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and used the name of a well-known medicinal article, to make the distinction which I have attempted to draw the more easily understood. Respectfully, JAMES E. BOYD, Assistant Attorney-General.

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(See also CONVEYANCES; and DECISIONS 19692, p. 56; 19711, p. 94; 19736, p. 116; 19764, p. 82; 19800, p. 95; 20320, p. 140.)

SIR:

(19679.)

Stamp tax-Mortgages.

Mortgages or pledges of land or personal property.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 12, 1898.

There is no difference in the rate of taxation between that on chattel mortgage and on a mortgage of realty.

Upon a mortgage or pledge of real or personal property for a sum exceeding $1,000 and not exceeding $1,500 a stamp of 25 cents is required, and on each $500 or fractional part thereof in excess of $1,500 25 cents.

Each and every assignment or transfer of the mortgage, or the renewal or continuance of any agreement or contract, by letter or otherwise, requires a stamp duty at the same rate as that imposed on the original instrument.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Hon. W. C. ADAMSON, House of Representatives, Washington, D. C.

(19680.)

Stamp tax-Assignments.

Assignment of mortgage-Promissory notes and assignment thereof.

TREASURY Department,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 12, 1898. SIR: * * Upon each and every assignment of a trust deed or mortgage a stamp duty is required at the same rate as that imposed ou the original instrument.

12593-15

Any promissory note, except bank notes issued for circulation, for a sum not exceeding $100 requires a stamp of-2 cents, and for each additional $100 or fractional part thereof in excess of $100, 2 cents.

No stamp is required upon the transfer, by assignment, of promissory notes.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. GEORGE M. RUPERT, West Chester, Pa.

(19697.)

Stamp tax-Mortgages.

No tax upon mortgages unless exceeding $1,000, when mortgage is stamped as

promissory note.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 14, 1898.

SIR: I have your letter of the 1st instant, asking a construction of the war-révenue law in reference to mortgages under $1,000. Schedule A of the act of June 13, 1898, under the head of mortgage or pledge of real or personal property, provides that a tax of 25 cents shall be paid on such instruments exceeding $1,000 and not exceeding $1,500, and on each $500 or fractional part thereof in excess of $1,500 25 cents. There is no tax upon mortgages unless exceeding $1,000. In all cases, however, where they are accompanied by a note or a bond for the amounts secured by the mortgage, the note or bond, which is in effect a promissory note, is subject to a stamp tax, as provided in Schedule A, under the head of bill of exchange, etc.

Where a mortgage is given for a sum of $1,000 or less, and therefore not subject to tax as a mortgage, and is not accompanied with a note or bond for the payment of the money, but contains a clause or stipulation promising to pay a certain amount, the instrument will be subject to taxation as a promissory note according to the rate provided therefor. Respectfully, yours, N. B. SCOTT, Commissioner.

Mr. EDWIN W. ROBERTSON,

President Loan and Exchange Bank, Columbia, S. C.

(19701.)

Stamp tax-Mortgage-investment company.

Relative to liability of a mortgage-investment company-Instruments to be stamped

under Schedule A.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 15, 1898.

SIR: I have received your letter of the 8th instant, asking for rulings on various questions drawn up by the counsel of your company with

reference to the stamp-tax liability resting upon your company in the different transactions connected with the conduct of its business.

The first questions submitted relate to the special tax liability (if any) of the Middlesex Banking Company either as a banker or a broker, under the first and second paragraphs of section 2 of the act of June 13, 1898. The charter of the company, it is stated, authorizes it

To receive money on deposit and to allow and pay interest on said money, and to loan the same at interest; to borrow money and issue its obligations, negotiable or otherwise, therefor, in which obligations, if secured by first liens upon real estate worth at least double the face thereof, holders of trust funds may invest such funds.

It is further stated that the charter provides that—

All the property and estate of every kind belonging to said corporation shall be and stand charged with the fulfillment of said obligations as the first and prior liens thereon, in case of the failure of said corporation.

It is understood that the business conducted by the Middlesex Banking Company, under its charter, is the business of a mortgage investment company, employing its own capital, and money borrowed for which its obligations are issued, in the making of mortgage loans on real estate; and that the payment of these obligations is secured by the deposit, with an incorporated trust company, of the notes and mortgages taken for the loans which the company has made on real estate. If this is a full and complete statement of the character of the business transacted by this company, and if the deposits received by it are not subject to be paid or remitted upon draft, check, or order, and it neither advances nor loans money on stocks, bonds, bullion, bills of exchange, or promissory notes, nor receives for discount or sale stocks, bonds, bullion, bills of exchange, or promissory notes, it is not required to pay special tax as a banker under this act.

