wines presented by him to "hospitals, individuals, or for charitable purposes, without any remuneration, are liable to the war-revenue stamp tax." Mr. Smith contends that he does not bottle these wines for sale, but simply for presentation, free of charge, to such parties as he may elect. * * * You will please inform him that this office has held that bottled wines must bear the stamps required by law, even in cases where the element of sale is nominally lacking, as in case of free samples given away for advertising purposes. In view of this ruling, this office can not make any exception in favor of wines "presented" to individuals. In case of gifts ostensibly for charitable purposes the liability or nonliability would depend upon the circumstances of each particular case. This office can not lay down a general rule which will satisfactorily cover the matter. Where wine in unstamped bottles is donated to charitable institutions, if the circumstances are such as to fairly indicate that the element of personal profit and of business advertisement is wholly wanting, it is probable that action would not be taken for failure to stamp the bottles. Such a transaction is, however, always open to question, and in such case the burden of proof would doubtless rest upon the party claiming the exemption, where the failure to stamp the wine was accounted for on the grounds of a pure charity. Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. FREDERICK VON BAUMBACH, Collector Internal Revenue, St. Paul, Minn. WRITS AND PROCESSES OF COURTS. (19971.) Stamp tax-Writs and processes and copies thereof. Writs and processes of State courts exempt from taxation-Copies thereof are also exempt. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 29, 1898. SIR: I have the honor to acknowledge receipt of your communication of July 24, 1898. You state that Mr. A. F. Nuquist, sheriff of Polk County, Nebr., said county being a part of your Congressional district, requests information as to the liability to taxation, under the clause relating to "certificates of any description required by law not otherwise specified in this act," of a number of instruments, copies of which are submitted. The instruments submitted by Mr. Nuquist are a number of writs and processes used in the courts of the State of Nebraska. The statutes of your State provide that the service of these judicial processes shall be by delivering a copy of the process, either personally on the party for whom it is intended, or by leaving it at his usual place of residence, etc. The sheriff certifies in the original that he left a certified copy of the original at or served it on In the copy he certifies that it is a true copy of the original placed in his hands for service. The question is, Do the certified copies of judicial processes require to be stamped? By the act of Congress, July 1, 1862, legal documents such as writs, warrants, and cognovits were made subject to taxation, and at a very early period after the passage of that act the question arose in the courts of several of the States as to the validity of the requirement, and although the plenary power of Congress to raise a revenue to meet the wants of the Government by the imposition and collection of taxes, duties, imposts, and excises was admitted, no reasoning urged in support of the general power was regarded as sufficient to establish the power of Congress to impose a tax upon the writs and processes of State courts. (McCulloch v. State of Maryland, 4 Wheaton, 316.) This provision in the law was repealed on the above ground on March 2, 1867, and this office holds that as the original processes could not be held to be taxable that the copy should not be. It will be observed, you say, that nowhere in the sections quoted by you-sections 2459, 2473, 5661, and 6486, Compiled Statutes of Nebraska, edition of 1897—is the requirement plain, certain, and specific that it requires a certified copy, a copy being sufficient. Construing these instruments under the above conditions, you are advised that none of the following are subject to taxation: Subpoena in criminal case, copy. Term summons, county court, copy. Subpoena in criminal case (original), dis- Summons, justice of the peace, original. trict court. Respectfully, yours, N. B. SCOTT, Commissioner. Hon. W. L. STARK, House of Representatives, Washington, D. C. DIGEST OF RULINGS UNDER ACT OF JUNE 13, 1898. (19843.) Special taxes. [Internal Revenue Circular No. 508.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 8, 1898. The following rulings in regard to special taxes are published for the information of officers of internal revenue and parties interested: SPECIAL TAX RULINGS. Banks. * 2. Private banks having no capital stock are subject to tax as bankers. 3. In computing special tax of banks whose capital exceeds $25,000, if excess is less than $1,000, it is not to be considered. 4. In estimating the amount of special tax to be paid by a bank, based upon capital and surplus, the amount invested in United States bonds is not to be deducted. 5. The amount invested by a bank in the bank building is not to be deducted from capital and surplus. 6. A bank in liquidation, doing no business except collecting and dividing assets in closing, is not required to pay special tax. 7. A bank engaged in business in the month of July must pay special tax for the entire year beginning July 1, 1898. 8. A trust company is liable as a banker if it comes within any one of the three clauses of definition in paragraph 1, section 2 of the act, viz: Every person, firm, or company, and every incorporated or other bank, having a place of business where credits are opened by the deposit or collection of money or currency, subject to be paid or remitted upon draft, check, or order, or where money is advanced or loaned on stocks, bonds, bullion, bills of exchange, or promissory notes, or where stocks, bonds, bullion, bills of exchange, or promissory notes are received for discount or sale. 9. Borrowed capital must be taken into account when estimating amount of special tax required from bankers. |