War Excess Profits Tax In addition to the taxes under existing law, there shall be levied, assessed, collected, and paid for each taxable year upon the income of every corporation, partnership, or individual, a tax equal to the following percentages of the Net Income: Table No. 4 Percentages of the Net Income Rate of The amount of the Net Income in excess of the deduction and not in excess of 15% of the invested capital for the taxable year... 20% The amount of the Net Income in excess of 15% and not in excess of 20% of such capital.. 25% The amount of the Net Income in excess of 20% and not in excess of 25% of such capital........... 35% The amount of the Net Income in excess of 25% and not in excess of 33% of such capital......... 45% The amount of the Net Income in excess of 33% of such capital.. 60% In the case of a corporation, the deduction allowed is determined by deducting from the Net Income for 1917 an amount equal to the same percentage of the invested capital for 1917 which the Net Income during the pre-war period (1911-12-13) was of the invested capital for the pre-war period (but not less than 7% or more than 9% of the invested capital for 1917) and the specific exemption of $3,000. Consulting Table No. 4, we have $15,000-$12,000-$ 3,000 at 20%-$ 600 $25,000 $33,000 In the case of a partnership or of a citizen or resident of the United States, the deduction allowed is determined in the same manner as for a corporation except that the specific exemption is $6,000 instead of $3,000. If a corporation or partnership was not in existence or an individual was not engaged in the trade or business during the whole of any one calendar year during the pre-war year period, the excess profits shall be determined by deducting from the Net Income for 1917, in case of a corporation, $3,000, and in case of a partnership or a citizen or resident of the United States $6,000, plus in either case an amount equal to 8% of the capital for 1917. If the Secretary of the Treasury is unable to determine the amount of the invested capital, or the average pre-war Net Income, or if there was no income, or if during the pre-war period the percentage of the Net Income was low as compared with like or similar businesses, then the amount of the excess profit shall be determined by deducting from the Net Income the same percentage of its invested capital as the average similar deductions of like businesses. In the case of a business or trade having no invested capital or not more than a nominal capital, there shall be levied, assessed and paid in lieu of this tax, a tax of 8% of the Net Income of such business or trade in excess of $3,000 in case of a corporation and $6,000 in case of a partnership or individual. ar Taxon Facilities Furnished by Public Utilities and Insurance From and after the first day of November, 1917, public utilities shall collect from persons, corporations, partnerships or associations paying for services or facilities rendered the following taxes, and shall make monthly returns under oath, in duplicate, and pay the taxes so collected to the Collector of Internal Revenue of the District in which the principal office or place of business is located: Service or Facility Rendered Transportation of property by Freight consigned from one point in the United States to another, by rail or water or by any form of mechanical motor power when in competition with carriers by rail or water.. Transportation of Persons from one part of the United Seats, berths and staterooms in parlor cars, sleeping cars or on vessels.. Transportation of oil by pipe line... Telegraph, telephone, or radio, dispatch, message or conversation which originates in the United States and for the transmission a charge of 15c or more is imposed.. Rate of Tax on Amount Paid 3% 8% 10% 5% 5c each Parcels or Packages by Express over regular routes be-1c for each 20c or tween fixed terminals from one point in the United States fraction thereof to another.......... Policies of Life Insurance. paid. 8c on each $100 of amount of insurance. Industrial or weekly payment plan, insurance not in excess 40% of amount of $500.. Policies of Marine, inland and fire insurance.. Policies of Casualty Insurance.. of first weekly premium. 1c on each $1 of premium. 1c on each $1 of premium. NOTES.-Transportation of persons does not include the amount paid for commutation or season tickets for trips less than 30 miles or for transportation the fare for which does not exceed 35c. If a mileage book used for such transportation or accommodation has been purchased before November 1, 1917, or if cash fare be paid, the tax imposed shall be collected from the person presenting the mileage book, or paying the cash fare, by the conductor or other agent. If a ticket other than a mileage book is bought and partially used before November 1, 1917, it shall not be taxed, but if bought but not used before said date it shall not be valid for passage until the tax has been paid and such payment evidenced on the ticket. Re-insurance exempt from this tax. Postal Rates The rate of postage on all mail matter of the first class, excepting