The times., 1898-11-19

The controversy between the internal
revenue commissioner and the District
officials relative to placing Decent war
revenue stamps on tax certificates issued
by the District assessor will probably
be taken into the courts for settlement
as the result Of a communication received
yesterday by the District Commissioners
from N B. Scott the commissioner of in
ternal revenue, at the Treasury Depart
ment.
This communication advised the District
authorities that the internal revenue
commissioner is still of the opinion that
internal revenue stamps must be affixed
to tax certificates. It also stated that the
cost of such stamps is TO be borne by the
parties to whom the certificates are issued
The Commissioners have maintained.
and in this they have been supported oy
the District assessor Matthew Trimbie
and a recent opinion of the attorney for
the District, that. as the District Is a
part of the General Government, II should
not be required TO use the stamps, and
especially as the present law requires
that 50 cents shall be charged for all tax
certificates
In his recent opinion Attorney Thomas
held that the seventh section of the war
revenue act makes it the duty of the Of
fetal issuing the certificates TO afiix the
stamps.
''If the burden of stamping tax certifi-
Gates" said Mr.. Thomas. ISSUED by the
assessor is imposed by the war revenue
act upon private individuals, 1t Is not clear
from the language Of the statute. In my
opinion, the question presented. affecting
as they do, the public revenues, are too
important TO be disposed of by mere ad-
visory opinion. The matter should, II
possible. be decided judicially."
Notwithstanding the opinion OF Mr..
Thomas that the law does not PROVIDE
that the stamps shall be paid Tor by the
persons receiving the certificates the IN
ternal revenue officer, in HIS opinion made
public yesterday. holds that the cesuh-
Gates shall be taxed and that the persons
obtaining them shall bear the tax
The Commissioners have acqulesced in
the opinion of the revenue commissioner
and have no disposition to further con-
tend the matter, and yesterday they d.
rected the assessor to observe the ruling
of the Treasury officers
Although the Commissioners seem dis
posed to let the matter drop the public
is not, and the question will probably be
taken into the courts. Numerous appli-
cations were made for certificates yes
terday, one by prominent attorney, who
refused to pay the stamp tax and left the
assessors office without the certificate ne
sought. Before going he stated very firm
ly that he would appeal to the courts ana
institute mandamus proceedings to COM
pel the issuance Of the certificate to him
without having to affix a stamp. The
ruling affects about five thousand persons
annually and other appeals are expected
TO be made.
The opinion of Commissioner Scott.
which transfers the cost OF the stamps
to the public is in part as follows:
Under the circumstances attending the
issuance of these instruments. this office
does not consider that they are issued in
the exercise of municipal functions
strictly belonging to the government OF
the District of Columbia in its ordinary
governmental, taxing. or municipal ca
pacity.
THE act of Congress under which these
tax certificates are issued requires the
party requesting the issuance of the in
StTuulenI 10 pdN II Ice ci w eciitS.
They are wholly and purely for the bene-
fit of the person requesting their is
suanee. They are not issued for the ben
eft of the District government nor are
they issued in its taxing capacity.
They are issued for the accommoda-
ton of persons dealing in real estate, or
in transactions relating TO the same, that
they may be reliably informed as to the
amount of taxes, general and special. that
have been paid or are due upon the land
in question. They are never issued ex-
cept upon request of a person. Before
the request, the District government has
no concern whatever in the matter. and
they are not like the imposition of taxes
which are charged against the land, re-
gardless of request or protest.
Your attorney contends that section
of the war revenue act makes it the
duty OF the official issuing the certificate,
to pay for and affiX the stamp. This Office
does not agree with him In his contention.
Section states that If any person or
persons, shall make sign, or issue, or
cause to be made, signed, or issued, any
instrument, etc, without the same
being duly stamped, or without
having thereupon an adhesive stamp to
denote said tax, such person or persons
shall be deemed guilty of a misdemeanor,
and the tax is equally imposed
Upon both parties according to this sec
ton and the section Immediately pre-
ceding 1t.
1.-The Attorney General. under date of
July Is, 1898 in a communication address,
ed to the honorable Secretary of State.
in reply to a question propounded by the
latter official, states as follows:
- The Treasury Department, through
the honorable commissioner of internal
revenue, has made a ruling which has
been approved by this department that
papers and Instruments executed. made.
| or issued by officers of the Government of
the United States in the discharge of Off
cial functions pertaining to the operation
of the governmental machinery and for
the use or benefit of the United States,
are exempt from tax.
Where, however. certificates or other
ment officer of the Government at the
request of private persons solely for pri-
vate use a stamp should be affixed. And
in answer to your second question you
are advised that such stamp should be
furnished by the person applying for the
certificate or other instrument and for
whose use and benefit the same is issued,
and should be affixed before the docu-
ment is delivered.
You are, therefore advised that this
Office Is still of the opinion that stamps
should be affixed to tax certificates issued
in the District of Columbia such stamps
to be paid for by the parties to whom
they are issued" f"