Evening journal., 1899-03-18

BUT ONE STAMP REQUIRED TO BE
PLACED ON BOND SECURED BY
A MORTGAGE.
Deputy Internal Revenue Collector
l.eltoh is in receipt ofthe folgowlng i'm
fportane rulings relative 10 stamps on
t0ads and notes secured by mortgage
incorporated in a recent act Of Con
y,ess:
Treasury Department,
lCnice OF Commissioner of Internal
Revenue.
Washington, d. c., March z, 1899.
10 Correctors and Other Officers Of
Tueinal Revenue: Special attention
10 called to the appended act OF Con-
gross, approved February 2S, 1899,
Gmendlng schedule A Of the act Of June
10, 1898, known as the war revenue act.
G. w. WILSON, Commissioner.
Joint resolution to amend section % of
the act passed June l3, 1898. en-
titled ''An act to provide ways and
means to meet war expenditures,
and for other purposes
Resolved by the Senate and House OF
Representatives OF the United States OF
( FNhltilAd 1T NbibIthof nat
an act passed June l3. 1898, entltled
Am act TO provide ways and means to
m5el war expenditures, and for other
tlrposes.' lie amended by adding to
the end Of schedule A. section 25. inc
fol.0wiIlg: Whenever any bond or
r-te shaG be secured by a mortgage, or
deed CT trust, but one stamp shall be
lreGulred to be placed upon such papers.
FLcvided, I That the stamp tax paced
thereon shaI be the highest rate re-
quired for said Instruments, or either
OF them"
ATmov February 2S, 1899.
Bend OF private person secured by
mortgage considered in relation TO
opinion CT the encouragement
and amendment to schedule A ap-
rgcved February 2S, 1899.
Sir: This office is in receipt of a let
ter, hearing date Of February s, 1899
dlrom A. NJ. Sanders, attorney at law,
2c5 Broadway, New York city, in which
,his gentleman states that he saw in a
lgs-ont issue OF a Brooklyn IN, "
lIapsr, the statement that an Internal
revenue collector had notified the Title
Guarantee and Trust Company, oil
Blochyn, that a bond given with a
real estate mortgage must have affixed
Lh0gG,o a 50-cenlt stamp. and, in addi.
tion, GENTS per 500 of the amount oil
the bond And that in decision No. 1875
circular No SOB, revised, It is stated
that q bond secured 10y a mortgage
gi,rn 10y a private person in lieu of q
picmLssory note is taxable as a prom.
isJcry note. and net as n bond. and h,
asks icg an explanation OF these incon
slstcn. rulings.
ln rep,y you wiQ Please inform hin
that railing No. 1875 in circular 5O3, re
vised, was the mling Of this office un,
til lew days ago when the attorney
general advised this Office that a bono
secured 10y a mortgage. said bond ant
mciug9ge being executed by a privat,
person, WIS subject 10 a tax of 81
CUNTS Since the rendering CT the at
ltoiney-gcnerals opinion. the Congress.
of the United slgates has passed the fol
owing Amendment TO schedule A
which Must be taken into considera
1on in ccrnsOtiOn with the ruling o
the attouney-generah This amend
mont was approved by THE presidenl
on February 2S, 1899, and is as follows
Whenever any bond or note shall b,
secured by a mortgage or deed OF trust
l1. cne stamp shall be required, to b,
ILdeed agpon such papers: Provided
hat THE stamp tax placed thereon
b shall be the highest rate required fo
said instruments. or either of them"
You Will, therefore, see that when
p bond is executed by q private person
and il is secured by a mortgage, tha
= tho tax is SO cents on the bond Yol
viii. also see according to the tax ol
mcil;lgages that there is no tax accrhnl
: en- a mortgage If the sum SECURED doe
I moi exceed $1,000. The tax on mort
gage securing sum exceeding 81, ,00
+ and not exceeding $500 is 25 cents
l. Therefore, in amy case where a mort
gage and bond is given by a privat
y person ior sum not exceeding 81, SOC
= uhe greater tax would accrue on tn
bond, and under the above amendmen
e the bond should be stamped. After tn
2 lscSmCd sum CT Sl,5O0 is exceeded an
y lle excess is not greater than 81 ,00C
I the tayation on the bond and on tn
l. mortgage is equal, being so cents o.
!. each instrument Whenever the tax /
equal, 1t is the ruling Of this Office tina
the mortgage should be stamped an
nCt the bond.
i. This office also informs you that tn
instrument which is relieved from tax
i alton under this amendment shoul
u have Endorsed upon 1t that the othe
IT Instrument is duly stamped accordin
l. 70 law This is a requirement for IN
: benefit OF al parties concerned and
= should be made as prima facie evidenC
that the requirements OF the law hay
been complied with.
Respectfully yours,
|. G.. w. WILSON, Commissioner.
r CHARLES II. TREAT,
Collector Second District. New Yor
n ~ Y.