Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1915-01-23
REVENUE COMMISSIONER FOR
IOWA ISSUES LATE LIST
ABOUT PAPERS,.
EXCHANGES TAXED
Where No Immediate Transfers or
Certain Transactions are Named
There Is an Exemp-
tlon.

Collector lot iowa, Ill REGARD 10 the
stamp tax revenue on legal and me-
gotiable papers. The statement in full
is given below:
The act provides that deed, in
strument. or writing. whereby any
lands, tenements, or other realty sold
shall be granted, assigned, transferred
or otherwise conveyed, when the con-
sideration or value of the interest or
property conveyed, exclusive of any
lien or incumbrance thereon exceeds
500 and does not exceed $500, shall
be subject to a tax of SO cents, and
for each additional $500 or fractional
part thereof in excess of $500, so
cents.
For instance, where property is
sold for $4,000. $1,000 of which Is re-
ceived in cash and a promissory note
for the balance, the tax to be imposed
upon the deed should be computed on
the basis Of the cash received and the
said promissory note becomes subject
to the tax imposed upon such instru-
ments. that Is. 81 on the deed and 20
cents on the note.
"In the case of deed, which states
that the transfer is made for a nom
inal consideration, or consideration
of 81, the tax must be computed upon
the actual value of the interest or
property conveyed, the amount OF
any lien or incumbrance being de-
Quoted, and the person who executes
the deed is required to affix stamps
thereto and becomes liable to penalty
if stamps in sufficient amount,
based upon the actual value of the
consideration given are not SO af-
fixed.
Some Deeds Exempt.
"A deed which is executed, dated
and delivered prior to December l..
1914, is not subject to tax under the
provisions of the said act, and there
fore may be accepted for record sub
sequent to that date without having
documentary stamps affixed thereto.
"A deed which was dated prior to
December l, 1914, but was ackrowl-
edged before a notary public and de-
livered subsequently to that date, is
taxable
Section 10 Of the said act pro-
vides that it shall not be lawful to
record or register any instrument, pa
per or document required by law to be
stamped unless stamp or stamps or
the proper amount shall have been af-
fixed and cancelled in the manner
prescribed by law"
Where a deed Is presented to re
cording officer and it appears prob.
able that an insufficient amount Of in.
ternal revenue stamps are attached
thereto and he is not satisfied with
the explanation furnished by the par.
ty Offering the same for record, he
should notify the collector of revenue.
IL is not expected that the recording
officer will institute an investigation
to see whether there has been any
violation of the law, nor Is 1t thought
that he should exact an affidavit
showing the true consideration.
"a contract for the sale of real
estate which provides for the issuance
of deed at some future date upon
the fulfillment of certain conditions is
not subject to tax, if executed by the
owner of the land! If executed by a
broker it is subject to tax of 10
cents.
Partition Deeds Exempt.
"a partition deed which is operative
in defining boundary lines or in show
ing by location each tenant in COM
mons interest is not subject to tax.
"A quit claim deed given for no
consideration, or merely the nominal
consideration of 81 for the purpose OF
correcting flaw in title, is not subjecs
to tax. No tax is imposed upon an
option for the purchase of real prop
erty.
"Oil leases, leases of mining prop
erty, long term mining leases. etc..
which, in themselves, convey no title
to, or interest in, real property are
exempt.
Deeds in escrow do not become
subject to the said tax until the final
delivery is made. Therefore, If de-
livery of such a deed. Is made subse-
uuent to December /, 1914. 1t becomes
subject to the tax imposed upon con-
veyances.
Deeds of release and deeds of
trust are exempt from tax under the
provisions Of the said act.
Deeds issued by masters in chan
Gerry, sheriffs, ETC., to cover transfer
of property sold under foreclosure
or execution are subject to tax, the
cost of which may be added to the
court costs.
Deeds to burial sites which do not
convey title to land, but only a right
to sepulchre, to erect monuments, etc,
are exempt from tax.
Others Not Taxable.
"A deed issued to cover a gift of
property from husband to wife, or
from parent to child. or from an in
didivual to a municipality or other
political subdivision, wherein the con-
sideration named is natural love and
affection and ST. desire to promote
public welfare and ST. or 81 and 9TH
er valuable considerations, is not
taxable
IN case of an exchange of two
properties, the deeds transferring title
to each are subject to tax, which
should, in each case, be computed on
the basis of the actual value of the in
teresl or property conveyed, the
amount of any lien or incumbrance be-
ing deducted.
"A deed executed by debtor COW
ering an assignment Of property to a