ESTATE TAX. In effect as of June 2, 1924. Deduction of charitable bequests, etc., pealed. pealed. "8 per centum of the amount by which the net estate exceeds $750,000 and does not exceed $1,000,000; "10 per centum of the amount by which the net estate exceeds $1,000,000 and does not exceed $1,500,000; 12 per centum of the amount by which the net estate exceeds $1,500,000 and does not exceed $2,000,000; "14 per centum of the amount by which the net estate exceeds $2,000,000 and does not exceed $3,000,000; "16 per centum of the amount by which the net estate exceeds $3,000,000 and does not exceed $4,000,000; "18 per centum of the amount by which the net estate exceeds $4,000,000 and does not exceed $5,000,000; "20 per centum of the amount by which the net estate exceeds $5,000,000 and does not exceed $8,000,000; 22 per centum of the amount by which the net estate exceeds $8,000,000 and does not exceed $10,000,000; and "25 per centum of the amount by which the net estate exceeds $10,000,000." (b) Subdivision (a) of this section shall take effect as of June -2, 1924. SEC. 323. (a) So much of paragraph (3) of subdivision (a) and from estate tax, re- of paragraph (3) of subdivision (b) of section 303 of the Revenue Act of 1924 as reads as follows: "If the tax imposed by section 301, Vol. 43, p. 305, re- or any estate, succession, legacy, or inheritance taxes, are, either by the terms of the will, by the law of the jurisdiction under which the estate is administered, or by the law of the jurisdiction imposing the particular tax, payable in whole or in part out of the bequests, legacies, or devises otherwise deductible under this paragraph, then the amount deductible under this paragraph shall be the amount of such bequests, legacies, or devises reduced by the amount of such taxes" is repealed. In effect as of June 2, 1924. Gift tax. Tax for 1924 and 1925 on transfer of property by gift. Vol. 43, p. 313, amended. (b) Subdivision (a) of this section shall take effect as of June 2, 1924. SEC. 324. (a) Section 319 of the Revenue Act of 1924 is amended to read as follows: "SEC. 319. For the calendar year 1924 and the calendar year 1925, a tax equal to the sum of the following is hereby imposed upon the transfer by a resident by gift during such calendar year of any property wherever situated, whether made directly or indirectly, and upon the transfer by a nonresident by gift during such calendar year of any property situated within the United States, whether made directly or indirectly: 66 1 per centum of the amount of the taxable gifts not in excess of $50,000; "2 per centum of the amount by which the taxable gifts exceed $50,000 and do not exceed $150,000; 3 per centum of the amount by which the taxable gifts exceed $150,000 and do not exceed $250,000; "4 per centum of the amount by which the taxable gifts exceed $250,000 and do not exceed $450,000; "6 per centum of the amount by which the taxable gifts exceed $450,000 and do not exceed $750,000; "8 per centum of the amount by which the taxable gifts exceed $750,000 and do not exceed $1,000,000; "10 per centum of the amount by which the taxable gifts exceed $1,000,000 and do not exceed $1,500,000; 66 '12 per centum of the amount by which the taxable gifts exceed $1,500,000 and do not exceed $2,000,000; 14 per centum of the amount by which the taxable gifts exceed $2,000,000 and do not exceed $3,000,000; "16 per centum of the amount by which the taxable gifts exceed $3,000,000 and do not exceed $4,000,000; "18 per centum of the amount by which the taxable gifts exceed $4,000,000 and do not exceed $5,000,000; 20 per centum of the amount by which the taxable gifts exceed $5,000,000 and do not exceed $8,000,000; 22 per centum of the amount by which the taxable gifts exceed $8,000,000 and do not exceed $10,000,000; and "25 per centum of the amount by which the taxable gifts exceed $10,000,000." obose ESTATE TAX. (b) Subdivision (a) of this section shall take effect as of June, In effect as of June 2, 2, 1924. 1924. Refund of excess of SEC. 325. Any tax that has been paid under the provisions of tax paid under Act of Title III of the Revenue Act of 1924 prior to the enactment of this 1924. Act in excess of the tax imposed by such title as amended by this Act shall be refunded without interest. TOBACCO. TITLE IV-TAX ON CIGARS, TOBACCO, AND MANU- TAX ON CIGARS AND FACTURES THEREOF manufacturer or im ed. Vol. 43, p. 316, amend SEC. 400. (a) Upon cigars and cigarettes manufactured in or Payable on sales by imported into the United States, which on or after the expiration of porter. R. S., sec. 3394, p. 30 days after the enactment of this Act are sold by the manufacturer 666, amended. or importer, or removed for consumption