The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-07-06
CITY EXEMPT.
Being an Agent Of the State
It Need Not Stamp It's
Instruments.

Some officials have raised the point
that city warrants should be stamped the
as checks. Corporation Counsel Nc
Dermott was asked his opinion. This
morning he sent the following to Mayor
Hoos.-
Having been asked by various city
officials concerning the relation of an
act to provide AVS and means to
meet war expenditures and for other
purposes. approved by the President
of the United States, OF the thirteenth
of last month, to the municipal gov-
eminent of Jersey City. I respectfully
advise as follows:A
Section ii OF the act provides THAT
all bonds. d~ebentures and certificates
of Indebtedness issued by the officers
of the United States Government. or
by the officers of any state. county,
town. municipal corporation or other
corporation exercising the taxing
power, shall be and hereby are ex-
empt from the stamp axe required
by this act; provided hat 1t is the in
tent hereby to exempt from the stamp
taxes imposed by this act. such state,
County, town or other municipal cor
porations in h exercise Only of func-
TORS strictly belonging to Athem in
their ordinary governmental, taxing or
municipal capacity.
Schedule A provides for the following
among other stamp taxes:
/. on bank check, draft or eertid-
cate of deposit not drawing interest
or ordered for the payment of any sum
Of money drawn upon or issued by any
bank, trust company. or person or per-
sons. companies or corporations, at
sight or demand . cents.
2. On bond for indennifying any
person or persons. firm or corporation,
who Shall ave become bound or en-
gagged as surety for the payment of
any sum of money or the due exeeu-
ton or performance of the duties of
any office or position and to account
for money received by virtue thereof,
and all other bonds Of any description
except such as may be required in legal
proceedings not otherwise provided for
in this schedule, so cents.
8. Certificate of any description re-
quired by law not otherwise specified
in this act. 10 cents.
4. On any deed, instrument or writ
ing whereby any land tenement or
other realty sold shall be granted. as
Signed. transferred or otherwise con-
veyed to or vested IN the purchaser or
purchasers. or any other person or
persons. by mis-. her or their direction,
when the consideration exceeds 500
and does not exceed $500. so cents. and
for each additional $500 or fractional
part thereof in excess of $500, 80 cents.
It will be seen tina the exceptions in
Section II do not include bank checks.
drafts or orders for the payment of money
and it may have been the intention of
Congress to impose a tax apo such in
as city warrants. Whether
this intention existed will probably be the
subject Of adjudication, but If ii did ex-
list, I nevertheless advise you thai it win
not be necessary to put sucn stamps
upon such warrants or upon any other
papers issued to represent city indebted
ness or disburse municipal funds. Such
instruments are used in the discharge of
municipal duties imposed by the State,
and it is a well settled doctrine hat the
general government has no authority to
tax the means and instrumentalities ern-
ployed by a State in conducting its gov
operations and discharging its
public duties
Jersey City being an agent of the State
of New Jersey, the doctrine extends the
exemption to those instruments neces-
sarily used in carrying on the municipal
government. Bonds given by city officers
or others required by law to enter into
bonds to the city for the performance o.
official or other duties or contracts, should
be stamped. The party giving the bond
pay the tax. Certificates given by
city officers in pursuance Of any law re
quiring the giving of such certificates. If
the certificate is that of the municipal
corporation need not be stamped. But
certificates given by city officers for
which fees are paid to and returned by
them are not instruments of government,
and should be stamped. This will include
all certificates of the existence or alb
sence of city liens upon property. Deeds
to the city of property purchased at tax
sales need not be stamped. but until de-
cision to the contrary I think it will be
the better practice to put stamps upon
all other deeds and include the amount in.
the cost where the property is sold FOR
or assessments and purchased by
than the city.