UX INJOHMATION Cent, from p. 10
It also follows that tho Territory has no
interest what soever in’whether the nor*
chant or exporter, etc. absorbs tho tax
or passes it on. No separate account of
tax moneys need be kept as far as tho Ter
ritory is concerned. The OPA's reouiroracnl
■as to ■ the keeping of a separata
account nay be determined by consulting
the-OTA.
The forogoing remarks apply to rotail sales
Tho same principle would amly on wholesale
sales made within the Territory. Tho
wholesaler in prenoring an invoice or month
ly statement to the retailer would show
tho charge made for hho merehandiso and an
additional item of one-half of one percent
for the tax. The retailer would pay’said
tax to the wholosalor when ho remits. Upon
solo to the consumer, the retailer, if ho
chooses to rass on the bntire’tax, would
till the customer for l’$ tax. The accrual
of the tax not only pyramids from ono trans
action to another, but so docs the process
of passing it on.
T'e row come to the question as to what is
a wholesale transaction as distinguished
from a retail transaction. The lar is
well established that retail transactions
arc sales to the ultimate consumer. All
transactions in conshoditios prior to that
final sale to a consumer arc to he classi
fied as a wholesale sales. To illustrate:
If a fisherman sells a boatload of fish
to a fish buyer or a cannery that is a
w.-wlosale transaction and the revenue de
rived therefrom is taxable at the rate of
ono-half of one percent. It whould also
be noted that many business concerns will
deal in both kinds of transactions. A
largo grocery store may transfer 25$ of
goods sold to restaurants, steamship lines
etc. That'portion of their sales is whole
sale sales, and the remainder of their
sales would be retail transactions, The
restaurant proprietor is not the ultimate
consumer. The ultimate consumer is the
customer who cats his meal at the restau
rant .
The tax on sales to the Federal Government
cannot be passed on as items in excess of
the charge made for the merchandise. No
state or territory has'the powor'to tax
the Federal government. However, many
large sales to agencies such as the Alaska
Road Commission, the Federal Jail etc,,
which arc: made at a discount, for quantity,
would be regarded as r;holesalc sale s an‘d '
the revenue derived therefrom would be tax
able at one-half of one percent instead of
at one percent. Accordingly, business
c.or.corns dealing in both types of trans
actions should keep sufficient records to
show what portion of their gross revenue
is taxable at the rate of one-half of one
percent and what portion is taxable at the
ia-te of one peroovi. >
Revenues derived from sales made to the
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D OD s'
ROY KNAPP
SOUTH of PALMER
IMatanuska road
;
i
■FOUNTAIN
U r~*
v_,Af£
WE SERVE
"matanuska maid"
PRODUCTS
REAL CREAM WITH
YOUR COFFEE
FOUNTAIN
SERVICE i
ICECREAM
I
I
Territory or any of its agencies arc tax
able. Hovrevor, said tax may not be passed'
on to the Territory as an additional item,
as abovo stated^ ——
As xrith any lam, the tax portion of the
Voterans' Act 'is couched in general terms.
It is very broad and covers all business
dofto in the Territory.. Tt is impossible
to. specifically -y. -Yion in any Act all
conceivable :ii\ i' or.if which might arise
in it's appliornun. .The applicability in
particular instances must be’settled by
adr.inistruti-ve determination. Most busi
nesses mill cor.o under the head of sellers
exporters or Tenderers of service and will
have no trouble, with the"aid of their
accountani \ end attorneys, in determining
the.applie..tier of the tax as to thorn.
Others ml 1 irri. that special problems
6riso. 'i oc...ems mill be given full
considerat toy-. ib ; Tax Commissioner and/
or tho’Attoi’rcy O.n ;rcl rha,n some arc pre
isonted. J-'/r, liullanej
■" Tax; Commissioner