Nancy-IL
Well-known member
I came across this and thought it was interesting. There's many tax tokens that are found while detecting. HH to all, Nancy
WHAT IS A SALES TAX TOKEN ?
Immediately following the great depression in 1929, income taxes plummeted and property tax
defaults increased to the point at which governments were faced with severe economic
restraints. In order to generate revenue, sales taxes were debated in both state and national
governments. The state of West Virginia was the first American state to enact a sales tax law
in 1921,followed by Georgia in 1929. By 1940 over thirty states were using sales tax as a
temporary means of increasing state coffers. In spite of promises of a temporary measure,
the sales tax is here to stay. How long before we also pay a federal sales tax, in addition to
state and local sales taxes?
During the great depression a penny was still a coin of value. The states in their rush to
embrace sales taxes , did not immediately provide a means of collection. Merchants were left
on their own ,but the tax had to be collected. Many people resented the fact that even on a
small purchase a sales tax had to be paid. The problem was especially bad for five and dime
stores which were popular during and after the great depression. Several different methods
of collecting the onerous sales taxes were tried. The public demanded a way of making change
for the cent in order to pay the sales tax on a small purchase.
Punch cards, chits, and tokens were the final solution, attempted in the beginning by local
merchants, and soon followed by twelve states that issued tokens. By making change for a cent
a customer need pay only his fair share of the unpopular sales tax on small purchases.
Kewanee, Illinois businessmen have the distinction of producing the first sales tax tokens. The
cardboard or metal tokens were usually of one-fourth cent denominations and used to collect
the 3% sales tax then in effect. Dozens of individual merchants and small towns quickly
manufactured these tokens. Meanwhile federal government authorities charged that issuance
of fractional cent tokens was an illegal coinage of money, forbidden under federal laws. This
argument continued until 1935.In July of that year President Roosevelt ordered the Treasury
Secretary to appear before congress. Henry Morgenthau Jr. proposed the issuance of one and
one half mill coins. The proposal promptly failed and the legality of tokens was never fully
resolved.
Sales tax tokens were made from, aluminum, brass, copper, cardboard, pressed paper,
pressed cotton lint fiber, plastic and zinc. There are many sizes and shapes, and a few attempts
at artistic design. A number of sales tax tokens have center holes of various sizes and shapes.
WHAT IS A SALES TAX TOKEN ?
Immediately following the great depression in 1929, income taxes plummeted and property tax
defaults increased to the point at which governments were faced with severe economic
restraints. In order to generate revenue, sales taxes were debated in both state and national
governments. The state of West Virginia was the first American state to enact a sales tax law
in 1921,followed by Georgia in 1929. By 1940 over thirty states were using sales tax as a
temporary means of increasing state coffers. In spite of promises of a temporary measure,
the sales tax is here to stay. How long before we also pay a federal sales tax, in addition to
state and local sales taxes?
During the great depression a penny was still a coin of value. The states in their rush to
embrace sales taxes , did not immediately provide a means of collection. Merchants were left
on their own ,but the tax had to be collected. Many people resented the fact that even on a
small purchase a sales tax had to be paid. The problem was especially bad for five and dime
stores which were popular during and after the great depression. Several different methods
of collecting the onerous sales taxes were tried. The public demanded a way of making change
for the cent in order to pay the sales tax on a small purchase.
Punch cards, chits, and tokens were the final solution, attempted in the beginning by local
merchants, and soon followed by twelve states that issued tokens. By making change for a cent
a customer need pay only his fair share of the unpopular sales tax on small purchases.
Kewanee, Illinois businessmen have the distinction of producing the first sales tax tokens. The
cardboard or metal tokens were usually of one-fourth cent denominations and used to collect
the 3% sales tax then in effect. Dozens of individual merchants and small towns quickly
manufactured these tokens. Meanwhile federal government authorities charged that issuance
of fractional cent tokens was an illegal coinage of money, forbidden under federal laws. This
argument continued until 1935.In July of that year President Roosevelt ordered the Treasury
Secretary to appear before congress. Henry Morgenthau Jr. proposed the issuance of one and
one half mill coins. The proposal promptly failed and the legality of tokens was never fully
resolved.
Sales tax tokens were made from, aluminum, brass, copper, cardboard, pressed paper,
pressed cotton lint fiber, plastic and zinc. There are many sizes and shapes, and a few attempts
at artistic design. A number of sales tax tokens have center holes of various sizes and shapes.
