The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1875-04-14

The following letter explains in de-
tail the act of Congress passed Febru.
ary 9Th, imposing a stamp tax or
checks, notes, drafts, etc.:
| TREASURY DEPARTMENT,
OFFICE OF INTERNAL REVENUE, 7
WASHINGTON, March 10, 1875.
SIR-In your letter of the 4th in.
slant, you inquired as to the proper
Interpretation of the word "VOuch.
ers," in Section 10 of the Act to
amend existing customs and internal
revenue laws. &C., approved Febru-
airy Sth, 1875.
You. also ask the following ques.
tons:
1st. Are notes, drafts and accept.
'iances, when made payable at bank,
subject to stamp tax of two cents
and if so, does the tax apply to notes,
drafts and acceptances drawn or &C
cepted prior to February 8th, 1875,
and which have matured and been
paid since?"
3D. Does the tax apply to checks
drawn by a bank upon itself for the
purpose of paying its own dividends
and the dividends. coupons or inter-
est of other corporations?'
Sd. Are checks drawn by State,
county or city government on bank
liable to this taxi"
Section Is of said act of February
9Th. 1875, provides that bank check,
draft, order or voucher for the pay
ment of any sum Of money whatsoever,
drawn upon any bank, banker or trust
company shall be subject to a stamp
tax OF two cents. e
It is Understood that this enact
ment was made mainly to meet eva
sions of the stamp tax on checks by
the substitution of receipts, orders
payable one day after date, etc. 1t
imposes the tax upon checks or or
ders, ETC., drawn on time, as we'll as
those payable at sight, or on demand.
so also on receipts and all other vouch-1
ers substituted for checks, etc., as
commonly used according to the GUS
tom of banks.
Section 6, of the act of March Sd,
1875, exempts from the tax "the re-
ceipts in the receipt book of savings
bank or institution for savings, hav-
ing no capital stock and doing no 9TH
er business than receiving deposits,
to be loaned or invested for the sole
benefit OF the parties making such de-
posits, without profit or compensation
to the association or company when
money is paid to deposltor on his
pass book"
This provision leaves the tax upon
all receipts with the above exception)
given to banks as vouchers for the
payment of money on deposits. as i'm
posed by section Is, of the said act of
February 9Th, whether such receipts
are loose or contained in a book.
[ reply to your specific questions:
1st. That, if there is any under
standing 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 accept
ances shah be paid by the bank and
charged in the account of the maker,
drawer or acceptor, In the same man.
ner as ordinary checks would be,
such notes and acceptances are consid-
cred liable to the two cent stamp tax
as vouchers" for the payment of
money by the bank. This applies to
notes, drafts, &c. made, drawn or ac-
cepted prior to February Sth, 1876,
when paid by the bank on or after
that date.
I'd. 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
Sd. Checks drawn by State, county
of city officers in their official capacity
upon public funds deposited in a
bank. are exempt, if said funds are
kept separate from any private ac-
counts, it not being within the intent
of the law to tax public treasury
/ will add, with reference to some
other questions frequently proposed
at this Office, that orders for dividends
are subject to the tax, if drawn for a
definite and certain sum, but not 9TH
erwise.
{ An ordinary certificate of deposit,
used in the ordinary manner, is not
liable.
Interest coupons are considered ex-
empt. Bills of exchange, foreign as
well as inland, when drawn upon a
bank, banker or trust company. are
held to be subject to the tax, whether
payable at sight or otherwise.
Duplicates of bills. orders, &c, are
liable the same as originals. Receipts
not relating to banking business, for
instance for rent, are exempt.
Very respectfully,
T. w DOJTGIASS Com