Music Trade Review
Issue: 1929 Vol. 88 N. 12 - Page 4
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The Music Trade Review
Northern California Association Meets
(Continued from page 3)
taxes as a whole than lie used to pay, after a
to the State, city, county or any political sub
good year when he makes a fair profit. How- division of the State, (See notes for details).
ever he will pay less taxes after a poor year
2. The personal property tax on solvent
with a small profit."
credits (that is, accounts receivable, lease con-
Tax Legislation
tracts, etc.) is definitely set at one mill on tin-
The following review of the new tax legisla- dollar of actual value, i.e., .001. This .001 rate
tion has been released to all California music
(or 10 cents per $101)) is considerably less than
dealers by the association:
the so-called "7 per cent law" of 1925 which was
To the music trade:
highly satisfactory to merchants, but which, to-
The outstanding features of the new tax leg- gether with the 1927 law was declared to In-
islation just passed by the legislature, as it
unconstitutional.
affects us will be as follows:
3. The personal property tax rate on foreign
1. The franchise tax on business corporations, securities is definitely set at two mills (20 cents
figured at 4 per cent on their net income, is
per $100). This affects only those merchants
new. This definite tax is in lieu of the former
holding stocks, bonds, etc., issued outside the
corporation franchise tax which has been very-
State of California.
indefinite and uncertain in its application. The
A comparison is made on the next sheet of
new tax may be offset up to 75 per cent by average taxes payable under the 1927 law ami
personal property taxes, and a proportion of
under the new law. (Real estate taxes arc
real property taxes paid by such corporations
omitted) from the computation as they are mi-
MARCH 23, 1929
changed. These figures are fur the average
retail music merchant doing a business of ap-
proximately $100,000 per year. The figures may,
therefore, be increased or decreased, depending
upon your sales volume. The proportions will
be approximately the same.
\''27 Avcraye
SoO.OO
Vmie
$500.00
(If assessed
a; 50%
tiook value)
*304.00
(It assessed
at 10% face
value at
S4.00 rate)
$854.00
T h e Logical Leader for the Retail Piano Merchant Who Sells Quality 1
- Vone
$854.00
Cfmtless Jfrebericfe £s>tein
PRESTIQE
Prestige established through the building and marketing
of a line of grand pianos of a quality approaching as
closely as physically possible the point of perfection, has
placed Charles Frederick Stein in the enviable position of
being unable to grant further representation until such
a time as he is in a position to increase, his production.
His ability to increase his production is dependent en-
tirely upon his success in hiring workmen of sufficient
skill to satisfy his ideas of the manner in which a truly
fine grand should be built. He insists on workmen of
the old school.
He will be glad however to take under consideration
prospective representations, which could be properly
taken care of at a later date.
Cfjarle* Jfrebertcfe
Maker of Fine Grand Pianos Exclusively
3047
CARROLL AVENUE
CHICAGO, I I I .
Comparison
Former
Annual
Corporation
Franchise Tax
New S t a t e T a x to replace
former F r a n c h i s e T a x 4 % on
net income ( 4 % o f $8,000 -
$320)
* Personal P r o p e r t y
Tax, at
$4.00 average rate on mer
chandise, fixtures and equip
ment. (Omitting solvent
credits)
(50% of $25,000 x $4.00 per
$100.00)
* Personal Property Tax on
Solvent Credits (open accounts
receivable $10,000: lease con-
tracts
$90,000:
Commercial
Bank deposits, $1,000—Total
$101,000. Less debts due resi-
dents of State of California,
$25,000 Net Solvent Credits,
$76,000)
"Total of these Personal Prop-
erty taxes paid deductible up
to 75% of 4% State Tax
above (75% of $320.00—
$240.00
Deduct
NET TAXES ACTUALLY
PAYABLE
New Law
None
$320.00
S500.00
(If assessed
at 50%
ln>ok value)
$"6.00
(If assessed
at 100% at
1 mill rate)
SS96.00
$240.00
$656.00
Notes
*
The offset against the 4% State Tax applies
to all personal property taxes paid on both
tangibles and intangibles (as shown by city and
county tax receipts). Not to exceed 10% of
real property taxes to city and county may also
be deducted. The total deductions, however,
must not exceed 75% of the 4% State Tax, and
in any event, a minimum State Tax of $25 must
be paid.
