auditing accounts of paymasters, &c. to require proof

that taxes have

been deducted and paid over.

accounts of any paymaster or disbursing officer, or any officer withholding his salary from moneys received by him, or when settling or adjusting the accounts of any such officer, to require evidence that the taxes mentioned in this section have been deducted and paid over to the commissioner of internal revenue, or other officer authorized to receive the same: Provided, That payments of prize money shall be regarded as income from Payments of prize money to salaries, and the tax thereon shall be adjusted and collected in like manbe deemed in- ner: Provided further, That this section shall not apply to payments come from sala- made to mechanics or laborers employed upon public works.

ries; but not

payments to la

borers, &c. Section 124.

That section one hundred and twenty-four be amended by adding thereto the following additional proviso: Provided further, That any legacy or Legacy, &c. to share of personal property passing as aforesaid to a minor child of the minor child, un- person who died possessed as aforesaid shall be exempt from taxation unless over $1000, der this section, unless such legacy or share shall exceed the sum of one to be exempt from tax; if over thousand dollars, in which case the excess only above that sum shall be liable to such taxation.

$1000, excess only to be taxed. Section 125.

When tax on

due.

That section one hundred and twenty-five be amended by inserting after the words "that the tax or duty aforesaid," the following: "shall be legacies, &c. is due and payable whenever the party interested in such legacy or distributive share or property or interest aforesaid shall become entitled to the possession or enjoyment thereof, or to the beneficial interest in the profits accruing therefrom, and the same "; and by inserting after the words "United States," in the first sentence of said section, the words: “And Executors, &c. every administrator, executor, or trustee, having in charge or trust any to give notice to legacy or distributive share, as aforesaid, shall give notice thereof in writassessors, &c. ing to the assessor or assistant assessor of the district where the deceased grantor or bargainer last resided, within thirty days after he shall have taken charge of such trust;" and by inserting after the words "shall make out such lists and valuation as in other cases of neglect or refusal, and shall assess the duty thereon," the words: "And in case of wilful neglect, refusal, or false statement by such executor, administrator, or trustee, as aforesaid, he shall be liable to a penalty of not exceeding one thouTax to be de- sand dollars, to be recovered with costs of suit." Any tax paid under the ducted from par- provisions of sections one hundred and twenty-four and one hundred and twenty-five shall be deducted from the particular legacy or distributive share on account of which the same is charged.

Penalty for neglect, &c.

ticular legacy.

Section 137.

Section 138.

disposition of

That section one hundred and thirty-seven be amended by inserting after the words "imposed by this act," the words: "shall be assessed in the collection district where the estate is situate, and."

That section one hundred and thirty-eight be amended by adding Persons having thereto the words: "And every such person having in charge or trust any in trust, &c. any disposition of real estate or interest therein, subject to tax under this act, real estate sub- shall give notice thereof in writing to the assessor or assistant assessor of ject to tax, to the district where the estate is situate, within thirty days from the time notify assessor. when he shall have taken charge of such trust, and prior to any distribution of said real estate, together with a description and value thereof, and the names of the persons interested therein; and for wilful neglect or refusal so to do, shall be liable to a penalty of not exceeding five hundred dollars, to be recovered with costs of suit."

Penalty for wilful neglect,

&c.

Section 145.

Section 147.

succession to

That section one hundred and forty-five be amended by inserting after the word "years" the words: "from the time when such tax shall have become due and payable."

That section one hundred and forty-seven be amended by striking out Persons liable all after the enacting clause, and inserting in lieu thereof the following: to pay tax for That any person liable to pay a tax in respect to any succession shall give notice to the assessor or assistant assessor of his liability to such tax within thirty days from the time when he shall become entitled in posrender a true ac- session to such succession or to the receipt of the income and profits thereof, and shall at the same time deliver to the assessor or assistant assessor

give notice to

assessor, and

count in thirty

days.

