Concerning the 4% Cartage Charge Tax

There has been much speculation recently by lumbermen on the reported new law enacted by the Legislature, providing for a 4/o Cartage Charge Tax.

The following report, from Mrs. J. E. Fraser, Secretary of the California Retail Lumbermen's Association, covers the matter fully, and contains some advice to retail lumbermen, on their procedure in the matter, until the law has been sustained or reoealed:

"The last Legislature enacted a law known as Assembly Bill No. 602. This larv provides that all motor vehicles used for the transportation of persons or property over any public highway for hire, must apply for a license so to do and must pay 4Vo of. the gross receipts of such business, to the State. It also provides that those using their own motor vehicles for the transportation of their own property, must apply for exemption plates to be attached to such vehicle, or be subject to the penalties provided.

"If you use any portion of any county or state highway, outside of incorporated cities or towns, for the delivery of merchandise in your own auto or truck, you must apply to the State Board of Equalization at Sacramento for exernption, together rvith the cost of exemption plates and postage, the total cost of which is 2lc.

"We are informed that this law was not intended to apply to anyone transporting their own materials, but has been interpreted to apply to anyone making a delivery charge or adding a charge to their merchandise for the delivery of same outside of the incorporated city limits.

"So many of our members have requested information as to whether they should apply for exemption or should pay the 4/o tax, that we have gone into the question and obtained all the information possible at the Dresent time. and believe it wise to pass it on to you.

"A TEST CASE HAS BEEN MADE bv the Dravman's Association of California. who naturally are'oery interested. This case has not yet been settled, though a decision is expected at any time from the Supreme Court at Sacramento. As soon as a decision has been handed down you will be advised. In talking with the attorney for the Drayman's Association he advises that anyone feeling that they should pay the 4/o tax should. simply fill in the blank showing amount due BUT IN NO CASE SHOULD SEND ANY MONEY, for if you do it rvill take an act of the Legislature for this money to be refunded to you should the law be declared unconstitutional-that is what is expected.

'1The attorney for the California Automobile Association, when questioned on the matter, said that inasmuch as the law was not intended to include such businesses as the Lumber Business he would think it wise for each and every Lumber Yard to apply for Exemption Plates-then if the Board of Equalization should decide-after the test case was settled-that any particular case should pay the 4/o tax they would so advise the Lumber Dealer and he could then make his returns-but the lumber dealer would in no way be penalized. But don't forget it is necessary to fill in either one of the slips sent you by the State Board of

(Continued on Page 18) h@. J (omnton-

"N0.4 fonmon California Pine is not graded for use as a whole, but may be and is used for the same purposes as No. 3 Common, with a small amount of waste. The defects found are the same as in No.3 Common,but extend to a greatet degtee. One of the most important uses for this grade is in boxing and crating. Your indusuial ostomers will buy it by the carload.

"The most cofirmon serious defects are knot holes,either red rot or its equivalent in heavy massed pitch ot serious check. Pieces with excessive wane, or excessive heart shake, badty split or badly checked pieces are also placed in this gradv.

Sizes "No.4 Common boards are available in specified widths or in random wi-dths. The customary thicknesses are LL I L6,Linch, L,/+, Llz and 2 inches. Lengths down to4 feet may be included. The percentage of t6-foot lengths will be found good."

"A lower grade, No. 5 Comrnon, having many commercial uses for dunnage and similar pruposes, is recognized by the rules, and regularly shipped by all mills."

Haoe you our book of grading rales? If not, arite "(al" ?ine for a npy. It's free-t.