The 4% State Tax is measured by and applies
only to net income from business done within
the State of California.
Real estate taxes are not affected by the new
law, except as explained above a proportion of
the city and county tax may be deducted from
the 4% State Tax.
Personal property taxes (except on intan-
gibles, foreign securities, solvent credits, etc.)
are unchanged, except for the deduction per-
mitted as explained above from the 4% State
Tax.
Assessment of solvent credits at the new rate
of one mill or 10 cents per'$100 is to be at
"actual value." The San Francisco assessor
has announced that he intends to figure "actual
value" to be the full 100% value, inasmuch as
the rate has been set so low. It is probable
that assessors of other cities and counties will
take the same position.
The new tax program clarifies the entire tax
situation in a most satisfactory manner. It
settles once and for all the uncertain and long-
vexed question as to the proper manner in
which to tax instalment accounts. It is par-
ticularly fair to the instalment merchant as the
bulk of his tax liability has always been his
solvent credits, which under the new law are
taxed in a most reasonable manner.
•MUSIC TRADES ASS'N O F NORTHERN
CALIFORNIA.
Klise Display in New York
The Klise Manufacturing Co., Grand Rapids,
Mich., maker of high-grade carved wood
mouldings, carvings and frames and other
carved wood ornaments for pianos and radio
cabinets, has opened a complete display and
sales office in the New York Furniture Mart,
Lexington avenue and Thirty-second street,
New York.
George P. Eddy, who for many years has
been located at the headquarters of the com-
pany in Grand Rapids, will be manager of the
Eastern department in hi* new headquarters at
ihe New York office.
The Music Trade Review
Northern California Association Meets
(Continued from page 3)
taxes as a whole than lie used to pay, after a
to the State, city, county or any political sub
good year when he makes a fair profit. How- division of the State, (See notes for details).
ever he will pay less taxes after a poor year
2. The personal property tax on solvent
with a small profit."
credits (that is, accounts receivable, lease con-
Tax Legislation
tracts, etc.) is definitely set at one mill on tin-
The following review of the new tax legisla- dollar of actual value, i.e., .001. This .001 rate
tion has been released to all California music
(or 10 cents per $101)) is considerably less than
dealers by the association:
the so-called "7 per cent law" of 1925 which was
To the music trade:
highly satisfactory to merchants, but which, to-
The outstanding features of the new tax leg- gether with the 1927 law was declared to In-
islation just passed by the legislature, as it
unconstitutional.
affects us will be as follows:
3. The personal property tax rate on foreign
1. The franchise tax on business corporations, securities is definitely set at two mills (20 cents
figured at 4 per cent on their net income, is
per $100). This affects only those merchants
new. This definite tax is in lieu of the former
holding stocks, bonds, etc., issued outside the
corporation franchise tax which has been very-
State of California.
indefinite and uncertain in its application. The
A comparison is made on the next sheet of
new tax may be offset up to 75 per cent by average taxes payable under the 1927 law ami
personal property taxes, and a proportion of
under the new law. (Real estate taxes arc
real property taxes paid by such corporations
omitted) from the computation as they are mi-
MARCH 23, 1929
changed. These figures are fur the average
retail music merchant doing a business of ap-
proximately $100,000 per year. The figures may,
therefore, be increased or decreased, depending
upon your sales volume. The proportions will
be approximately the same.
