10. It is not the subscribed capital, but the capital actually employed during the preceding fiscal year, that is to be taken as the basis for estimating the special tax required to be paid. Brokers. 11. The loaning of money for oneself or for others, on commission, does not subject the lender to special tax as a broker; but if a person makes it a business to negotiate purchases or sales of stocks, bonds, exchange, bullion, coined money, bank notes, promissory notes, or other securities, for himself or others, he is required to pay the special tax as a broker. "It is only when making sales and purchases is his business, his trade, his profession, his means of getting his living, or making his fortune, that he becomes a broker within the meaning of the statute." (Warren et al. v. Shook, 91 U. S., 704.) 12. Persons or firms acting as agents for resident or nonresident parties, loaning money upon promissory notes, secured by mortgages, are not brokers within the meaning of the act, and are not liable to the special tax provided for brokers. 13. A lawyer can make investments for clients without being liable, unless he does it to such an extent that it can be called a "business." 14. Loan and mortgage companies are not liable as brokers for loaning money on notes or bonds secured by mortgage or trust deed on real estate. If they purchase notes, bonds, or other securities, they become liable as brokers. 15. Persons whose practice it is to buy fee bills of witnesses are not brokers. Such paper is not properly described by any of the terms used in the law, to wit, "stocks, bonds, exchange, bullion, coined money, bank notes, promissory notes, or other securities." 16. A person engaged in the business of placing loans which are secured by notes and mortgages upon real estate, acting simply as agent for the party furnishing the money, receiving a commission for his services in obtaining the application for the loan and attending to the execution of the papers, is not a broker. 17. A person engaged in the business of selling real estate, acting as the agent of the owner in finding purchasers and receiving a commission for his services, is not a broker. 18. When persons "shave notes" or negotiable purchases or sales of promissory notes, if these are only occasional acts and do not constitute their regular business, they are not brokers within the meaning of the act. 19. Bucket shop proprietors giving memorandum of transactions are required to pay special tax as brokers. 20. If an agent transacts the general business of a broker for the principal, paying over moneys to the customers, etc., the special tax of $50 must be paid for the place where the business is done, and the requisite stamp posted up therein. This tax may be paid by the principal himself and the stamp taken out in his name (which is preferable) or it may be paid by the agent and the stamp taken out in his name. The principal's special-tax stamp for his place of business in another city covers the transactions only at that place of business and can not cover the business done elsewhere at a branch office. 21. Broker's tax is not required to be paid at branch offices where a clerk is employed whose sole duty is to receive orders and transmit them by wire to the head of the office. The mere receipt and transmission by clerks of orders is not regarded as the carrying on the business of a broker. Commercial brokers. 22. Commercial brokers, within the meaning of the act, are those persons only who, without having in their possession goods, wares, or merchandise, negotiate sales or purchases thereof on commission, or who "negotiate freights or other business for the owners of vessels or for the shippers or consignors or consignees of freight carried by vessels." 23. Commission merchants who receive goods in possession to sell for others are not commercial brokers within the meaning of the statute. 24. Cattle brokers, who receive and sell cattle on commission, are not required to pay special tax as commercial brokers. 25. A person who is employed by certain firms to solicit and receive orders, on commission, for their goods, and is bound by his agreement with them to give his entire services to them to the exclusion of other firms or persons, is not regarded as a commercial broker within the meaning and intent of the law. 26. Warehousemen who receive tobacco, cotton, or any other produce or goods on consignment, for sale on commission, are not liable as commercial brokers. 27. Auctioneers who receive and sell goods at their auction rooms or on the premises of the owners, on commission, are not subject to special tax as commercial brokers. 28. Drug brokers are properly included under the head of commercial brokers and are subject to the special tax of $20. 29. If cotton buyers have possession of cotton which they sell, they are not liable as commercial brokers. If they have not, and sell on commission, they are liable. Pawnbrokers. 30. A person is not required to pay a special tax as a pawnbroker for rare or occasional acts which can not be regarded as his business or occupation. Custom-house brokers. 31. If the complete business of custom-house brokers is transacted by parties at offices at different ports of one district, a separate and 12593-20 distinct special tax must be paid for each of their offices, under the provisions of section 3235, Revised Statutes, which apply as well to special taxes under the war-revenue act as to all other special taxes. Billiards. 32. Social clubs open only to members are not required to pay special tax on billiard tables, but if liquor is sold to members they are liable to special tax as retail liquor dealers. Theaters, museums, etc. 33. Persons are not required to pay special tax for the mere occasional renting of their hall for public performances to dramatic companies or other persons charging entrance money therefor, but the special tax of $10 is required to be paid by such persons or companies if they give dramatic performances or the other exhibitions specifically mentioned in paragraph 8, section 2, of the act. 34. Where theaters are entirely closed to performances during the months of July and August, and only open in the month of September, the special tax is to be reckoned from the 1st day of September to the 1st day of July following, at the rate of $100 for the year beginning July 1. Circuses and theatrical performances. 