or sale, there shall be levied, collected, and paid under the provisions of existing law, in lieu of the internal-revenue taxes now imposed thereon by section 400 of the Revenue Act of 1924, the following taxes, to be paid by the manufacturer or importer thereof On cigars of all descriptions made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, 75 cents per thousand; On cigars made of tobacco, or any substitute therefor, and weighing more than three pounds per thousand, if manufactured or imported to retail at not more than 5 cents each, $2 per thousand; If manufactured or imported to retail at more than 5 cents each and not more than 8 cents each, $3 per thousand; If manufactured or imported to retail at more than 8 cents each and not more than 15 cents each, $5 per thousand; If manufactured or imported to retail at more than 15 cents each and not more than 20 cents each, $10.50 per thousand; If manufactured or imported to retail at more than 20 cents each, $13.50 per thousand; On cigarettes made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, $3 per thousand; Weighing more than three pounds per thousand, $7.20 per thousand. (b) Whenever in this section reference is made to cigars manufactured or imported to retail at not over a certain price each, then in determining the tax to be paid regard shall be had to the ordinary retail price of a single cigar in its principal market. (c) The Commissioner may, by regulation, require the manufacturer or importer to affix to each box, package, or container a conspicuous label indicating the clause of this section under which the cigars therein contained have been tax-paid, which must correspond with the tax-paid stamp on such box or container. Rates. Cigars. Basis, on retail price. Cigarettes, on weight. Retail price defined. Labels required. Packages authorized Vol. 43, p. 317. (d) Every manufacturer of cigarettes (including small cigars for cigarettes, etc. weighing not more than three pounds per thousand) shall put up all the cigarettes and such small cigars that he manufactures or has manufactured for him, and sells or removes for consumption or sale, in packages or parcels containing five, eight, ten, twelve, fifteen, TAX ON CIGARS AND sixteen, twenty, twenty-four, forty, fifty, eighty, or one hundred TOBACCO. Stamps. Imported. Cigars. Packages required. R. 8., sec. 3392, p. 666, amended. Vol. 43, p. 317. lations. Provisos. cigarettes each, and shall securely affix to each of such packages or parcels a suitable stamp denoting the tax thereon and shall properly cancel the same prior to such sale or removal for consumption or sale under such regulations as the Commissioner, with the approval of the Secretary, shall prescribe; and all cigarettes imported from a foreign country shall be packed, stamped, and the stamps canceled in a like manner, in addition to the import stamp indicating inspection of the customhouse before they are withdrawn therefrom. (e) Section 3392 of the Revised Statutes, as amended, is re-enacted without change, as follows: "SEC. 3392. All cigars weighing more than three pounds per thousand shall be packed in boxes not before used for that purpose containing, respectively, three, five, seven, ten, twelve, thirteen, twenty-five, fifty, one hundred, two hundred, two hundred and fifty, Punishment for vio- or five hundred cigars each; and every person who sells, or offers for sale, or delivers, or offers to deliver, any cigars in any other form than in new boxes as above described, or who packs in any box any cigars in excess of or less than the number provided by law to be put in each box, respectively, or who falsely brands any box, or affixes a stamp on any box denoting a less amount of tax than that required by law, shall be fined for each offense not more than $1,000 from and be imprisoned not more than two years: Provided, That nothing in this section shall be construed as preventing the sale of cigars at retail by retail dealers from boxes packed, stamped, and branded Number allowed in the manner prescribed by law: Provided further, That each employee of a manufacturer of cigars shall be permitted to use, for personal consumption and for experimental purposes, not to exceed twenty-one cigars per week without the manufacturer of cigars being required to pack the same in boxes or to stamp or pay any internal-revenue tax thereon, such exemption to be allowed under such rules and regulations as the Secretary of the Treasury may prescribe." Retail sales boxes. each employee without stamps, etc. Effective in 30 days. (f) This section shall take effect on the expiration of 30 days after the enactment of this Act. SEC. 401. (a) Upon all tobacco and snuff manufactured in or imported