predecessors.

66

30 June 1864. by reason whereof any person shall become beneficially entitled, in possession or Who to be deem- expectancy, to any real estate, or the income thereof, upon the death of any person ed successors and dying after the passing of this act, shall be deemed to confer, on the person entitled by reason of any such disposition, a succession;" and the term successor" shall denote the person so entitled; and the term "predecessor" shall denote the grantor, testator, ancestor or other person from whom the interest of the successor has been or shall be derived.

Ibid. 128.

310. Where any real estate shall, at or after the passing of this act, be subject to any What to be deem- charge, estate or interest, determinable by the death of any person, or at any period ed a succession. ascertainable only by reference to death, the increase of benefit, accruing to any person upon the extinction or determination of such charge, estate or interest, shall be deemed to be a succession accruing to the person then entitled beneficially, to the real estate or the income thereof.

Ibid. 129.

311. Where any persons, after the passing of this act, shall take any succession Joint successions. jointly, they shall pay the duty chargeable thereon by this act, in proportion to their respective interests in the succession; and any beneficial interest in such succession, accruing to any of them by survivorship, shall be deemed to be a new succession, derived from the predecessor from whom the joint title shall have been derived.

Ibid. 130. Cessation of charge to be

deemed a succession.

Ibid. 131.

Effect of secret trusts.

Ibid. 132. Voluntary conveyances.

Ibid. 133.

Succession duties.

Ibid. 134.

Only one succession duty to be payable.

Ibid. 135.

312. Where any disposition of real estate shall be accompanied by the reservation or assurance of, or contract for, any benefit to the grantor, or any other person, for any term of life, or for any period ascertainable only by reference to death, such disposition shall be deemed to confer, at the time appointed for the determination of such benefit, an increase of beneficial interest in such real estate, as a succession equal in annual value to the yearly amount or yearly value of the benefit so reserved, assured or contracted for, on the person in whose favor such disposition shall be made.

313. Where any disposition of real estate shall purport to take effect presently, or under such circumstances as not to confer succession, but, by the effect or in consequence of any engagement, secret trust or arrangement capable of being enforced in a court of law or equity, the beneficial ownership of such real estate shall not, bonâ fide, pass according to the terms of such disposition, but shall, in fact, be reserved to the grantor or other person, for some period ascertainably only by reference to death, the person shall be deemed, for the purposes of this act, to acquire the real estate so passing, as a succession derived from the person making the disposition as the predecessor.

314. If any person shall, by deed of gift, or other assurance of title, made without valuable and adequate consideration, and purporting to vest the estate either immediately or in the future, whether or not accompanied by the possession, convey any real estate to any person, such disposition shall be held and taken to confer upon the grantee a succession within the meaning of this act.

315. There shall be levied and paid to the United States in respect of every such succession as aforesaid, according to the value thereof, the following duties, that is to say:

Where the successor shall be the lineal issue or lineal ancestor of the predecessor, a duty at the rate of one dollar per centum upon such value.

Where the successor shall be a brother or sister, or a descendant of a brother or sister of the predecessor, a duty at the rate of two dollars per centum upon such value. Where the successor shall be a brother or sister of the father or mother, or a descendant of a brother or sister of the father or mother of the predecessor, a duty at the rate of four dollars per centum upon such value.

Where the successor shall be a brother or sister of the grandfather or grandmother, or a descendant of the brother or sister of the grandfather or grandmother of the predecessor, a duty at the rate of five dollars per centum upon such value.

Where the successor shall be in any other degree of collateral consanguinity to the predecessor than is herein before described, or shall be a stranger in blood to him, a duty at the rate of six dollars per centum upon such value.

"Provided, That no duty shall be levied in respect of any succession vesting before or subsequent to the passage of this act, where the successor shall be the wife of the predecessor." (a)

316. Where the interest of any successor in any real estate shall, before he shall have become entitled thereto in possession, have passed, by reason of death, to any other successor or successors, then one duty only shall be paid in respect of such interest, and shall be due from the successor who shall first become entitled thereto in possession ; ut such duty shall be at the highest rate which, if every such successor had been subject to duty, would have been payable by any one of them.

