An extensive system of occupation taxation was begun by the act of January 13 1862.1 Some features of this act were the reimposition of a license charge upon doctors, lawyers, and dentists, - a practice which had been in abeyance since 1848; a tax of $50 upon insurance companies, - which marks the beginning in this state of special taxes upon corporations; and the absence of any occupation taxes upon mercantile establishments other than the regular ad valorem rate upon goods purchased or received for sale. By the act of March 6, 1863,2 lawyers and doctors were exempted from payment of a license charge, and in order to discourage the conversion of corn into liquor, a tax of $1,000 was laid on each still. The still tax was repealed in December, 1863, but was reimposed in November, 1864, as were also the license taxes upon doctors and lawyers.3

A system of taxes on the sales of distilled spirits, fermented liquors and wines was adopted December 15, 1863.4 The taxes were payable monthly, and the rates were proportioned to the value per gallon. These taxes were described in the statutes and were popularly known as "income" taxes. By the act of December 16, 1863, those engaged in, the sale of merchandise were subject to a tax of 50 cents on each $100 proceeds of sales, and merchandise was subject to no other state taxation. This was known as the "merchandise tax." Assessors and collectors were required to call once in every three months and get returns of sales under oath. The act of November 15, 1864, replaced the graded liquor income tax by by one that levied simply 5 per cent on gross sales, and modified and extended the taxation of gross receipts. The several occupations and professions taxed were classified and different fixed charges and percentage rates applied. Wholesale merchants were subject to a tax of $300 and 1 per cent on gross receipts; retail merchants, druggists, and auctioneers, $100 and 1 per cent. Those keeping a billiard hall or nine or ten pin alley, doing a storage business, and cotton compressing and insurance companies, were subject to a tax of $100 and 2 per cent on gross receipts. Railroad companies were subject to a tax of one-fourth of 1 per cent on their gross receipts; but no special provision was made for the determination of the amount of gross receipts or for the collection of the tax.

1 Ibid.

2 Laws of 1863, Called Sess., p. 25.

3 Act of December 16, 1863; Laws of 1863, p. 48. Act of November 15, 1864; Laws of 1864, Second Called Sess., p. 7. 4Laws of 1863, p. 16.