Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-08-22
RULES GOVERN
TAXON STOCKS
Regulations in Detail Received at
Office of Deputy Internal
Revenue Collector.
AFFECTS MANY COMPANIES
approximately Twenty-fiTB Local
Concerns Interested in Rul-
iRgs on Matter.

approximately % local concerns
are affected by federal regulations
received by Deputy Internal Rev
euue Collector 7. J. Cavanaugh to-
day, relating 10 the tax levy upon
capital stocks, their issue, sale or
transfer.
Stamp taxes upon taxable issues
ana transfers OF stock are levied
as follows:
Capital stock, issue-On each
original issue, whether on organi-
zaJsOl OF Reorganization, or ceTuti-
Gates OF stock by any association,
company, or corporation, on each
SI00 OF face value or fraction
thereof five cents; provided that
where capital stock is issued with
out face value. the tax shall be five
cents per share, unless the actual
value Is in excess Of 800 per
share. IN which case the tax shall
be five cents on each 500 Of &C
tual value or fraction thereof
Capital stock. sales or transfers:
On all sales, or agreements TO
sell, OF memoranda of sales or de-
Iiyeries of, or transfers OF legal
title 10 shares OF certificates Of
stock in any association, company,
OF corporation, whether made up
on or shown by the books of the
association, company, or corpora
tin, or by any assignment in blank
or by delivery, or by any paper or
agreement or memorandum or 9TH
CT evidence OF transfer or sale,
whether emitting the holder in any
manner to the benefit of such stock
or not, on each 500 of face value
or fraction thereof, two cents, and
where such shares Of stock are
without par value, the tax shall be
two cents on the transfer or sale
or agreement to sell on each share,
unless the actual value thereof is
in excess OF 500 per share, in
which case the tax shall be two
cents on each 500 of actual value
or fraction thereof
'-Ehe tax on the issue of capital
stock attaches to the issue Of Ger
tifcateS of stock representing
stock never before issued, no mat
ter when authorized Ii a cOrpor-
alton issues preferred stock in
place OF common, or one kind Of
preferred stock in place of anoth-
eT Kind of preferred stock, or stock
without par value in place OF stock
with par value, the tax applies, ev-
en- though the total outstanding
stock IS not thereby increased. The
tax applies to the issue OF certifi-
Gates of shares in sO-caIIed Mas
sachUsetts trusts and other unin-
cOrpOrated associations, to the
transfer Of the right to receive
stock dividend already declared,
and 10 the transfer Of the interest
OF q subscriber for stock, Lowev-
er such interest may be evidenced
or conditioned upon further pay
ments- The tax does not apply to
the transfer of rights to subscribe
for stock, prior TO exercises of the
right and actual subscription. 1t
does not apply to the surrender Of
certificates in exchange for other
certificates representing the same
or new stock, provided they are is
sued TO the same holder, nor TO the
surrender Of stock certificates for
retirement and redemption for
cash. If, however, the corporation
buys some of its own stock and
transfers It TO itself. whether or
not it intends eventually TO can
eel il, the transfer to the corpOr-
alton is subject TO the tax. The
test is whether the immediate
transaction results in the extinc-
Aon Of the stock or in vesting title
to it in the corporation"