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a transfer of real estate, by a declaration of a trust, by the forgiveness of an indebtedness, the payment of another's debt, the assignment of a judgment, or the transfer of cash, certificates of deposit or of Federal, State or municipal bonds. The Regulations also provide that a sale or exchange for a consideration reducible to a money value which is less than a fair consideration, amounts to a gift to the extent that the fair market value of the property at the time of the transfer exceeds the consideration received.

The creation of a trust where the grantor retains the power to revest in himself title to the principal of the trust does not constitute a gift subject to tax, but the annual income of the trust which is paid over to the beneficiaries is treated as a taxable gift for the year in which so paid.

According to the Regulations, the statute embraces donative transfers by corporations, associations, partnerships, trusts and estates, as well as those made by individuals.

TAX ON ADMISSIONS AND DUES

Title V, Sections 500-503, Revenue Act, 1924

ADMISSIONS Rate of Tax

A tax of one cent for each ten cents or fraction thereof paid for admission to any place, including admission by season ticket or subscription, must be paid by the person paying for the admission, except where the admission charge does not exceed fifty cents, in which case no tax is imposed. Additional Tax

Where a ticket to a place of amusement is sold at a place other than the box office, a tax of 5 per cent is levied on the amount of the excess charged for the ticket over the sum of the box office price and the 10 per cent tax noted above, provided the amount of the excess is not more than 50 cents. If the excess is more than 50 cents, the additional tax is 50 per cent of the amount of the excess.

Where tickets to places of amusement are sold at more than the established price by proprietors of the amusements or their employees, the additional tax is 50 per cent of the excess.

Boxes or Seats for Permanent Use

In lieu of the tax mentioned in paragraph I above, there is levied on the lessee or holder of boxes or seats for permanent use a tax equivalent to 10 per cent of the amount for which similar boxes or seats are sold for each performance at which the box or seat is used or reserved. Cabarets

Where the price of admission is included entirely or in part in the amount paid for refreshments, services, etc., as in cabarets, roof gardens or similar entertainments, a tax of 172 cents is imposed for each ten cents or fraction thereof of the admission price. The admission price in such cases is deemed to be 20 per cent of the amount paid for refreshments, service, etc. Where the admission price is 50 cents or less, however, no tax is imposed. Admissions not Subject to Tax

No tax is imposed where all the proceeds of the entertainment are used for the purposes specified in Section 500 (b) of the Act. (See page 113.) Requirements Applicable to Tickets

When tickets or cards of admission are used, the price at which sold, together with the name and address of the vendor, if sold other than at the ticket office of the place of amusement, must be printed, stamped, or written on that part of the ticket or card which is taken up by the management of the place of amusement. Failure to comply with this provision of the law is punishable by a fine of $100.

DUES

Dues or membership fees, in social, athletic or sporting clubs, where the active resident annual dues are more than $10, are subject to a tax of 10 per cent. Initiation fees of such clubs are subject to a tax of 10 per cent;

(1) if the fee is more than $10, or,

(2) if the annual dues of an active resident member exceed $10. Life Membership

A life member is taxed annually at the same time, and for the same amount as an active resident annual member.

Dues not Subject to Tax

Dues of fraternal societies operating under the lodge system, college fraternities, certain labor organizations, the Y. M. C. A. and similar associations, are exempt from tax. Return and Payment of Tax

Returns and payment of tax collected on admissions and dues must be made monthly in duplicate to the local Collector of Internal Revenue on or before the last day of the month following that for which the report is made. If the last day of the month falls on Sunday or a legal holiday, the return may be filed and payment made on the next secular or business day.

EXCISE TAXES

Title VI, Sections 600-605, Revenue Act, 1924 Manufacturers' Excise Tax

Taxes are imposed against the manufacturer, producer or importer, on the selling price of the articles listed below, at the following rates:

Article

Tax Automobile truck and automobile wagon chassis sold or

leeased for more than $1000, and automobile ruck and automobile wagon bodies sold or leased for more than $200 (including, in both cases, tires, inner tubes, parts and accessories)..

