The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-12-01
HOW THE NEW STAMP TAXES
AFFECT NEARLY EVERYONE

10 the Editor of The Age Herald
| The act of Congress to increase the in
| ternal revenue, and for other purposes
approved October q. 1914. requires. amon
other things, that internal revenue stamp
shall be affixed to all promissory notes
bills of lading, insurance policies, and nu
merous other instruments. papers an,
documents made or issued on or afte
the first day of December, 1914 and I,
every package of numerous articles O
every day use sold on or after said date
These requirements will to some extern
affect directly nearly every citizen of tn,
United States in his business transac
tons There are doubtless a great man,
who have not had an opportunity to in
form themselves of the provisions of thi.
act, with which they will be required tt
comply. In response to an inquiry from
your reporter concerning the law l sub
nit the following condensed statement
of some of its provisions, together witt
some brief comments thereon, which ma,
be of interest and benefit to some of your
readers:
l. The necessary stamps can be pur-
chased from the collector of internal rev.
enue or postma sters
2. The person using or affixing the
stamp is required to concel same by writ
ing or stamping thereupon the initials OF
his name and the date of using or affix-
ing the stamp.
3. The person making. signing or issu-
ing the instrument, or for whose use OF
benefit the same is made signetd or is
sued, is required to pay the tax by af-
fixing the stamps on such Instruments;
except that the tax on bills of lading and
like instruments evidencng express or
freight shipments is to be paid by the
shipper, who is required to affix the
necessary stamps after the making and
issuing of the bill of lading or other like
instrument to him by the carrier, and the
tax on telegraph and telephone messages
Is to be collected by the company from
the person paying for the message and by
the company paid to the internal revenue
collector.
4. The instruments subject to the tax
are not rendered invalid or inadmissible
in evidence in state courts by reason of q
failure to affix the necessary stamps-at
least, it does not have that effect when
the omission of the stamps was not with
intent to evade the duty or defraud the
United States. as where the failure was
by reason of accident. mistake, inadver-
lance or urgent necessity.
s. The act also provides that, 'in all
cases where the party has not affixed
to any instrument the stamp required by
law thereon at the time of issuing, selling
or transferring the said bonds, deben-
lures. or certificates of stock or of ,ndebt-
edness, and he or they, or any party hav-
Ing an interest therein. shall be subse-
duently DESTROYS of affixing such stamp
to said instrument or, II said instrument
be lost, to copy thereof, he or they shall
appear before the collector of internal
revenue of the proper district who shall,
upon the payment of the price of the
proper stamp required by law, and Of a
penalty of $40, and where the whole
amount of the tax donated by the stamp
required shall exceed $50. on payment
also of interest, at the rate of per cent.
on said tax from the day on which such
stamp ought to have been affixed, affix
the proper stamp to such bond. debenture.
certificate of stock or of indebtedness or
copy. and note upon the margin thereof
the date of his so doing, and the fact
that such penalty has been paid; and the
to be as valid. to all intents and purposes
as II stamped when made or Issued 1t
is further provided that II 1t shall appear
to the satisfaction of the collector that
the stamp was not affixed by reason of
mistake, inadvertence or urgent necessity
and without any wilful design to defraud
the United States of the stamp, and the
instrument is presented to such collector
for stamping within 10 months from the
making or issuing of such instrument,
and the stamp tax paid, such collector
may remit the penalty and cause the in
strument to be stamped
6. The act provides that 1t shall not
be lawful to record or register any in
strument, paper or document required by
law to be stamped unless a stamp or
stamps of the proper amount shall have
been affixed and cancelled in the man.
ner prescribed by law.
A similar provision in former stamp tax
laws was held by most of the courts
where 1t was considered to apply only to
the recording of instruments required by
United States statutes to be recorded
and not to apply to the recording or
registering of instruments authorized or
required by state laws to be recorded or
registered, and not to forbid or prohibit
a state officer from recording such in
struments. 1t would seem that such con-
StTuctlOn OF former laws would also ap-
ply to the present law.
The supreme court of Alabama in pass
ing upon a like provision In a former act,
without deciding whether or not 1t had
any application to the recording of in
struments under state laws, held that 1t
did not apply to or prohibit the record
ing In the probate office of an unstamped
mortgage, or affect such record as notice,
where the omission of the stamp was not
I~-t 1-S =
States tsuch former act having required
a stamp on mortgages.)
Z. Failure to comply with the law Is
made a misdemeanor and IL the failure to
affix the required stamps Is with intent
to evade the duty or defraud the United
States, punishment by fine and imprison-
ment either or both. Is provided.
s. The said stamp taxes imposed by this
act shall not be levied or collected after
December 81, 1915. except that taxes ac-
cruing on or before said date shall con-
tinue to be collectible under the terms
of the act.
condensed statement of some of the
instruments in most frequent use which
are subject to the tax, and the amount
of stamps to be affixed to each, IL as fol-
lows:
SCHEDULE A
Bonds. debentures, or certificates of in
debtedness issued by any association,
company or corporation. on each 500 of
face value or fraction thereof, s cents.
Certificates Of stock In corporations; on