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Show Real "Coops" Exempted From Taxation IN ACCORDANCE with suggestions from President Coolldge relative to co-operation of the Treasury department with agricultural interests, in-terests, as recommended by the recent agricultural conference, Secretary Secre-tary of the Treaaury Mellon made public pub-lic regulations pertaining to the tax exemption of co-operative marketing associations. A further study of the law Is being made by Solicitor Hurt son, of the bureau bu-reau of internal revenue, to determine whether or not the bureau can follow fol-low out all suggestions of the conference. confer-ence. A co-operative marketing association, associa-tion, preferred stock of which has been sold to persons other than producers pro-ducers who market their produce) through it, and which has made no provision for early redemption or retirement re-tirement of stock, is excluded from exemption, ex-emption, the treasury hold. Co-operative associations acting as sales agenta for farmers, fruit growers, grow-ers, live-stock growers, dairymen and others, or engaged in marketing farm products and turning back to producer pro-ducer the proceeds of sales, less oper ating expenses, are exempt from tax, Hartson ruled. The decision said that maintenance of a reasonable reserve for depreciation deprecia-tion or losses of reserves required by state statutes, reasonable surplus to provide for erection of buildings or purchase 'of other facilities, or to retire re-tire Indebtedness incurred to meet Improvements, Im-provements, doe not destroy exemption. exemp-tion. In case stock Is owned In co-operative associations by persons other than producers, satisfactory explanation must be made In th application for exemption. Ownership of a share of stock by a non-producer to qualify him as an officer under statutory requirement require-ment does not Invalidate an exemption exemp-tion claim. The restriction Is not placed on stock Issued temporarily for the sol purpose of providing working capital or acquiring property, providing such stock Is not entitled to participate In profits of the control of the association. Under the same restrictions, co-operative associations acting aa purchasing purchas-ing agents for farmer are exempt from federal taxation |