Sec. CHAPTER EIGHT. BANKS AND BANKERS. 3407. Definition of words "bank" and "banker." 3408. Tax on deposits, capital, and circulation of banks and bankers; savings-banks exemptions. Sec. [3412 a.] Authority to settle certain claims, &c. 3413. [3408 a.] Exemptions as to deposits in cer- [3413 tain savings-banks. [3408 b.] No further collection of taxes on earnings of certain savings-banks. 3409. Taxes, when payable; how calculated. [3409 a.] When banks are insolvent or 3410. Capital of banks expired or con- 3412. Tax on notes of persons or State words bank" and banker." Tax on notes of town, city, or municipal corporations paid out by banks, &c. a.] Tax on certain parties' own notes used for circulation and paid out by them. [3413 b.] Tax on circulation other than national banks used and paid out. [3413 c.] Return of amounts and payment of tax. 3414. Banks' and bankers' monthly returns. 3415. In default of return, Commissioner to estimate, &c. 3416. State banks converted into national banks; returns, how made. Certain provisions of this chapter not to apply to national banks. 3417. Definition of SEC. 3407. Every incorporated or other bank, and every person, firm, or company 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 for sale, shall be regarded as a bank or as a banker. Tax on deposits. Tax on capital. Tax on circulation. SEC. 3408. There shall be levied, collected, and paid, as hereafter provided: First. A tax of one twenty-fourth of one per centum each month upon the average amount of the deposits of money, subject to payment by check or draft, or represented by certificates of deposit or otherwise, whether payable on demand or at some future day, with any person, bank, association, company, or corporation, engaged in the business of banking; Second. A tax of one twenty-fourth of one per centum each month upon the capital of any bank, association, company, corporation, and on the capital employed by any person in the business of banking beyond the average amount invested in United States bonds: Provided, That the words "capital employed" shall not include money borrowed or received from day to day, in the usual course of business, from any person not a partner of or interested in the said bank, association, or firm; Third. A tax of one-twelfth of one per centum each month upon the average amount of circulation issued by any bank, association, corporation, company, or person, including as circulation all certified checks and all notes and other obligations calculated or intended to circulate or to be used as money, but not including that in the vault of the bank, or redeemed and on deposit for said bank; and an additional tax of one-sixth of one per centum each month upon the average amount of such circulation, issued as aforesaid, beyond the amount of ninety per centum of the capital of any such bank, association, corporation, company, or person. In the case of banks with branches, the tax herein provided shall be assessed upon the circulation of each branch severally, and the amount of capital of each branch shall be considered to be the amount allotted to it. * * On circulation of branch banks. Exemptions as ings banks. to deposits in sav. ings-banks. Sec. 22, act Mar. to deposits in Associations or companies known as provident institutions, savings-banks, savings-funds, or savings institutions doing no other business than receiving and loaning or investing savings deposits shall be exempt from tax on so much of such deposits 1, 1879. as they have invested in securities of the United States, and on two thousand dollars of savings deposits and nothing in excess thereof, made in the name of and belonging to any one person. That all laws and parts of laws inconsistent with the provisions of this section, be, and the same are hereby repealed. [SEC. 3408 a.] SEC. 22. That in making further Act Mar. 1, 1879. collections of internal-revenue taxes on bank deposits, no savings- Exemptions as bank, recognized as such by the laws of its State, and having no certain savingscapital stock, shall, on account of mercantile or business de- banks. posits heretofore received, upon which no interest has been allowed to the parties making such deposits, be denied the exemptions allowed to savings-banks having no capital stock, and doing no other business than receiving deposits to be loand or invested for the sole benefit of the parties making such deposits, without profit or compensation to the banks, if such bank has paid the lawful tax upon the entire average amount of such business or mercantile deposits; but nothing in this section shall be construed to extend said exemptions to deposits hereafter made, or in any way to affect the liability of such deposits to taxation. * * * * * * Act June 22, relief of savings stock, and doing [SEC. 3408 b.] Be it enacted by the Senate and House of Rep- 1874. resentatives of the United States of America in Congress assem- An act for the bled, That no farther collection of internal revenue taxes shall institutions hav be made on the earnings1 of savings banks or institutions for ing no capital savings, having no capital stock and doing no other business business solely than receiving deposits to be loaned or invested for the sole for the benefit of benefit of the