postal cards, shall, 30 days after October 3d, 1917, be, in addition to the existing rate, 1 cent for each ounce or fraction thereof: Provided, That the rate of postage on drop letters of the first class shall be 2 cents an ounce or fraction thereof. Postal cards and private mailing cards, when complying with the requirements of existing law, shall be transmitted through the mails at 1 cent each, in addition to the existing rate. Letters written and mailed by soldiers, sailors, and marines assigned to duty in a foreign country engaged in the present war may be mailed free of postage, subject to such rules and regulations as may be prescribed by the Postmaster General. Second class mail matter sent by publishers is subject to a new Zone Tax. War Excise Taxes There shall be levied, assessed, collected, and paid by the manufacturer, producer, or importer, the following taxes: Automobiles, automobile trucks, automobile wagons, and motorcycles.. Piano players, graphophones, phonographs, talking machines and records. Jewelry (real or imitation). Tennis rackets, golf clubs, baseball bats, lacrosse sticks, balls of all kinds, fishing rods and reels, billiard and pool tables, chess and checker boards and pieces, dice, games, except playing cards, and children's toys and games.. 3% Perfumes, extracts, cosmetics and toilet preparations of all kinds.. 2% Pills, tablets and all medicinal preparations and patent or proprietary medicines and articles.. 2% 3% 2% Cameras.. Chewing gum or substitute therefor.. Each manufacturer, producer, or importer of any of the articles in the above list shall 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 is located the principal place of busi ness. Upon all articles in the above list, which on October 3d, 1917, are held and intended for sale by any person, corporation, partnership, or association, other than (1) a retailer who is not also a wholesaler or (2) the manufacturer, producer or importer thereof, there shall be levied, assessed, collected, and paid, a tax equivalent to one-half the tax imposed in such list upon the sale of the articles therein enumerated. This tax shall be paid by the person, corporation, partnership, or association so holding such articles. Returns must be made within 30 days after October 3d, 1917. Payment of the tax may be extended not exceeding seven months upon the filing of a bond. On October 3d, 1917, and thereafter on July 1st in each year, and also at the time of the original purchase of a new boat by a user, if on any other date than July 1st, there shall be levied, assessed, collected, and paid, upon the use of yachts, pleasure boats, and sailing boats, of over five net tons, and motor boats with fixed engines, not used ex clusively for trade, an excise tax to be based on each yacht or boat, at rates as follows: Yachts, pleasure boats, power boats, motor boats with fixed engines, and sailing boats, of over five net tons, length not over 50 feet, 50 cents for each foot, length over 50 feet and not over 100 feet, $1.00 for each foot, length over 100 feet, $2.00 for each foot; motor boats of not over five net tons with fixed engines, $5.00. In determining the length of such yachts, pleasure boats, power boats, motor boats with fixed engines, and sailing boats, the measure over all length shall govern. In case of a tax imposed at the time of the original purchase of a new boat on any other date than July 1st, the amount to be paid shall be the same number of twelfths of the amount of the tax as the number of calendar months, including the month of sale, remaining prior to the following July 1st. A tax of 1 cent per linear foot is imposed on the manufacturer or importer of all moving-picture films (which have not been exposed) and a tax of 1⁄2 cent per linear foot on all positive moving picture films (con-taining a picture ready for projection) when sold or leased by the manufacturer or importer. War Stamp Taxes Schedule of Instruments, Checks, Drafts, etc., requiring a stamp on and after December 1, 1917 Amount of Stamp Bonds, debentures, or certificates of indebt-5c on each $100 or fraction edness issued (face value). thereof. 50c each. 1% of premium. Parcel-post packages transported from one part 1c on each 25c or fraction of the United States to another. thereof charged for transportation. Capital Stock, original issue, whether organi- 5c on each $100 or fraction zation or reorganization. Capital Stock, without face value. thereof. 5c per share. Capital Stock, without face value, actual value 5c on each $100 actual value or fraction thereof. in excess of $100 per share. Capital Stock, sales or transfers, or agreement 2c on each $100 or fraction to sell, or memoranda of sales or deliveries. thereof. Capital Stock, sales or transfers, etc., without 2c on each share. face value. or fraction thereof. Capital Stock, sales or transfers, etc., without 2c on each $100 actual value face value, actual value in excess of $100 per share. Produce, sales of, on exchange: Upon each sale, agreement of sale, or agreement to sell, including so-called transferred or scratch sales. Drafts or checks payable otherwise than at sight or on demand, promissory notes, except #bank notes issued for circulation. Conveyance: Deed, instrument, or writing, whereby any land, tenement, or other realty sold shall be granted, assigned, transferred, or otherwise conveyed, exclusive of the value of any lien or incumbrance remaining thereon at the time of sale. Entry of any goods, wares or merchandise at any Custom House, either for consumption or warehousing. 