Evening star., 1898-11-12

by are, exempt from the stamp duty re-
quired by this act; provided that it is the
intent hereby to exempt from the stamp
taxes such state. county or other municipal
corporation in the exercise only of func-
tons strictly belonging to them in their or
dinary governmental taxing municipal
capacity
Section Twenty-Five.
Section 25 declares, among other things
in schedule A. that upon certificates of any
description required by law not otherwise
specified in this act 10 cents shall be COL
lected.'
The war revenue act expressly exempts
certificates issued by municipal corpora
ticns in execution of their municipal or gov
eTnmental fur ctions from tax duty.
whether these tax certificates are ex-
en1pt from stamp duty under the war rev.
enue act depends upon the question whether
they are issued in the exercise of municipal
functions. If they are, then plainly they
are exempt under section II of the revenue
act, Notwithstanding they are issued to pri-
vate individuals for their private use and
benefit.
THE act under which these tax certii
Gates are issued makes it the duty of the
assessor to furnish them whenever called
upon to do so, and requires the party re-
questing the same to pay to the District a
fee of 30 cents for each certificate.
In Mr.. Wilson's letter it is suggested
that the ruling of the internal revenue de-
partment, that tax certificates issued by
the assessor of the District of Columbia
are liable to taxation is founded upon sew
eral opinions of the Attorney General in
Ike cases. On application for copies of
the opinions to which Mr.. Wilson refers |
nave been furnished with memorandum
OF an opinion by Mr.. Assistant Attorney
General Boyd, holding that tax certificates
issued by the controller of the city of New
Orleans are liable to a tax of 10 cents
under the war revenue act, because issued
| for private benefit and interest.
Il have examined the published opinions
| or the Attorney General, and after a some
what careful research have been unable to
| find one which involved the precise ques-
| ton now submitted to me for consideration.
Assuming that tax certificates issued by
| the controller of the city of New Orleans
are liable to taxation. that does not prove
| that tax certificates issued by the assessor
| of the District of Columbia are also liable
The relation between this District and the
United States must be taken into account.
Duty of Official.
THE seventh section Of the war revenue
act makes it the duty of the official issuing
| the certificate-not the individual receiving
! ito afflx the stamp. This provision, if it
| applies to the assessor, contemplates that
| he shall have revenue stamps How is he
to get them? Plainly not out of his private
| funds. If the District of Columbia sup
| plies the stamps, then under the provisions
| Of the act of June IL. 1878. one-half the
cost is charged to the United States and
| one-half to the District. 1t will not be con-
| tended, L think, that Congress intended
such a result. 1t has been held by the ST.
preme Court that a municipal corporation
| is not subject to taxation by Congress or
| Its municipal revenues. Omitted States agt.
| railroad company, II Wall, 322.)
mo duty is imposed upon private indi-
viduals requesting certificates to furnish
stamps, and no penalty is imposed upon
| them for receiving certificates without
| stan Is.
ic 1otp
| tif1oates issued by the assessor in the
| exercise of municipal functions. 1t is i'm
| material that they are for the private use
and benefit of persons receiving them. But
for the sake of the argument, suppose tax
| certificates partake both of municipal and
| private functions then said by Attorney
General Hoar, to attempt to separate those
| functions of municipal corporation which
| are OF private nature from those which
| are public and political, and apply the in
| ternal revenue laws to the former, and
to compel such a corpora ton to obey those
| laws would be attended with such practi-
cal difficulties and might involve such an
| interference with the affairs of towns and
| cities by the United States, that an inten-
| tion to do so on thu part of Congress ought
| not to be presumed from doubtful express
| s1ons. Q3 Op. AttyS Genl, 16)
Not Clearly Defined.
"If the burden Of stamping tax certii-
Gates issued by the assessor is imposed by
|
viduals. 1t is not clear from ths language
| Of the statute.
| STORY, Justice, said adams VS.. Ban
croft. 3 Sumner, 3S4): Duties are never i'm
posed upon the citizens upon doubtful in
depreciation, for every duty imposes bur-
| den upon the public at large and is con-
strued strictly and must be made out in
| a clear and determnate manner from the
| language of the statute
Now. does it appear in clear and de-
| terminate manner from the language of
| the war revsnue act, that the burden Of
stamping tax certificates. issued by the
| assessor of the District of Columbia, is up
| on pri, Z e individuals? / cannot reach the
| CONCLUSION that it is.
| I'm my judgment, the questions presented
| by this reference, affecting as they do the
| public revenues, are too important to be
| disposed of by mere advisory opinion.
| The matter should if possible be decided
| judicielly."
The opinion of their attorney will D. for
| warded by the Commissioners to the conf
missioner of internal revenue. and they
will probably await his reply before taking
| further action in the matter.