Hearings

(k) "Commissioners".-The Commissioners of the District or their duly authorized representatives.

(1) "Assessor”.—The Assessor of the District or his duly authorized representatives.

(m) "Collector".-The Collector of Taxes of the District or his duty authorized representatives.

SEC. 2. IMPOSITION OF TAX.-Beginning sixty days after approval of this Act but not prior to July 1, 1947, there is hereby imposed and there shall be paid a tax upon the amount of the receipts from every sale in the District, as follows:

(a) Two per centum upon the amount of the receipts from every sale of tangible personal property sold at retail, including services rendered in connection therewith, except those exempted in section 3 of this title.

(b) Two per centum upon the receipts from every sale of gas, electricity, refrigeration, steam and gas, electric, refrigeration, and steam service of whatsoever nature for domestic or commercial use and a tax of 2 per centum upon the receipts from every sale of telephony and telegraphy and telephone and telegraph service of whatsoever nature.

SEC. 3. EXEMPTIONS.—(a) Receipts from sales of the following and services rendered in connection therewith shall be exempt from the taxes imposed by this title:

(1) Cereals and cereal products; milk and milk products, other than candy and confectionery; meat and meat products; fish and fish products; eggs and egg products; vegetables and vegetable products; fruits, spices, and salt; sugar and sugar products, other than candy and confectionery; coffee and coffee substitutes; beer or other similar malt beverages; tea, cocoa, and cocoa products, other than candy and confectionery; drugs, medicines, and eyeglasses (provided, however, that the purchase of a component part of such eyeglasses shall be subject to the tax imposed by this title): Provided, That the aforesaid exemptions shall not be deemed to exclude the following from the tax imposed by this title: Soft drinks, and sodas and beverages such as are ordinarily dispensed at bars and soda fountains or in connection therewith (other than coffee, tea and cocoa, beer and other similar malt beverages except as provided in paragraph (4) of this section), nor any food or food products sold for human consumption in restaurants, cafes, bars, and other establishments where the charge to the individual patron, including any cover, minimum, entertainment, or other charge is $1.50 or

more.

(2) Motor-vehicle fuels upon the sale of which a tax is imposed by the Act entitled "An Act to provide for a tax on motor-vehicle fuels sold within the District of Columbia, and for other purposes," approved April 23, 1924, as amended or as may be hereafter amended; cigarettes, tickets for admission to places of amusement and sports, gas, electricity, telephone and telegraph service, and any other commodity or service sold or furnished by a public utility corporation, if such sales are taxed by some other provision of law in force, in the District during or for the period of time covered by any return required to be filed for the provisions of this title.

(3) By or to the United States or the District or any instrumentality thereof, and by or to semipublic institutions.

(4) Whisky, wines, liquors, beer, and other alcoholic beverages and drinks compounded thereof or therewith sold for consumption off or on the premises, upon which a beverage tax is levied during or for any period for which a return is required to be filed under the provisions of this title.

(5) Materials used in the initial construction of structures or major structural alterations which materials upon a completion of such construction or alterations, become real property.

(b) The Commissioners are authorized to exempt from the taxes imposed by this title any or all sales, the consideration of which amounts to 50 cents or less.

SEC. 4. Upon each taxable sale or service the tax to be collected shall be stated and charged separately from the sale price or charge for service and shown separately on any record thereof, at the time when the sale is made or evidence of sale issued or employed by the vendor and shall be paid by the purchaser to the vendor as trustee for and on account of the District, and the vendor shall be liable for the collection thereof and for the tax. The vendor and any officer of any corporate vendor shall be personally liable for the tax collected or re

quired to be collected under this title, and the vendor shall have the same right in respect to collecting the tax from the purchaser, or in respect to nonpayment of the tax by the purchaser, as if the tax were a part of the purchase price of the property or service and payable at the time of the sale: Provided, however, That the Collector shall be joined as a party in any action or proceeding brought by the vendor to collect the tax.

