(294.) Special tax-Medicine vender's entertainment. Where a medicine vender gives a musical entertainment, not collecting pay therefor but giving it to call together a crowd for the purpose of selling medicines, special tax is not required to be paid for such entertainment. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., March 7, 1901. SIR: In reply to the inquiry addressed to you by Dr. Lytle's Cascara Medicine Company, of Green Bay, Wis., which you referred to this office on the 2d instant, "as to whether or not they are liable for special tax as proprietor of public exhibition in that they, in some instances, charge an admittance to an exhibition given in a hall or storeroom, which is in the nature of songs with instrumental accompaniment on guitar and zither, which is given for the purpose of calling together a crowd to whom they sell their proprietary medicines," you are hereby advised that rulings 19749 and 19830, promulgated July 22 and August 4, 1898, to which you refer, have been modified; and it has since been held by this office that where a medicine vender gives a musical entertainment not collecting pay therefor, but giving it to call together a crowd of persons for the purpose of selling medicines to them, special tax is not required to be paid for such an entertainment. Where the entertainment is given in a hall or storeroom, or tent, to which an admission price is charged, if this is a regular practice and not a rare instance, special tax is required to be paid therefor under the eighth paragraph of section 2 of the act of June 13, 1898. Respectfully, J. W. YERKES, Commissioner. Mr. A. J. DAUGHERTY, Collector Fifth District, Peoria, Ill. (295.) Stamp tax-Passage tickets. Extending exemption allowed October 13, 1898, to the foreign diplomatic corps, in regard to stamping passage tickets (T. D. 20196), to butlers and servants attached to foreign embassies and legations to this country. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., March 7, 1901. GENTLEMEN: Referring to the question submitted by you, as to the exemption from the stamp tax on passage tickets of butlers or servants attached to the foreign embassies or legations to this country, I have to advise you as follows: On the 13th of October, 1898 (see TREASURY DECISIONS, 1898, vol. 2, ruling 20196), this office ruled that members of the foreign diplomatic corps are not required to pay tax on passage tickets by any vessel from a port in the United States to a foreign port. This ruling is hereby extended so as to include in the exemption passage tickets for the use of butlers and servants attached to foreign embassies and legations to this country. Respectfully, J. W. YERKES, Commissioner. INTERNATIONAL NAVIGATION COMPANY, Washington, D. C. (296.) Equalization of wantage. [Int. Rev. Circular No. 594.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., March 11, 1901. To collectors of internal revenue, gaugers, storekeepers, and storekeeper-gaugers. In view of the frequent reports received at this office relating to the equalization of wantage in packages of spirits in warehouse, gaugers, storekeepers, and storekeeper-gaugers, assigned to duty at distilleries and distillery warehouses where spirits are in store, are reminded that it is their duty to observe closely the conduct of all persons who have access to such spirits for legal and proper purposes, to the end that the fraudulent practice of equalizing wantage by shifting the spirits from one package to another may be prevented, and advised that any failure on their part to exercise due diligence in this respect will be considered ground for suspension from duty or removal from office. Collectors will furnish each gauger, storekeeper, and storekeepergauger in their respective districts with a copy of these instructions and see that they are strictly complied with. (297.) J. W. YERKES, Commissioner. Unlawful issue of receipts for moneys received in payment of special taxes. [Int. Rev. Circular No. 595.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue: Washington, D. C., March 11, 1901. Information has been received at this office that some deputy collectors issue receipts for moneys received in payment of special taxes. This practice is in violation of section 3183, United States Revised Statutes, and must be discontinued at once. Where money is received in payment of special taxes the proper special-tax stamp evidencing the payment of the special tax must be issued to the taxpayer. Collectors will see that the law in this respect is strictly complied with, and that officers who hereafter disregard the law are promptly separated from the Service. (298.) J. W. YERKES, Commissioner. Special-tax stamps for brokers, class . TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue: In making' requisitions for special-tax stamps for brokers, class 2, under instructions contained in Circular 593, dated 7th instant, collectors must mark plainly on such requisitions the word and figure "Class 2." Such stamps will be prepared and imprinted at this office, and collectors should not in any case issue stamps to brokers, class 2, from books of regular brokers' special-tax stamps, but they must issue such stamps only from books issued on their requisitions for stamps "brokers, class 2," which stamps have been prepared and imprinted at this office, as aforesaid. J. W. YERKES, Commissioner. (299.) Legacy tax. Legacies for uses of a religious, literary, charitable, or educational character exempt from tax. The act taxing legacies does not apply to an estate where testator died before June 13, 1898. