Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-04-12
TAX on BONDS AND NOTES.
Different Between Those of Private
Persons and COrpOratiOns.

4
The Commissioner OF Internal Revenue
has ruled. under date OF March p, 1899.
that different taxation is provided for
under the act OF Congress. approved
! February 2s. 1859, on bonds given by pri-
vate persons and those given by corpora
tons.
Colonel Brady gave out the purport Of
these rulings in a notice issued from the
internal revenue Office OF this district
yesterday afternoon.
The bond of a private person secured
by a mortgage would be subject to taxa
ton If the amount OF money secured does
not exceed $3.50. because up TO this
amount the greater tax accrues on the
bond, said tax being 80 cents, the mort
gage not being subject to a 20 cent tax UNI
less the amount secured exceeds 81, 800
and does not exceed 5000. When the
amount secured exceeds 81. 800 and does
not exceed $500 the tax is equal, and
when this occurs the mortgage should be
stamped and not the bond. but the bond
should have an endorsement that the
mortgage has been duly stamped, as re-
quired by law.
In regard TO the question OF whether
or not coupons attached TO these bonds
given by private persons should be stamp
ed. this office holds that the coupons rep
resenting interest are not to be taken
into consideration, when the comparison
is made between the bond and the mort
gage. as to which instrument is subject
to the greater taxation, yet in all in
stances where the sum secured does not
exceed 81, 800. the coupons. If promissory
notes. should be stamped as such. When
the amount exceeds 800 and does not
exceed S2,OO0. these coupons need not be
stamped. for in this instance. and, in fact
in all instances where the bond secured
exceeds 1880. the mortgage IS the instru-
ment that should be stamped.
AS TO PROMISSORY NOTES.
Considering the question OF promissory
notes only, the comparison is made be-
tween the mortgage and one note, and
that the larger one, If more than one
note is secured by the mortgage.
For instance the sum OF Sl,400 Is bor-
rowed. and to secure the payment of this
sum u mortgage is executed for that
amount securing the payment OF two
notes-one for 500, payable in one year.
and one for S7O0, payable i'm two years
Comparison in this instance is made be-
tween the mortgage and one of the notes,
each note being subject to tax Of Ii
cents and the mortgage subject to a tax
Of % cents. Therefore, the mortgage
should be stamped.
If, instead of executing two notes for
500 each, one note for 400 We're exc
cuted. the greater tax would accrue on
the note, a ST. 400 promissory note, being
subject TO n tax Of % cents, and the
mortgage securing same being subject to
a tax Of % cents Therefore, the LOO note
would be the instrument that should be
stamped
When a mortgage Is given to secure the
payment of a sum exceeding $500 said
$3.50 indebtedness being represented by
promissory note, the greater taxation will
always accrue upon the mortgage, but up
TO this amount of 81, 500 the question OF
whether or not more than one note is ex-
ecuted should be taken into considera-
ton in the comparison in order to deter
mine which instrument should be stamp
ed. The following is the correct manner
of stamping a mortgage and note for
sums not exceeding 100:
Note not exceeding $1,000. zoe.
Note not exceeding SLIGO Stamp mort
gage and not note). .25c.
Note not exceeding $500 STAMP mort
gage and not note). .....................25c Csc.
Note not exceeding $500 Stamp note
and not mortgage)......... ...........26c.
Note not exceeding 400 STAMP note
and not MORTGAGE. ..........2Sc.
No6s not exceeding $3.50 STAMP note
and not mortgage).......... ..........3Oc.
In all instances regarding notes secured
by a mortgage. the instrument on which
the tax does not accrue should have en-
dorsed upon It that the contemporaneous
instrument is duly stamped according to
law. JAMES ID. BRADY,