510.-BASIS OF THE TAXES. As hereinbefore explained, the basis of the tax upon the sale of each article or class of articles enumerated in this schedule is the price for which the manufacturer, producer or importer sells the articles; and liability is incurred when the articles are sold. 511.-TAX UPON WHOLESALE STOCKS. The act imposes a tax at one-half the regular rate upon stocks of all the articles enumerated above, except moving-picture films, which on October 4, 1917 were held and intended for sale by a wholesale dealer who is not the manufacturer, producer or importer. Under the law return under oath should have been made in any such case to the Collector of Internal Revenue within 30 days after October 3, 1917. The statute provides, however, against the necessity of immediate tax payment by a clause to the effect that payment may be deferred for not more than seven months from October 3, 1917 upon the filing of a bond for payment with sureties acceptable to the Treasury Department. The official form for such bond should be obtained from the Collector of Internal Revenue. Articles sold and delivered prior to May 9, 1917, but with title reserved in the seller as security for payment of the amount due, are not to be included in any stock return made by a wholesale dealer. 512. TAX UPON PLEASURE BOATS. In the War Revenue Act is to be found a special excise tax imposed upon the use of all boats not used exclusively for trade or national defense, or not built according to plans and specifications approved by the Navy Department, provided such boats come within the following descriptions: (a) Yachts, pleasure boats, power boats and sailing boats, of over five net tons, and (b) Motor boats with fixed engines. 513.-RATES OF BOAT TAX. A motor boat does not have to be of over five net tons to be subject to tax. If it is of over five net tons, tax is computed according to its length; if under, the flat rate of $5 applies. Every motor boat, not used exclusively for trade or national defense, or not built according to plans and specifications approved by the Navy Department, is taxable if it has a fixed engine, whatever its size. 514.-MEASUREMENT OF BOATS. As the length of a boat, if it is of more than five net tons, is the basis of tax computation, the law provides that the "over-all" length shall govern. 515.-PAYMENT OF BOAT TAX. This tax must be paid by the user of the boat as follows: 1. First, on the day this tax is made effective, which was October 4, 1917. 2. And thereafter on July 1 in each year. 3. Also at the time of original purchase of a new boat if such purchase is on a date other than July 1. When tax is paid at the time of original purchase on a date other than July 1, the amount to be paid is the same number of twelfths of the full rate of tax as there are calendar months (including the month of purchase) remaining before the following July 1. An example: Suppose a boat is purchased February 10, 1918. There would remain (including the month of February) five calendar months before the following July 1. Therefore, the tax that would be due would be fivetwelfths of the regular rate. But on the following July 1 tax would have to be paid again and then at the full rate. 516.-SHOULD GET OFFICIAL FORMS. Every user of a boat subject to tax should disclose liability to the Collector of Internal Revenue and request the proper official form on which to make return. CHAPTER XXXIV TAX ON LIQUORS DISTILLED SPIRITS, FERMENTED 517.-OLD AND NEW RATES COMBINED. With reference to the taxes on distilled spirits, wines, such fermented liquors as beer, ale and porter, vermuth, liqueurs, cordials and similar beverages, the present effective rates, combining the old and new rates, will be given. These rates became effective on October 4, 1917. 518.-DISTILLED SPIRITS. On all distilled spirits in bond on October 4, 1917, or thereafter made or imported into the United States, tax liability accrued at the rate of $2.20 on each proof gallon, or wine gallon if below proof, except that if such spirits, should be withdrawn from bond for beverage purposes or for use in the manufacture of a beverage, the tax is increased to $3.20. The tax on such spirits is payable when the spirits are withdrawn from bond. It is computed on full proof gallons and, proportionately, on fractional parts of gallons. 519.-BEER, ALE, PORTER AND OTHER FERMENTED LIQUOR. On beer, ale, porter and other similar fermented liquor, containing one-half of 1 per cent or more of alcohol, a tax at the rate of $3 a ba rel and, proportionately, on fractional parts of a barrel. A barrel can not contain more than 31 gallons. 520.-WINES, VERMUTH, CORDIALS, ETC. On all still wines, including vermuth, and on all champagne and other sparkling wines, liqueurs, cordials, artificial or imitation wines or compounds sold as wines, either imported or of domestic production, if removed from the custom-house, or place of manufacture, or bonded premises after October 4, 1917 for sale or consumption, tax is imposed at the following rates: Wine containing not more than 14 per cent ..8 cents a wine gallon Wine containing more than 14 per cent but not more than 24 per cent alcohol...............50 cents a wine gallon Wine containing more than 24 per cent al cohol is subject to tax as distilled spirits, Champagne and natural sparkling wine Liqueurs, cordials and similar compounds 521.-GRAPE BRANDY USED IN FORTIFICATION. ..6 cents a half pint 3 cents a half pint ..3 cents a half pint On all grape brandy or wine spirits withdrawn by a producer of wines from any fruit distillery or bonded warehouse to be used in the fortification of wine a tax at the rate of 30 cents a proof gallon, if withdrawn after October 4, 1917. 522.-RECTIFIED PRODUCTS. In addition to the tax on distilled spirits there is also imposed a tax at the rate of 15 cents a proof gallon on rectified spirits and wines, provided the rectification takes place after October 4, 1917, or the rectified products were in the possession of the rectifier on that date. This tax is not applicable to the manufacture of gin by redistillation of a pure spirit over juniper berries and other aromatics; nor is it to be imposed in the case of the blending of wines according to commercial standards or the blending of pure straight whiskies aged in wood for a period of not less than four years when in the blending of such whiskies no other substance than water is added and the proof of the resultant blend is not below ninety. 523. PERFUMES. On perfumes containing distilled spirits, imported into the United States after October 4, 1917, an internal revenue tax at the rate of $1.10 a proof gallon and, proportionately, on fractional parts of a proof gallon, in addition to the tax levied by the customs authorities. 524.-FLOOR TAXES. The above are the continuing taxes. They do not comprehend the taxes that were imposed on floor stocks of distilled spirits, wines, vermuth, cordials, etc., when the law took effect October 4, 1917, or the taxes then imposed on sweet wines held for sale by the producer and brandy that had been withdrawn but not used for the fortification of wine. The returns of all such tax liability are assumed already to have been made. |