Tax on tobacco, snuff, cigars, and cigarettes.

Sec. 3. That section three of said Act and amendments thereof be amended to read as follows:

"Sec. 3. That upon tobacco and snuff manufactured and sold, or removed for consumption or use, there shall be levied and collected, in lieu of the tax now imposed by law, the following taxes:

"On snuff, manufactured of tobacco or any substitute for tobacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use, a tax of six cents per pound. And snuff-flour, when sold, or removed for use or consumption, shall be taxed as snuff, and shall be put up in packages and stamped in the same manner as snuff.

"On all chewing and smoking tobacco, fine cut, cavendish, plug, or twist, cut or granulated, of every description; on tobacco twisted by hand or reduced into a condition to be consumed, or in any manner other than the ordinary mode of drying and curing, prepared for sale or consumption, even if prepared without the use of any machine or instrument, and without being pressed or sweetened; and on all finecut shorts and refuse scraps, clippings, cuttings, and sweepings of tobacco, a tax of six cents per pound.

"That the internal-revenue tax on cigars or cigarettes weighing more than three pounds per thousand shall be three dollars per thousand; and the tax on cigars weighing not more than three pounds per thousand shall be eighteen cents per pound, and on cigarettes weighing not more than three pounds per thousand and of a wholesale value or price of not more than two dollars per thousand shall be eighteen cents per pound; and the tax on cigarettes weighing not more than three pounds per thousand and of a wholesale value or price of more than two dollars per thousand shall be thirty-six cents per pound; and all such cigars and cigarettes weighing not more than three pounds per thousand shall, for purposes of taxation, be held and considered as weighing three pounds.

"That in addition to the packages of smoking tobacco and snuff now authorized by law there shall be packages of one and two-thirds ounces, two ounces, two and one-half ounces, three ounces, three and one-third ounces, and four ounces; and there may be a package containing one ounce of smoking tobacco.

Act April 12, 1902, c. 500, § 3, 32 Stat. 96.

Act June 13, 1898, c. 448, § 3, mentioned in and amended by this section, is set forth in Comp. St. 1901, p. 2288; and provisions of Act March 2, 1901, c. 806, §§ 3, 4, relating to the same subjects and operating as amendments of that section, are set forth in Comp. St. 1901, p. 2311. The amendment consists, principally, in a reduction of and the addition of other provisions relating to the tax on tobacco, snuff, etc. The provisions of Act March 2, 1901, c. 806, § 3, Comp. St. 1901, p. 2311, relating to the tax on cigars and cigarettes, are re-enacted in the same language in this section.

Drawback or rebate of difference between higher tax paid on tobacco or snuff and rate of tax as reduced by act.

Sec. 4. That on all original and unbroken factory packages of smoking and manufactured tobacco and snuff held by manufacturers or dealers on July first, nineteen hundred and two, upon which there has

been paid a higher tax than that provided for in the preceding section of this Act, there shall be allowed a drawback or rebate equal to the full amount of the difference between such higher tax and the tax imposed by this Act, after making the proper allowance for discounts and rebates heretofore authorized, but the same shall not apply in any case where the claim has not been presented within sixty days after July first, nineteen hundred and two; and no claim shall be allowed or drawback paid for a less amount than ten dollars. It shall be the duty of the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to adopt such rules and regulations and to prescribe and furnish such blanks and forms as may be necessary to carry this section into effect.

Repeal.

Act April 12, 1902, c. 500, § 4, 32 Stat. 97.

An appropriation for the payment of drawback or rebate as provided in this section, with provisos annexed thereto extending the sixty days limit fixed in this section for presentation of claims, is contained in Act March 3, 1903, c. 1006, § 1, set forth below.

Sec. 5. That section four of the Act of June thirteenth, eighteen hundred and ninety-eight, is hereby repealed.

Act April 12, 1902, c. 500, § 5, 32 Stat. 97.

Act June 13, 1898, c. 448, § 4, mentioned in and repealed by this seetion, is set forth in Comp. St. 1901, p. 2290. It imposed special taxes on dealers in and manufacturers of tobacco and manufacturers of cigars.

Temporary use of old stamps.

Sec. 6. That section five of the Act of June thirteenth, eighteen hundred and ninety-eight, be amended to read as follows:

"Sec. 5. That until appropriate stamps are prepared and furnished, the stamps heretofore used to denote the payment of the internalrevenue tax on fermented liquors, tobacco, and snuff may be stamped or imprinted with a suitable device to denote the new rate of tax, and shall be affixed to all packages containing such articles on which the tax imposed by this Act is paid. And any person having possession of unaffixed stamps heretofore issued for the payment of the tax upon fermented liquors, tobacco, and snuff shall present the same to the collector of the district, who shall receive them at the price paid for such stamps by the purchasers and issue in lieu thereof new or imprinted stamps at the rate provided by this Act."