2c on each $100 or fraction thereof, in value of merchandise covered. 2c on each $100 or fraction thereof. Exceeds $100 and does not exceed $500, 50c; and for each additional $500 or fractional part thereof, 50c. Not exceeding $100 in value, 25c; exceeding $100 and not exceeding $500, 50c; exceeding $500 in value, $1. Entry for withdrawal of any goods or merchan-50c... dise. Passenger ticket, one way or round trip, for each passenger, sold or issued in the United States for passage by any vessel to a port or place not in the United States, Canada, or Mexico. $10 or less exempt. Not exceeding $30, $1; more than $30, and not exceeding $60, $3; more than $60, $5. Proxy for voting at elections of corporations, etc. 10c. Power of attorney. 25c. Playing cards. (Additional to tax imposed under 5c per pack. existing law) *Sales for immediate or prompt delivery are not subject to this tax. Transfers to clearing house in ordinary course of business not deemed a sale. NOTE Stocks and bonds issued by cooperative building and loan associations or by mutual ditch or irrigating companies are not subject to the stamp tax. Where the transfer of stock is shown only on the books of the company, the stamp shall be placed on such books; and where the change of ownership is by transfer of the certificate, the stamp shall be placed upon the certificate. Stamps must be cancelled by writing or stamping thereupon the initials of the person using the same, giving the date upon which it is affixed. Penalty for each violation, $100 to $1,000, or imprisoned 6 months, or both. War Tax on Cigars, etc. Upon cigars, cigarettes, etc., which shall be manufactured and sold, or removed for consumption or sale, there shall be levied and collected, in addition to the taxes now imposed by existing law, the following taxes to be paid by the manufacturer or importer thereof, and to take effect 30 days after October 3d, 1917: *War Tax on Floor Stock equals one-half of the War Tax imposed on manufacturers or importers, to take effect October 3, 1917. NOTE-The word retail means the ordinary retail price for a single cigar. Returns must be made 30 days after October 3d, 1917. Payment of tax may be extended not exceeding 7 months by filing a bond. War Tax on Admissions From and after the first day of November, 1917, there shall be levied, assessed, collected, and paid (A) a tax of 1 cent for each 10 cents or fraction thereof of the amount paid for admission to any place, including admission by season ticket or subscription, to be paid by the person paying such admission: Provided, That the tax on admissions of children under 12 years of age, where admissions charge for such children is made, shall in every case be I cent, and (B) in the case of persons (except bona fide employees, municipal officers on official business, and children under 12 years of age) admitted free to any place at a time when and under circumstances under which an admission charge is made to other persons of the same class a tax of 1 cent for each 10 cents or fraction thereof of the price so charged to such other person for the same and similar accommodations to be paid by the persons so admitted, and (C) a tax of 1 cent for each 10 cents or fraction thereof paid for admission to any public performance for profit at any cabaret or other similar entertainment to which the charge for admission is wholly or in part included in the price paid for refreshments, service, or merchandise. In the case of persons having the permanent use of boxes or seats in an opera house, or any place of amusement or a lease for the use of such box or seat in such opera house or place of amusement, there shall be levied, assessed, collected, and paid a tax equivalent to 10% of the amount for which a similar box or seat is sold for performance or exhibition at which the box or seat is used or reserved by or for the lessee or holder. These taxes shall not be imposed in the case of a place the maximum charge for admission to which is 5 cents, or in the case of shows, rides, and other amusements (the maximum charge for admission to which is 10 cents) within outdoor general amusement parks, or in the case of admission to such parks. No tax shall be levied under this title in respect to any admission the proceeds of which inure exclusively to the benefit of religious, educational or charitable institutions, societies or organizations, or admissions to agricultural fairs none of the profits of which are distributed to stockholders or members of the association conducting the same. The term "admission" as used in this title, includes seats and tables, reserved or otherwise, and other similar accommodations, and the charges made therefor. |