into the United States, and hereafter sold by the manufacturer or importer, or removed for consumption or sale, there shall be levied, collected, and paid, in lieu of the internal-revenue taxes now imposed thereon by section 401 of the Revenue Act of 1924, a tax of 18 cents per pound, to be paid by the manufacturer or importer thereof. (b) Section 3362 of the Revised Statutes, as amended by section 701 of the Revenue Act of 1918, is amended to read as follows: "SEC. 3362. All manufactured tobacco shall be put up and prepared by the manufacturer for sale, or removal for sale or consumption, in packages of the following description and in no other manner: "All smoking tobacco, snuff, fine-cut chewing tobacco, all cut and granulated tobacco, all shorts, the refuse of fine-cut chewing, which has passed through a riddle of thirty-six meshes to the square inch, and all refuse scraps, clippings, cuttings, and sweepings of tobacco, and all other kinds of tobacco not otherwise provided for, in packages containing one-eighth of an ounce, three-eighths of an ounce, and further packages with a difference between each package and the one next smaller of one-eighth of an ounce up to and including two ounces, and further packages with a difference between each package and the one next smaller of one-fourth of an ounce up to and including four ounces, and further packages with a difference between TOBACCO.T Proviso. each package and the one next smaller of one ounce up to and TAX ON CIGARS AND including sixteen ounces: Provided, That snuff may, at the option of the manufacturer, be put up in bladders and in jars containing not exceeding twenty pounds. "All cavendish, plug, and twist tobacco, in wooden packages not exceeding two hundred pounds net weight. Wooden packages., Provisos. Bulk sales without "And every such wooden package shall have printed or marked Marking, etc. thereon the manufacturer's name and place of manufacture, the registered number of the manufactory, and the gross weight, the tare, and the net weight of the tobacco in each package: Provided, That these limitations and descriptions of packages and the provisions of sections 3364 of the Revised Statutes requiring a label to be affixed to each package, shall not apply to tobacco and snuff transported in bond for exportation and actually exported: And provided further, stamps of perique, etc., That perique tobacco, snuff flour, fine-cut shorts, the refuse of fine- to manufacturer. cut chewing tobacco, refuse scraps, clippings, cuttings, and sweepings of tobacco, may be sold in bulk as material, and without the payment of tax, by one manufacturer directly to another manufacturer, or for export, under such restrictions, rules, and regulations as the Commissioner of Internal Revenue may prescribe: And provided tamaterials for confurther, That wood, metal, paper, or other materials may be used separately or in combination for packing tobacco, snuff, and cigars, under such regulations as the Commissioner of Internal Revenue may establish." Cigarette paper and tubes. Tax on sales to other than manufacturers. ed. SEO, 402. There shall be levied, collected, and paid, in lieu of the taxes imposed by section 402 of the Revenue Act of 1924, upon cigarette paper made up into packages, books, sets, or tubes, made up Vol. 43, p. 138, amendin or imported into the United States and hereafter sold by the manufacturer or importer to any person (other than to a manufacturer of cigarettes for use by him in the manufacture of cigarettes), the following taxes, to be paid by the manufacturer or importer: On each package, book, or set containing more than twentyfive but not more than fifty papers, 2 cent; containing more than fifty but not more than one hundred papers, 1 cent; containing more than one hundred papers, 1/2 cent for each fifty papers or fractional part thereof; and upon tubes, 1 cent for each fifty tubes or fractional part thereof. Rates. Use of tubes by Bond required. Every manufacturer of cigarettes purchasing any cigarette paper manufacturers. made up into tubes (a) shall give bond in an amount and with sureties satisfactory to the Commissioner that he will use such tubes in the manufacture of cigarettes or pay thereon a tax equivalent to the tax imposed by this section, and (b) shall keep such records and render under oath such returns as the Commissioner finds necessary to show the disposition of all tubes purchased or imported by such manufacturer of cigarettes. SEC. 403. Section 3360 of the Revised Statutes, as amended, is re-enacted without change, as follows: "SEO. 3360. (a) Every dealer in leaf tobacco shall file with the collector of the district in which his business is carried on a statement in duplicate, subscribed under oath, setting forth the place, and, if in a city, the street and number of the street, where his business is to be carried on, and the exact location of each place where leaf tobacco is held by him on storage, and, whenever he adds to or discontinues any of his leaf tobacco storage places, he shall give immediate notice to the collector of the district in which he is registered. Leaf tobacco. 