OCR Text |
Show The Stamp Tax. New York, 11. On the 4th inst., president Tappan, of the Gallatin national bank of this city, addressed a letter to the commissioner ot internal inter-nal revenue, asking a decision of the following questiouo: First, are notes, drafts and acceptances, when made payable at the bank, subject to the stamp tax of two cents, and if so, does the lax apply to nous, drafts and ac-1 ac-1 ceptances, drawn or accepted prior to Feb. Slh, 187.3, and which nave matured and eincti been paid?Secoud, does the tax apply to checks drawn by the bank upon itself for the purpose pur-pose of payiug its own dividends, and dividenu coupons cr interest of otherj corporations? Third, are checks drawn by a state, county, or city government on the bank subject to this tax'.' Commissioner Douglass replies as follows: First, that if there is any understanding between the bank and Lite maker of the notes, or acceptor of checks, drafts, or orders, payable at the bank, that all such notfs and acceptances shall be paid by the bank and charged to the ao count of the maker, drawer, or acceptor in the same mauuei as ordinary checks would be, such notes and acceptances are considered liable to a two cent tax aa vouchers tor payment of money by a bank, Thii" applies to notes, drafts, etc., made, drawn or accepted prior to February Sth, when paid by the bank on or alter that date. Second, this tax applies to checks drawn by a bank upon ittelf for the purpose of paying its own dividends, coupons or interest of other corporations or other payments. pay-ments. Third, checks drawn by state, county or city otlicers in their official capacity upon public bonds deposited in tho bank are exempt. Such bonds are kept separate from any private oocount, it not being within the intent ot the law to tax a public treasury. I will add with reference re-ference to some other questions frequently fre-quently proposed to this office, that orders for dividends are subject to a tax, if drawn for a definite and certain cer-tain sum, but not otherwise. An ordinary or-dinary certificate of deposit used in the ordinary manner is not liable. Tntnrnst counona are considered ex empt; bills of exchange, foreign as welt as inland, when drawn upon a bank, banker or trust company, are held subject to a tax, whether payable at sight or otherwise; duplicates of bills, orders, etc., are liable the same as originals. Receipts not relating to banking business, for instance, for rents, are exempt. |