SEC. 5. The tax imposed by this title shall be paid upon all sales made and services rendered beginning sixty days after approval of this Act but not prior to July 1, 1947, although made or rendered under a contract dated prior thereto. Where a service is billed on either a monthly or other term basis, the payment of such bill for such month or other period of time shall be a receipt subject to the tax herein imposed. The Commissioners may provide by regulation that the tax upon receipts from sales on the installment plan may be paid on the account of each installment and upon the date when such installment is due. The Commissioners may provide by regulation for the exclusion of amounts representing sales where the contract of sales has been canceled, or the property returned, or the receipt has been ascertained to be worthless or, in case the tax has been paid upon such receipt, for a credit or refund of the amount of the tax upon such receipt upon application therefor as provided in section 13 of this title.

SEC. 6. PRESUMPTIONS. For the purpose of the proper administration of this title and to prevent evasion of the tax hereby imposed, it shall be presumed that all receipts for property and services mentioned in this title are subject to tax until the contrary is established, and the burden of proving that a receipt is not taxable hereunder shall be upon the vendor or the purchaser. Unless the vendor shall have taken from the purchaser a certificate signed by and bearing the name and address of the purchaser and the number of his registration certificate to the effect that the property or service was purchased for resale, the sale shall be deemed to be a taxable sale at retail.

SEC. 7. No person engaged in the business of selling property or services the receipts from which are subject to tax under this title shall advertise or hold out to the public in any manner directly or indirectly that the tax imposed by this title is not considered as an element in the price to the purchaser.

SEC. 8. COLLECTION OF TAX FROM PURCHASER.-The Commissioners shall by regulation prescribe a method or methods and a schedule or schedules of the amounts to be collected by vendors from purchasers in respect to any receipt upon which a tax is imposed by this title so as to eliminate fractions of 1 cent and so that the aggregate collections of taxes by a vendor shall, as far as practicable, equal 2 per centum of the total receipts from the sales and services of such vendor upon which a tax is imposed by this title. Such schedule or schedules may provide that no tax need be collected from the purchaser upon receipts from any sale the consideration of which is 50 cents or less, and may be amended from time to time so as to accomplish the purposes herein set forth. The tax imposed by this title on motor vehicles and vehicles which are propelled or moved by motor vehicles shall be paid as a condition precedent to the issuance of certificates of title therefor and the issuance of identification tags.

SEC. 9. Every vendor shall keep records of receipts and of the tax payable thereon in such form as the Commissioners may by regulation require. Such records shall be offered for inspection and examination at any time upon demand by the Assessor and shall be preserved for a period of three years.

SEC. 10. RETURNS.-(a) Every vendor shall file with the Assessor a return of his receipts and of the taxes payable thereon for the periods ending September 30, December 31, March 31, and June 30 of each year.

(b) Such return shall be filed within twenty days from the expiration of the period covered thereby. The Assessor may permit or require returns to be made by other periods and upon such dates as he may specify: Provided, That the receipts during any year shall be included in returns covering such year and no other. If the Assessor deems it necessary in order to insure the payment of the tax imposed by this title, he may require returns to be made for shorter periods than those prescribed pursuant to the foregoing provisions of this section, and upon such dates as he may specify.

(c) The form of returns shall be prescribed by the Assessor and shall contain such information as he may deem necessary for the proper administration of this title. The Assessor may require amended returns to be filed within twenty days after notice and to contain the information specified in the notice.

SEC. 11. PAYMENT OF TAX.—At the time of filing a return of receipts each vendor shall pay to the Collector the taxes imposed by this title upon the receipts required to be included in such return, as well as all other moneys collected by the vendor acting or purporting to act under the provisions of this title, even though it be judicially determined that the tax collected is invalidly imposed. All the taxes for the period for which a return is required to be filed shall be due from the vendor and payable to the Collector on the date limited for the filing of the return for such period, without regard to whether a return is filed or whether the return which is filed shows correctly the amount of receipts and the taxes due thereon.