657. Dealers. Notice of business lector. to be filed with colvol. 43, p. 318. Every such dealer shall give a bond with surety, satisfactory to, Bond required. and to be approved by, the collector of the district, in such penal sum as the collector may require, not less than $500; and a new bond Inventory to be filed annually. business, etc., to be kept. Details. may be required in the discretion of the collector, or under instructions of the Commissioner. "Every such dealer shall be assigned a number by the collector of the district, which number shall appear in every inventory, invoice and report rendered by the dealer, who shall also obtain certificates from the collector of the district setting forth the place where his business is carried on and the places designated by the dealer as the places of storage of his tobacco, which certificates shall be posted conspicuously within the dealer's registered place of business, and within each designated place of storage. "(b) Every dealer in leaf tobacco shall make and deliver to the collector of the district a true inventory of the quantity of the different kinds of tobacco held or owned, and where stored by him, on the 1st day of January of each year, or at the time of commencing and at the time of concluding business, if before or after the 1st day of January, such inventory to be made under oath and rendered in such form as may be prescribed by the Commissioner. Daily records of "Every dealer in leaf tobacco shall render such invoices and keep such records as shall be prescribed by the Commissioner, and shall enter therein, day by day, and upon the same day on which the circumstance, thing or act to be recorded is done or occurs, an accurate account of the number of hogsheads, tierces, cases and bales, and quantity of leaf tobacco contained therein, purchased or received by him, on assignment, consignment, for storage, by transfer or otherwise, and of whom purchased or received, and the number of hogsheads, tierces, cases and bales, and the quantity of leaf tobacco contained therein, sold by him, with the name and residence in each instance of the person to whom sold, and if shipped, to whom shipped, and to what district; such records shall be kept at his place of business at all times and preserved for a period of two years, and the same shall be open at all hours for the inspection of any internal-revenue officer or agent. Monthly reports of transactions. Restriction on sales or shipments. Shipments limited. Penalty tax for violations. Designated offenses. Failure to give bond, make returns, etc. Illegal shipments. "Every dealer in leaf tobacco on or before the tenth day of each month, shall furnish to the collector of the district a true and complete report of all purchases, receipts, sales and shipments of leaf tobacco made by him during the month next preceding, which report shall be verified and rendered in such form as the Commissioner, with the approval of the Secretary, shall prescribe. "(c) Sales or shipments of leaf tobacco by a dealer in leaf tobacco shall be in quantities of not less than a hogshead, tierce, case, or bale, except loose leaf tobacco comprising the breaks on warehouse floors, and except to a duly registered manufacturer of cigars for use in his own manufactory exclusively. "Dealers in leaf tobacco shall make shipments of leaf tobacco only to other dealers in leaf tobacco, to registered manufacturers of tobacco, snuff, cigars or cigarettes, or for export. "(d) Upon all leaf tobacco sold, removed or shipped by any dealer in leaf tobacco in violation of the provisions of subdivision (c), or in respect to which no report has been made by such dealer in accordance with the provisions of subdivision (b), there shall be levied, assessed, collected and paid a tax equal to the tax then in force upon manufactured tobacco, such tax to be assessed and collected in the same manner as the tax on manufactured tobacco. "(e) Every dealer in leaf tobacco 66 "(1) who neglects or refuses to furnish the statement, to give bond, to keep books, to file inventory or to render the invoices, returns or reports required by the Commissioner, or to notify the collector of the district of additions to his places of storage; or "(2) who ships or delivers leaf tobacco, except as herein provided; or |