a. b. C. IX. SPECIAL TAXES (Viz.: Twenty Per Cent Ad Valorem) Manufactured tobacco......... (To illustrate: On cigarettes this tax is one cent for each five cents of the value of a packet, or for fraction of five cents.) Cotton fabrics, spun or woven... (Five per cent of invoice from manufacturer, in special stamps.) Tax on value of all prizes paid by lotteries... (This varies from a high percentage of the large prizes to a small one on the lower prizes drawn.) d. Tax on real property, rural or urban. e. (This is a new tax. Hitherto the taxes on real property have been only levied by the States.) Tax of ten per cent upon the gross receipts of all railroads (This is also a new tax, designed to cover the payment to the committee of the foreign bondholders in accordance with the terms of the Lamont-de la Huerta agreement. Articles 17 and 18 provide that this shall be collected in such a manner as not to fall upon the existing freight and passenger tariffs, and authorize the Executive to establish proper regulations for its collection. A law was published January 31st providing for the collection of this tax by means of special stamps.) X $5,000,000 $10,000,000 Special taxes to be covered in stamps or cash, as the Executive may determine: a. Tax on the production of wines, excepting those legitimately made from grapes, sugar cane or fruits; and on the production of alcohols, spirits, liquors, tequilas, mezcals, pulques and tlachique (incompletely fermented maguey sap) of national origin, which are to be levied by allocation according to the enabling laws, provisions and circulars which the Executive may direct with that object, and which are expected to produce the following amounts: Alcohols, liquors, spirits, tequilas, mezcals and wines of national production........ Pulques, tlachique and the like, of national production.... (The pulque tax is about double the former one and the alcohol, etc., tax is an increase of about two millions over its predecessor. It is also now collected in a different form.) 6,500,000 5,000,000 b. Taxes on sales by the producer of beer and wines, the legitimate product of grapes, sugar cane, or fruits, of national origin, according to the provisions of Art. 12 of this law... (Article 12 provides for a tax on preparations called wines, of sugar cane or fruits, of national production, which amounts to the following: I. Preparations, etc. (already specified II. Legitimate wines from the grape...15% of value This beer is exempt when ex- IV. Foreign alcohols and alcoholic bever- ..75% Articles 13 and 14 state that the Executive will regulate the manner of allocating the tax authorized in Section (a) of Frac. X of Art. 1, and dictate the measures necessary to avoid any fraud arising from Frac. III of Art. 12.) c. and d. Taxes, or rather surtaxes, on import duties on foreign made wines, alcohols, and alcoholic beverages; and foreign made beers; according to the rates fixed by Article 12 of this law......... e. Taxes on Oil Lands and Oil Contracts....... (This is a tax of the Carranza period, which has never been collected, as it has been threshed out in the courts and resisted successfully by several companies, who obtained injunctions against it. The law, however, still stands.) f. Tax on mining property.... (This tax is levied on a "pertenencia" of one hec- "Art. 3. All mining property is subject to an (c) Fifty-one to one hundred, $12.00; or $4.00 per 3,800,000 3,000,000 25,000 1,700,000 (d) One hundred and one and upwards, $18.00 per (To illustrate the method of calculating this tax, sup- Now, by Article 24 of the Tax Law for 1923, a part of this tax is devoted to municipal divisions and subdivisions, viz.: "The amount of progressive tax over the normal of $2.00 per tercio ($6.00 per annum) per hectare, established by Fractions (b), (c) and (d) of the law of June 27, 1919, shall be applied to the municipalities, municipal sections, commissaries etc., where are situated the mining properties thus taxed; such amounts to be destined exclusively to water service, opening and maintenance of roads and schools in said localities." By Article 25 of this same Tax Law for 1923, an interpretation of the mining tax law is made which is favorable to the taxpayers. Viz.: "The progression of the quotas established by the law of June 27, 1919, will be made effective; always providing that the pertenencias belong to one sole owner and are situated within the boundaries of one sole municipality." Thus although there may be 50 adjacent pertenencias of one sole owner, if five are in one municipality, five in another and the remaining forty in another, the tax is reduced considerably, for the tax would be calculated at 5 at $6.00, and 35 at $9.00, the remainder being two lots of 5 each at $6.00 per annum.) g. Tax on inheritances and legacies..... 