The herald., 1898-08-27
LATE REVENUE RULINGS
NEW DECISIONS AFFECTING LA
BILITY TO STAMP TAX
What Constitutes q Broker-Chewing
Gum Restrictions and Various
Minor Annoyances

In the last report Of the treasury de-
cisions on internal revenue. there are sew
eral items Of interest to brokers on the
special tax. Hitherto 1t has been claimed
that all persons buying notes, orders of va
rious kinds, etc.. were amenable to the
tax law. 1t seems, however. by the latest
rulings that the law applies to brokers only
who make 1t an established business. Com
missioner Scott says:
ut is not violation Of the internal reve-
nue. laws for a person not holding special
tax stamp to purchase county, school. dis
trict and state orders at discount If he
is not engaged In the negotiation Of these
purchasers as his business
The supreme court, in Warren ct al. Va
Shook, upon the liability of person for
special tax as broker, on account of his ne
COLLATION. of purchases or sales of the va
rious securities mentioned in the statue,
said: ut is only when making sales and
purchases, as his business, his trade, his
profession, his means of getting his living,
or making his fortune, that he becomes a
broker within the meaning of the statute"
Replying to another letter, the commits
sioner continues: "You are hereby adj
vised that the business carried on by you.
which you describe as receiving money to
loan for other persons, the pay which you
receive for your services being derived from
the borrowers, does not involve you In
special tax liability as broker, and that
as you do not have place of business where
credits are opened by the deposit or col
lection of money or currency, subject to
be paid or RENTED upon draft, check or
order, or where stocks, bonds, bullion. bills
Of exchange or promissory notes are re-
ceived for discount or sale. you are not
subject to special tax as a banker under
that section unless the money which you
loan is loaned on the collateral security of
stocks. bonds, money to loan for other per-
sons, the pay which you receive for your
ate which the owners receive"
A person who, though he styles himself
real estate and investment broker" con-
fines his business to selling land on com
mission, taking applications for farm loans
and writing insurance, is not on this ac-
count required to pay special tax as
broker"
Races that are mere tests Of speed Of
horses are not the feats Of horsemanship
contemplated by the law. Special tax is
required to be paid for these horse races,
reckoned from the first day Of the month
in which they begin until the first day of
July following at the rate Of SO for the
year beginning July 1.
Chewing gum must be sold at retail from
original packages, and retail dealers will
not be permitted to remove gum from the
original stamped packages and place the
same in the show case. There Is no regu-
lation permitting the manufacturer to dis
tribute free samples Of chewing gum upon
which tax has not been paid.
Certificates required by law, issued by
state officers at the request Of private per-
sons solely for private use, must be
stamped. The stamp should be furnished
by the person applying for the instrument
and for whose use and benefit the same Is
issued. and should be affixed before the
document is delivered.
The conveyance by express companies or
other common carriers Of bank bills, coin,
currency or money Of any kind, impress
an obligation on such common carriers to
issue and stamp bill Of lading, or re-
ceipt for the same. It being held that such
property is included within the terms, "any
goods accepted for transportation"
In reckoning the stamp tax on transfer Of
certificates of stock, the tax is reckoned on
the face value. The fact that only part Of
the face value Of shares subscribed for and
issued has been paid by the shareholders, is
not to be taken into consideration.