufacturers of tobacco whose annual sales exceed five million and do not exceed ten million pounds shall each pay $600. Manufacturers of tobacco whose annual sales exceed ten million and do not exceed twenty million pounds shall each pay $1,200. Manufacturers of tobacco whose annual sales exceed twenty million pounds shall each pay $2,496. Manufacturers of cigars whose annual sales do not exceed one hundred thousand cigars shall each pay $3. Manufacturers of cigars whose annual sales exceed one hundred thousand and do not exceed two hundred thousand eigars shall each pay $6. Manufacturers of cigars whose annual sales exceed two hundred thousand and do not exceed four hundred thousand cigars shall each pay $12. Manufacturers of cigars whose annual sales exceed four hundred thousand and do not exceed one million cigars shall each pay $30. Manufacturers of cigars whose annual sales exceed one million and do not exceed five million cigars shall each pay $150. Manufacturers of cigars whose annual sales exceed five million and do not exceed twenty million cigars shall each pay $600. Manufacturers of cigars whose annual sales exceed twenty million and do not exceed forty million cigars shall each pay $1,200. Manufacturers of cigars whose annual sales exceed forty million cigars shall each pay $2,496. Manufacturers of cigarettes whose annual sales do not exceed one million cigarettes shall each pay $12. Manufacturers of cigarettes whose annual sales exceed one million and do not exceed two million cigarettes shall each pay $24. Manufacturers of cigarettes whose annual sales exceed two million and do not exceed five million cigarettes shall each pay $60. Manufacturers of cigarettes whose annual sales exceed five million and do not exceed ten million cigarettes shall each pay $120. Manufacturers of cigarettes whose annual sales exceed ten million and do not exceed fifty million cigarettes shall each pay $600. Manufacturers of cigarettes whose annual sales exceed fifty million and do not exceed one hundred million cigarettes shall each pay $1,200. Manufacturers of cigarettes whose annual sales exceed one hundred million cigarettes shall each pay $2,496. In arriving at the amount of license tax to be paid hereunder, and in the levy and collection of such tax, each person, firm, or corporation engaged in the manufacture of cigars, cigarettes (including little cigars), or tobacco shall be considered and deemed a single manufacturer. Annual inventories to be made by cigar and tobacco manufacturers and verified by collectors and their deputies. (T. D. 2057.) Regulations and information as to certain requirements, together with synopsis of decisions made under the act of June 13, 1898, which will be given weight in determining similar questions arising under this act. (T. D. 2061.) Penalty. And every person who carries on any business or occupation for which special taxes are imposed by this act, without having paid the special tax herein provided, shall, besides being liable to the payment of such special tax, be deemed guilty of a misdemeanor, and upon conviction thereof shall pay a fine of not more than $500, or be imprisoned not more than six months, or both, at the discretion of the court: Provided, That the special taxes imposed by this act and payable during the special tax year ending June thirtieth, nineteen hundred and sixteen, shall be collected and paid proportionately for the period during which such taxes shall remain in force during said year. |