Assessor, &c.

a full and true account of said succession for the tax whereon he shall be accountable, and of the value of the real estate involved, and of the deductions claimed by him, together with the names of the successor and predecessor and their relation to each other, and all such other particulars as shall be necessary or proper for enabling the assessor or assistant assessor fully and correctly to ascertain the taxes due; and the assessor or assistant assessor, if satisfied with such account and estimate as originally delivered, or with any amendments that may be made may assess tax on such account, therein upon his requisition, may assess the succession tax on the footing &c. of such account and estimate; but it shall be lawful for the assessor or If no account assistant assessor, if dissatisfied with such account, or if no account and is given, or assessor is dissatisestimate shall be delivered to him, to assess the tax on the best informa- fied, tax how astion he can obtain, subject to appeal as hereinafter provided; and if the sessed. tax so assessed shall exceed the tax assessable according to the return made to the assessor or assistant assessor, and with which he shall have been dissatisfied, or if no account and estimate has been delivered, and if no appeal shall be taken against such assessment, then it shall be in the discretion of the assessor, having regard to the merits of each case, to assess the whole or any part of the expenses incident to the taking of such assessment, in addition to such tax; and if there shall be an appeal against such last-mentioned assessment, then the payment of such expenses shall be in the discretion of the commissioner of internal rev

enue.

That section one hundred and forty-eight be amended by striking out all after the enacting clause and inserting in lieu thereof the following: That if any person required to give any such notice or deliver such account, as aforesaid, shall wilfully neglect to do so within the time required by law, he shall be liable to pay the United States a sum equal to ten per centum upon the amount of tax payable by him; and if any person liable to pay any tax in respect of his succession shall, after such tax shall have been finally ascertained, wilfully neglect to do so within ten days after being notified, he shall also be liable to pay to the United States a sum equal to ten per centum upon the amount of tax so unpaid, at the same time and in the same manner as the tax to be collected.

That section one hundred and fifty be, and the same is hereby, repealed.

Appeal.

Expenses.

Section 148.

Penalty for

wilful neglect to give notice and deliver account;

and to pay tax.

Repeal of section 150.

Section 152.

That section one hundred and fifty-two be amended by striking out all after the enacting clause and inserting in lieu thereof the following: No instrument, That it shall not be lawful to record any instrument, document, or paper be stamped, to be &c., required to required by law to be stamped, unless a stamp or stamps of the proper recorded unless amount shall have been affixed, and cancelled in the manner required by stamped. law; and the record of any such instrument, upon which the proper stamp or stamps aforesaid shall not have been affixed and cancelled as aforesaid, shall be utterly void, and shall not be used in evidence.

Record void.

Section 154.

Official instruments,&c. issued

or of any

That section one hundred and fifty-four be amended by striking out all after the enacting clause and inserting in lieu thereof the following: That all official instruments, documents, and papers issued by the officers by officers of the of the United States government, or by the officers of any State, county, United States, town, or other municipal corporation, shall be, and hereby are, exempt State, county, from taxation: Provided, That it is the intent hereby to exempt from town, &c. to be liability to taxation such State, county, town, or other municipal corpora- exempt from tion, in the exercise only of functions strictly belonging to them in their ordinary governmental and municipal capacity.

That section one hundred and fifty-five be amended by striking out all after the enacting clause and inserting in lieu thereof the following: That if any person shall forge or counterfeit, or cause or procure to be forged or counterfeited, any stamp, die, plate, or other instrument, or any part of any stamp, die, plate, or other instrument, which shall have be [en] provided, or may hereafter be provided, made, or used in pursuance of this

tax.

Section 155.

Penalty for forging or counterfeiting any stamp, die, &c.

