Federal Stamp Taxes on Drafts, Checks and Promissory Notes, 1919
Nonfiction, Religion & Spirituality, New Age, History, Fiction & Literature
| Author: | Guaranty Trust Company of New York | ISBN: | 9781465613363 |
| Publisher: | Library of Alexandria | Publication: | March 8, 2015 |
| Imprint: | Language: | English |
| Author: | Guaranty Trust Company of New York |
| ISBN: | 9781465613363 |
| Publisher: | Library of Alexandria |
| Publication: | March 8, 2015 |
| Imprint: | |
| Language: | English |
The Revenue Act of 1918 imposes a tax on drafts and checks, payable otherwise than at sight or on demand, upon their acceptance or delivery, whichever is prior, within the territorial jurisdiction of the United States, and on promissory notes, except those listed below as exempt, and on each renewal of the same. The term “United States” includes the states, the District of Columbia, Hawaii and Alaska. The tax is at the rate of 2 cents on each 100 or fractional part thereof. On amounts not in excess of 100 the tax is 2 cents. Any instrument or writing operating as a renewal of a promissory note is taxable, but the mere suspension of payment or forbearance does not constitute a taxable renewal within the meaning of the law, nor does payment of interest on a demand note, without any agreement in writing extending the note. The payment, however, of interest in advance, after maturity of a promissory note, evidenced by an indorsement, constitutes a taxable renewal. Liability to tax and the amount thereof, is determined by the form and face of a check or draft and cannot be affected by proof of facts or instructions outside of the instrument. Payment for the stamp is a matter for adjustment between the parties, but obligation rests upon the drawee, payee, or indorsee of a draft to see that the tax is paid before or at the time of acceptance or delivery and both parties to a promissory note are responsible for affixing and cancelling stamps in the required amount.
The Revenue Act of 1918 imposes a tax on drafts and checks, payable otherwise than at sight or on demand, upon their acceptance or delivery, whichever is prior, within the territorial jurisdiction of the United States, and on promissory notes, except those listed below as exempt, and on each renewal of the same. The term “United States” includes the states, the District of Columbia, Hawaii and Alaska. The tax is at the rate of 2 cents on each 100 or fractional part thereof. On amounts not in excess of 100 the tax is 2 cents. Any instrument or writing operating as a renewal of a promissory note is taxable, but the mere suspension of payment or forbearance does not constitute a taxable renewal within the meaning of the law, nor does payment of interest on a demand note, without any agreement in writing extending the note. The payment, however, of interest in advance, after maturity of a promissory note, evidenced by an indorsement, constitutes a taxable renewal. Liability to tax and the amount thereof, is determined by the form and face of a check or draft and cannot be affected by proof of facts or instructions outside of the instrument. Payment for the stamp is a matter for adjustment between the parties, but obligation rests upon the drawee, payee, or indorsee of a draft to see that the tax is paid before or at the time of acceptance or delivery and both parties to a promissory note are responsible for affixing and cancelling stamps in the required amount.
