|
Leslie T. Fox, Frank N. Bilisoly,Jr., Fred A. Dnke, George L.
<br /> Grimes, Arthur P. Henderson, Oarl C.Eoug~aton, Jr., James N. Howard,
<br /> E. Robie Sturtevant, C. E. War~en, H. Earl ~eisenu~u, Pearls J.
<br /> Wilson, W. Guy Ancell, City l~anager, and R.C. Barclay, City At -
<br /> torney.
<br />
<br /> The following call for the meeting was read:
<br />
<br /> :~Please attend a called open meeting of the City Council at 9:30' on
<br />Tuesday, April 19th, 19&9, to consider :
<br />
<br /> 1st - Electrical ordine~ce as oresented by t he ElectricS!
<br /> League of Portsmouth.
<br /> ~nd - Statement from the Retail Coal ~ierchants, relative to
<br /> License Tax 0rdinance. ~
<br />
<br />a~ud ~r. C.C. Boyce spoke in
<br />City ~a~ager was read:
<br />
<br /> The following letter from C;C. Hail, President, Retail Coal l~,ierohants,
<br />was taken up:
<br />
<br /> ~We w ere quite disappointed to learn that the Licer~ e Tax Ordinance
<br />~nich you recently passed did not include the exemption frmu gross receipts of freight in ex-
<br />cess of 25% of the oroducts purchase price, particularly since ~we had understood that this pro.
<br />vision would be included.
<br /> However, we now understand that this omission w as an oversight. There-
<br />fore, w e should like to request that you reconsider this matter ~and m~end the Tax Ordinance at
<br />your next meeting,~ in order to have it conform to ~ne Virginia lawas follows:
<br /> 'If the freight ~paid by a retail merchant on any article
<br /> sold by him shall exceed B5 per centUm o D the purchase
<br /> price of the article shall be el~inated from consider-
<br /> ation in ascertsining the amount of sales of auchr stall
<br /> merchant as part of the gross receipts of the business. '~
<br />
<br /> President called for remarks from v he public and Mr. Deal Blanford
<br /> f aver of the coal dealers' request. The follo~wing letter from the
<br />
<br />in t he .~zty of Portsmouth,
<br />quoted ye_ ~at~-m.
<br />
<br /> co~ection with the attached letter from the Retail Coal Dealers
<br />I should like to cgdlyour attention first to t~ state law v~ch is
<br />
<br /> 'if the freight paid by a retail merchant on any article
<br /> sold by him shall exceed twenty-five per centum of the
<br /> price paid by him for the article itself, the smount o f
<br /> such freight i n excess of twenty-five per centana of the
<br /> said purchase orice of the article, shall be eliminated
<br /> from consideration in ascdrtsining the amount of sales of
<br /> such merchant and the tax to be paid tfaereon. ~
<br />I feel that I should call your attention to the fact that tZae auto-
<br />
<br />mobile d6aiers have asked for the same consideration on themr freight p~zd. I also believe
<br />that the dealers insand, gravel, cement znd bricks will ask for like consideration. I have
<br />always assumed that the retail coal dealer aoolme~ the same mark-up on the cost of a ton of
<br />coal del~_vered to him i n Portsmouth, a~a if ~_is is true, he makes the same volume of profit
<br /> ..... t' n charges as he does on the cost of the co~nuodity. ! believe, too, that
<br />on the tr~nsoo~ta mo
<br />a l~z~ber dea~er who makes window sash to Order, would have the same right to ask that the la-
<br />bor cost on that item be deducted from his gross s ales.
<br /> I bring these matters to your attention because i think that if any
<br />exceptions are made to your business license ~s~x to one g~oup of dealers, the same concession
<br />should be grs~uted to many o
<br /> The following letter fr~m clinton C. Boyce ~for the Port~mouth Coal
<br />Dealer's) was read:
<br /> ~Tour attention is requested to the following p rovision~provided in
<br /> the Conmuonwealth o f virginia i~ercha.uts ' License Tax law:
<br /> ~mf the freight paid by a retail merchant on any articles
<br /> sold by him, shall exceed twenty-five per centum of the
<br /> price paid by him for the article itself, the szaount o f
<br /> such freight in excess of twenty-five per centu~ of the
<br /> said ourchase price of the s_wticle shall be eliminated
<br /> from ~onsiderationi n a scertsining the amo~saut of sales of
<br /> such merchant and the tax to be 'oaid thereon.~
<br /> An example of how this works follows:
<br />
<br />~35,000.00
<br /> 25,000,00
<br />~10.000,00
<br />
<br /> Example - Sales
<br /> Purchases ~I00,000.00
<br /> Freight
<br /> Deduct 25% of purchases
<br /> Excess of freight over
<br /> 25~ of ourchases
<br />The above $10,000.~0 excess is
<br />able deduction from sales
<br />
<br />~iV5,000oO0
<br />
<br />an allow-
<br />
<br />Without the above provision the
<br /> at 25~ per E
<br />With the above provision the tax
<br /> at 25 ~ per ~
<br />
<br /> ~165,000o00
<br />
<br />~ 43V.50
<br />
<br /> 412.50
<br />
<br />
<br />
|