Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1899-01-05
WAR TAX RULINGS.
Deputy Collector Leitch Advised of lmpor
rant Decisions by Commissioners Scott.

Deputy Collector Leitch Advised of lmpor-
liant Decisions by Commissioner Scott.
Col. @. NJ. Leitch, deputy collector
of internal revenue. has received copies
of q number of recent importantrulIngs
by Commissioner N. b. Scott affecting
the war tax, including the following:
Tickets received at bank and paid
the same as checks are regarded as in
effect orders for the payment of money.
Orders for the payment of money, drawn
by the secretary of an order or bene-
| ticiary society on it's treasurer, in favor
Of q third party. require 2-cent stamp.
A check drawn by the cashier, or some
other officer of a bank, upon the bank
of which he is such officer, made pay
able to'some person not connected with
the bank, requires q stamp. If d check
used is simply in the nature of
memorandum, and not an order for the
payment of money, but used within the
bank exclusively, as a method of keep
ing the accounts, 1t is not necessary to
stamp the same as a check. A check
drawn in this country upon bank is
| subject to the same tax, whether the
bank upon which it is drawn is do
nestle bank or bank located in a for
| eign country. The distinction between
| inland or foreign, is we'll defined. The
conveyance by express companies or
other common carriers of bank bills,
coin, currency, or money of any kind,
imposes an obligation on such common
carriers TO issue and. stamp bill of
lading or receipt for the same, it being
held that such property is included
within the terms ANY goods accepted
for transportation. - Money orders
| issued by express companies must be
stamped at the rate of 2 cents for each
order. Foreign express money orders,
cashed in the United States, are sub
| iect to taxation at the rate of cents.
Orders by telegraph or otherwise for
tho payment or transfer OF money
abroad issued by express or other COM
panics, or any person OF persons, re-
| quire stamp at the rate Of cents for
each 300. Orders for the same pur-
pose within the United States require
u stamp of cents on each order, ire
spective Of the amount. Checks drawn
by United States disbursing officers
against public funds standing to their
official credit in performance of duties
| required by law do not,require 2-cent
internal revenue stamp placed thereon.
All checks drawn by officers Of States,
counties and municipalities for the dis
charge of the obligations of States,
counties and municipalities are exempt.
These checks should have an indorse-
ment or their face showing that they
are drawn against "public funds. "
Any order for payment of money drawn
in, but payable out of, the United
States, IL drawn singly, is subject to
tax of cents for 500 or less, and for
nfl1 lnll
fraction, cents. A 2 cent stamp is
required on an order for cash drawn Oh
a merchant by one of his customers. II
papers in the nature OF receipts are
| given in lieu Of checks, and arc used as
commercial negotiable instruments,
they arc checks. and. not receipts, and
are subject to- taY.eJ The person who
signs and issues a.bank check, without
afiixing the proper stamp, becomes in
yolved in liability TO penalties under
section 10 of the act, unless it is shown
that he had no design to evade the pay
ment Of tho stamp tax. and. that the
requisite stamp was affixed and can
celled by the bank or person upon whom
ii was drawn before payment. Where
\ q check is presented at bank without
4 having the requisite stamp affixed, the
bunk, il 1t pays such unstamped check,
becomes liable to the penalty provided
by section 10 of the act. The bank
may cure the defect by affixing the
proper stamp. Tickets, which are on
the face merely memoranda of money
due te. 6. John Doe, June 18th, 1898;
slbl, and do not contain any language
making them checks or orders for the
payment OF money or promissory notes,
"A are not subject to tax, unless received
and paid at bank the same as checks.
Grain tickets, cotton tickets and all
other similar instruments which are
given to persons who present them To
banks or third persons to be cashed.
are subject to taxation at the rate of Z
cents, as orders for the payment OF
money. ~
Deeds and mortgages executed by q
! Sheriff. in compliance with an order oil
the court, are subject to o tax. Con.
tract for deed, which does not conve,
and vest tito, and which contains
provision for giving a deed upon com
a plianco with the conditions in the con
! tract, is not taxable as conveyance Of
land. III a deed does not grant, assign
transfer, or convey to the purchaser
any lands, teneinents, or other realty
but only the right to burial, to cree
monuments, &C., it does not require ;
stamp, A tax is not imposed upon III
instrument whereby the title to per
sonal property is conveyed, excep
!, where expressly provided in Schedul,
: a of the act. There is no difference il
q the rate OF taxation between that en-
{ chattei mortgage and on mortgage o
j realty. Deeds, mortgages, and simila
Instruments placed ms "escrows" ar
not subject to taxation until final de
8 livery. Where q mortgage states tn
full amount secured and provides 70
n present and future issues Of bonds i
should be stamped according to tn