parties making such deposits, without profit or No further colcompensation to the association or company, whether the earnings of the same have been or may hereafter be divided annually, semi-annually or at other periods. depositors. lectionof internalrevenue taxes on earnings of cer tain savings banks. Taxes, when SEC. 3409. The taxes provided in the preceding section [Sec. 3408] shall be paid semi-annually, on the first day of payable. January and the first day of July; but the same shall be How calculated. calculated at the rate per month as prescribed by said section, so that the tax for six months shall not be less than the aggregate would be if such taxes were collected monthly. ruptcy of banks. [SEC. 3409 a.] SEC. 22. That whenever and after any bank has Act Mar. 1, 1879. ceased to do business by reason of insolvency or bankruptcy, no Case of insoltax shall be assessed or collected, or paid into the Treasury of the veney or bank. United States, on account of such bank, which shall diminish the assets thereof necessary for the full payment of all its depositors; and such tax shall be abated from such national It will be observed that this act has no reference to the tax on deposits. * banks as are found by the Comptroller of the Currency to be insolvent; and the Commissioner of Internal Revenue, when the facts shall so appear to him, is authorized to remit so much of said tax against insolvent State and savings banks as shall be found to affect the claims of their depositors. * * Capital of SEC. 3410. The capital of any State bank or banking assobanks expired or converted into ciation which has ceased or shall cease to exist, or which national banks. has been or shall be converted into a national bank, shall be assumed to be the capital as it existed immediately before such bank ceased to exist or was converted as aforesaid. Circulation, when exempted. from tax. persons or State culation, &c. SEC. 3411. Whenever the outstanding circulation of any bank, association, corporation, company, or person is reduced to an amount not exceeding five per centum of the chartered or declared capital existing at the time the same was issued, said circulation shall be free from taxation; and whenever any bank which has ceased to issue notes for circulation deposits in the Treasury of the United States, in lawful money, the amount of its outstanding circulation, to be redeemed at par, under such regulations as the Secretary of the Treasury shall prescribe, it shall be exempt from any tax upon such circulation. Tax on notes of SEC. 3412. Every national banking association, State banks used as cir- bank, or State banking association, shall pay a tax of ten per centum on the amount of notes of any person, or of any State bank or State banking association, used for circulation and paid out by them. Act Mar. 3, 1875. thorize the Sec penalties claimed for other purpo ses. [SEC. 3412a.] Be it enacted by the Senate and House of An act to au- Representatives of the United States of America in Congress retary of the assembled, That the Secretary of the Treasury be, and he is Treasury to ad- hereby, authorized and directed to settle and release any claims just and remit certain taxes and for tax on circulation of evidences of indebtedness made against to be due from any mining, manufacturing or other corporations other than mining and other against any national banking-association, State bank, or bankcorporations, and ing-association, by such corporations paying the tax, without penalty, that shall have accrued thereon since November first, eighteen hundred and seventy-three; and that the provisions of section three thousand four hundred and twelve of the Revised Statutes of the United States shall not be construed in pending cases, except as to national banking-associations, to apply to such evidences of indebtedness issued and reissued prior to the passage of this act, but said section shall be construed as applying to such evidences of indebtedness issued after the passage hereof. SEC. 3413. Every national banking association, State nicipal corpora- bank, or banker, or association, shall pay a tax of ten per tions, paid out by centum on the amount of notes of any town, city, or municipal corporation, paid out by them. Tax on notes of town, city, or mu banks, &c. Act Feb. 8, 1875. [SEC. 3413 a.] SEC. 19. That every person, firm, association Ten per cent. other than national bank associations, and every corporation, tax on parties, other than na- State bank, or State banking association, shall pay a tax of ten tional banks, on per centum on the amount of their own notes used for circulaused for circula- tion and paid out by them. their own notes. tion, and paid out. tax on circula Act Feb. 8, 1875. [SEC. 3413 b.] SEC. 20. That every such person, firm, associa Ten per cent. tion, corporation, State bank, or State banking association, and tion of other than also every national banking association, shall pay a like tax of used and paid out. ten per centum on the amount of notes of any person, firm, asso national banks ciation other than a national banking association, or of any corporation, State bank, or State banking association, or of any town, city, or municipal corporation, used for circulation and paid out by them. ment