Penalty for forging any

stamp upon any paper, &c. or stamping, &c. with intent to defraud;

act, or shall forge, counterfeit, or resemble, or cause or procure to be forged, counterfeited, or resembled, the impression, or any part of the impression, of any such stamp, die, plate, or other instrument, as aforesaid, upon any vellum, parchment, or paper, or shall stamp or mark, or cause or procure to be stamped or marked, any vellum, parchment, or paper, with any such forged or counterfeited stamp, die, plate, or other instrument, or part of any stamp, die, plate, or other instrument, as aforesaid, with intent to defraud the United States of any of the taxes hereby imfor knowingly posed, or any part thereof; or if any person shall utter, or sell, or expose uttering or selling paper, &c. to sale, any vellum, parchment, paper, article, or thing, having thereupon with forged the impression of any such counterfeited stamp, die, plate, or other instamp; strument, or any part of any stamp, die, plate, or other instrument, or any such forged, counterfeited, or resembled impression, or part of impression, as aforesaid, knowing the same to be forged, counterfeited, or refor knowingly sembled; or if any person shall knowingly use or permit the use of any using or permit- stamp, die, plate, or other instrument, which shall have been so provided, ting the use of forged stamp; made, or used, as aforesaid, with intent to defraud the United States; or for fraudulently if any person shall fraudulently cut, tear, or remove, or cause or procure removing stamp, to be cut, torn, or removed, the impression of any stamp, die, plate, or or impression of stamp, from pa- other instrument, which shall have been provided, made, or used, in purper, &c.;

for fraudulent ly using, &c. stamp, cut, &c. from any other paper required to be stamped;

suance of this act, from any vellum, parchment, or paper, or any instrument or writing charged or chargeable with any of the taxes imposed by law; or if any person shall fraudulently use, join, fix, or place, or cause to be used, joined, fixed, or placed, to, with, or upon any vellum, parchment, paper, or any instrument or writing charged or chargeable with any of the taxes hereby imposed, any adhesive stamp, or the impression of any stamp, die, plate, or other instrument, which shall have been provided, made, or used in pursuance of law, and which shall have been cut, torn, or removed from any other vellum, parchment, or paper, or any instrument or writing charged or chargeable with any of the taxes imposed by for wilfully re- law; or if any person shall wilfully remove or cause to be removed, alter moving or altering the cancel or cause to be altered, the cancelling or defacing marks on any adhesive ling of a stamp, stamp, with intent to use the same, or to cause the use of the same after &c.; it shall have been once used, or shall knowingly or wilfully sell or buy such washed or restored stamps, or offer the same for sale, or give or expose the same to any person for use, or knowingly use the same, or prepare the same with intent for the further use thereof; or if any person for knowingly shall knowingly and without lawful excuse (the proof whereof shall lie buying or selling, or having in on the person accused) have in his possession any washed, restored, or possession wash- altered stamps, which have been removed from any vellum, parchment, ed, &c. stamps. paper, instrument, or writing, then, and in every such case, every person so offending, and every person knowingly and wilfully aiding, abetting, or assisting in committing any such offence as aforesaid, shall, on conviction thereof, forfeit the said counterfeit stamps and the articles upon which they are placed, and be punished by fine not exceeding one thousand dollars, or by imprisonment and confinement to hard labor not exceeding five years, or both, at the discretion of the court.

Forfeiture.

Fine or im

prisonment, or both.

Section 158.

That section one hundred and fifty-eight be amended by striking out all Persons mak- after the enacting clause and inserting in lieu thereof,the following: That ing, issuing, receiving, or pay- any person or persons who shall make, sign, or issue, or who shall cause ing, &c. any in- to be made, signed, or issued, any instrument, document, or paper of any strument, note, kind or description whatsoever, or shall accept, negotiate, or pay, or cause &c. required to be stamped, to be accepted, negotiated, or paid, any bill of exchange, draft, or order, without having or promissory note for the payment of money, without the same being ducancelled, with ly stamped, or having thereupon an adhesive stamp for denoting the tax intent to evade chargeable thereon, and cancelled in the manner required by law, with inthe law, to forfeit tent to evade the provisions of this act, shall, for every such offence, forment, &c. to be feit the sum of fifty dollars, and such instrument, document, or paper, bill, draft, order, or note, not being stamped according to law, shall be

thereon a stamp

$50, and instru

void.