Repeal.

Act April 12, 1902, c. 500, § 6, 32 Stat. 97.

Act June 13, 1898, c. 448, § 5, mentioned in and amended by this section, is set forth in Comp. St. 1901, p. 2291. The amendment consists in the substitution, for the words of the section as originally enacted, "tobacco, snuff, cigars and cigarettes," of the words, "tobacco, and snuff." as set forth here, in both places where those words occur.

Sec. 7. That section four of said Act of March second, nineteen hundred and one, and sections six, twelve, eighteen, twenty, twentyone, twenty-two, twenty-three, twenty-four, twenty-five, Schedule A, Schedule B, sections twenty-seven, twenty-eight, and twenty-nine of the Act of June thirteenth, eighteen hundred and ninety-eight, and all

amendments of said sections and schedules be, and the same are hereby, repealed.

Act April 12, 1902, c. 500, § 7, 32 Stat. 97.

Act March 2, 1901, c. 806, § 4, and the various sections and schedules of Act June 13, 1898, c. 448, and the amendments thereof, mentioned in and repealed by this section, are set forth in Comp. St. 1901, pp. 2291, 2294, 2297-2308. Section 18 of said Act June 13, 1898, included among the sections of this act which are mentioned as repealed by this section, was repealed previously by Act March 2, 1901, c. 806, § 14, Comp. St. 1901, p. 2312.

Taxes on legacies, etc., imposed before repeal, subject to provisions as to lien, charge, collection, etc.

Sec. 8. That all taxes or duties imposed by section twenty-nine of the Act of June thirteenth, eighteen hundred and ninety-eight, and amendments thereof, prior to the taking effect of this Act, shall be subject, as to lien, charge, collection, and otherwise, to the provisions. of section thirty of said Act of June thirteenth, eighteen hundred and ninety-eight, and amendments thereof, which are hereby continued in force, as follows:

"Sec. 30. That the tax or duty aforesaid shall be due and payable in one year after the death of the testator and shall be a lien and charge upon the property of every person who may die as aforesaid for twenty years, or until the same shall, within that period, be fully paid to and discharged by the United States; and every executor, administrator, or trustee having in charge or trust any legacy or distributive share, as aforesaid, shall give notice thereof, in writing, to the collector or deputy collector of the district where the deceased grantor or bargainer last resided within thirty days after he shall have taken charge of such trust, and every executor, administrator, or trustee, before payment and distribution to the legatees, or any parties entitled to beneficial interest therein, shall pay to the collector or deputy collector of the district of which the deceased person was a resident, or in which the property was located in case of nonresidents, the amount of the duty or tax assessed upon such legacy or distributive share, and shall also make and render to the said collector or deputy collector a schedule, list, or statement, in duplicate, of the amount of such legacy or distributive share, together with the amount of duty which has accrued, or shall accrue, thereon, verified by his oath or affirmation, to be administered and certified thereon by some magistrate or officer having lawful power to administer such oaths, in such form and manner as may be prescribed by the Commissioner of Internal Revenue, which schedule, list, or statement shall contain the names of each and every person entitled to any beneficial interest therein, together with the clear value of such interest, the duplicate of which schedule, list, or statement shall be by him immediately delivered, and the tax thereon paid to such collector; and upon such payment and delivery of such schedule, list, or statement said collector or deputy collector shall grant to such person paying such duty or tax a receipt or receipts for the same in duplicate, which shall be prepared as hereinafter provided. Such receipt or receipts, duly signed and delivered by such collector or deputy collector, shall be sufficient evidence to entitle such executor, administrator, or trustee