If the statement made and submitted as to the company's transac tions is complete, namely, that its business is not to negotiate purchases or sales of securities of any kind, but to issue its own obligations for money borrowed, and that it does not negotiate purchases or sales on stocks, bonds, promissory notes, or any other securities whatever, either on its own account or for others, it is not required to pay special tax as a broker under the second paragraph of section 2 of the act.

To the remaining series of questions submitted I reply as follows: (1) Where a promissory note is secured by a mortgage, stamp tax must be paid on each, and the requisite stamp affixed both to the note and the mortgage.

(3) The memorandum on the back of a deed or mortgage, noting the date of its filing and the fact that it was filed and recorded by the regis ter or recorder, is held not to be such a certificate as requires a stamp. (4) In the satisfaction of a mortgage, where a regular release is executed, sealed, and delivered, it is held that this release comes under the

head of a conveyance, and that stamp tax is required to be paid thereon according to the value of the interests released or conveyed by such instrument.' Where, however, the local laws authorize entry of satis faction upon the record, and the mortgage is thus canceled, such entry does not require a stamp, as it is regarded neither as a release nor a certificate. If, however, the mortgagee, as he has a right to do in some States, makes a power of attorney to the register, or recorder, or other person, for the entry of satisfaction of the mortgage, stamp tax must be paid on this power of attorney.

(5) Where there is no actual sale of the mortgage, but an assignment is made of the mortgage by a separate written instrument, and the mortgage and the instrument are deposited with the trustee as a security for the company's obligations, stamp tax must be paid on the memorandum of the pledge of these instruments at the rate fixed by the paragraph relating to mortgage or pledge, on page 16 of the act of June 13, 1898. Where, however, the papers are placed in the hauds of others than the primary holders with a formal assignment thereon or attached thereto, the stamp tax is required to be paid on this assignment.

(6) Where a mortgage is deposited with a trustee as security for the company's obligations without any assignment, but accompanied by a power of attorney authorizing an assignment in the event of a default upon the obligations, stamp tax is required to be paid on the pledge of the mortgage and also on the power of attorney, but not on the transfer authorized until this transfer is completed.

Respectfully, yours,

Mr. ROBERT N. JACKSON,

N. B. SCOTT, Commissioner.

President Middlesex Banking Company, Middletown, Conn.

(19742.)

Stamp tax-Mortgages, trust-deeds, etc.

Requirements relating to the various instruments and documents used in the transactions of the Chicago Real Estate Board.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 20, 1898.

SIR: Your letter of the 14th instant has been received, submitting, for examination by this office, the opinion rendered to you by your counsel, Mr. John P. Wilson, as to the requirements of Schedule A of the act of June 13, 1898, relating to the various instruments and documents used in the transactions of your board.

'Modified; see 20440, p. 235.

He has correctly advised you that the provisions of the statute requiring a stamp upon promissory notes, and also upon mortgages and trust-deeds securing the same, are distinct and separate, and that stamps are required on both note and mortgage. But his opinion that a release deed, reconveying property conveyed by mortgages or trust-deeds to secure the payment of money given after the payment of the debt secured thereby, does not require a stamp, is not in accordance with the ruling of this office. It has been held that where, in the satisfaction of the mortgage, a regular release is executed, the release comes under the head of a "conveyance," and that stamp tax is required to be paid thereon according to the value of the interests released or conveyed by such instrument. Where, however, the local laws authorize entry of satisfaction and the mortgage is thus canceled, such entry does not require a stamp, as it is regarded neither as a release nor as a certificate.' He is inclined to the opinion that coupon or interest notes in no case require to be stamped; but it is held by this office that when a note or bond is given for the payment of money, and separate notes or bonds are given for accruing interest, not only is the note or bond for the principal sum required to be stamped, but the separate bonds or notes given for the interest must also be stamped. In the case, however, of a bond for a principal sum with coupons attached denoting the accruing interest, the purpose being to detach the coupons as the interest becomes due and surrender them simply to denote the payment of that interest, it is held that the only stamp required is the stamp upon the bond for the principal sum, and that the interest coupons attached do not require separate stamps.

He has correctly advised you that orders for the payment of money at sight or on demand are subject to the stamp tax imposed on checks by the third paragraph of Schedule A; but that on orders for the pay ment of money "otherwise than at sight or on demand" the stamp tax must be paid as on promissory notes under the fourth paragraph of the schedule.

His further statement that orders for money from owners or architects require to be stamped is in accordance with the ruling of this office under the law.

His statement made to you of the stamp taxes required to be paid on the various instruments which he mentions, viz, real estate sale contract, deed of conveyance of realty, lease, mortgage or trust deed, promissory note, and transfer of mortgage, is in accordance with the provisions of the law.

He is also correct in stating that an architect's certificate requires no stamp, unless, by an indorsement, it becomes an order for the payment of money; and that an affidavit does not require a stamp, nor does a waiver of lien.

With reference to an acknowledgment of a deed before a notary, it is

1 Modified; see 20440, page 235.

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