52 STAT.1 75TH CONG., 3D SESS.-CH. 223-MAY 16, 1938 gross receipts in excess of $2,000 derived from such business for the calendar year immediately preceding, as follows: "1. That with respect to dealers in goods, wares, and merchandise, where the spread or difference between the cost of goods sold and the sale price does not exceed 3 per centum of the cost of the goods sold, one-tenth of 1 per centum of such dealers' gross receipts; where such spread or difference exceeds 3 but does not exceed 6 per centum, two- tenths of 1 per centum of such dealers' gross receipts; and where such spread or difference exceeds 6 per centum but does not exceed 9 per centum, three-tenths of 1 per centum of such dealers' gross receipts; and where such spread or difference exceeds 9 per centum, four-tenths of 1 per centum of such dealers' gross receipts. The cost of such goods, wares, and merchandise sold shall be determined after considering the inventories both at the beginning and at the end of the period covered by the return and purchases made during such period, and such inventories shall be valued at cost or market, whichever is lower, and shall be in agreement with the inventories as reflected by the books of such dealers. The cost of goods, wares, and merchandise shall be the actual purchase price, including the prevailing freight rate to the dealer's place of business in the Dis- trict. The burden of proving under which classification the tax- payer shall be taxed shall be upon the taxpayer, and, unless the taxpayer shall by proof satisfactory to the assessor show to the contrary, the spread or difference between the cost of goods, wares, and merchandise sold by the taxpayer and the selling price of such goods, wares, and merchandise shall be presumed to be in excess of 9 per centum of the cost of the goods, wares, and merchandise sold, and the taxpayer shall be taxed accordingly. "2. All persons, other than those mentioned in subparagraph (1) of this paragraph shall pay a tax equal to four-tenths of 1 per centum of the gross receipts derived by such persons from such business. "(b) If a taxpayer shall not have been engaged in business dur- ing the entire calendar year upon the gross receipts of which the tax imposed by this title is measured, he shall pay the tax imposed by this title measured by his gross receipts during the period of one year from the date when he became so engaged; and if such tax- payer shall not have been so engaged for an entire year prior to the beginning of the fiscal year for which the tax is imposed then the tax imposed shall be measured by his gross receipts during the period in which he was so engaged multiplied by a fraction, the numerator of which shall be 365 and the denominator of which shall be the number of days in which he was so engaged. "(c) If a person liable for the tax during any year or portion of a year for which the tax is computed acquires the assets or franchises of or merges or consolidates his business with the business of any other person or persons, such person liable for the tax shall report, as his gross receipts by which the tax is to be measured, the gross receipts for such year of such other person or persons together with his own gross receipts during such year. "SEC. 6. National banks and all other incorporated banks and trust companies, street railroad, gas, electric lighting, and telephone com- panies, companies incorporated or otherwise, who guarantee the fidel- ity of any individual or individuals, such as bonding companies, companies who furnish abstracts of title, savings banks, and building and loan associations which pay taxes under existing laws of the District upon gross receipts or gross earnings, and insurance com- panies which pay a tax upon premiums shall be exempt from the provisions of this title. 367 Where spread or difference between cost and sale price does not exceed 3 per centum. Exceeding 3 but not exceeding 6 per cen- tum. Not exceeding 9 per centum. In excess of 9 per centum. Determination of cost. Burden of proof as to classification. Tax on all others. Computation for fraction of year. Consolidation of business. National banks, public utilities, etc.; exemption. Insurance com- panies
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