Show STATE STAlE LIQUOR STORES FACE ACE FEDERAL TAX Government May Collect on Revenue Derived From Dispensaries Copyright 1934 Associated Press NEW Y YORK RK Dec 29 Millions 29 Millions of ol dollars doll o of much needed additional revenue revenue rev gladdened the hear hearts of ot state treasurers today as they added up the results of their first year In the liquor business States operating their own liquor sale systems however were faced ac acwith with the possibility of the federal governments governments government's gov eminent's stepping in and taking from them a share of their profits In the form Corm of oC federal taxes In Iii a test cese crise in Pennsylvania a federal fed eral judge ruled yesterday that the state had divested Itself Itsel of its ifs sovereign sov soy character by opening a chain of liquor stores and is 3 therefore liable for federal liquor taxes including a floor tax lax of Repeals Repeal's fi first st year brought the f federal led fed d. d eral ral government approximately even though ho gh it collected no levi levies on on n state liquor control systems The government ov had d estimated d that tha its first year revenue including tariff tariu tar tar- lit iff would b be about Income Pennsylvania scene of the test case had most re reasons sons to be Interested in ir its state stores with an income many limes times greater than that of ol any ony other state using the state ownership own own- method of oC liquor distribution On a a. gross business of oC the state of Washington made a net profit of despite the fact that its iLs stores vere were not opened until l March 31 The Montana liquor s system stem showed net profits of exclusive sive live of Christmas sales and In Oregon Ore Ore- gon lon only other western state to have havea a I similar imil r setup the profits were ap- ap approximately ap ape proximately Virginia opened her liquor stores in n May and by the first o of ot November had ad reached an approximate mate net of 01 In Iowa where operations started even later the profit amounted amount amount- ed d to about for the half haIl yea year Maine Gets Gel The profit in Vermont was approxImately approximately in iii New lI Hampshire and in Maine where the tern tem em w was s inaugurated just ov over r a fortnight fort fort- night ight ago Approximately six million dollars was vas wU Ohio's liquor Christmas present presen to 0 the state coffers Of this only came from profits in the state tate stores while an equal amount was vas derived from a 1 per gallon tax and Lad in permit fees New v York headed th the list of oC st states tes getting their r revenue solely from taxation with an income of bf 23 Continued on oil Pa Pare e Two LIQUOR STORES FACE U. U S S. S TAX Government May Collect on Revenue Derived From Dispensaries Continued from Pare Page One ODe New Yorkers gallons allons which was was' taxed at 1 per galon gal gal- lon on and there was an additional li license license li- li cense cerise revenue Indiana has collected on beer eer and liquor since repeal while in n Louisiana the bill has been 1500 Three Ways in Missouri Arizona gets her liquor revenue by sale of luxury tax stamps and licenses To Together ether they brought in most of which went for unemployment ment relief A way three-way hold on liquor sales in Missouri has brought the state Of this was liquor tax ax a b beer er tax and the he rest from sale permits The sale of beer has been the only source of liquor revenue for other states tales where hard liquor prohibition is yet et Beer tax receipts in n Idaho brought and in Utah Texas has received in n beer taxes and on licenses while Florida's liquor income of has been mostly from beer as st stole state te repeal went into effect only last ast November |