The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1870-10-14


The acting Commissioner of Internal Rev
enue has addressed the following letter to the
Collector in the 32d District of New York, by
which it will be seen that all the instruu ents
mentioned under the head of Bill Of Ex.
change (lnland), Schedule B, act OF June 30,
1864 are exempt from tax on and after Oc-
tober 1, when iss led for less than 500.
SIR:-Schedule of The act of June 30,
1854, under the head of "Bill of Exchange lin
land)," is as follows: "Bil OF Exchange (in-
land, draft, or order, for the payment of any
sHSn Of money not exceeding one hundred
dollars, otherwise than at sight or on demand,
or any promissory note (except bank notes Is
sued for circulation and checks made and in
tended to be forthwith presented, and which
shall be presented to bank or banker for
payment), or any memorandum, check re-
ceipt OF other written or printed -ovideucr OF
any amount OF money to be paid on demand,
or at any time designated, for sum not ex-
ceed!ng one hundTeG dollars, five cents.
"And for ever additional hundred dollars or
fractional part thereof, in excess OF one hum
dred dollars, five cents"
Section OF the act of July IA, 1870, re-
lieves "promissory notes for a less sum than
one hundred dollars" on and alter the drst
day o! October, 1870. f.- -.r5 ..-
am OF the opinion that bv the spirit OF the
statute all the instruments mentioned under
the head of "b;lls OF exchange tinland,)" as
above quoted, are exempted when issued for
sum less than one hundred dollars, on and
after the 1st inst
This is not to understood as applying to
checks, drafts, or orders drawn at sig 1t or on
demand. The tax upon them remains u1-
Changed, viz. two cenLs when drawo for any
sum whatever upon any bank. banker. or
trust company, and like amount when
drawn for any sum not exceeding ten dollars
upon any other person Or persons, companies,
or corporations"
The word check, as used in the last part of
the paragraph relating to 'bills OF exchange
(lnland, must not be understood to refer to
the bank and other checks above mentioned
as liable to two-cent stamps. The words
memorandum, check. receipt" as employed
in said paragraph, refer to Acknowledgements
and evidence OF debt, such as II. o. u $780,"
due you $780," etc, often given instead of
form al promssary notes. .....r ..-..
The following letter was addressed to the
Assessor in the 50 collection district of Mas
sachusetts. 1t appears that returns are re-
quired of all dividends declared due or paya-
BILE during the months OF August, September,
October, November and December 1870 by
~O'PO' III ScCtiOu ACt vi
July IA, 1870, (viz Banks, Trust Companies,
Savings institutions, Insurance, Railroad,
Canal, Turnpike, Canal Navigation and slack
water companies) although such dividends,
are not collectible until 1871.
SIR: Referring to the letter addressed to
you on the 7th INST, respecting tax on cou-
pons and dividends fol and during the five
months ending December 81, 1870, and pub.
lished on page 93, Vol. XIII, Internal Reven-
ue Record. Ihave to say that upon further
consideration OF the same, it has been thought
that assessors might infer, and perhans fairly,
that under the terms of section Is act July
IA, 1870, employed in said letter with respec.
to dividends, namely, 'levied and collected dnr-
ing the wear 1871 no returns should be re.
quired of dividends declared within the said
five months, until the year 1871.
You are further instructed, that although
this tax cannot be collected before 1871, re-
turns OF all dividends or sums of money de-
clared due or payable within the aforesaid Pc
1iod by any OF the corporations enumerated
in section 15, should be required, as provided
in section 10, l. e., ION or before the tenth day
OF the month following that in which any div
idends or sums OF money become due OF pay
able as aforesaid" These returns assessors
should retain until further instructed by this
Office