The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-07-01
TAX ON STOCKS.
Commissioner of Revenue Makes an
Official Ruling.

Washington, July lon the question of
construction of that part of schedule A
of the act June 10, 1885, imposing tax
ION each original issue, whether on or
ganizatlon or REORGANIZATION, of certlh-
Gates of stock" it is held by the commits
siOner of internal revenue, in circular
issued today, that the meaning of the
limited and controlled by the words
whether on organization or reorganiz
ca ties of stock which the tax of cents
ION each hundred dollars on face value
or fraction thereof is imposed by this
act are those certificates issued on or
after July !, 1898, on the organization or
reorganization of a company. 1t is held
further that in the case of a corporation
having (for instance) an authorized capt.
sued only $500 600 prior to July /, 1898, and
on or after that date finds 1t necessary
to make one or more additional issues IN
der the authority possessed by 1t, each
additional issue thus made is an original
issue within the terms and meaning OF
the statute under consideration, ana the
certificates of such issue are subject to
Where any original certificate issued is
presented by the holder to the company or
corpoIatIoh LOT IS issuance u a 4e
ceruncate or ceftlilcates IN neu IheFeoi'
the certificat e or certificates thereupOn is
sued to take the place of the original GER
tihcate could not, under the language ana
Limitation of the statute above Tecited, re-
quire any stamps as long as there is no
sale or agreement to sell or memorandum
of sale, transfer of any of these certifi-
Gates issued in lieu of the original
In case of sale, where the evidence of
transfer is shown only by the books of
the company, a tax OF Z cents IS required
TO be paid on each 500 of face value or
fraction thereof and the stamp repre-
senting this is required to be placed upon
such books.
Where the change of ownership is by
transfer certificate, that is to say, the eX-
ecuted authority to transfer is contained
on the back of the stock certificate which
is to be transferred. the stamp must be
placed on the transfer certificate: that is
to say, upon the surrendered certificate
containing the transfer.
In cases of agreement to sell or where
the transfer is by delivery of the certih-
cate assigned in blank, there must be eX-
ecuted memorandum thereof. to which
the stamp is required to be affixed.
Uder the ruling herein stated IN a case.
that may be supposed. of man who is
the owner of a certificate for 100 shares of
stock and wishes to sell ten of them to
another person, the result being that one
certificate would be issued for the ten
shares sold and also an additional certifi-
cate for the 30 shares still remaining with
certificate for 10 shares Sold in lieu
thereof, does not require any stamp, and
the certificate for the 10 shares does not
require stamp representing the tax of 5
cents on each 800 or face value or frac-
ton thereof. Is 1t is not an original issue
The only stamp required with reference
to those certificates is stamp on the
transfer of the 10 shares sold, representing
the tax of cents on each 500 of face
value or fraction thereof.
In another case Stated for illustration).
where a man holds several certificates for
shares of stock aggregating 100 shares.
and for his convenience calls upon the
company to issue to him in lieu thereof
one certificate for 100 shares: there being
no sale, or agreement to sell, or memor-
andum of sale or delivery or transfer OF
this new certificate, the statute does not
require the afdxing of any stamp thereto