The taxation of business took the form of license and excise taxes, and taxes upon gross sales of merchandise. There were no taxes of this character until June, 1837, and from then until 1840, merchants were subject to an annual license charge of $50 for each establishment; public inns and dealers in spirituous liquors, $100; nine pin alleys and like places of amusement, $150; owners of billiard tables for each table, $200; and peddlers, $50 in each county.1 In 1840 there came an increase in rates, a change in the form of taxes, and additions to the list of occupations taxed.2 Merchants became subject to an annual license charge of $100, and wholesale merchants were further required to pay 25 cents, and retail merchants, 50 cents, on every $100 worth of merchandise sold during the year. Where spirituous liquors were sold by retailers of merchandise, an additional license tax of $100 was charged. The tax on billiard tables was raised to $250, that on nine-pin alleys to $200. The tax on public inns remained at $100, while that on peddlers was reduced to $25. The additions to the list were theaters which paid $200; museums, wax works, and the like, $50; public race tracks, $100; boarding houses having five or more persons for pay, $50; cook-shops and restaurants, $50; real estate, ship and merchandise brokers, $100, and money brokers $100 and 3% on each $100 loaned; auctioneers, who paid upon sales, an ad valorem rate which varied from 1% to 2%, according to the commission received and the kind of property sold.3 The act also imposed an excise tax of 5 cents on every gallon of spirituous liquors distilled. The act of February 5, 1840, supplemented the preceding act by levying a license tax of $250 upon retail dealers of spirituous liquors in quantities less than a quart, and a further charge of $5 for clerk's fee.1 In 1842 all business taxes were reduced, and reduction was carried farther in 1845, when the license tax upon retail merchants was lowered to $25, and the taxes on gross sales were repealed.2

1 Act of June 12, 1837; ibid., vol. 1, 1311.

2 Act of January 16, 1840.

3 On goods, wares, and merchandise, except such as were sold under decree of court, 2 per cent; on sales of real estate, 25 cents on each $100 of sale, when rate of commission was 1 1/4 per cent; 50 cents, when rate of commission was 2 1/2 per cent; 75 cents, when rate was 3 3/4 per cent; and $1.00 when rate was 5 per cent. All goods, wares, and merchandise sold at private sale were charged at the same rates.

The license required of one who engaged in a taxed occupation was issued by the county clerk, who was authorized to charge a fee of $1, or, in the case of a liquor license, $5. Until 1843 he received also a commission of 5% upon the amount of licenses collected.3 In 1843, however, the system was changed so that payment was made to the county treasurer who in turn issued a receipt which entitled one to receive the license of the county clerk.4

The estimate of gross sales required by the act of January 16, 1840, was made to the assessor, and collection of the tax was by the sheriff. The penalty for failing to pay the tax or make the estimates of sales was, by the act of 1840, $1,000, except in the case of peddlers, when the penalty was $500, one-half of which went to the informer. For failure "to pay the liquor license tax the penalty was $1,000 and three months imprisonment.5 In 1843 the imprisonment feature disappeared, and the money penalty prescribed was one-fourth of the annual license tax for each day that business was done without a license.1 In 1845 the penalty for evasion of payment became simply double the amount of the tax.2

1 Garamel, op. cit., vol. 2, p. 272.

2 The act of February 5, 1841, provided that no tax should be levied on any peddler whose goods were grown or manufactured within the republic; ibid., p. 577. The taxes imposed by the act of February 5, 1842, were: wholesale merchants, billiard tables, and theaters, $100 per annum; retail merchants, nine-pin alleys, public race tracks, auctioneers and money brokers, $50; public inns, museums, and real estate, ship, and merchandise brokers, $25; cook shops, and restaurants, $15; public boarding houses, $10. Retail merchants handling liquor were subject to an extra license tax of $25 when sale was of a quart or over in quantity, and of $100 when less than a quart. Auctioneers also were subject to a further tax of 5 per cent upon commissions; ibid., pp. 778-782. The act of February 3, 1845, is found in Gammel, op. cit, vol. 2, p. 1141.

3 Act of December 21, 1837; Gammel, op. cit., vol. 1, p. 1455.

4 Act of January 16, 1843; ibid., vol. 2, pp. 868-9.

5 Act of February 5, 1840; ibid., p. 272. There were no penalties prescribed for evasion of the tax levied on distilled liquors by the act of January 16, 1840.