Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-03-25
TREASURY DEPARTMENT,
OEErnr nE INrERNAI RENENI-E

1 WASHlNTTONs MATCH 1910. J
SIR-In your letter of the fourth in.
stant, you inquire as to the proper inter
| probation of the word vouchers" in
section Is of the "act to amend existing
customs aud internal revenue laws, u
ETC., approved February s, 1875.
You also ask the following questions
First-"Are notes, drafts and accept
ances when made payable at bank,
subject to a stamp tax of two cents, and
il so, does the tax apply to notes, drafts
and scceptances drawn or accepted prior
to February s, 1875, and which have ma
tured and been paid sincew
Second-fDoes 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 corpOrationsW
Third-"Are checks drawn by o State
county or city government on q bank
liable to this tax"
Section Is of said act of February s,
1875, provides: That a bank check,
draft, order or voucher for the payment
ofany sum of money whatever, drawn
upon any bank, banker, or trust COM
pany shall be subject to stamp tax of
two cents.
1t is understood that this enactment
was made mainly to meet evasions of
the stamp tax on checks by the substi-
tuition of receipts, orders payable one
day after date" etc. ItImposes the tax
upon checks or orders, etc., drawn on
time, as well as those payable at sight,
or on demand, so also on receipts and
all other vouchers substituted for checks,
etc., as commonly used according to
the custom of banks,
Section of the act of March 8, 1875,
eXempts from the tax "the receipts in
the receipt book of a savings bank or in
stitution of savings, having no capital
stock and doing no other business than
receiving deposits to be loaned or in
vested for the sole benefit of the parties
making such deposits, without profit or
compensation to the association or COM
pany when money is paid to depositor
on his pass-book."
This provision leaves the tax upon all
receipts with the above exception given
to banks as vouchers ior the payment of
money on deposits, as imposed by sec.
ton Is Of the said act of February 8th,
whether such receipts are loose or COL
tanned in book.
l reply to your specific questions:
One-That il there is any understand
ing 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 acceptances shall be
paid by the bank and charged in the
account of the maker, drawer, or ac-
ceptor, in the same manner as ordinary
checks would be, such notes and accep-
tances are considered liable to the two
cent stamp-tax as "voucheR'' for the
payment of money by the bank. This
applies to notes, drafts, ETC., made,
drawn, or accepted prior to February s,
1875, when paid by the bank ON or after
that date.
Two-This tax applies to "checks
drawn by bank upon itself for the pur-
pose of paying its own dividends and
the dividends, coupons, or interest of
other corporations" or for other pay
ments.
Three-Checks drawn by State, coun-
ty, or city officers in their official capaci-
ty upon public funds deposited in a
bank, are exempt, il said funds are kept
separate from any private accounts, it
not being within the intent Of the law
to tax public treasury.
l will add, with reference to some 9TH
er questions frequently proposed to this
Office, that orders for dividends are SUBJ
ject to the tax, if drawn for definite
and certain sum, but not otherwise.
An ordinary certificate Of deposit,
used in the ordinary manner, is not liza
BILE.
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, ETC., are lia-
relating to banking business, forinstance,
for rent, are exempt. Very respectfully,
(Signed) j. w. DOUGLASS, Com'r.
+. d. TAPPAN, Esq, President Gallatin Ma
tional bank, New York.