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a heavy base and receiving its current through a flexible cable, so that it can be readily moved from place to place, is subject to the tax. So, also, fans of a like type, screwed to a wall, bracket, or other support, but capable of being easily moved, are taxable. Ceiling fans, exhaust fans, and blowers which are permanently attached, and which require separate wires and switches and skilled workmen to install or remove them, are not portable fans within the meaning of the act.


(14) Thermos and thermostatic bottles, carafes, jugs, or other thermostatic containers, 5 per centum;

¶ 1151. Art. 26. Thermostatic containers.-The tax is 5 per cent. of the manufacturer's selling price of the enumerated articles. The tax attaches only to the sale of containers using the vacuum principle of heat or cold retention. Thus, fireless cookers are not taxable.


(15) Cigar or cigarette holders and pipes, composed wholly or in part of meerschaum or amber, humidors, and smoking stands, 10 per centum;

¶ 1152. Art. 27. Cigar and cigarette holders, pipes, humidors, and smoking stands.-For the purpose of the tax a humidor means either (a) a device for maintaining moist atmosphere in any receptacle used for holding tobacco products, or (b) a portable receptacle used for holding tobacco products and fitted with a device for maintaining moist atmosphere therein. A smoking stand means (a) a tobacco ash tray, having a pedestal and base, or (b) two or more tobacco ash trays supported in an upright position from a common base and designed to be placed on a table, desk, floor, or other surface.


(16) Automatic slot-device vending machines, 5 per centum, and automatic, slot-device weighing machines, 10 per centum; if the manufacturer, producer, or importer of any such machine operates it for profit, he shall pay a tax in respect to each such machine put into operation equivalent to 5 per centum of its fair market value in the case of a vending machine, and 10 per centum of its fair market value in the case of a weighing machine;

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1153. Art. 28. Automatic slot-device machines.—A machine used for both vending and weighing is taxable as a weighing machine. For the purpose of the tax fair market value is deemed to be the average wholesale price at which like machines have been sold by the manufacturer at wholesale during the month next preceding the month in which such machine is put into

chines, fair market value is deemed to be the average wholesale price for which similar machines are sold at the time the taxable machine is put into operation.



(17) Liveries and livery boots and hats. 10 per cen



¶ 1154. Art. 29. Liveries and livery boots and hats.-For the purpose of the tax, the enumerated articles include the uniforms of personal or domestic servants or of doormen, footmen, pages, bell boys, and similar employees of clubs, hotels, theaters, cafés, stores, and similar places; but uniforms otherwise taxed, and the uniforms of employees of public-service corporations, such as railroad, telegraph, and telephone companies, are not taxable.


(18) Hunting and shooting garments and riding habits, 10

per centum;



¶ 1155. Art. 30. Hunting and shooting garments and riding habits.-Hunting and shooting garments and riding habits are deemed to include articles primarily adapted for use in hunting, shooting, and riding, and commonly so used, such as hunting coats, sleeveless and other; duck shooters' jackets and coats; ladies' divided skirts and shell skirts; ladies' riding coats; men's riding breeches; deer stalkers' hats; and shell belts. Articles coming within the above definition whose use is intended to be for purposes other than hunting, shooting, or riding are exempt from the tax. Every manufacturer who claims exemption from the tax on this ground must have in his possession at the time the goods are shipped or sold (whichever is prior) an order or contract of sale with certificate of the purchaser printed thereon or in writing and permanently attached thereto, showing that such articles are to be used for purposes other than hunting, shooting, or riding. If in any case such a statement cannot be produced on demand of any authorized agent of the department, the tax in respect to the sale will be considered in default.


(19) Articles made of fur on the hide or pelt, or of which any such fur is the component material of chief value, 10 per centum;




1156. Art. 31. Fur goods.-As used in these regulations the term "fur article" includes articles made of fur on the hide or pelt or of which any such fur is the component material of chief value and all such articles as are commercially known and sold as fur articles. Raw, dressed, and dyed skins are not subject to the tax when sold to a manufacturer for use in the manufacture of fur articles. Such skins, however, are subject to the tax

when sold to a consumer. The tax is not confined to articles of wearing apparel. For example, fur rugs and fur robes are subject to the tax. The "component material of chief value" of any article is that component material which is not exceeded in value by any other single component material. The value of each component material shall be determined by the cost thereof to the manufacturer. The cost of production is no part of the value of any other single component material. The tax attaches to each sale of a fur article by the manufacturer. The provisions for credit for taxes already paid contained in article 6 will apply where taxes have been paid in respect of any sale and the article so sold is subjected to a further process of manufacture and again sold. Ordinary repairs are not taxable, but when new fur is added the tax attaches to such fur, and the price for the job will be presumed to be the price for which such fur is sold unless it is billed as a separate item, in which case the tax attaches to the value properly ascribable to the fur in its manufactured form.


