The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-08-06
Rent RECEIPTS EXEMPT
Commissioner Scoot Rules
That Ordinary Vouchers
Require No Stamps.
REVERSAL OF FORMAL RULING
Landlords and Real Estate
Agents May Now
Breathe Easier.
REVERSAL OF FORMAL RULING

A decision bearing upon that section of
the war revenue law relative 10 the tax
ing Of rent receipts was received from
COMMISSIONS Scott by Internal Revenue
Collector Rutan yesterday morning. 1t is
10 the effect tina IAN ordinary rent re-
ceipt simply reciting the fact of money
having been paid, is not subject 10 taxa
tion.''
The COMMISSIONS adds, however. that
he can give no opinion as to whether or
not any particular form of receipt is ex-
empt until a copy of the same has been
submitted to him. The decision Is taken
as a partial reversal Of the Commission
erss former ruling N this point. Mr..
Rutan was asked what he considered an
ordinary receipt He replied that he
would give no opinion upon that point un-
less the receipt was presented to him for
consideration
Would a receipt stating the fact that
a certain sum of money was received in
payment for rent of a particular month.
constitute an ordinary reeeipt?' the Col
iector was asked.
Il can only repeat what l said before"
was the answer. Il do not want a wrong
construction to be placed upon this mat
ter. and /. therefore. must insist upon
seeing a receipt before I pass upon it,
A few minutes later a man entered the
office carrying a package Of receipts. In
the copy which he submitted to Collector
Rutan and Deputy Collector Bruen was
a sentence stating when the lease ex-
pired. He was told that this must be
construed as a stipulation and was, there
fore. subject to the tax of twenty-five
cents.
Several lawyers were asked by a
News reporter what was their opinion
as to what constitutes an Ordinary re-
ceipt.' One declared that he considered
that either of the following forms could
be so considered
Received from Mr.. - s. for rent
of house on - street for month of -
or .sMr. 49,. debtor, to Mr.. 49, for rent
of house on - street for month Of -
So
.'Th law reads he continued. that
contract for the hire. use or rent of any
land or tenement or portion thereof, ETC.,
is subject to the tax. I do not consider
that either of the two forms I ave men-
toned could be considered in any way
other han an ordinary receipt. Nothing
in the form of a lease, agreement, MEM
%orandum or contract is implied"
Similar opinions were advanced by sey-
eral others.
COMMISSIONS Scott was visited at his
Office in Washington, DC, and asked for
a more definite ruling on the rent receipt
question. His reply was as follows
TThis Office holds that where a receipt
is given for money received and there are
no other ~recitals in the receipt, it does not
require b stamp. If the receipt contains
any phrase or clause that can be con-
strued as a contract for The hire use or
rent as aforesaid, then in such cases the
receipt becomes something more than a
bare receipt and should be stamped ac-
cording to its tenor or effect"
Another decision received from Wash
ington was as follows:-
.Conveyances Of real estate from hus-
band to wife. through third parties, With
out consideration. are taxable as convey
| ances at the actual value of the property
conveyed"
A circular has been received by Mi Ru-
tan from General Dumont, Supervisor
General of Steam Vessels, stating that un-
der the War Revenue act a ten cent.
stamp must be placed on all certificates
necessary in the ordinary river navigation
business.