A 1935 Missouri 1 mill token, known in slang as a “ milk top ” owing to its similarity to milk bottle caps of the era. Sales tax tokens are fractional penny devices that were used to pay sales tax on very minor purchases in many american states during the years of the Great Depression. They were created as a mean for consumers to avoid being “ overcharged ” by having to pay a wide penny tax on purchases of 5 or 10 cents. Issued by individual firms, by municipalities, and by twelve department of state governments, sales tax tokens were broadly issued in multiples of 1 mill ( 1⁄10 penny ). [ 1 ]
history [edit ]
background [edit ]
prior to the coming of World War I in the summer of 1914, only two countries, Mexico and the Philippines, made use of a general sales tax for national finance. [ 2 ] Excise tax — a transaction tax on the sale of specific items — was broadly used, however, and the theme of a general sales tax was neither unknown nor obscure to political decision-makers in the United States.
Reading: Sales tax token – Wikipedia
indeed, in 1921 there was a concert feat to implement a 1 % national sales tax in the USA by attaching it to the 1921 national gross charge and 1922 legislation providing for a soldiers ‘ bonus. [ 3 ] Although the proposals for a national sales tax were defeated by an alliance of farmer and labor interests, the department of state of West Virginia implemented a 1 % sales tax of its own in that same year, using the gross so generated as a refilling for a bodied income tax. [ 3 ] Improving economic conditions throughout that ten of the 1920s would leave West Virginia ‘s use of a sales tax alone among the 48 american states. [ 3 ] In October 1929 the global economic crisis struck the United States. As unemployment skyrocketed, income tax gross plummeted and defaults on place taxes spiked. meanwhile, calls for express spending on respite measures for the destitute and the unemployed expanded beyond the states ‘ capabilities. [ 4 ] Georgia ‘s early borrowing of a sales tax in 1929 was followed by a wave of sales tax adoptions, spurred on by the deep fiscal crisis. [ 4 ] In 1933, 11 more states, including New York, Illinois, California, and Michigan, adopted sales taxes. [ 4 ]
plunge of sales tax tokens [edit ]
cent) and good for the “tax on purchase of 10 cents or less” under the state’s 2% retail sales tax law. An aluminum sales tax keepsake from the country of Washington, valued at 2 mills ( cent ) and good for the “ tax on purchase of 10 cents or less ” under the state ‘s 2 % retail sales tax police. The twelve states that write out these sales tax tokens were Alabama, Arizona, Colorado, Illinois, Kansas, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, Utah, and Washington. [ 1 ] In addition to the fractional penny tokens used elsewhere, a closely relate system of state-issued newspaper sales tax stamps and punch cards was used in the state of Ohio. [ 5 ] Sales tax tokens were broadly regarded as a nuisance by consumers and were replaced in reasonably short ordain by the bracket arrangement of sales tax collection, which averaged out the tax on small sales. [ 6 ] By the end of the 1930s token use was eliminated in most of the write out states, with sales tax tokens lingering in Missouri until late in the 1940s.
Collectibility [edit ]
A number of states issued colored plastic tax tokens made in quantities running into hundreds of millions. The denominations on the nominal are numbers of “ mills ” ( tenths of one cent ) . square-shaped Illinois sales tax nominal tax tokens were issued in a variety of materials, including cardboard, administration, bronze, aluminum, pressed cotton fiber, and formative. The issue of types issued is counted in the hundreds, with mintages of some of these types ranging upwards into the tens of millions. consequently, tax tokens are regarded by numismatists as omnipresent and often are of relatively little respect. On the other hand, certain types and varieties are highly rare, with adenine few as one specimen known. In 1971 collectors of sales tax tokens founded an organization called the american Tax Token Society, which has published a quarterly newsletter continuously since its foundation garment .
Catalogs [edit ]
In accession to a number of early check-lists of available tokens, there have been two comprehensive catalogs published for collectors of sales tax tokens. [ 7 ] The first of these, Chits, Chiselers, and Funny Money, by Michael G. Pfefferkorn and Jerry F. Schimmel, was published in 1977 with a press run of just 500 copies. [ 7 ] A small number of bootleg copies were late photocopied and spiral-ring restrict. [ 7 ] The Pfefferkorn and Schimmel catalog was superseded in 1993 with the publication of United States Tax Tokens and Stamps: A History and Catalog, by Merlin K. Malehorn and Tim Davenport. [ 7 ] The books is colloquially known among collectors as “ the M & D ” based upon the surnames of the authors and the alleged “ M & D ” numbering system of that koran remains in common use by tax token specialist collectors. [ 7 ] Additional types and varieties discovered after publication of this latter book, dispatch with “ pseudo-M & D ” numbers, have been described and illustrated in diverse issues of ATTS Newsletter. historic coverage in this latter record was supplemented in 2013 with the issue of Monte Dean ‘s Sales Tax Tokens and Scrip: Histories, a massive one million son tome reproducing closely 3,600 newspaper articles and monograph excerpts. [ 8 ]
foster reading [edit ]
- American Tax Token Society, ATTS Newsletter. (1971-date).
- Monte C. Dean, “A Brief History of Sales Tax Token and Scrip Collecting,” Spring Valley, MN: Monte Dean, 2014.
- Monte C. Dean, Ohio Sales Tax Revenues; Stamps, Punch Cards, Tokens and Related Memorabilia. Spring Valley, MN: Monte Dean, 2012.
- Monte C. Dean, Sales Tax Tokens and Scrip: Histories. Spring Valley, MN: Monte Dean, 2013.
- Emil DiBella, Check-List of Sales Tax Tokens. New York: Emil DiBella, 1944.
- Chester M. Edelmann, “Bracket Systems and Sales Under One Dollar,” Proceedings of the Annual Conference on Taxation under the Auspices of the National Tax Association, vol. 43 (1950), pp. 307–314. In JSTOR
- Merlin Malehorn and Tim Davenport, United States Sales Tax Tokens and Stamps: A History and Catalog. Bryantown, MD: Jade House Publications, 1993. OCLC 29631646
- Michael Pfefferkorn and Jerry F. Schimmel, Chits, Chiselers, and Funny Money: A History and Catalogue of United States Sales Tax Tokens, Receipts, and Punchcards. Amherst, NY: Scorpion Publishers, 1977.
- Jerry F. Schimmel, U.S. State Issued Sales Tax Tokens. Azusa, CA: American Tax Token Society, 1973. LCCN 75-306100 OCLC 9741054
- Jerry F. Schimmel, Sales Tax Tokens: Prices. San Francisco, CA: Jerry F. Schimmel, n.d.
- David Stolaroff, Sales Tax Tokens: A Study in Fractional Revenue. Master’s thesis. American University, 1953.