317. Wherever, after the passing of this act, any succession shall, before the successor (a) So amended by act 3 March 1865. 13 Stat. 481.

shall have become entitled thereto in possession, have become vested by alienation, or 20 June 1864. by any title not conferring a new succession, in any other person, then the duty payable when payable in in respect thereof shall be paid at the same rate and time as the same would have been case of alienation. payable if no such alienation had been made or derivative title created; and where the title to any succession shall be accelerated by the surrender or extinction of any prior interests, then the duty thereon shall be payable at the time of such surrender or extinction of prior title.

Ibid. 136.

318. Where real estate shall become subject to a trust for any charitable or public purposes, under any past or future disposition, which, if made in favor of an individual, Duty on devise would confer on him a succession, there shall be payable in respect of such real estate for charitable upon its becoming subject to such trusts, a duty at the rate of six per centum upon the amount or principal value of such real estate.

purposes.

Ibid. 137.

duties to be pay. able.

319. The duty imposed by this act "shall be assessed in the collection district where the estate is situate, and," (a) shall be paid at the time when the successor, or any when succession person in his right, or on his behalf, shall become entitled in possession, to his succession, or to the receipt of the income and profits thereof, except that if there shall be any prior charge, estate or interest, not created by the successor himself upon or in the succession, by reason whereof the successor shall not be presently entitled to the full enjoyment or value thereof, the duty, in respect of the increased value accruing upon the determination of such charge, estate or interest, shall, if not previously paid, compounded for, or commuted, be paid at the time of such determination.

Ibid. 138.

notice.

320. The interest of any successor in moneys to arise from the sale of real estate, under any trust for the sale thereof, shall be deemed to be a succession chargeable with Interest in produty under this act, and the said duty shall be paid by the trustee, executor or other ceeds of sale. person having control of the funds. "And every such person having in charge or trust Parties to give any disposition of real estate or interest therein, subject to tax under this act, shall give notice thereof in writing to the assessor or assistant assessor of the district where the estate is situate, within thirty days from the time 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 Penalty for neglect or refusal so to do, shall be liable to a penalty of not exceeding five hundred neglect. dollars, to be recovered with costs of suit."(a)

Ibid. 139.

321. The interest of any successor in personal property, subject to any trust for the investment thereof in the purchase of real estate to which the successor would be abso- Interest in perlutely entitled, shall be chargeable with duty under this act as a succession; and the sonal property subject to trust tax shall be payable by the trustee, executor or other person having control of the for investment. funds.

322. In estimating the value of a succession, no allowance shall be made in respect Ibid. 140. of any contingent encumbrance thereon; but in the event of such encumbrance taking How value to be effect as an actual burden on the interest of the successor, he shall be entitled to a return of a proportionate amount of the duty so paid by him, in respect of the amount or value of the encumbrance when taking effect.

estimated.

Ibid. 141.

ed.

323. In estimating the value of a succession, no allowance shall be made in respect of any contingency upon the happening of which the real estate may pass to some Contingencies other person; but in the event of the same so passing, the successor shall be entitled not to be regardto a return of so much of the duty paid by him as will reduce the same to the amount when duty to be which would have been payable by him, if such duty had been assessed in respect of refunded. the actual duration or extent of his interest: Provided, That if the estate of the successor shall be defeated in whole or in part, by its application to the payment of the debts of the predecessor, the executor, administrator or trustee so applying it shall pay out of the proceeds of the sale thereof the amount so refunded: And provided also, That if the estate of the successor shall be defeated, in whole or in part, by any person claiming title from and under the predecessor, such person shall be chargeable with the amount of duty so refunded; and such amounts shall be collected in the manner herein provided for the collection of duties.