ment when

thereon after

Proceedings where instrument was not

deemed invalid and of no effect: Provided, That the title of a purchaser Title to land of land by deed duly stamped shall not be defeated or affected by the not affected, if, &c. want of a proper stamp on any deed conveying said land by any person from, through, or under whom his grantor claims or holds title: And pro- If stamp is not vided further, That hereafter, in all cases where the party has not affixed put on instruto any instrument the stamp required by law thereon, at the time of mak- made, how it ing or issuing the said instrument, and he or they, or any party having an may be placed interest therein, shall be subsequently desirous of affixing such stamp to ward, or upon a said instrument, or if said instrument be lost, to a copy thereof, he or they copy, if original shall appear before the collector of the revenue of the proper district, is lost. who shall, upon the payment of the price of the proper stamp required by law, and of a penalty of fifty dollars, and where the whole amount of the tax denoted by the stamp required shall exceed the sum of fifty dollars, on payment also of interest, at the rate of six per centum on said tax from the day on which such stamp ought to have been affixed, affix the proper stamp to such instrument or copy, and note upon the margin thereof the date of his so doing, and the fact that such penalty has been paid; and the same shall thereupon be deemed and held to be as valid, to all intents and purposes, as if stamped when made or issued: And provided further, That where it shall appear to said collector, upon oath or otherwise, to his satisfaction that any such instrument has not been duly stamped at the time of making or issuing the same, by reason of accident, duly stamped by mistake, inadvertence, or urgent necessity, and without any wilful design accident, &c. to defraud the United States of the stamp, or to evade or delay the payment thereof, then and in such case, if such instrument, or, if the original be lost, a copy thereof duly certified by the officer having charge of any records in which such original is required to be recorded, or otherwise duly proven to the satisfaction of the collector, shall, within twelve calendar months after the first day of August, eighteen hundred and sixty-six, or within twelve calendar months after the making or issuing thereof, be brought to the said collector of revenue to be stamped, and the stamp tax chargeable thereon shall be paid, it shall be lawful for the said collector to remit the penalty aforesaid, and to cause such instrument to be duly stamped. And when the original instrument, or a certified or duly proved May be recordcopy thereof, as aforesaid, duly stamped so as to entitle the same to be recorded, shall be presented to the clerk, register, recorder, or other officer having charge of the original record, it shall be lawful for such officer, upon the payment of the fee legally chargeable for the recording thereof, to make a new record thereof, or to note upon the original record the fact that the error or omission in the stamping of said original instrument has been corrected pursuant to law; and the original instrument or such certified copy or the record thereof may be used in all courts and places in the same manner and with like effect as if the instrument had been originally stamped: And provided further, That in all cases where the party If instrument has not affixed the stamp required by law upon any instrument made, not having stamp signed, or issued, at a time when and at a place where no collection dis- and where there trict was established, it shall be lawful for him or them, or any party hav- was no collection district, stamp ing an interest therein, to affix the proper stamp thereto, or if the original be lost, to a copy thereof; and the instrument or copy to which the proper before January 1, stamp has been thus affixed prior to the first day of January, one thou- 1867. fand eight hundred and sixty-seven, and the record thereof, shall be as valid, to all intents and purposes, as if stamped by the collector in the manner hereinbefore provided. But no right acquired in good faith before the stamping of such instrument or copy thereof, and the recording thereof, as herein provided, if such record be required by law, shall in any manner be affected by such stamping as aforesaid.

ed.

was made when

may be affixed

Intervening bona fide rights not affected.

Section 163.

No deed, &c.

That section one hundred and sixty-three be amended by striking out all after the enacting clause and inserting in lieu thereof the following required to be That hereafter no deed, instrument, document, writing, or paper, required

ed in evidence, until proper stamps are af

fixed.