SEC. 12. DETERMINATION OF TAX.-If a return required by this title is not filed, or if a return when filed is incorrect or insufficient, the amount of tax due shall be determined by the Assessor from such information as may be obtainable and, if necessary, the tax may be estimated on the basis of external indices, such as number of employees of the person concerned, rentals paid, stock on hand, income-tax returns, or other factors. Notice of such determination shall be given to the person liable for the collection of the tax from the purchaser and payment thereof to the Collector. Such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed, within thirty days after the giving of notice of such determination, shall apply in writing to the Assessor for a hearing, or unless the Assessor of his own motion shall redetermine the same. After such hearing or redetermination the Assessor shall give notice of his final determination to the person against whom the tax is assessed. SEC. 13. REFUNDS.—(a) Except as to any tax fi ally determined as provided in section 14, where any tax has been erroneously or illegally collected the tax shall be refunded if application is filed with the Assessor for such refund within one year from the payment thereof. For like cause and within the same period a refund may be made upon the certificates of the Assessor and the Collector. Whenever a refund is made upon the certificates of the Assessor and the Collector, the Assessor and Collector shall state their reasons therefor in writing. Such application may be made by the person upon whom such tax was imposed and who has actually paid the tax. Such application may also be made by a vendor who has collected and paid such tax to the Collector: Provided, That the application is made within one year of the payment by the purchaser to the vendor, but no actual refund of moneys shall be made to such vendor until he shall first establish to the satisfaction of the Assessor, under such regulations as the Commissioners may prescribe, that the vendor has repaid to the purchaser the amount for which the application for refund is made. In lieu of any refund required to be made, a credit may be allowed therefor on payments due from the applicant.

(b) Application for a refund or credit made as herein provided shall be deemed an application for a revision of any tax, penalty, or interest complained of and the Assessor may receive evidence with respect thereto. After making his determination of whether any refund shall be made, the Assessor shall give notice thereof to the applicant.

SEC. 14. Any person aggrieved by a final determination of tax as provided in section 12 or denial of an application for refund of any tax under section 13 may, within ninety days from the date of the final determination of the tax or from the date of the denial of an application for refund, as the case may be, appeal to the Board of Tax Appeals for the District of Columbia in the same manner and to the same extent as set forth in sections 3, 4, 7, 8, 9, 10, 11, and 12 of title IX of the Act entitled "An Act to amend the District of Columbia Revenue Act of 1937, and for other purposes", approved May 16, 1938, as amended, and as the same may hereafter be amended. The remedy provided in this section shall not be deemed to take away from the taxpayer any remedy which he might have under any other provision of law, but no suit by the taxpayer for the recovery of any part of any tax shall be instituted in any court if the taxpayer has elected to file an appeal with respect to such tax with the Board of Tax Appeals for the District of Columbia.

SEC. 15. The taxes imposed by this title and penalties and interest thereon may be collected by the Collector in the manner provided by law for the collection of taxes due the District on personal property in force at the time of such collection; and liens for the taxes imposed by this title and penalties thereon may be acquired in the same manner that liens for personal property taxes are

acquired in the manner provided by law for the acquisition of such liens in force at the time the lien is filed.

SEC. 16. Whenever there is made a sale, transfer, or assignment in bulk of any part of the whole of a stock of merchandise or of fixtures, or of merchandise and of fixtures pertaining to the conducting of the business of the seller, transferor, or assignor, otherwise than in the ordinary course of trade and in the regular prosecution of said business, the purchaser, transferee, or assignee shall at least five days before taking possession of such merchandise, fixtures, or merchandise and fixtures, or paying therefor, notify the Assessor by registered mail of the proposed sale and of the price, terms, and conditions thereof, whether or not the seller, transferor, or assignor has represented to or informed the purchaser, transferee, or assignee that he owes any tax pursuant to this title or whether he has complied with section 1 of the Act entitled "An Act to prevent the fradulent sale of merchandise in the District of Columbia”, approved April 28, 1904, or whether or not he has knowledge that such taxes are owing, or whether any such taxes are in fact owing.

SEC. 17. Whenever the purchaser, transferee, or assignee shall fail to give the notice to the Assessor as required by the preceding section, or whenever the Assessor shall inform the purchaser, transferee, or assignee that a possible claim for such tax or taxes exists, any sums of money, property or choses in action, or other consideration, which the purchaser, transferee, or assignee is required to transfer over to the seller, transferor, or assignor shall be subject to a first priority right and lien for any such taxes theretofore or thereafter determined to be due from the seller, transferor, or assignor to the District, and the purchaser, transferee, or assignee is forbidden to transfer to the seller, transferor, or assignor any such sums of money, property, or choses in action to the extent of the amount of the District's claim. For failure to comply with the provisions of this subdivision, the purchaser, transferee, or assignee shall be personally liable for the payment to the District of any such taxes theretofore or thereafter determined to be due to the District from the seller, transferor, or assignor, and such liability may be assessed and enforced in the same manner as the liability for tax under this title.