Ibid. 142.

amount received.

324. Where a successor shall not have obtained the whole of his succession at the time of the duty becoming payable, he shall be chargeable only with duty on the value Duty to be thereof, from time to time, obtained by him; and whenever any duty shall have been charged only on paid on account of any succession, and it shall afterwards be proved, to the satisfaction of the secretary of the treasury, that such duty, not being due from the person paying the same, was paid by mistake, or was paid in respect of real estate, which the successor shall have been unable to recover, or of which he shall have been evicted or deprived by any superior title, or that for any other reason it ought to be refunded,

(a) So amended by act 13 July 1866. 14 Stat. 140.

30 June 1864.

Ibid. 143. When amount may be compounded.

Ibid. 144. Commissioner may commute succession duty.

Ibid. 145.

Priority of charge.

Ibid. 146.

Separate assessments may be had.

ors.

Ibid. 147.

the secretary of the treasury shall thereupon refund the same to the person entitled thereto, by draft drawn on any collector of internal revenue.

325. Where, in the opinion of the commissioner of internal revenue, any succession shall be of such a nature, or so disposed or circumstanced, that the value thereof shall not be fairly ascertainable under any of the preceding directions, or where, from the complication of circumstances affecting the value of a succession, or affecting the assessment or recovery of the duty thereon, the commissioner shall think it expedient to exercise this present authority, it shall be lawful for him to compound the duty payable on the succession, upon such terms as he shall think fit, and to give discharges to the successor, upon payment of duty according to such composition; and it shall be lawful for him, in any special cases in which he may think it expedient so to do, to enlarge the time for payment of any duty.

326. It shall be lawful for the commissioner, in his discretion, upon application made by any person who shall be entitled to a succession, in expectancy, to commute the duty presumptively payable in respect of such succession, for a certain sum to be presently paid; and for assessing the amount which shall be so payable, he shall cause a present value to be set upon such presumptive duty, regard being had to the contingencies affecting the liability to such duty, and the interest of money involved in such calculation being reckoned at the rate for the time being allowed by the commismissioner in respect of duties paid in advance; and upon the receipt of such certain sum, he shall give discharges to the successor accordingly.

327. The duty imposed by this act shall be a first charge on the interest of the successor, and of all persons claiming in his right, in all the real estate in respect whereof such duty shall be assessed for five years, "from the time when such tax shall have become due and payable," (a) unless sooner paid.

328. The commissioner shall, at the request of any successor, or any person claiming in his right, cause to be made so many separate assessments of the duty payable in respect of the interest of the successor in any separate tracts of real estate, or in defined portions of the same tract, as shall be reasonably required; and in such cases the respective tracts shall be chargeable only with the amount of duty separately assessed in respect thereof.

329. Any person liable to pay a tax in respect to any succession, shall give notice to Persons liable, to the assessor or assistant assessor of his liability to such tax, within thirty days from the notify assessors. time when he shall become entitled in possession 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, 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; Duties of assess- and the assessor or assistant assessor, if satisfied with such account and estimate as originally delivered, or with any amendments that may be made therein upon his requisition, may assess the succession tax on the footing of such account and estimate; but it shall be lawful for the assessor or assistant assessor, if dissatisfied with such account, or if no account and estimate shall be delivered to him, to assess the tax on the best information he can obtain, subject to appeal as hereinafter provided; and if the 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 lastmentioned assessment, then the payment of such expenses shall be in the discretion of the commissioner of internal revenue. (a)

Payment of expenses.

Ibid. 148. Penalty for

returns.

330. 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 neglect to make 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.(b)

Ibid. 149.

331. It shall be lawful for any party, liable to pay duty in respect of his succession,

(a) So amended by act 13 July 1866. 14 Stat. 140.