Documents

stamped, to be by law to be stamped, which has been signed or issued without being duly hereafter admit- stamped, or with a deficient stamp, nor any copy thereof, shall be recorded, or admitted, or used as evidence in any court until a legal stamp or stamps, denoting the amount of tax, shall have been affixed thereto, as prescribed by law: Provided, That any power of attorney, conveyance, or document made in a foreign of any kind, made or purporting to be made in any foreign country to be country for use used in the United States, shall pay the same tax as is required by law on similar instruments or documents when made or issued in the United States; and the party to whom the same is issued, or by whom it is to be used, shall, before using the same, affix thereon the stamp or stamps indicating the tax required.

here, to pay

same tax as

though made here.

Who to affix

stamp.

or removing for preparations, matches, &c. without affixing proper stamp.

Section 165. That section one hundred and sixty-five be amended by striking out all Penalty for after the enacting clause and inserting in lieu thereof the following: That making, selling, if any person, firm, company, or corporation shall make, prepare, and sell, or remove for consumption or sale, drugs, medicines, preparations, compositions, articles, or things, including perfumery, cosmetics, lucifer or friction matches, cigar lights, or wax tapers, and playing cards, and also including prepared mustards, preserved meats, fish, shell-fish, fruits, vegetables, sauces, sirups, jams, and jellies, when packed or sealed in cans, bottles, or other single packages, whether of domestic manufacture or imported, upon which a duty or tax is imposed by law, as enumerated and mentioned in schedule C, without affixing thereto an adhesive stamp or label denoting the tax before mentioned, he or they shall incur a penalty of fifty dollars for every omission to affix such stamp.

Section 169.

article named in

That section one hundred and sixty-nine be amended by striking out Persons offer- all after the enacting clause and inserting in lieu thereof the following: ing for sale any That any person who shall offer or expose for sale any of the articles schedule C, to be named in schedule C, or in any amendments thereto, whether the articles deemed the man- so offered or exposed are imported or are of foreign or domestic manuufacturers. facture, shall be deemed the manufacturer thereof, and subject to all the duties, liabilities, and penalties imposed by law in regard to the sale of domestic articles without the use of the proper stamp or stamps denoting the tax paid thereon, and all such articles imported, or of foreign manufacture, shall, in addition to the import duties imposed on the same, be subject to the stamp tax, respectively, prescribed in schedule C, as aforesaid: Provided, That when such imported articles, except playing cards, lucifer or friction matches, cigar lights, and wax tapers, shall be sold in the original and unbroken package in which the bottles or other enclosures were packed by the manufacturer, the person so selling said articles shall not be subject to any penalty on account of the want of the proper stamp.

Such articles, if imported, to pay stamp tax. Proviso.

Schedule B, amended. Post, p. 475.

upon.

That schedule B, preceding section one hundred and seventy-one, be amended by striking out all after the paragraphs relating to "gauger's returns" and "measurer's returns ;" and by striking out all from "receipts for the payment of any sum of money," down to "weigher's returns, if of a weight not exceeding five thousand pounds, ten cents; exceeding five thousand pounds, twenty-five cents," inclusive, and inserting in lieu thereReceipts, stamp of the following: Receipts for any sum of money, or for the payment of any debt, exceeding twenty dollars in amount, not being for the satisfaction of any mortgage or judgment or decree of any court, or by indorsement on any stamped obligation in acknowledgment of its fulfilment, for each receipt two cents: Provided, That when more than one signature is affixed to the same paper, one or more stamps may be affixed thereto representing the whole amount of the stamp required for such signatures; and "Money" to that the term money, as herein used, shall be held to include drafts and other instruments given for the payment of money.

Where there are several sig

natures to the

same paper.

include drafts.

Assignments

That schedule B, preceding section one hundred and seventy-one, be and transfers of amended by inserting, immediately preceding the proviso relating to stamps on mortgages, the following: Upon every assignment or transfer

mortgages.