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"j" And "(k)jt" Tax Codes; How did they get on my disks?
Topic Started: Jul 19 2012, 02:50 PM (566 Views)
kaptain_kopter
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The „J“-tax problem:

Some of you may have stumbled on a "J" or "KJT" near the spindle hole of Parlophone records, where there should just be a "KT". I wonder, if anyone of you can be a help in solving the problem.

To explain what I‘m after, I have to sketch the problem first (those, who are well informed about the UK purchase tax thing should miss out the following section - there‘s nothing new in it): In 1940 UK government introduced a tax on all Luxuries, records included, to raise funds for WWII. We all know that politicians do not like to do away with taxes, so they decided that it would be a great idea to maintain this tax even after the war was over, until they decided to introduce VAT on all goods in 1973. Purchase tax was a source tax, meaning that the Record Industry had to pay the tax for every copy they sent to the wholesaler or retailer - the tax was paid before the record reached the shops. Now the Record Industry had a problem: many records could not be sold immediately after they arrived at the shops, some even remained for years on the shelves and the retailers were allowed to send back a certain quantity of records to the wholesaler, who repaid them. But to repay the correct amount of money, the wholesaler had to know the rate of taxation at the time, the retailer had ordered the respective copy. This was the birth of the (no, not "cool", but:) purchase tax code. Most of the mayor labels agreed to a mutual two letter tax code, "T" for "tax" being the latter (very witty - would like to know, how much they could have saved by leaving out the "T"). Of course, there were exemptions - in the unlikely case anyone wants to go deeper into this, I can only recommend the following study: L. Petts & R. Edge, The Purchase Tax Scheme [1940-1973], in: For The Record [Official Journal Of The City Of London Phonograph And Gramophone Society Ltd., Spring 2004, pp. 17-23). Three letter codes (e.g. MKT) seem to appear in connection with record price changes in times of a constant rate of taxation (the percentage levied on the record remained the same, but the total amount altered because of the price change). The whole system never really worked well - most of you will have come across a record with impossible tax code (I still recollect with pleasure the meters of Black Gold Stereos with "ZT" tax codes eking out their miserable existence in my humid cellar [insert malicious smiley here]) and so UK government and the Record Industry agreed to a different procedure and ended the whole tax code business on July 21st, 1966 with KT being the last tax code (July 1st, 1963 to July 21st, 1966). You will find later pressings with KT tax codes, but they were only the remnants of history.

Suddenly, in 1968 or 1969 (some sources say between Jan. 1st, 1969 and Dec. 31rd, 1969, others claim during the year 1968) "J" or "(K)JT" tax codes reappear on some Parlophone 33s and Decca 45s (I know of no others). The problem is: they do not make sense - the tax code system had been buried in 1966. In my opinion, there are only two possible solutions for this problem: either this resurrection goes back to one of the purchase tax increases of 1968 (March 20th [50% purchase tax] or Nov. 23rd [55%]) or it has it‘s roots in a (simultaneous?) price change that affected Parlophone 33s as well as Decca 45s in the year 1968 or 1969. It would be great, if anyone could provide helpful information regarding my problem - thanks!

Mark
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muffmasterh
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There is a link somewhere as to the dates of the tax codes...

I do not know about 1966 being the last tax code However as I always understood KT lasted until mid 1968 the tax code changed from KT to JT

I always understood JT was the final tax code and that finished towards the end of 1968

If you look at Decca discs they have the tax in the run out grooves only, EMI had this on the singles only but also still stamped the centre of all discs until the end of 1968

It seems EMI could not be bothered to change many of their stamping machines but when they did they just added a " J " to create a non existant Tax code of KJT

Maybe it was pre-announced that JT was the last hence EMI's half hearted effort to make a change?

Anyway they stopped stamped anything at all the end of 1968 save for a few stamping machines which they never got around to changing so KJT and KT would continue to appear ramdomly until 1970

However the KT stamp would remain in the run out grooves of all EMI singles until well into the 70's...

And as you quite rightly say the whole thing was just a mess, one record delear told me that ZT stood for Zero Tax, not sure what M K and J stand for then , let alone W and O lol !!!!
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namralos
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21 July 1966 did not end the tax codes. On that date, the government merely changed the value associated with the KT tax code. The tax increased again on 20 March 1968, but again it was not deemed necessary to change the code. Stamps were used sometimes to indicate that the record company had paid at the new tax rate. There were proposals during the 1960's as to how to deal with paying the correct tax.