\''27 Avcraye
SoO.OO
Vmie
$500.00
(If assessed
a; 50%
tiook value)
*304.00
(It assessed
at 10% face
value at
S4.00 rate)
$854.00
T h e Logical Leader for the Retail Piano Merchant Who Sells Quality 1
- Vone
$854.00
Cfmtless Jfrebericfe £s>tein
PRESTIQE
Prestige established through the building and marketing
of a line of grand pianos of a quality approaching as
closely as physically possible the point of perfection, has
placed Charles Frederick Stein in the enviable position of
being unable to grant further representation until such
a time as he is in a position to increase, his production.
His ability to increase his production is dependent en-
tirely upon his success in hiring workmen of sufficient
skill to satisfy his ideas of the manner in which a truly
fine grand should be built. He insists on workmen of
the old school.
He will be glad however to take under consideration
prospective representations, which could be properly
taken care of at a later date.
Cfjarle* Jfrebertcfe
Maker of Fine Grand Pianos Exclusively
3047
CARROLL AVENUE
CHICAGO, I I I .
Comparison
Former
Annual
Corporation
Franchise Tax
New S t a t e T a x to replace
former F r a n c h i s e T a x 4 % on
net income ( 4 % o f $8,000 -
$320)
* Personal P r o p e r t y
Tax, at
$4.00 average rate on mer
chandise, fixtures and equip
ment. (Omitting solvent
credits)
(50% of $25,000 x $4.00 per
$100.00)
* Personal Property Tax on
Solvent Credits (open accounts
receivable $10,000: lease con-
tracts
$90,000:
Commercial
Bank deposits, $1,000—Total
$101,000. Less debts due resi-
dents of State of California,
$25,000 Net Solvent Credits,
$76,000)
"Total of these Personal Prop-
erty taxes paid deductible up
to 75% of 4% State Tax
above (75% of $320.00—
$240.00
Deduct
NET TAXES ACTUALLY
PAYABLE
New Law
None
$320.00
S500.00
(If assessed
at 50%
ln>ok value)
$"6.00
(If assessed
at 100% at
1 mill rate)
SS96.00
$240.00
$656.00
Notes
*
The offset against the 4% State Tax applies
to all personal property taxes paid on both
tangibles and intangibles (as shown by city and
county tax receipts). Not to exceed 10% of
real property taxes to city and county may also
be deducted. The total deductions, however,
must not exceed 75% of the 4% State Tax, and
in any event, a minimum State Tax of $25 must
be paid.
The 4% State Tax is measured by and applies
only to net income from business done within
the State of California.
Real estate taxes are not affected by the new
law, except as explained above a proportion of
the city and county tax may be deducted from
the 4% State Tax.
Personal property taxes (except on intan-
gibles, foreign securities, solvent credits, etc.)
are unchanged, except for the deduction per-
mitted as explained above from the 4% State
Tax.
Assessment of solvent credits at the new rate
of one mill or 10 cents per'$100 is to be at
"actual value." The San Francisco assessor
has announced that he intends to figure "actual
value" to be the full 100% value, inasmuch as
the rate has been set so low. It is probable
that assessors of other cities and counties will
take the same position.
The new tax program clarifies the entire tax
situation in a most satisfactory manner. It
settles once and for all the uncertain and long-
vexed question as to the proper manner in
which to tax instalment accounts. It is par-
ticularly fair to the instalment merchant as the
bulk of his tax liability has always been his
solvent credits, which under the new law are
taxed in a most reasonable manner.
•MUSIC TRADES ASS'N O F NORTHERN
CALIFORNIA.
Klise Display in New York
The Klise Manufacturing Co., Grand Rapids,
Mich., maker of high-grade carved wood
mouldings, carvings and frames and other
carved wood ornaments for pianos and radio
cabinets, has opened a complete display and
sales office in the New York Furniture Mart,
Lexington avenue and Thirty-second street,
New York.
George P. Eddy, who for many years has
been located at the headquarters of the com-
pany in Grand Rapids, will be manager of the
Eastern department in hi* new headquarters at
ihe New York office.
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