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etc.,
cars, etc.

line.

sages,

motor power on a regular established line when in competition with carriers by rail or water from one point in the United States to another or to any point in Canada or Mexico, where the ticket or order therefor is sold or issued in the United States, not including the amount paid for commutation or season tickets for trips less than thirty miles, or for transportation the fare for which does not exceed 42 cents: Provided, That where such water transportation lines are in competition between American ports with foreign water transportation lines from adjacent foreign ports, the tax imposed under this subdivision on amounts paid for water transportation between American ports shall not exceed the amount of the transportation tax to which such foreign water transportation lines are subjected by their government

corresponding to this tax; Seats, berths, in parlor

(d) A tax equivalent to 8 per centum of the amount paid for seats, berths, and staterooms in parlor cars, sleeping cars, or on vessels, used on or after such date in connection with transportation upon which tax is

imposed by subdivision (c); Transportation of oil by pipe

(e) A tax equivalent to 8 per centum of the amount paid for the transportation on or after such date of oil

by pipe line; Telegraph, telephone, etc., mes.

(f) In the case of each telegraph, telephone, cable, or radio, dispatch, message, or conversation, which originates on or after such date within the United States, and for the transmission of which the charge is more than 14 cents and not more than 50 cents, à tax of 5 cents; and if the charge is more than 50 cents, a tax of 10 cents: Provided, That only one payment of such tax shall be required, notwithstanding the lines or stations of one or more persons are used for the transmission of

such dispatch, message, or conversation; and wire,

(g) A tax equivalent to 10 per centum of the amount paid after such date to any telegraph or telephone company for any leased wire or talking circuit special service furnished after such date. This subdivision shall not apply to the amount paid for so much of such service as is utilized (1) in the collection and dissemination of news through the public press, or (2) in the conduct, by a common carrier or telegraph or telephone company,

of its business as such; Exemptions. (h) No tax shall be imposed under this section upon

any payment received for services rendered to the United States or to any State or Territory or the District of Columbia. The right to exemption under this subdivision shall be evidenced in such manner as the Commissioner, with the approval of the Secretary, may by regu

lation prescribe. Tax payable Sec. 501. (a) That the taxes imposed by section 500 by whom.

shall be paid by the person paying for the services or facilities rendered.

Leased etc., service.

Purchase

of

vember 1917.

ing

Carrier trans

(b) If a mileage book used for transportation or ac

mileage book or commodation was purchased before November 1, 1917, payment of cash or if cash fare is paid, the tax imposed by section 500 fare before Noshall be collected from the person presenting the mileage book, or paying the cash fare, by the conductor or other agent, when presented for such transportation or accommodation, and the amount so collected shall be paid to the United States in such manner and at such times as the Commissioner, with the approval of the Secretary, may prescribe; if a ticket (other than a mileage Tickets bough: book) was bought and partially used before November aged berpartially 1, 1917, it shall not be taxed, but if bought but not so vember 1, 1917. used before section 500 takes effect, it shall not be valid for passage until the tax has been paid and such payment evidenced on the ticket in such manner as the Commissioner, with the approval of the Secretary, may by regulation prescribe.

(c) The taxes imposed by section 500 shall apply to all Agency renderservices or facilities specified in such section when rendered for hire, whether or not the agency rendering them is a common carrier. In case a carrier (other than a

porting goods pipe line) principally engaged in rendering transporta - owned by itself. tion services or facilities for hire does not, because of its ownership of the goods transported, or for any other reason, receive the amount which as a carrier it would otherwise charge, such carrier shall pay a tax equivalent to the tax which would be imposed upon the transportation of such goods if the carrier received payment for such transportation, such tax, if it can not be computed from actual rates or tariffs of the carrier, to be computed on the basis of the rates or tariffs of other carriers for like services as determined by the Commissioner. In the ice for hire by case of any carrier (other than a pipe line) the principal carrier. business of which is to transport goods belonging to it on its own account and which only incidentally renders services for hire, the tax shall apply to such services or facilities only as are actually rendered by it for hire. Nothing in this or the preceding section shall be con- Transportation strued as imposing a tax (1) upon the transportation of necessary for use any commodity which is necessary for the use of the car- in carrier's busirier in the conduct of its business as such and is intended to be so used or has been so used; or (2) upon the transportation of company material transported by one carrier, which constitutes a part of a railroad system, for another carrier which is also a part of the same system.