The change associated with 23 November 1968 led to the creation of the JT code, which EMI basically decided not to use (reverting to KT) -- just as Decca had not used one of the codes back in the early days. JT tax code information may be found in the trail-off of records as late as 1972. The vinyl (petrol) shortages affected that, and the advent of VAT got rid of them entirely -- except on reissues, where they sometimes appear.
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kaptain_kopter
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Hi - as I said - we'll meet again, didn't know where, didn't know when. Now I know. Let me quote the study I quoted above:

"The last Purchase Tax Stamp to be issued came into use in conjunction with a set of price changes on July 1st, 1963. The stamp carried the letters "KT" whose use continued until July 21st, 1966. As the years of imposition of Purchase Tax dragged on, the whole label sticking exercise became so onerous and uncertain in its operation that an alternative method of determining the tax repayable on returns was agreed with the Customs. Mr. Graham [i.e. D. J. Graham, Manager of EMI's Group Taxation Department. k_k] notes: 'Briefly, the exhaustion period method, as it was called, allowed the Record Manufacturers to credit tax at the old rate on all returns within an agreed period (normally five month) after a change in rate. Thereafter, all returns were credited at the new rate.' Five further Purchase Tax changes were made under these new arrangements between July 21st, 1966 and March 21st, 1972. No Tax Letters were allocated to these changes and no stamps were placed upon the Gramophone Records." (Len Petts & Ruth Edge, see above, p. 21)

The article mainly deals with EMI group records, in special with H.M.V. pressings. I understand that after July 21st, 1966 a tax code on the wax just means that the guys at the pressing plant didn't replace the centerpiece of the mould on which the tax code letters had been fixed. The Parlophone tax code is not part of the stamper; the circle/groove/step devides the machine's centerpiece from the metal stamper meaning that the hole in the stamper is much larger than the spindle hole and the tax letters remain, even if the stampers are changed. It was cheaper to wait, until the mould or the whole machine had to be replaced and that's the reason, why the "KT" disks are so rare at the beginning of the 70s: most machines or moulds had been exchanged by that time. KT made no sense after 1966, but it was no disturbance either.

I think that Petts & Edge did an excellent job - but even in their study, there's no "J". If the Record Manufacturers and Customs agreed in 1966 to follow a different procedure, why did Parlophone & Decca introduce "J" in 1968 or 69? I'm really puzzled and I think, it would be important to find out, why they did - it would help to date lots of records - hope, I didn't bother you - cheers!

Mark
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muffmasterh
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I've just found this, was this part of it , it seems some of the info may have been flawed, read on ....:-

You may recall a list of tax codes I sent you some months ago... Well someone has given me a magazine published by "City of London Phonograph & Gramophone Society" which appeared about a year ago, which contains a detailed discussion of all the tax codes, the dates and the Official Reasons for all the changes. So shot down again.

This is of course better researched and more informative than my "hand made" version, but as always with such publications, despite the Official material used in the Research, there are wretched mistakes, some of which I can pick out.

For the sake of correctness, I'll send you the correct list to replace the one I sent you - see below:

The mistakes are based on 1) too much use of documents and not enough use of actual records (I had the opposite fault), and 2) only taking "H.M.V." as the example, disregarding Decca etc.

Some of the changes were price increases as well as Tax alterations. Now I have actual dates rather than estimates, and the actual amounts of tax charged. I'll spare you the discussion that runs for several pages if you like.



TABLE OF PURCHASE TAX & PRICE CHANGES & RELATED TAX LETTERS.


21 Oct. 40 T Purchase Tax introduced 33.3% ("No Tax" stamps applied to stock already purchased.)
1 Jan. 42 - price increase
15 Apr. 42 DT Purchase Tax increase 66.6% (on E.M.I. records, the D is added above the T.)
13 Apr. 43 TT Purchase Tax increase 100% !!
10 Apr. 46 ST Purchase Tax reduction 33.3%
13 Nov. 47 LT Purchase Tax increase 50%
9 Apr. 48 DT(48) Purchase Tax increase 66.6% CT on Decca
30 Dec. 50 DTP price increase CT+IP on Decca (also AT stamps)
15 Apr. 53 N Purchase Tax reduction 50%
27 Oct. 55 RT Purchase Tax increase 60%
31 Oct. 55 - price increase
27 Aug. 56 - price reduction (45 r.p.m. singles)
1 Jun. 57 XT price increase (not on Decca)
1 Oct. 58 - price reduction (on E.P.s - 7ER series only) (UT stamps)
8 Apr. 59 ET Purchase Tax reduction 50%
1 Aug. 60 WT price changes on some series*
26 Jul. 61 OT Purchase Tax increase 55% and price changes
10 Apr. 62 ZT Purchase Tax reduction 45% and price changes
26 Nov. 62 PT price changes on some series*
1 Jan. 63 MT Purchase Tax reduction 25%
1 Jul. 63 KT price changes
21 Jul. 66 - Purchase Tax increase 27.5%
20 Mar. 68 - Purchase Tax increase 50%
23 Nov. 68 - Purchase Tax increase 55%
20 Jul. 71 - Purchase Tax reduction 45%
21 Mar. 72 - Purchase Tax reduction 25%
2 Apr. 73 - Purchase Tax replaced by V.A.T.