(b) So amended by act 13 July 1866. 14 Stat. 141.

who shall be dissatisfied with the assessment of the assistant assessor, within thirty 30 June 1864. days after the date of such assessment, to appeal to the assessor from such assessment, Appeals regu who shall decide on such appeal, and give notice thereof to such party, who, if still lated. dissatisfied, may, within twenty days after notice as aforesaid, appeal from such decision to the commissioner of internal revenue, and furnish a statement of the grounds of such appeal to the commissioner, whose decision upon the case, as presented by the statements of the assessor or assistant assessor and such party, shall be final. XIV. STAMP DUTIES.

30 June 1864

be levied.

332. There shall be levied, collected and paid, for and in respect of the several instruments, matters and things mentioned and described in the schedule (marked B) here- 151. 13 St. 291. unto aunexed, or for or in respect of the vellum, parchment or paper upon which such Stamp duties to instruments, matters or things, or any of them, shall be written or printed, by any By whom paid. person or persons or party who shall make, sign or issue the same, or for whose use or benefit the same shall be made, signed or issued, (a) the several duties or sums of money set down in figures against the same respectively, or otherwise specified or set forth in the said schedule.

333. It shall not be lawful to record any instrument, document or paper required by Ibid. 152. law to be stamped, unless a stamp or stamps of the proper amount shall have been Unstamped inaffixed, (b) and cancelled in the manner required by law; and the record of any such struments not to instrument, (c) 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.(d)

be recorded.

Ibid. 153.

334. No instrument, document, writing or paper of any description, required by law to be stamped, shall be deemed or held invalid and of no effect for the want of the par- What stamps to ticular kind or description of stamp designated for and denoting the duty charged on be used. any such instrument, document, writing or paper, provided a legal stamp or stamps, denoting a duty of equal amount, shall have been duly affixed and used thereon: Provided, That the provisions of this section shall not apply to any stamp appropriated to denote the duty charged on proprietary articles, or articles enumerated in schedule C. 335. All official instruments, documents and papers issued by the officers of the United States government, or by the officers of any state, county, town or other municipal corporation, shall be and hereby are exempt from taxation: Provided, That it is the ments to be intent hereby to exempt from liability to taxation such state, county, town or other municipal corporation, in the exercise only of functions strictly belonging to them in their ordinary governmental and municipal capacity.(d)

Ibid. 154.

Official docu

exempt.

Ibid. 155.

Punishment for forging or counterfeiting stamps.

336. 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 been provided, or may hereafter be provided, made or used in pursuance of this 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 imposed, or any part thereof; or if any person shall utter or sell or expose to sale, any vellum, parchment, paper, article or thing, having thereupon the impression of any such counterfeited stamp, die, plate or other instrument, 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 resembled; or if any person shall knowingly use or permit the use of any stamp, die, plate or other instrument, which shall have been so provided, made or used, as aforesaid, with intent to defraud the United States; or if any person shall fraudulently cut, tear or remove, or cause or procure to be cut, torn or removed, the impression of any stamp, die, plate or other instrument, which shall have been provided, made or used, in pursuance 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 Penalty for secause to be used, joined, fixed or place, to, with or upon any vellum, parchment, paper stamps, &c. or any instrument or writing charged or chargeable with any of the taxes hereby im

(a) An agent authorized to enter into a contract, is empowered to affix the proper stamps. Cedar Rapids and St. Paul Railroad Co. v. Stewart, 25 Iowa.

(b) The appropriate stamp for any instrument must be ascertained by considering its leading character and legal operation; and if other matters are embraced, accessory or incidental, no

Or using such forged stamps.

cond use of

additional stamp in respect to them will be required. Corder v. Drakeford, 3 Taunt. 382.

(c) This section has no application to notes and bills. Corry National Bank v. Rouse, 13 Pitts. L. J. 280; 8. c. 3 Int. R. Rec. 31. (d) So amended by act 13 July 1866. 14 Stat. 141.

