36
73d CONGRESS . SESS. I . CH. 25. MAY 12, 1933 . Proviso c
prescribed by regulations of the Secretary of Agriculture
- Provided
Manufac turers' sale s tax computed .
That upon nyarticle upon which a anufacturers' sales tax is Vol.47,p. 259. levied under the authority of the Revenue Act of 1932 and which manufacturers' sales tax is computed on the basis of weight, such manufacturers' sales tax shall be computed on the basis of the weight of said finished article less the weight of the processed cotton contained therein on which a processing tax has been paid . Rate to equal dif fer-
(b) The processing tax shall be at such rate as equals the differ- ence bet ween current farm price and fair ence between the current average farm price for the commodity and exchange value . Fac tors to be con- the fair exchange value of the commodity ; except that if the Secre- sid ere d e tar has reason to believe that the tax at such rate will cause such Po st . ,>. s 71.
y reduction in the quantity of the commodity or products thereof domestically consumed as to result in the accumulation of surplus stocks of the commodity or products thereof or in the depression of the farm price of the commodity, then he shall cause an appropriate investigation to be made and afford due notice and opportunity for To prevent accumu- hearing to interested parties . If thereupon the Secretary finds that lation of surplus and de pression of farm price . such result will occur, then the processing tax shall be at such rate as will prevent such accumulation of surplus stocks and depression wer a otein content of of the farm price of the commodity . In computing the current average farm price in the case of wheat, premiums paid producers for protein content shall not be taken into account . Fair exchange value
(c) For the purposes of part 2 of this title, the fair exchange defined . value of a commodity shall be the price therefor that will give the commodity the same purchasing power, with respect to articles farmers buy, as such commodity had during the base period speci- How ascertained• fied in sectio n 2 ; and the curr ent average f arm price and the fair exchange value shall be ascertained by the Secretary of Agriculture from available statistics of the Department of Agriculture . Processing" de-
(d) As used in part 2 of this title- " fmed .
(1) In case of wheat, rice, and corn, the term " processing 11 Post, pp, 528, 670 . means the milling or other processing (except cleaning and drying) of wheat, rice, or corn for market, including custom milling for toll as well as commercial milling, but shall not include the grinding or cracking thereof not in the form of flour for feed purposes only . (2) In case of cotton, the term "processing" means the spin- ning, manufact uring, or oth er processing (except ginni ng) of cot- ton ; and the term " cotton " shall not include cotton linters . (3) In case of tobacco, the term "processing" means the manu- facturing or other processing (except drying or converting into insecti cides a nd fert ilizer s) of t obacco . Post, p . 1242.
(4) In case of hogs, the term " processing " means the slaughter
of hogs for market .
Post,
pp
528, 675,
(5) In the case of any other commodity, the term "processing" 1 242 . means any manufacturing or other processing involving a change in the form of the commodity or its preparation for market, as defined by regulations of the Secretary of Agriculture ; and in prescribing such regulations the Secretary shall give due weight to the customs of the industry . Pyramiding tax, prof-
(e) When any processing tax, or increase or decrease therein, iteering, etc . Measu res to preve nt . takes effect in respect of a commodity the Secretary of Agriculture, in order to prevent pyramiding of the processing tax and profiteer- ing in the sale of the products derived from the commodity, shall In form ation to be make public such information as he deems necessary regarding published . (1) the relationship between the processing tax and the price paid to producers of the commodity, (2) the effect of the processing tax upon prices to consumers of products of the commodity, (3) the relationship, in previous periods, between prices paid to the pro- ducers of the commodity and prices to consumers of the products
