The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-08-20
INTERNAL REVENUE DECISIONS
Recent Rulings on Tobacco, Sugar Re
finers, Wines and Documents

finers, Wines and Documents
Collector Harrison has received the fol-
lowing additional decisions in regard to in
ternal revenue taxation:
Dealers in leaf tobacco and manufactur-
ers of tobacco or cigars who were not en-
gagged In business last fiscal year are
required on commencing business to pay
the minimum rate of the special tax, and
when sales during the year reach an
amount requiring payment Of the higher
rate they must make return and pay at the
higher rate;
Henry T. Oxnard Of the Chino beet sugar
factory asked for and received decision
involving an interesting point. There is
tax levied on the gross annual receipts
in excess Of $4,000 Of persons. firms or
corporations refining sugar. Mr.. Oxnard
claims that he ID not. properly speaking
a refner: ne does not buy crude sugar or
syrups with the purpose Of refining them.
He admits that he is manufacturer on
whom this tax is not imposed, but claims
that It is through part OF his manufacture
ing process that the sugar comes out all
refined. This Is not the case with cane
sugar. The commissioner rules his points
we'll taken, and decides that he Is not SUBJ
ject to the tax.
/ Letters Of administration. letters tesla
mentary and letters Of guardianship do not
require stamps: nor do petitions for APP
pointment of administrator, executor or
guardian. Bonds of administrators, exec
utors and guardians must be stamped. No
stamps are required for certificates of tax
sales for unpaid taxes, nor for certificates
Of redemption from sale.
20 1f l.
puted on the true value of the property.
On deeds conveying specified interest in
property. as one-third or one-half, the
tax Is levied on the actual value of the
specified interest. A case is cited where an
undivided one-eighth interest in property
whose true value is $4,000 was sold for the
nominal consideration Of 81. The deed
should be stamped on basis of $500, the
value Of the interest conveyed.
All deeds over 800 in value must be
stamped; a gift deed from husband to wife
or wife to husband is not exempt.
Baggagemen and other local operators
for the delivery Of packages, baggage, etc..
need not give bills Of lading, which are tax
able. and the receipts which they give are
untaxable.
The pledge Of an insurance policy to Sc
cure a. loan is not taxable II the amount
secured Is less than $1,000: II the loan ex-
ceeds $1,000 It is taxable as pledge Of per-
sonal property.
When life insurance policy is assigned
as collateral security for a loan exceed
ing $1,000 1t should be stamped as pledge
according to the amount secured and not
on the face value Of the policy.
When the tax is paid on a general bum
die of newspapers 1t Is not necessary to
stamp each paper taken from the original
bundle and delivered at intermediate
points.
The statement made in yesterday morn
ing's Herald concerning the tax on bottled
wine was not full enough to give a correct
impression. Following is the text Of the
decision on this important point In the
case Of genuine sparkling wines which re-
Quire certain manipulation before reaching
finished state, the commissioner has de-
cided that stamping may be dispensed with
until the wine has arrived at marketable
condition. so long as 1t is contained In
vaults, cellars or other appropriate places
in the wineries where such wines are treat
ed, and the process of manufacture contin-
ues. AS soon as the wine Is in market
able condition, liability to taxation at