(20) Yachts and motor boats not designed for trade, fishing, or national defense; and pleasure boats and pleasure canoes if sold for more than $15, 10 per centum;


1157. Art. 32. Yachts and motor boats.-A "yacht" is a vessel larger than a rowboat, used either for private pleasure, official trips, or racing. The term "trade" is synonymous with the term "business." A boat commonly known as an "excursion boat" or of that general type and regularly in service in carriage of the public is used for business purposes and sales of such boats are not subject to the tax. Motor boats which are to be rented out by summer resorts, etc., for the pleasure of the persons renting the same are not designed for trade within the meaning of the act.


¶ 1158.


(21) Toilet soaps and toilet soap powders, 3 per cen




Art. 33. Toilet soaps and toilet-soap powders.-Soaps and soap powders advertised or held out as suitable for toilet purposes or for application to the body, or part of the body, as cleansing agents, are taxable. Toilet soap may be in form either liquid, semiliquid, paste, or solid; thus, liquid hand soaps and shaving creams and powders are taxable. A soap used chiefly for removing grease and stains from the hands, though capable of an incidental use for cleaning pots and pans, is taxable as a toilet soap. A soap capable of use as a shampoo, though sold chiefly in bulk to laundries and cleaners, is taxable when sold in separate packages, though not when sold in bulk. A soap which is made, advertised, held out, or sold primarily for general cleansing purposes, but which may have an incidental and trivial use as a toilet soap, is not taxable.

If any manufacturer, producer, or importer of any of the articles enumerated in this section customarily sells such articles both at wholesale and retail, the tax in the case of any article sold by him at retail shall be computed on the price for which like articles are sold by him at wholesale.

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1159. Art. 34. Manufacturer also retailer.-By "custom arily sells" is meant a bona fide practice of selling the same article at both wholesale and retail, in substantial quantities, and not mere occasional sales at wholesale, with the bulk of the business done at retail. Only a manufacturer who does both a wholesale and retail business and holds himself out as a wholesaler as well as a retailer with respect to the goods sold will be entitled to compute the tax upon goods sold at retail on the price for which like articles are sold by him at wholesale. As to articles sold at wholesale, the tax paid must be based on the actual selling price of each article sold. As to sales at retail, the tax on each such sale made during any calendar month must be based on the average wholesale price of all sales of like articles made at wholesale during the previous calendar month. This average wholesale price is to be obtained by dividing the sum of the actual selling prices of all such articles sold at wholesale during such previous calendar month by the total number of such articles so sold.


The taxes imposed by this section shall, in the case of any article in respect to which a corresponding tax is imposed by section 600 of the Revenue Act of 1917, be in lieu of such tax.

1160. Art. 35. Repeal of former taxes.-The present taxes supersede the excise taxes imposed by the Revenue Act of 1917 upon the sale of automobiles, musical instruments, sporting goods, chewing gum, cameras, toilet soaps and similar articles. The Revenue Act of 1917 remains in force for the assessment and collection of all taxes which have accrued thereunder, and for the imposition and collection of all penalties or forfeitures which have accrued and may accrue in relation to any such taxes. In the case of any tax imposed by the Revenue Act of 1917, if there is a tax imposed by the present statute in lieu thereof, the provision imposing such tax remains in force until the corresponding tax under the present statute takes effect. See section 1400 of the statute.


1161. Art. 36. Colorable sales.-If a manufacturer, through the device of a selling branch or in any other manner, contrives to sell under the market price, with the result of benefiting his business or with the intent to cause such benefit, the tax shall be based on the fair market value of the articles and not on their nominal selling price. See article 8.

¶ 1162. Art. 37. Return and payment of tax.-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. Any return may, if the amount of the tax covered thereby is not in excess of $10, be signed or acknowledged before two witnesses instead of under oath. The returns shall be made on form 728 (revised). 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 all the transactions of the preceding month, the first return to cover all transactions after February 24, 1919, and before April 1, 1919. 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 pay the tax to the collector of the district where the sales were made. The books of every person liable to the tax shall be open at all times for inspection by examining internal revenue officers. As to penalties, see article 40.

TRADE WITH POSSESSIONS OF UNITED STATES. ¶ 1163. Art. 38. Trade with possessions of United States.-A sale which results in the shipment of articles into the United States from the Virgin Islands is taxable to the same extent as a sale of articles within the United States. Articles going into the Virgin Islands from the United States are free from tax in the United States. The same rules apply to trade with Porto Rico and the Philippine Islands. See section 1000 of the Revenue Act of 1917 and section V of the Act of August 4, 1909, as amended by section IV, subdivision C, of the Act of October 3, 1913. The tax attaches, however, to articles shipped to other possessions of the United States, including the Canal Zone.


¶ 1164. Art. 30. Aids to collection of tax.-In collecting the excise taxes the Commissioner has the benefit of all existing internal revenue laws. In aid of the enforcement of the statute the Commissioner may require any person to keep specified records, to render returns and statements as directed, to submit himself and his books to examination, and to comply with such regulations as may be prescribed.


1165. Art. 40. Penalties.-Any person, including an officer

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