The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1875-04-17
THE STAMP ACT.
Explanatory Letter from Revenue
COmmi issiOner Douglas.

stamp tax on checks, drafts, ETC.,
are explained in the following letter
from Commissioner Douglas to the
president Of the Gallatin national
bank of New York city:
SIR-In your letter of the fourth
instant you inquire as to the proper
Interpretation of the word "vouch.
ers" in section Is ofan "act to amend
existing customs and internal reve.
nue. laws" etc., approved February
s, 1875.
You also ask the following ques-
tions
First-"Are notes, drafts and ac-
ceptances, when made payable at a
bank, subject to stamp act of two
cents, and, if so, does the tax apply
to notes, drafts and acceptances
drawn or accepted prior to February
8, 1875, and which have matured
and been paid sjnce?"
Second-"Does the tax apply to
checks drawn by bank npon itself
for the purpose of paying its own
dividends, and the dividends, cou-
pons or interest Of other corpora
tions ?'
Third-"A care checks drawn by
state, county or city government
on bank liable to this tax?"
Section Is of said act of February
8, 1875, provides; That a bank
check, draft, order or voucher for the
payment of any sum Of money
whatever. drawn upon any bank.
banker or trust company, shall be
subject to stamp tax Of two cents.
1t 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
"payably one day after date" etc.
1t imposes the tax upon checks or
orders, etc., drawn on time, as well
as those payable at sight, or on de.
mand, so also on receipts and all
other vouchers substituted for
checks, ETC., as commonly used ac-
cording to the custom of banks.
Section of the act of March 3,
1875, exempts from the tax "the
receipts in the receipt book of
savings bank or institution of cav
ings, having no capital stock, and
doing no other business than receiv-
ing deposits to be loaned or invested
for the sole benefit of the parties
making such deposits, without profit
or compensation to the association
or company when money is paid to
a depositor on his pass-book.'
This provision leaves the tax upon
all receipts with the above excep-
tion) given to the banks as vouchers
for the payment of money on de-
posits, as imposed by section Is of
said act Of February 9th, whether
such receipts are loose or contained
in q book.
l reply toyour specific questions
One-That if there is any under
standing between the bank and tho
maker Of the notes, or acceptor of
the checks, drafts or orders payable
at bank, that all such notes and ac-
ceptances shall be paid by the bank
and charged in the account of the
maker, drawer or acceptor, in the
same manner as ordinary checks
would be, such notes and accept
ances are considered liable to the
two cent stamp.tax, as A,houcers"
for the payment Of money by the
bank. This applies to notes, drafts,
etc., made, drawn or accepted prior
to February 8, 1875, when paid by
the bank on or after that date.
Two-This tax applies to "checks
drawn by bank upon itself for the
purpose Of paying its own dividends
and the dividends, coupons and in
terest of other corporations" or Tor
other payments.
Three-Checks drawn by state,
county or city officers in their Off
cial capacity upon public funds de-
posted in bank are exempt, if said
funds are kept separate from any
private accounts, it 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 divi-
dends are subject 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
liable. Interest coupons are con-
sidered exempt. Bills of exchange,
foreign as we'll as inland, when
drawn on a bank, banker or trust
are held to be subject to
the tax, whether payable at sight
or otherwise.
Duplicates of bills, orders, ETC., are
liable the same as originals. Re-
ceipts not relating to banking busi-
ness, for instance, for rent, are
exempt. Very respectfully,
J. W. DOUGLAS, Commissioner.
nr II Taka of Taxaa IL ana of