35. Exhibitions of feats of horsemanship (such as are seen in circuses) which occur on race tracks are subject to a special tax of $100; but mere tests of speed of horses in racing are not regarded as "feats of horsemanship" within the meaning of paragraph 7 of section 2, act of June 13, 1898. * 37. When a circus is exhibiting in any State in the month of July, the special tax of $100 is required to be paid for the year beginning July 1. If in the following month the circus goes into another State, the special tax at the rate of $100 for the year is to be reckoned from the 1st day of August to the 1st day of July following, and a separate special-tax stamp must be taken out accordingly for that State, and so on. 38. The "theatrical peformances" contemplated by paragraph 7, section 2, of the act of June 13, 1898, are only those which are given in connection with a circus. A theatrical company, therefore, merely playing dramas in towns of 25,000 inhabitants (as shown by the last census) or less, or in buildings whose proprietors do not hold the $100 special-tax stamp, is required to pay special tax under paragraph 8, viz, $10 for each State for the special tax year, if the liability begins in the month of July, and at that rate when the liability begins in any other month than July. 39. Agricultural associations are required to pay a special tax at rate of $10 for exhibitions, including horse racing. Exhibitions of speed of horses on race track do not constitute circus. 40. Exhibitions and shows given on fair grounds, but not under management and control of the fair association holding special-tax stamp, are required to pay separate special tax. Public exhibitions or shows. 41. A lecturer using a stereopticon to illustrate his lectures, and charging an admission fee, is liable to the special tax of $10 on a public exhibition or show for money. 42. If an exhibition is given in more than one State, the law requires payment of special tax for every such State, and that a separate stamp shall be taken out for each State. 43. The ordinary church or Sunday-school entertainment, without any hired performers, does not come under the head of public exhibitions or shows for money contemplated by the law. 44. Amateur theatrical exhibitions, either in private houses or licensed public halls, for church or charitable benefits, are not such performances as are subject to tax. 45. Concert gardens where no admission is charged, but where beer and other drinks are sold and concerts or theatrical performances are given, are within the meaning of paragraph 8 of section 2 of the act, and the special tax of $10 must be paid therefor. * * * 46. Exhibitions of Edison's kinetoscopes require payment of a special tax of $10 in each State where such exhibitions are had. 47. A special-tax stamp can not be transferred to a successor in business, except that in case of death, the wife, child, executor, administrator, or legal representative may carry on the business until the year expires, in the same house and upon the same premises, without payment of any additional tax. In cases where a firm composed of two or more members is dissolved, one or more members of the firm can carry on the business without securing a new special-tax stamp, but the change of the personnel of the firm should be registered with the collector. If a new member is admitted into the firm, a new special-tax stamp is required. There is no provision of law under which any refund can be made on account of the discontinuing of business prior to the close of the special-tax year. 48. Section 31 of the act of June 13, 1898, provides that "all administrative, special or stamp provisions of law, including the laws in relation to the assessment of taxes, not heretofore specifically repealed, are hereby made applicable to this act." Collectors will proceed as provided in section 3176, Revised Statutes, as amended, in case of neglect or refusal to make return, or in case of false or fraudulent returns. N. B. SCOTT, Commissioner. (20323.) Stamp taxes. [Internal Revenue Circular No. 503-Revised.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, The attention of collectors and other officers of internal revenue is called to the provisions of the act of June 13, 1898, in regard to stamps required on certain instruments, papers, and documents on and after July 1, 1898, enumerated under Schedule A. Stamp duties on and after July 1, 1898. SCHEDULE A.-Documentary. 1. Bonds, debentures, or certificates of indebtedness of any association, com- 2. On each original issue of certificates of stock, whether on organization or 3. Upon each sale, agreement to sell, or agreement of sale of any products or 4. Bank check, draft, certificate of deposit not drawing interest, or order for 5. Bill of exchange (inland), draft, certificate of deposit drawing interest, or For each additional $100, or fractional part thereof in excess of $100. 8. Bills of lading, manifests, etc., issued by express companies, or public carriers, etc., a stamp to each, and to each duplicate thereof, of the value of. 9. Bond, indemnifying, etc., and all other bonds of any description, except those required in legal proceedings, not otherwise provided for 10. Certificates of profits, or certificates or memoranda showing interest in the property or accumulations of any association, company, or corporation, and all transfers thereof, on each $100 of face value or fraction thereof... 11. Certificate of damage or otherwise, and all other certificates or documents issued by port warden or marine surveyor 12. Certificates of any descripti· required by law not otherwise specified in act 13. Charter party, contract, or agreement for the charter of any ship, vessel, or steamer, or any renewal or transfer thereof, for every ship not exceeding 300 tonnage More than 300 and not exceeding 600 tonnage. More than 600 tonnage. |