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August 2, relative to the tax due on official certificates.

Their letter

has been referred to this office. Please instruct these gentlemen, in reply to their communication, as follows:

(1) The collector's indorsement on registers, enrollments, etc., of change of master of a vessel is not, in the opinion of this office, subject to taxation.

(2) The notary's certificate of acknowledgment on bills of sale is subject to a tax of 10 cents if such a certificate is required by law to make the instrument valid. The notary's certificate to a mortgage is part of an instrument upon which a rate of taxation is imposed and is covered therein. It is not subject to tax for itself when appended to an instrument for which a rate of taxation is provided.

(3) The original certificate of inspection from the local inspectors of steam vessels, which remains on file in the collector's office, is exempt from taxation as an instrument issued by direction of law through government instrumentality for its own uses and purposes, and the two copies of this certificate which the law requires must be exposed under glass where passengers and other persons can see them, certified by the collector of customs, are also exempt for the same reason. The copy required by law to be furnished the owner of the vessel is not subject to tax, as he is not required by law to accept or provide the same for any use or purpose, and the contemplated benefit of its use in official form for reference would be defeated by a provision subjecting the document to a tax, when an unofficial copy could be made from those the law provides shall be exposed under glass in every vessel.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. DAVID M. DUNNE, Collector Internal Revenue, Portland, Oreg.

CERTIFICATES OF DEPOSIT.

(19570.)

Stamp tax-Certificates of deposit.

Certificates of deposit bearing interest, subject to tax of 2 cents when for a sum not exceeding $100, and also to same tax for every additional $100 or fraction thereof.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 24, 1898.

SIR: Will you please reply as follows to the various questions submitted to this office by Mr. M. L. Williams, vice-president of the Commercial National Bank of Detroit, in a letter dated the 15th instant:

Checks, notes, etc., made and issued prior to July 1, 1898, do not require a stamp under Schedule A of the act of June 13, 1898, though paid after that date.

A certificate of deposit bearing interest, though payable on demand, is subject to a tax of 2 cents when it is for a sum not exceeding $100, and for each additional $100 or fraction thereof in excess of $100, 2 cents.

*

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. CHARLES WRIGHT, Collector First District, Detroit, Mich.

(20003.)

Stamp tax-Certificates of deposit.

Certificates of deposit to secure the payment of gas bills taxable as certificates of deposit drawing interest.

TREASURY Department,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., September 3, 1898.

SIR: This office is in receipt of a letter under date of July 19, 1898, from Mr. B. W. Perkins, superintendent South Bend Fuel and Gas Company, South Bend, Ind., inclosing a blank form of a certificate of deposit issued by the South Bend Fuel and Gas Company to patrons thereof upon the deposit of funds to secure the payment of gas to be consumed, and asking a ruling thereon as to its liability to the stamp tax. After a careful examination of the form of certificate of deposit submitted

SOUTH BEND FUEL and Gas Company.

South Bend, Ind.,

No. 250. 189-.

dollars,

has deposited with the South Bend Fuel and Gas Company as security for the gas consumed at

The amount for which this certificate is given is to be held as security for gas consumed at the location above stated until the depositor notifies the South Bend Fuel and Gas Company in writing to the contrary, and is payable to with per cent interest per annum, provided all indebtedness there may be for gas consumed prior to said written notice be deducted from this certificate. SOUTH BEND FUEL AND GAS COMPANY,

at

Per

It is found that this is a certificate of deposit drawing interest, and as such is taxable under the fifth paragraph of Schedule A, and must bear a 2-cent stamp for each $100 or fractional part thereof.

Not only does this ruling hold good in South Bend, but in all cities where these certificates of deposit, drawing interest, are issued upon the deposit of money to secure the payment for the future consumption

of gas.

They have been notified of the holding of this office, and you will see that these certificates are properly stamped.

Respectfully, yours,

Mr. AMBROSE E. NOWLIN,

N. B. SCOTT, Commissioner.

Collector Sixth District, Lawrenceburg, Ind.

(20420.)

Stamp tax-Certificates of deposit.

Certificates of deposit, payable on demand, and bearing interest if left for specified time, require a 2-cent stamp when issued, and if paid subsequent to time interest accrues, additional stamps at rate of 2 cents per $100.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., December 13, 1898.

SIR: This office is in receipt of your letter under date of December 7, 1893, relative to the amount of stamps required on certificates of deposit. *

Demand certificates of deposit, not drawing interest, require only a 2-cent stamp, regardless of the amount.

Certificates of deposit payable on demand, but drawing interest if money is left on deposit for a specified time, require a 2-cent stamp when issued, but if paid subsequent to the time interest accrues, additional stamps at the rate of 2 cents per $100 or fraction thereof must be affixed.

Certificates of deposit payable otherwise than on demand must be stamped at the rate of 2 cents per $100 or fraction thereof, whether they draw interest or not.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. A. J. DAUGHERTY, Collector Fifth District, Peoria, Ill.

