PROCEEDINGS STATE BOARD OF AGRICULTURE 3 



against the state fair grounds for opening East University Avenue was 

 discussed. Inasmuch as this improvement does not abut upon the state 

 fair grounds, the board questioned whether the state had the right or 

 had established the policy of paying such assessments. The board was 

 of r.he opinion that if East University Avenue was opened from East 

 Ninth Street to the state fair. grounds that the state fair grounds would 

 be one of the big benefactors in the improvement and should pay a rea- 

 sonable assessment for same. 



Mr. McHenry moved that the executive committee confer with the 

 attorney general and ascertain what attitude the state has taken regard- 

 ing assessments of this nature, where the improvement did not abut or 

 greatly benefit the state property assessed, and that the committee be 

 governed by the recommendation of the attorney general's department. 

 Motion seconded by Mr. Reeves, and carried. 



The secretary presented the following communication from the Col- 

 lector of Internal Revenue, regarding the taxability of admissions to 

 agricultural fairs, etc.: 



"Upon further consideration of the subject of the taxability under sec- 

 tion 800 of the Revenue Act of 1918, of admissions to agricultural fairs, 

 particularly admissions to 'customary fair features,' as defined in article 

 46 of Regulations 43, revised. Part 1, and St. Mini. 2250, it is held: 



"(1) That the term 'customary fair features' shall embrace any feature 

 that is a customary adjunct to or part of an agricultural fair, irrespective 

 of whether or not the feature in itself is primarily directed to the ad- 

 vancement of agriculture. 



"(2) That amounts paid for admission to any such feature of an agri- 

 cultural fair are entitled to exemption under the provisions of section 

 800 (b) of the Act, provided such feature is conducted by the agricultural 

 fair association itself with the entire receipts, after deducting reasonable 

 expenses, inuring to the exclusive benefit of the fair association; and 

 provided further, that such receipts are not distributed to the stock- 

 holders or members of the fair association. 



"Collectors of Internal Revenue will be governed by the foregoing in 

 determining the taxability of admissions to all attractions or features 

 offered in connection with agricultural fairs. St. Mini. 2250 and all other 

 rulings or instructions in conflict with the position of the department, as 

 above outlined, are hereby revoked. 



"Please acknowledge the date of the receipt of this letter by return 

 mail. 



"PAUL MYERS, 



"Acting Commissioner." 



Under this ruling, the secretary was instructed to file an application 

 for abatement of tax assessed on admissions to night show in front of the 

 grand stand, amounting to $4,403.99. 



The secretary also brought to the attention of the board the matter of 

 tax on ice cream sold by the dairy department in the agricultural build- 

 ing during the 1920 Iowa State Fair, which amounted to $594.32. Also 

 the ruling of the Internal Revenue Department on this matter under date 