SEC. 18. REGULATIONS.-In addition to the powers granted to the Commissioners in this title, they are hereby authorized and empowered to make, adopt, and amend rules and regulations appropriate to the carrying out of this title and the purposes thereof.

SEC. 19. In addition to the powers granted to the Assessor in this title, he is hereby authorized and empowered

(a) To extend for cause show the time of filing any return for a period not exceeding thirty days; and for cause shown, to remit penalties and interest in whole or in part; and to compromise disputed claims in connection with the taxes hereby imposed.

(b) To request information from the Bureau of Internal Revenue of the Treasury Department of the United States relative to any person for the purpose of assessing taxes imposed by this title; and said Bureau of Internal Revenue is authorized and required to supply such information as may be requested by the Assessor relative to any person for the purpose herein provided.

(c) To prescribe methods for determining the receipts from sales made or services rendered and for the allocation of such receipts into taxable and nontaxable receipts.

(d) To require any vendor selling to persons within the District to keep detailed records of the nature and value of personal property sold for use within the District and the names and addresses of the purchasers, where such sales are not subject to the tax imposed by this title, and to furnish such information upon request to the Assessor.

(e) To assess, determine, revise, and readjust the taxes imposed under this title.

SEC. 20. The Assessor, for the purpose of ascertaining the correctness of any return filed as required by this title, or for the purpose of making a return where none has been made, is authorized to examine any books, papers, records, or memoranda of any person bearing upon the matters required to be included in the return and may summon any person to appear before him and produce books, records, papers, or memoranda bearing upon the matters required to be included

SEC. 11. PAYMENT OF TAX.-At the time of filing a return of receipts each vendor shall pay to the Collector the taxes imposed by this title upon the receipts required to be included in such return, as well as all other moneys collected by the vendor acting or purporting to act under the provisions of this title, even though it be judicially determined that the tax collected is invalidly imposed. All the taxes for the period for which a return is required to be filed shall be due from the vendor and payable to the Collector on the date limited for the filing of the return for such period, without regard to whether a return is filed or whether the return which is filed shows correctly the amount of receipts and the taxes due thereon.

SEC. 12. DETERMINATION OF TAX.-If a return required by this title is not filed, or if a return when filed is incorrect or insufficient, the amount of tax due shall be determined by the Assessor from such information as may be obtainable and, if necessary, the tax may be estimated on the basis of external indices, such as number of employees of the person concerned, rentals paid, stock on hand. income-tax returns, or other factors. Notice of such determination shall be given to the person liable for the collection of the tax from the purchaser and payment thereof to the Collector. Such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed, within thirty days after the giving of notice of such determination, shall apply in writing to the Assessor for a hearing, or unless the Assessor of his own motion shall redetermine the same. After such hearing or redetermination the Assessor shall give notice of his final determination to the person against whom the tax is assessed. SEC. 13. REFUNDS.-(a) Except as to any tax finally determined as provided in section 14, where any tax has been erroneously or illegally collected the tax shall be refunded if application is filed with the Assessor for such refund within one year from the payment thereof. For like cause and within the same period a refund may be made upon the certificates of the Assessor and the Collector. Whenever a refund is made upon the certificates of the Assessor and the Colleetor, the Assessor and Collector shall state their reasons therefor in writing. Such application may be made by the person upon whom such tax was imposed and who has actually paid the tax. Such application may also be made by a vendor who has collected and paid such tax to the Collector: Provided, That the application is made within one year of the payment by the purchaser to the vendor, but no actual refund of moneys shall be made to such vendor until be shall first establish to the satisfaction of the Assessor, under such regulations as the Commissioners may prescribe, that the vendor has repaid to the purchaser the amount for which the application for refund is made. In lieu of any refund required to be made, a credit may be allowed therefor on payments due from the applicant.

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