800,000 h. Sealing of weights and measures, when done by fed eral authorities 100,000 Patents and Trademarks...... 55,000 i. j. a. Use and benefits from water in federal jurisdiction.... 450,000 XI. SPECIAL TAXES ON EXTRACTIVE INDUSTRIES Tax on gold, silver and industrial metals. b. Tax on production of national petroleum.......... Tax on melting, fining and coining, etc.......... C. (Section (b) is part of the revenue derived from the operation of the Petroleum Law, of which arbitrary allocation is made, so as to set apart a portion of the oil revenue and classify it as Export of Petroleum and its derivatives, to satisfy the conditions of the Lamontde la Huerta agreement which makes the export tax on 8,000,000 .50,000,000 700,000 petroleum subject to the payment of certain obliga- The metal tax was revised by law in 1919 and the On gold the tax for production-Section (a), or XII. PUBLIC SERVICES a. Products and revenues of postal service. b. Products and revenues of telegraph service. c. Products of service of Vera Cruz dock and Guaymas marine railway. d. Products of work done or service rendered by establishments maintained by the Government. e. f. Compensation for expenses incurred in services of inspection, special services, or others rendered by the Government. (This includes the cost of care of property seques- (As many payments, such as consular charges, etc., g. Profits of the operations of the Monetary Commission. a. XIII. REAL PROPERTY OF THE FEDERATION Products of national and nationalized property. b. Products of rentals or operation of national and nationalized d. Product of permits or concessions for the occupation of the federal zone. (The federal zone is a belt of land of a certain width on the coast or within a certain distance of the frontier or from navigable waters, and is of especial interest now on the Gulf Coast of the petroleum regions.) e. Rentals or exploitation of real property of the Federation, not otherwise specified. g. Net products of the operation of the railroads belonging to the Federation. a. XIV. MOVABLE PROPERTY AND VARIOUS REVENUES Products of operations done by the Government or in which it participated. b. Interest on funds of the Federation. c. Participation in the administration of unclaimed legacies. d. Products proceeding from movable property not specified. Products from publications of the government. Fines. Cessions and donations to the Government. e. f. g. h. i. Various revenues not specified. Indemnities to the Federal Government. j. Product of railway shares or other evidences of credit. Product of the National Lottery for Public Charities. k. 1. (By Art. 23 of this law, ninety per cent is to be used for public charities after deducting the expense of carrying on the lottery, and the remaining ten per cent goes to the General Treasury. The total for this year is estimated at $4,000,000 approximately.) Profits accruing from the Public Debt. m. Fisheries, pearl fisheries and allied interests. Contributions from the municipal Boards of Towns in the Federal District for the maintenance of Municipal Schools at the charge of the Federation. 0. Payments to be made by the Municipal Board of the City of Mexico for the salaries and expenses of the Traffic Service of the City. p. Arrears of credits, taxes, charges, or federal revenues not collected in former years. Article 28. The Executive is authorized to establish new import and export quotas, to increase, diminish, suppress or modify the tariffs referred to in Fractions I and II of Article 1 of this law, with the exception of the quotas, and fractions thereof, mentioned in the law, and also to modify consular fees in those cases where governments of other nations establish for Mexicans abroad other fees, distinct from those collected by Mexican consulates of the nationals of other countries.1 The Executive is also authorized to increase or diminish the mining and petroleum tax, always provided that on the first day of September, 1923, he give account to Congress of the use which he has made of such authority. "The "quotas and fractions thereof" mentioned above are some changes made in the tariff by Congress, which do not properly come into this article, as they belong to the Customs or Imports and Exports. |