The Leon reporter. (Leon, Iowa) 1887-1930, 1915-01-28
SENDS NEW REGULATIONS.
Louis Murphy Writes to County Re-
COr(lelS.

Louis Murphy Writes to County Re-
cOrders.
County recorder Will Gardner has
received from Louis Murphy, collec-
tor of internal revenue at Dubuque
further instructions in regard to the
war emergency tax. The new regula-
tions are of public interest as great
percentage of the people will come
into contact with them and it will be
easier for them if they understand
the following regulations supercede
all previously issued and in conflict
with them:
Where the purchaser receives a
deed conveying the entire title to
himself, even though it be received
under a specific agreement that
mortgage or lien thereon will immed-
lately ensue, unless such mortgage
or lien is evidenced in the deed as
showing that it's execution was part
of, or consideration in the original
sale and transfer of title, the tax to
be imposed under the provisions of
the Internal Revenue Act of October
20, 1914, upon the deed should be
computed on the entire amount of
consideration given or the value of
the interest or property conveyed.
In short, unless the mortgage given
by a purchaser of real property, at
the time of purchase, is specifically
evidenced in the instrument of con-
|veyance, the only encumbrances
which may be deducted from the
amount of actual consideration given
or the actual value of the interest or
property conveyed, in computing the
amount of tax to be imposed upon the
deed, are those which rested upon the
property at the time of it's purchase.
In the case of deed which states
that the transfer is made for a nomi
nal 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 encumbrance being deducted
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 consid-
GRAFTON given, are not so affixed.
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
for, 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 acknow-l
lodged before notary public and de-
livered subsequent to that date is tax
able.
Section 13 of the said act provides
that it shall not be lawful to record
or register any instrument, paper or
document required by law to be
stamped unless stamp or stamps of
The proper amount shall have been
affixed and cancelled in the manner
prescribed by law
When deed is presented to re-
sording officer and it appears prob
able that an insufficient amount of in
;c, nal 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 inter-
nal revenue. 1t is not expected that
the recording officer will institute an
to see whether there
Has .Uccll Oily VAOAdIAOu VI luC AeAW I'LL
is it thought that he should exact an
affidavit showing the true considera-
ton.
II A contract for the sale of real es-
tate which provides for the issuance
of a 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
10c.
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 con-
or merely the nominal
of 81 for the purpose of |
correcting flaw in title, is not sub
iect to tax. No tax is imposed upon
an option for the purchase of real
Oil leases, leases Of mining proper
ty, long term mining leases, etc.,
which in themselves, convey no title
to, or interest in, real property are
exempt from tax.
Deeds in escrow do not become sub
|ect to the said tax until the final de-
livery is made. Therefore, ii delivery
II such deed is made subsequent to
December I 1914, 1t becomes subject
% the tax imposed upon convcyances.sI
{ Deeds issued by Masters in Cham
.ery, sheriffs, ETC.; to cover transfer