to be credited and allowed such payment by every tribunal which, by the laws of any State or Territory, is, or may be, empowered to decide upon and settle the accounts of executors and administrators. And in case such executor, administrator, or trustee shall refuse or neglect to pay the aforesaid duty or tax to the collector or deputy collector, as aforesaid, within the time hereinbefore provided, or shall neglect or refuse to deliver to said collector or deputy collector the duplicate of the schedule, list, or statement of such legacies, property, or personal estate, under oath, as aforesaid, or shall neglect or refuse to deliver the schedule, list, or statement of such legacies, property, or personal estate, under oath, as aforesaid, or shall deliver to said collector or deputy collector a false schedule or statement of such legacies, property, or personal estate, or give the names and relationship of the persons entitled to beneficial interests therein untruly, or shall not truly and correctly set forth and state therein the clear value of such beneficial interest, or where no administration upon such property or personal estate shall have been granted or allowed under existing laws, the collector or deputy collector shall make out such lists and valuation as in other cases of neglect or refusal, and shall assess the duty thereon; and the collector shall commence appropriate proceedings before any court of the United States, in the name of the United States, against such person or persons as may have the actual or constructive custody or possession of such property or personal estate, or any part thereof, and shall subject such property or personal estate, or any portion of the same, to be sold upon the judgment or decree of such court, and from the proceeds of such sale the amount of such tax or duty, together with all costs and expenses of every description to be allowed by such court, shall be first paid, and the balance, if any, deposited according to the order of such court, to be paid under its direction to such person or persons as shall establish title to the same. The deed or deeds, or any proper conveyance of such property or personal estate, or any portion thereof, so sold under such judgment or decree, executed by the officer lawfully charged with carrying the same into effect, shall vest in the purchaser thereof all the title of the delinquent to the property or personal estate sold under and by virtue of such judgment or decree, and shall release every other portion of such property or personal estate from the lien or charge thereon created by this Act. And every person or persons who shall have in his possession, charge, or custody any record, file, or paper containing, or supposed to contain, any information concerning such property or personal estate, as aforesaid, passing from any person who may die, as aforesaid, shall exhibit the same at the request of the collector or deputy collector of the district, and to any law officer of the United States, in the performance of his duty under this Act, his deputy or agent, who may desire to examine the same. And if any such person, having in his possession, charge, or custody any such records, files, or papers, shall refuse or neglect to exhibit the same on request, as aforesaid, he shall forfeit and pay the sum of five hundred dollars: Provided, That in all legal controversies where such deed or title shall be the subject of judicial investigation, the recital in said deed shall be prima facie evidence of its truth, and

that the requirements of the law had been complied with by the officers of the Government: And provided further, That in case of willful neglect, refusal, or false statement by such executor, administrator, or trustee, as aforesaid, he shall be liable to a penalty of not exceeding one thousand dollars, to be recovered with costs of suit. Any tax paid under the provisions of sections twenty-nine and thirty shall be deducted from the particular legacy or distributive share on account of which the same is charged."

Act April 12, 1902, c. 500, § 8, 32 Stat. 97.

Act June 13, 1898, c. 448, § 29, mentioned in this section, and repealed by section 7 of this act, is set forth in Comp. St. 1901, p. 2307; and section 30 of that act, as amended by Act March 2, 1901, c. 806, § 11, which is continued in force by this section, is set forth in Comp. St. 1901, p. 2308.

Sec. 9. [Amends Act June 13, 1898, c. 448, § 35.]

This section, amending Act June 13, 1898, c. 448, § 35, is set forth ante, under chapter 7 D of this Title.

Sec. 10. [Repeals Act June 13, 1898, c. 448, § 50.]

This section, repealing Act June 13, 1898, c. 448, § 50, is set forth ante, under Title XXXIII, "Duties upon Imports."

Time of taking effect of act.

Sec. 11. That this Act, except as otherwise specially provided for in the preceding section, shall take effect July first, nineteen hundred and two.

Act April 12, 1902, c. 500, § 11, 32 Stat. 99.

ACT JUNE 27, 1902, c. 1160.

An Act to Provide for Refunding Taxes Paid upon Legacies and Bequests for Uses of a Religious, Charitable, or Educational Character, for the Encouragement of Art, and so Forth, under the Act of June Thirteenth, Eighteen Hundred and Ninety-Eight, and for Other Purposes. (32 Stat. 406.)

Taxes paid on legacies for religious, literary, charitable, or educational uses, for encouragement of art, or to societies for prevention of cruelty to children, to be refunded.

Be it enacted, &c., That the Secretary of the Treasury, under appropriate rules and regulations to be prescribed by him, be, and he is hereby, authorized and directed to pay, out of any money in the Treasury not otherwise appropriated, to the corporations, associations, societies, or individuals as trustees or executors, such sums of money as have been paid by them as taxes upon bequests or legacies for uses of a religious, literary, charitable, or educational character, or for the encouragement of art, or legacies or bequests to societies for the prevention of cruelty to children, under the provisions of section twenty-nine of the Act entitled "An Act to provide ways and means to meet war expenditures, and for other purposes," approved June thirteenth, eighteen hundred and ninety-eight.

Act June 27, 1902, c. 1160, § 1, 32 Stat. 406.

Act June 13, 1898, c. 448, § 29, mentioned in this section, is set forth in Comp. St. 1901, p. 2307. It is repealed by Act April 12, 1902, c. 500, § 7, set forth above.