CHARTER PARTIES.

(See also DECISION 19571, p. 18.)

(19653.)

Charter party.

Barges not included in the term "vessel," in paragraph relating to charter party.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 7, 1898.

SIR: In reply to your inquiry of the 30th ultimo, you are hereby advised that, in the provisions of Schedule A of the act of June 13, 1898, under the head of "Charter party," the word "vessel," as there used, is held by this office not to include barges, which, under the laws of the United States, are not registered, but are merely licensed. N. B. SCOTT, Commissioner.

Respectfully, yours,

Mr. A. U. STEVENS, New York, N. Y.

(19823.)

Stamp tax-Charter party.

The tax imposed on charter parties is applicable only to registered tonnage in foreign trade, and does not apply to enrolled or licensed tonnage.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., August 3, 1898.

SIR: You are advised that in view of the opinion of the honorable Attorney-General, in a letter addressed to the honorable Secretary of the Treasury on the 2d instant, relative to the construction of that part of the war-revenue act under the head of "Charter party," the tax imposed is applicable only to registered tonnage in the foreign trade, either American or foreign bottoms, but does not apply to enrolled or licensed tonnage.

The opinion of the Attorney-General was given in response to a letter from this office based upon an inquiry made by the Lake Carriers' Association, in which it was claimed that vessels engaged in domestic commerce were exempt from this requirement, as the law does not require that their tonnage should be registered. The language of the act is as follows:

Charter party: Contract or agreement for the charter of any ship, or vessel, or steamer, or any letter, memorandum, or other writing between the captain, master, or owner, or person acting as agent of any ship, or vessel, or steamer, and any other person or persons, for or relating to the charter of such ship, or vessel, or steamer, or any renewal or transfer thereof, if the registered tonnage of such ship, or vessel, or steamer does not exceed three hundred tons, three dollars.

Exceeding three hundred tons and not exceeding six hundred tons, five dollars.

Exceeding six hundred tons, ten dollars.

Registered tonnage, under the United States Revised Statutes, Title XLVIII, comprises the tonnage of vessels of the United States employed in foreign trade or the whale fisheries, and enrolled tonnage, under Title L, comprises the tonnage of vessels employed in domestic trade and in the trade on the Great Lakes with Canada over 20 tons, those under 20 tons of this class being termed licensed vessels. It is held that the clause of the war-revenue act above referred to applies only to vessels registered under Title XLVIII of the Revised Statutes and does not apply to vessels enrolled or licensed under Title L, and that when the term "registered tonnage" was used in the war-revenue act it meant nothing more than to apply the law to such vessels as are required to be registered, and that it is a technical term and applies to the particular class of vessels known as registered, in distinction from enrolled vessels and licensed vessels.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Mr. FRANK MCCORD, Collector Eighteenth District, Cleveland, Ohio.

CHECKS, DRAFTS, NOTES, ETC.

(See also DECISIONS 19655, p. 252; 19680, p. 225; 19685, p. 115; 19697, p. 226; 19742, p. 228; 19978, p. 118; 20026, p. 63; 20028, p. 64; 20341, p. 24; 20367, p. 164.)

(19523.)

Stamp tax-Checks issued by State officer.

Orders drawn under a State law for the payment of money out of the State funds, and bank checks issued by the treasurer of the State for such payments, are exempt from stamp tax under Schedule A of the act of June 13, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 18, 1898.

SIR: I have received, through Senator Proctor, your letter of the 15th instant, referring to orders drawn by soldiers on the State treasurer for the extra pay of $7 a month granted by the law of the State of Vermont to volunteers from that State serving in the Army of the United States in the war with Spain, and also to orders of the State auditor upon the State treasurer, under the law, for the payment of State and court expenses, salaries, etc., and to vouchers in the form of receipts for payment, from the State treasury, of sundry distributions among the towns in the State, a large majority of which disbursements from the treasury are through bank checks, and inquiring whether these respective vouchers of payment are subject to stamp tax under Schedule A of the act of June 13, 1898.

In the opinion of this office, neither the orders, vouchers, nor receipts to which you refer, nor the bank checks issued by the State treasurer in payment thereof, are subject to stamp tax under the act of June 13, 1898, as they are issued under the laws of the State and in the exercise only of functions strictly belonging to the State in its ordinary governmental capacity, within the meaning of the exempting provision of section 17 of this act.

Respectfully, yours,

N. B. SCOTT, Commissioner.

Hon. HENRY F. FIELD, State Treasurer, Rutland, Vt.

(19556.)

Stamp tax-Checks.

Stamps not required on checks made and issued prior to July 1, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 22, 1898. SIR: In reply to your letter of inquiry of the 17th instant, you are hereby advised that checks made and issued prior to July 1, 1898, do not require to be stamped under the act of June 13, 1898, even though they are not cashed until after July 1.

Respectfully, yours,

N. B. SCOTT, Commissioner. Mr. B. BETTMANN, Collector First District, Cincinnati, Ohio.

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