3% Automobite chassis and bodies and motorcycles (except

tractors and those mentioned above), including tires,
infier tubes, parts and accessories..

5% Cameras weighing not more than 100 pounds, and lenses therefor..

10% rgar or cigarette holders, pipes composed wholly or On partly of meerschaum or amber, and humidors... 10% E. Coin operated devices and machines..

5% irearms, shells and cartridges.

10% Tah-jongg, pung chow and similar tile sets.. P

10% 'hotographic films and plates (other than moving picture and X-ray).....

5% Tires, inner tubes, parts or accessories (except sales to manufacturers).

2%2%

Works of Art

A tax of 5 per cent of the selling price is imposed upon the dealer on sales of sculpture, paintings, statuary, art porcelains and bronzes except when:

(1) Sale is made by the artist.
(2) Sale is made by one dealer to another dealer for resale.

(3) Sale is made to an educational institution or to a public art museum. Jewelry

A tax of 5 per cent of the selling price is imposed upon the dealer on:

(1) All articles of jewelry, real or imitation.

(2) Pearls, precious and semi-precious stones and imitations;

(3) Articles made of or ornamented, mounted or fitted with precious metals or imitations thereof, or ivory.

(4) Watches, clocks, opera glasses, lorgnettes, marine glasses, field glasses and binoculars.

This tax does not apply to surgical or musical instruments, eyeglasses, spectacles, silver-plated flat table ware or articles used for religious purposes. Articles sold for not more than $30, and watches sold for not more than $60 also are exempt. Returns and Payment of Tax

Every person liable to pay an excise tax on any of the articles enumerated in the foregoing lists must make a return in duplicate to the local Collector of Internal Revenue and pay the tax on or before the last day of the month following that for which the return is made. If the last day of the month falls on Sunday or a legal holiday, the return may be filed and payment made C on the next secular or business day.

TAX ON CIGARS, TOBACCO AND MANUFACTURES

Title IV, Sections 400-403, Revenue Act, 1924 Manufacturers and importers must pay on cigars and cigarettes, whether of domestic or foreign manufacture, which are sold or removed for consumption or sale, the following taxes:

Cigars, weighing not more than three pounds per thousand, $1.50 per 1,000.

Cigars, weighing more than three pounds per thousand, manufactured or imported to retail at the following prices:

5 cents each or less, $4 per 1,000 6 cents to 8 cents, $6 per 1,000 9 cents to 15 cents, $9 per 1,000 16 cents to 20 cents, $12 per 1,000

More than 20 cents, $15 per 1,000 Cigarettes, weighing not more than three pounds per thousand, $3 per 1,000.

Cigarettes, weighing more than three pounds per thousand, $7.20 per 1,000.

Tobacco and snuff, sold or removed for sale or consumption, are taxed at 18c a pound.

Taxes on cigarette papers are: On packages containing more than 25 papers, but not more than 50, 12c per package; more than 50 papers, but not more than 100, ic per package; more than 100 papers, 72c. for each 50 papers or fraction thereof.

On cigarette tubes a tax is imposed of ic for each 50 or fraction thereof.

MISCELLANEOUS OCCUPATIONAL TAXES

Title VII, Section 701, Revenue Act, 1924 Annual taxes on the occupations enumerated below are imposed at the following rates: Occupation

Tax Brokers (except brokers exclusively negotiating purchases or sales of produce or merchandise).

$50 If a broker is a member of a stock exchange, or of any

produce exchange, board of trade or similar organi-
zation where produce or merchandise is sold, and if
the average value during the preceding year ending
June 30, of a seat or membership in the exchange or
organization was not less than $2,000 and not more
than $5,000, an additional.

100 More than $5,000 but not more than $10,000, an additional...

150 More than $10,000, an additional.

250 Pawnbrokers.... Ship brokers..

50 Custom house brokers.

50 Bowling alleys and billiard rooms, for each alley or table. Shooting galleries.. Riding academies.

100

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