of tax. [SEC. 3413 c.] SEC. 21. That the amount of such circulat- Act Feb. 8, 1875. ing notes, and of the tax due thereon, shall be returned, and Return of the tax paid at the same time, and in the same manner, and amounts and paywith like penalties for failure to return and pay the same, as provided by law for the return and payment of taxes on deposits, capital, and circulation, imposed by the existing provis ions of internal revenue law. returns. SEC. 3414. A true and complete return of the monthly, Banks' and bankers' monthly amount of circulation, of deposits, and of capital, as aforesaid, and of the monthly amount of notes of persons, town, city, or municipal corporation, State banks, or State banking associations paid out as aforesaid for the previous six months, shall be made and rendered in duplicate on the first day of December and the first day of June, by each of such banks, associations, corporations, companies, or persons, with a declaration annexed thereto, under the oath of such person, or of the president or cashier of such bank, association, corporation, or company, in such form and manner as may be prescribed by the Commissioner of Internal Revenue, that the same contains a true and faithful statement of the amounts subject to tax, as aforesaid; and one copy shall be transmitted to the collector of the district in which any such bank, association, corporation, or company is situated, or in which such person has his place of business, and one copy to the Commissioner of Internal Revenue. return, Commis SEC. 3415. In default of the returns provided in the pre- In default of ceding section, the amount of circulation, deposit, capital, sioner to esti and notes of persons, town, city, and municipal corpora- mate, &c. tions, State banks, and State banking associations paid out, as aforesaid, shall be estimated by the Commissioner of Internal Revenue, upon the best information he can obtain. And for any refusal or neglect to make return and payment, any such bank, association, corporation, company, or person so in default shall pay a penalty of two hundred dollars, besides the additional penalty and forfeitures provided in other cases. converted into made. how SEC. 3416. Whenever any State bank or banking associa- State banks tion has been converted into a national banking association, national banks; and such national banking association has assumed the returns, liabilities of such State bank or banking association, including the redemption of its bills, by any agreement or understanding whatever with the representatives of such State bank or banking association, such national banking association shall be held to make the required return and payment on the circulation outstanding, so long as such circulation shall exceed five per centum of the capital before such conversion of such State bank or banking association. ions of this chap SEC. 3417. The provisions of this chapter, relating to the. Certain provis tax on the deposits, capital, and circulation of banks, and ter not to apply to their returns, except as contained in sections thirty-four to national banks. hundred and ten, thirty-four hundred and eleven, thirty 1875. Act Feb. 18, four hundred and twelve, thirty-four hundred and thirteen, and thirty-four hundred and sixteen, and such parts of sections thirty-four hundred and fourteen, and thirty-four hundred and fifteen as relate to the tax of ten per centum on certain notes,1 shall not apply to associations which are taxed under and by virtue of Title "NATIONAL BANKS." Tax on bankchecks, &c. 8, 1875. Act Mar. 3, 1875. 3430. Selling or removing articles for sale 3432. [3433 a.] Withdrawal of alcohol by manu- 3435. Persons offering for sale articles in ers. 3436. Medicines compounded according to 3437. Assessment of stamp taxes where ar- Schedule A. * * SEC. 3418. There shall be levied, collected, and paid for and in respect of every bank-check, draft, order, or voucher Ser. 15, act Feb. for the payment of any sum of money whatsoever, drawn upon any bank, banker, or trust-company, * * by any person who makes, signs, or issues the same, or for whose use or benefit the same is made, signed, or issued, two cents. [SEC. 3418 a.] SEC. 6. That nothing contained in the act entitled "An act to amend existing customs and internal-revenue laws, and for other purposes", approved February eighth, eighteen hundred and seventy-five, shall be construed * No stamp re- to require the use of a stamp upon the receipt in the receipt-book quired on receipt of a savings-bank or institution for savings having no capital in receipt-book of certain savings stock, and doing no other business than receiving deposits to be loaned or invested for the sole benefit of the parties making such deposits without profit or compensation to the associa tion or company, when money is paid to a depositor on his pass-book. banks. Tax on medi * * SEC. 3419. There shall be levied, collected, and paid on cine or prepara- the articles mentioned in Schedule A, and in the manner tions. perfumery, cosmetics, &c. hereinafter provided, the taxes mentioned in said schedule; 1 Sections 3413 a, 3413b, and 3413 c are not embraced in this exception because they are, in fact, sections 19, 20, and 21 of the act of February 8, 1875. |