30 June 1864. posed, 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 law; or if any person shall wilfully remove or cause to be removed, alter or cause to be altered, the cancelling or defacing marks on any adhesive stamp, with intent to use the same, or to cause the use of the same, after 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 shall knowingly and without lawful excuse (the proof whereof shall lie on the person accused) have in his possession any washed, restored or altered stamps, which have been removed from any vellum, parchment, 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. (a)

Ibid. 156.

Stamps, how cancelled.

Penalty for neglect.

Who may furnish their own stamps.

such cases.

337. In any and all cases where an adhesive stamp shall be used for denoting any duty imposed by this act, except as hereinafter provided, the person using or affixing the same shall write thereupon the initials of his name, and the date upon which the same shall be attached or used, so that the same may not again be used.(b) And if any person shall fraudulently make use of an adhesive stamp to denote any duty imposed by this act, without so effectually cancelling and obliterating such stamp, except as before mentioned, he, she or they shall forfeit the sum of fifty dollars: Provided, That any proprietor or proprietors of proprietary articles, or articles subject to stamp duty under schedule C of this act, shall have the privilege of furnishing, without expense to the United States, in suitable form, to be approved by the commissioner of internal revenue, his or their own dies or designs for stamps to be used thereon, to be made under the direction, and to be retained in the possession of the commissioner of internal revenue, for his or their separate use, which shall not be duplicated to any other How cancelled in person. In all cases where such stamp is used, instead of his or their writing the date thereon, the said stamp shall be so affixed on the box, bottle or package, that in opening the same, or using the contents thereof, the said stamp shall be effectually destroyed; and in default thereof, shall be liable to the same penalty imposed for neglect to affix said stamp, as herein before prescribed in this act. Any person who shall fraudulently obtain or use any of the aforesaid stamps or designs therefor; and any person forging or counterfeiting, or causing or procuring the forging or counterfeiting any representation, likeness, similitude or colorable imitation of the said lastmentioned stamp; or any engraver or printer who shall sell or give away said stamps, or, selling the same; or, being a merchant, broker, pedlar or person dealing in whole or in part in similar goods, wares, merchandise, manufactures, preparations or articles, or those designed for similar objects or purposes, shall have knowingly or fraudulently in his, her or their possession, any such forged, counterfeited likeness, similitude or colorable imitation of the said last-mentioned stamp; shall be deemed guilty of a felony, and upon conviction thereof, shall be subject to all the penalties, fines and forfeitures prescribed in the preceding section of this act.

Punishment for counterfeiting such private stamps.

Ibid. 157. Commissioner may prescribe mode of cancellation.

Ibid. 158.

ing unstamped instruments, &c.

338. The commissioner of internal revenue be and he is hereby authorized to prescribe such method for the cancellation of stamps, as substitute for or in addition to the method now prescribed by law, as he may deem expedient and effectual; and he is further authorized, in his discretion, to make the application of such method imperative upon the manufacturers of proprietary articles, or articles included in schedule C, and upon stamps of a nominal value exceeding twenty-five cents each.

339. Any person or persons who shall make, sign or issue, or who shall cause to be Penalty for issu- made, signed or issued, any instrument, document or paper of any kind or description whatsoever, or shall accept, negotiate or pay, or cause to be accepted, negotiated or paid, any bill of exchange, draft or order, or promissory note for the payment of money, without the same being duly stamped, or having thereupon an adhesive stamp for denoting the tax chargeable thereon, and cancelled in the manner required by law, with intent to evade the provisions of this act, shall, for every such offence, forfeit the sum of fifty dollars; (c) and such instrument, document or paper, bill, draft, order

(a) So amended by act 13 July 1866. 14 Stat. 141. (b) The want of cancellation does not avoid the instrument. Corry National Bank v. Rouse, 13 Pitts. L. J. 280; s. c. 3 Int. R.

Rec. 31. Desmond v. Norris, 10 Allen 250.

(c) The offence of issuing an unstamped note is punishable by indictment. United States v. Crosby, 26 Law Rep. 22.