Year: 1866

THE NEW COTTON TAX.
THE PROVISIONS OF THE NEW INTERNAL


REVENUE LAW ON THE SUBJECT.


As a matter of very general interest to
our readers, we present below the first eight
sections of the new Internal Revenue Law,
which embrace all the provisions of the
law which relate to the internal tax on
cotton: ..


Be 1t enacted by the Senate and House
of Representatives of the United States Of
Amsrica IN Congress assembled, That on
and after the first day of August, eighteen
hundred and sixty-six, in lieu of the taxes
on unmanufactured cotton, as provided in
Gan act to provide internal revenue to sup
port the Government, to pay interest on the
public debt, and for other purposes" ap
proved June thirteenth, eighteen hundred
and sixty. four, as amended by the Act of
March third, eighteen hundred and sixty
five, there shall be paid by the producer,
owner or holder, upon all cotton produced
within the United States, and upon which
no tax has been levied, paid or collected, a
tax of three cents per pound, as hereinafter
provided; and the weight of such cotton
shall be ascertaiued by deducting four per
centum for tare from tie gross weight of
each bale or package; and such tax shall
be and remain lien thereon, in the posses
sion of any person whomsoever from the
time when this law takes effect, or such
cotton is produced as aforesaid, until the
same shall have been paid; and no draw
back shall in any case be allowed os raw or
uumanufactured cotton Of any tax paid
thereon when exported in the raw unmanu.
factured condition. But no tax shall be
imposed upon any cotton imported from
other countries, and on which an import
duty shall have been paid.


Sec. 2. And be 1t further enacted, That
the aforesaid tax upon cotton shall be levied
by the assessor on the producer, owner, or
holder thereof And said tax shall be paid
to the collector of internal revenue within
and for the collection district in which said
cotton shall have been produced, and before
the same shall have been removed there
from, except where otherwise provided in
this Act; and every collector to whom any
tax upon cotton shall be paid shall mark
the bales or other packages upon which the
tax shall have been paid, in such manner
as may clearly indicate the payment thereof,
and shall give to the owner or other person
having charge of such cotton permit for
the removal Of the same, stating therein
the amount and payment of the tax, the
time and place of payment, and the weight
and marks upon the bal es and packages, SO
that the same may be fully identified; and
it shall be the duty of every such collector
to keep clear and sufficient records Of all
such cotton inspected or marked, and of all
marks and identifcations thereof, and of
all permits for the removal of the same,
and of all his transactions relating thereto,
and he shall make full returns thereof,
monthly, to the Commissioner of Internal
Revenue.


Sec. g. And be 1t further enacted, That
the Commissioner of Internal Revenue is
hereby authorized to designate one or more
places in each collection district where an
assessor or an assistant assessor and collec
tor or deputy collector shall be located, and
where cotton may be brought for the pur.
pose of being weighed and appropriately
marked: Provided, That it shall be the
duty of the assessor or assistant assessor
and the collector or deputy collector to as
sess and cause to be properly marked the
cotton, wherever it may be, in said district,
provided their necessary travelling expenses
to and from said designated place, for that
purpose, be paid by the owner thereof.


Sec. 4. And be 1t further enacted, That
all cotton having been weighed and marked
as herein provided, and for which permits
shall have been duly obtained of the asses
sor, may be removed from the district in
which it has been produced to any one
other district, without prepayment of the
tax due thereon, upon the execution of such
transportation bonds or other security, and
in accordance with such regulations as shall
be prescribed by the Commissioner of In
ternal Revenue, subject to the approval of
the Secretary of the Treasury: The said
cotton so removed shall be delivered to the
collector of internal revenue or bis deputy
forthwith upon its arrival at its point of
destination, and shall remain subject to his
control until the taxes thereon, and any
necessary charges Of custody thereof, shall
have been paid, but nothing herein con-
tanned shall authorize any delay of the
payment of said taxes for more than ninety