Kankakee Valley Post, Volume 19, Number 31, DeMotte, Jasper County, 1 July 1949 — NEW GROSS TAX REPORTS [ARTICLE]

NEW GROSS TAX REPORTS

Mr. and Mrs. Indiana Taxpayers your 1949 gross income tax is going to require some bookkeeping. As a result of the World War II Bonus Tax Act passed by the last Indiana General Assembly, all income received “on or after July I - ’ is subject to the combined gross income and bonus tax rates. That means all taxpayers must divide" theeir total income so as to show how much they earned or-received before the middle of the year and what the total was for the remainder of 1949. Officials of the newly created Department of State Revenue expect th'at to be a chore for most citizens. For that reason they are sending a notice this week to all quarterly payment taxpayers explaining the new system. Other taxpayers will receive the same literature next December when they find their gross income tax mail blanks in their mailboxes. On income received from January 1 this year to Friday, there will he no change in the old rates of 1 per cent, % of 1 per cent and i/i of 1 per cent depending upon the individual category. The new rate of 144 per cent will be applicable to income normally taxed at 1 per cent, 5-8 of 1 per cent on income now figured at % of 1 per cent and y 2 of 1 per cent on the present 44 of 1 per cent classification. There will be no change in the basis of computing the tax and the same exemptions will apply. Only the* separation of receipts for each half of the year should be a headache when the quarterly payment time or the year’s deadline rolls around*. Segregation of the income next year will not be necessary, either, because only the introduction of the new tax law at -the mid-year cerated the confusion. From nowon. until the bonus is pajd and the tax retired, all gross revenue will be figured at the combined income-bonus rates.