(d) The tax imposed by subdivision (e) of section 500 shall apply to all transportation of oil by pipe line. In line. case no charge for transportation is made, by reason of ownership of the commodity transported, or for any other reason, the person transporting by pipe line shall pay a tax equivalent to the tax which would be imposed if such person received payment for such transportation, and if the tax can not be computed from actual bona fide

of

commodity

Transportation of oil by pipe

tax; monthly returns.

etc.

rates or tariffs, it shall be computed (1) on the basis of the rates or tariffs of other pipe lines for like services, as determined by the Commissioner, or (2) if no such rates or tariffs exist, on the basis of a reasonable charge for such transportation, as determined by the Commis

sioner. Collection of Sec. 502. That each person receiving any payments

referred to in section 500 shall collect the amount of the tax, if any, imposed by such section from the person making such payments, and shall make monthly returns under oath, in duplicate, and pay the taxes so collected and the taxes imposed upon it under subdivision (c) or (d) of section 501 to the collector of the district in which

the principal office or place of business is located. Listing tax in No carrier collecting the taxes imposed by subdivision bills of lading,

(a) or (b) of section 500 shall be required to list the amount of such tax separately in any bill of lading, freight or express receipt, or other similar document, if the total amount of the transportation charge and the

tax is stated therein. Refunds. Any person making a refund of any payment upon

which tax is collected under this section may repay therewith the amount of the tax collected on such payment; and the amount so repaid may be credited against

amounts included in any subsequent monthly return. Regulations

The returns required under this section shall contain gorerning turns.

such information, and be made at such times and in such manner, as the Commissioner, with the approval of the

Secretary, may by regulation prescribe. Time of pay. ment; penalty.

The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable to the collector at the time so fixed for filing the return. If the tax is not paid when due, there shall be added as part of the tax a penalty of 5 per centum, together with interest at the rate of 1 per centum for each full month, from the time when the tax became due.

re.

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Tax
on

issuance of insurance

SEC. 503. [Act of February 24, 1919 (40 Stat. 1057).] That from and after April 1, 1919, there shall be levied, policies. assessed, collected, and paid, in lieu of the taxes imposed by section 504 of the Revenue Act of 1917, the following taxes on the issuance of insurance policies, including, in the case of policies issued outside the United States (except those taxable under subdivision 15 of Schedule À of Title XI), their delivery within the United States by any agent or broker, whether acting for the insurer or the insured; such taxes to be paid by the insurer, or by such agent or broker:

(a) Life insurance: A tax equivalent to 8 cents on each $100 or fractional part thereof of the amount for which cies. any life is insured under any policy of insurance, or other instrument, by whatever name the same is called : Provided, That on all policies for life insurance only by which a life is insured not in excess of $500, issued on the industrial or weekly or monthly payment plan of insurance, the tax shall be 40 per centum of the amount of the first weekly premium or 20 per centum of the amount of the first monthly premium, as the case may be: Provided further, That on policies of group life insurance, covering groups of not less than 25 lives in the employ of the same person, for the benefit of persons other than the employer, the tax shall be equivalent to 4 cents on each $100 of the aggregate amount for which the group policy is issued and of any net increase in the amount of the insurance under such policy: And provided further, That on all policies covering life, health, and accident insurance combined in one policy by which a life is insured not in excess of $500, issued on the industrial, or weekly or monthly payment plan of insurance, the tax shall be 40 per centum of the amount of the first weekly premium or 20 per centum of the amount of the first monthly premium, as the case may be;

Rate on life insurance poli

i Sea Regulations No. 58.
2 Act of October 3, 1917, post, page 849.

Rate of tax on marine, inland, and fire ance policies.

insur

ance.

(b) Marine, inland, and fire insurance: A tax equivainsur- lent to 1 cent on each dollar or fractional part thereof of

the premium charged under each policy of insurance or other instrument by whatever name the same is called whereby insurance is made or renewed upon property of any description (including rents or profits), whether against peril by sea or inland waters, or by fire or light

ning, or other peril; Rate of tax on (c) Casualty insurance: A tax equivalent to 1 cent on casualty

each dollar or fractional part thereof of the premium charged under each policy of insurance or obligation of the nature of indemnity for loss, damage, or liability (except bonds and policies taxable under subdivision 2 of schedule A of Title XI) issued or executed or renewed by any person transacting the business of employer's liability, workmen's compensation, accident, health, tornado, plate glass, steam boiler, elevator, burglary, automatic sprinkler, automobile, or other branch of insurance (except life insurance, and insurance described and taxed in the preceding subdivision): Provided, That in case of policies of insurance issued on the industrial or weekly or monthly payment plan the tax shall be 40 per centum of the amount of the first weekly premium or 20 per centum of the amount of the first monthly premium, as

the case may be; Exemptione. (d) Policies issued by any corporation enumerated in

section 231, and policies of reinsurance, shall be exempt from the taxes imposed by this section.

Article 6, Regulations No. 58, relating to insuranee issued

abroad, amended. (T. D. 2938.) Monthly Sec. 504. That every person issuing policies of insur

ance upon the issuance of which a tax is imposed by section 503 shall make monthly returns under oath, in duplicate, and pay such tax to the collector of the district in which the principal office or place of business of such person is located. Such returns shall contain such information and be made at such times and in such manner as the Commissioner, with the approval of the Secretary, may

by regulation prescribe. Payment The tax shall, without assessment by the Commissioner tax; penalty.

or notice from the collector, be due and payable to the collector at the time so fixed for filing the return. If the tax is not paid when due, there shall be added as part of the tax a penalty of 5 per centum, together with interest at the rate of 1 per centum for each full month, from the time when the tax became due.

re

turns.

of

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