The Elk County advocate. [volume] (Ridgway, Pa.) 1868-1883, 1875-04-08
III? Stamp Tax.

III. Stamp Tax.
The following letter from Commits
sioner Douglass explaining some Of the
doubtful points in the act Of FEBRUARY
''th, concerning the stamp tax on
checks, drafts, etc, will he found of
special interest to business men.
TREASURY DEPARTMENT., J
OrFIcn OF INTERNAL REVENUE,
WAsH1NGroN, Mar. 10, 1875.
SIR: In your letter of the 4th in
Stant, you Inquire as to the proper in
terprctation Of the word vouchers" in
section 10 Of the "Act to amend exist
ing Customs and iDtornul rcvcnue
laws" etc.. approved Feb 8, 1875.
You also ask the following questions.
fr'St.--"Aro notes, drafts, and ac-
c@pianccs when made payable at a bank.
subject to a stamp tax Of two cents, and
It so, does the tax apply to notes, drafts.
aud acceptauces, drawn or accepted
prior to Feb. 8, 1878, and which have
ma'nrcd and been paid since?
ScconR--'DCcs the tax apply to
checks drawn by bank upon itself for
the purpose Of paying its own dividends
and the dividends, coupons, or interest
of other corporations"
1hdl-"Are checks drawn by
State county, or city Government Jn a
bank liable to this tax"
Section ID Of said act Of Feb. 8.
1878 provides; That bank check,
draft, order, Or voucher for the pay
mcnt Of any sum Of money whatsoever,
drawn upon any bank, banker, or trust
company shall be subject to a tax
stamp o. two cents.
IL was understood that this enact
mont vas made mainly to meet ovasions
OF the stamp tax on checks by the sub
sritutlon OF receipts, orders payable
one day after date" etc, It imposes
the tax upon checks or orders, etc
drawn on tine, as well as those payable
at sight, or on demand, so also on re-
caipts and all other vouchers substitu-
ted Tor checks, etc, as commonly used
according to the custom of banks.
section 8 Of the act of March 8,
1879, excmpts from the tax ''the re-
cripts in the receipt book of q savings
bank or institution for savings, having
no capital stock and doing no other
business than receiving deposits to be
loaned Or Invested for the sole benefit
ot the parties making such deposits,
without profit or compensation 10 tie
association or company VIXEN money is
paid TO depositor on Lis passbook."
This provision leaves the tax upon all
receipts (with the above exccption)
given to banks as vouchers for the pay
mcnt Of money on deposits, as imposed
by section rs of the said act of Feb. 8,
whether such receipts are loose or con
toi1ed in book.
reply to your specific questions:
l. That ii there is any understand
iog between the bank and the maker of
the notes, Or acceptor Of the checks,
drafts, or orders payable at bank, that
all such notes and accoptances shall be
paid by the bank and charged in the ac-
count OF the maker, drawer, or acceptor,
in the same manner as ordinary checks
would be, such notes anl acceptances
are considered liable TO the two cent
stamp tax as vouchers" for the pay
mcnt Of money by the bank. This ap-
plies to notes, drafts, etc, made drawn,
or accepted prior to Feb. 8, 1875, when
paid by the bank on or after that date.
.. This tax applies to "checks drawn
BY a bank upon itself for the purpose
Of paying its own dividends and the
dividends, coupons, OR interest of other
corporations" or for other payments.
Checks drawn by State, county,
Or city officers in their official capacity
upon public funds deposited in a bank,
are exempt, if said funds are kept
seperate from any private accounts, il
not being within the intent Of the law
to tax a public treasury.
will add with reference to some
other questions, frequently proposed to
this Office, that orders for dividends are
subject to the tax if drawn for a definite
and certain sum- but not otherwise
An ordinary certificate of deposit,
used in the ordinary manner, is not
liable.
Interest coupons are considered ex-
empt: bills OF exchange, tereign as
well as inland, when drawn upon
bank; banker, or trust company, are
held to be subject to tie tax, whether
payable at sight or otherwise.
Duplicates of bills, orders, etc, are
liable the same as originals. Receipts
not relating to banking business, Tor
instance for rent, are exempt. Very
respectfully.
(Signed) Nv, DOUGLASS,
Commissioner.
+. D. Tpppen, Esq, President Gallatin