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue : Washington, D. C., March 15, 1901. Section 10 of the act of March 2, 1901, amending section 29 of the war-revenue act relating to the tax on legacies and distributive shares of personal property, provides as follows: That nothing in this section shall be construed to apply to bequests or legacies for uses of a religious, literary, charitable, or educational character, or for the encouragement of art, or to legacies or bequests to societies for the prevention of cruelty to children, including all bequests and legacies of such character on which the tax imposed had not been paid or collected on the first day of March, nineteen hundred and one. And it further provides That the provisions of this Act and of the Act hereby amended shall not be held to apply to any estate where the testator or intestate died before June thirteenth, eighteen hundred and ninety-eight. If you have any taxes assessed upon your lists which are not collectible under the above provisions, please make claims for the abate ment thereof, and inform the parties against whom such assessments have been made of said provisions of law now in effect. If in any case taxes of this character have been paid since the approval of the act, claims for refunding will be considered. The act is not retroactive, and no taxes legally collected prior to the passage of the act can be refunded. (300.) J. W. YERKES, Commissioner. Special tax-Sales of warehouse certificates. Where conditional warehouse certificates are sold and fully paid for, the purchaser thereby obtains all rights that he could by purchase of unconditional certificates for whisky in bond, and the vender is required to pay special tax as a wholesale liquor dealer. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., March 16, 1901. SIR: Your letter of the 7th instant has been received, referring to Treasury decision 18940, relating to sales of "conditional" warehouse receipts for whisky in bond, and holding that these sales do not involve the vender in special-tax liability as a wholesale liquor dealer. This office coincides with you in the view which you express, that "where these conditional warehouse receipts are sold and are fully paid for, even within sixty days of the time the sale is made, and before any spirits are withdrawn," this "gives the purchaser all the rights and privileges that he could have by the holding of an unconditional warehouse receipt for whisky in bond." Where such a state of facts is presented the vender is to be regarded as having involved himself in special-tax liability as a wholesale liquor dealer. Respectfully, J. W. YERKES, Commissioner. Mr. J. B. McCoy, Revenue Agent, St. Louis, Mo. (301.) Special tax-Billiard and pool tables. The law imposing special tax on proprietors of billiard and pool tables is continued in force by the act approved March 2, 1901. TREASURY DEPARTMENT, OFFICE COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., March 18, 1901. SIR: In reply to your inquiry of the 7th instant, you are hereby informed that the special tax on proprietors of billiard and pool tables has not been removed, but remains in force under the recent act of Congress, approved March 2, 1901. Respectfully, J. W. YERKES, Commissioner. Mr. JOHN CREAHAN, Philadelphia, Pa. (302.) Special tax-Liquor dealers in local-option districts. Every person engaged in sale of liquor in local-option districts must nevertheless pay special tax as liquor dealer under the internal-revenue laws of the United States. His special-tax stamp, however, is not a license, but a receipt for the tax. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., March 18, 1901. SIR: I have received your letter of the 11th instant, requesting that a ruling be made prohibiting the issuance of "a Government license" for the sale of whisky in local-option districts. The United States does not issue licenses to liquor dealers in any State. Every person who engages in the sale of alcoholic liquors anywhere in the United States is required to pay special tax under the internal-revenue laws of the United States; and there is no warrant of law for omitting the collection of this special tax from persons who engage in such sales in any State where local-option laws prevail. But the special-tax stamps issued to such persons as liquor dealers are merely receipts for the tax paid and are not licenses and do not protect them in any manner from prosecution, conviction, and sentence under the local laws for carrying on their business in violation of those laws. (See sec. 3243, Rev. Stats., U. S.) Respectfully, J. W. YERKES, Commissioner. Mr. JOHN T. GRAVES, Tompkinsville, Ky. (303.) Stamp tax-Passage tickets. l'assage tickets from United States to foreign port, issued before July 1, 1901, though for sailing after that date, are taxable under the law now in force. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C, March 21, 1901. SIR: I have to acknowledge the receipt of your letter of the 11th instant, inclosing a letter from Mr. Lawson Sandford, secretary of the Trans-Atlantic Companies, of 19 Broadway, New York, who calls attention to the change in the law relative to the stamp tax on passage tickets from a port in the United States to a foreign port, made by the act of March 2, 1901, to take effect July 1, 1901. |