* I've omitted the list of series because it is obviously incomplete, only referring to H.M.V.

No mention is made of JT, which appeared in 1968 and can still be seen faintly on Decca 45s as late as 1972, but at least this publication goes some way to explaining what it means. It probably also explains the WOT and the PKMT, etc.

I had no idea how much the tax increased the price of the records. The effect is that through some years (esp.1943-46) some records are rarer than they would have been. It also accounts for so many post-war repressings, suddenly in 1946 people started buying records again and practically everything was made available. (There was a big fuss made by the record industry about March 1959 since book publishers had always managed to get books exempted.)

(Further details on request - ha ha.)

All the best - Dave.
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muffmasterh
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and this further bit of info does mention JT

http://reviews.ebay.co.uk/UK-RECORD-PRESSI...000000020438115
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namralos
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The study is clearly wrong. There are references to adjusting the tax code all the way up until VAT replaced it. I read several of the discussions from the HoC this morning.

Not only did "JT" appear on gramophone records; it appeared deliberately and transparently on Decca pressings, because Decca put the tax code on the label until after 1969. It was stamped in the matrix into 1972.

Stones Beggar's Banquet with JT tax code

1971 LP with JT code in the matrix.

Peter Rice has this information...
Stock already held at record shops before 21 Oc 40 was marked "FREE OF PURCHASE TAX"
Oct 21st 1940 331/3 T
Jan 1st 1942 33 1/3 T (Price increase)
Apr 15th 1942 662/3 DT
Apr 13th 1943 100 TT
Apr 10th 1946 33 1/3 ST
Nov 13th 1947 50 LT
Apr 9th 1948 66 2/3 DT
Dec 30th 1950 66 2/3 AT (Price increase)
Apr 15th 1953 50 NT
Oct 27th 1955 60 RT
Oct 31st 1955 60 RT (Price increase)
Aug 27th 1956 60 RT (Price reduction, EMI)
June 1st 1957 60 XT (Price increase)
Oct 1st 1958 60 UT (Price reduction, EMI)
Apr 8th 1959 50 ET
Aug 1st 1960 50 WT (Price changes)
July 26th 1961 55 OT
Apr 10th 1962 45 ZT
Nov 26th 1962 45 PT (Price changes)
Jan 1st 1963 25 MT
July 1st 1963 25 KT (Price changes)
July 21st 1966 27 1/2 KT
Mar 20th 1968 50 KT
Nov 23rd 1968 55 JT
July 20th 1971 45 -- (JT)
Mar 21st 1972 25 -- (JT)
Apr 1st 1973 VAT scheme commences at the rate of 10%.
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muffmasterh
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I agree with Frank, it looks like the study has made some errors ( or even wretched mistakes ), this is also what is being said above
Quote:
 
but as always with such publications, despite the Official material used in the Research, there are wretched mistakes
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kaptain_kopter
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Hey - thanks for these valuable info - you've both really been a help. Gonna bother Peter Rice to find out, where he's got his info from. Thanks and good night!

Mark
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muffmasterh
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Mark I think what you quoted here may be close to the truth

Quote:
 
either this resurrection goes back to one of the purchase tax increases of 1968 (March 20th [50% purchase tax] or Nov. 23rd [55%])


And it was the JT code that came in probably 23rd November

Although it does not explain why EMI stopped tax stamping around this date. May be they altered a few machines to KJT and then decided it wasn't worth the bother. Certainly most White Albums have no tax stamps, those few that do are mostly KT, with a few with KJT

Also Hey Judes do not usually carry tax stamps, and thats from August 68...

so its a bit of a mess....we'll never know what really went on and why....
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kaptain_kopter
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Received the reply from Peter Rice and just wanted to let you know, what he's written: List is based on his own collection. So, we've sailed 'round in a circle and end up, where we began. We agree that here is a "J" tax code, but we don't know for certain why and when it came there. To me, Henry's theory seems the best working hypothesis until there's a manifest clue to this riddle - thanks for participating in this ordeal - have a great weekend!

Mark
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muffmasterh
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sadly its all guesswork, informed guesswork maybe but still guesswork.....
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jimboo
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Reviving an old thread
Elvis Presley
Suspicious Minds
RCA 1900
1969
RCA Decca press with full Buckingham stampers and JT tax stamper.
If only it were a Beatles record.
:D
Also has corrected matrix.
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muffmasterh
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yes i have RCA 1802, Tear Drop City by the monkees...1969 must be one of their last, 1b 1b stampers JT tax and Decca matrix.....
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