AMUSEMENTS TAX

Hokitika Guardian, 23 October 1917, Page 4

AMUSEMENTS TAX

TO BE APPLIED, NOVEMBER Ist.

One of the methods of raising additional taxation imposed by Parliament this session is the enforcement of a tax on admission to amusements. The broad principle w'as enacted by Parliament, and a scale fixed, but the administration is left largely to regulation. The tax is in the form of a stamp duty, and so comes under the Stamp Department for collection. The working of the tax promises, being entirely new, to be somewhat irksome at the outset, but as time goe!> on, matters should settle down to smooth running. One instruction by the Commissioner of Stamps is that all decisions as to interpretations are to lie given by Head Office. This, no doitbt, is to ensure uniformity, and for some time Head Office is likely to be fully occupied answering the comm • drums which promise to present themselves.

Admission to all entertainments (w'hich include exhibitions, performances, amusements, games and sport) is to bear the tax, at the following rates according to the prices paid for admission : Exceeding 6d but not exceeding 2S 6d, tax id. 2s 6d but not exceeding ss, tax 2d. Exceeding 5s but not exceeding 7s 6d, tax 3d. Exceeding 7s 6d but not exceeding 12s 6d, tax 6d.

Exceeding 12s 6d tax is for first 12s 6d, and is additional tor each 10s or fraction of los over the first I2s6d.

The tax is practically payable in advance. That is the tickets to be used for admission are supplied by the Stamps Department at 2s 3d per 1000 (being in rolls and numbered, actual cost) plus the tax, according to the price to be charged, one penny or two pence, or more per ticket, as per admission rate. At the close of the entertainment the used butts and any unused tickets are to be returned, and a refund will be made of the tax paid on the unused tickets. This applies to all local or itinerant entertain-, ments, but does not, necessarily, include, permanent show 7 places. The latter may use their own tickets or disc recording machines, and must be conducted by reputable residential proprietors. Where this is done a bond must be given covering the estimated tax for a month, the minimum of the bond to be £lO. Certain itinerant proprietors may adopt the post-payment of the tax, but only on reference to the Head Office, where all rulings as to interpretation are to be given. It is interesting to note that complimentary and free tickets are not liable to taxation ; but members’ tickets are w'liere they crfrrv the privilege of admission to any sports or game. Or, if the members’ tickets carry a privilege for extra tickets of admission, the tax is assessed at a flat rate on the cost or value of admission ; while, on members’ tickets the tax may be calculated on the unexpired portion of the term to run. This would apply to all club tickets, as for instance, race meetings, or to subscription concerts, or other forms of similar recreation helped by a membership or subscription payment. ■ The amusement tax is payable in the first instance on all entertainments organised tor charitable or philanthropic purposes (including patriotic purposes) but a refund of the tax will be made where the expenses of the entertainment do not exceed twenty per cent of the receipts. Various education benefits, scientific display, entertainments solely for children etc, are not taxable, if not conducted for profit.

The term “ entertainment ” wfill embrace all classes of amusement where admission is charged within the prescribed rates, including horse racing and field sports generally, picture shows, theatres, concerts, assemblies and dances of all kinds, card parties and tournaments, and so on, so that the tax will have a wide application. The taxation will come into force on Thursday w r eek throughout the Dominion, w'here officers of the Stamp Department have the right of entry to all entertainments to see that same are conducted as regards the payment of the amusement tax within the scope of the provisions of the Finance Act laid dowm ly Parliament this session.