CHAPTER 12-SAFE DEPOSIT BOXES

SEC. 1850. TAX.

(a) RATE.-There shall be imposed a tax equivalent to 20 per centum of the amount collected for the use of any safe deposit box. (b) BY WHOM PAID.-The tax imposed by subsection (a) shall be paid by the person paying for the use of the safe deposit box. SEC. 1851. COLLECTION OF TAX BY LESSOR.

(a) REQUIREMENT.-Every person making any collections specified in subsection (a) of section 1850 shall collect the amount of tax imposed by such subsection from the person paying for the use of the safe deposit box.

(b) CROSS REFERENCE.

For provision requiring the amount of tax so collected to be held in a special fund in trust for the United States, see section 3762.

SEC. 1852. RETURNS.

(a) REQUIREMENT.-Every person making any collections specified in subsection (a) of section 1850 shall on or before the last day of each month make a return, under oath, for the preceding month. Such returns shall contain such information and be made in such manner as the Commissioner, with the approval of the Secretary, may by regulations prescribe.

[For witnessing of returns in lieu of oath, see section 3330.]

(b) PLACE FOR FILING.-The return shall be made to the collector for the district in which is located the principal place of business of the person making any collections specified in subsection (a) of section. 1850, or, if he has no principal place of business in the United States, then to the collector at Baltimore, Maryland.

SEC. 1853. PAYMENT OF TAX.

(a) TIME FOR PAYMENT.-The tax imposed by section 1850 shall, without assessment by the Commissioner or notice from the collector, be due and payable to the collector at the time fixed for filing the

return.

(b) PLACE FOR PAYMENT.-The tax shall be paid to the collector for the district in which is located the principal place of business of the person making any collections specified in subsection (a) of section 1850, or, if he has no principal place of business in the United States, then to the collector at Baltimore, Maryland.

(c) ADDITION TO THE TAX IN CASE OF DELINQUENCY.-If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 6 per centum per annum from the time the tax became due until paid.

SEC. 1854. REFUNDS AND CREDITS.

(a) ALLOWANCE.-Credit or refund of any overpayment of tax imposed by section 1850 may be allowed to the person who collected

the tax and paid it to the United States if such person establishes, to the satisfaction of the Commissioner. under such regulations as the Commissioner with the approval of the Secretary may prescribe, that he has repaid the amount of such tax to the person from whom he collected it, or obtained the consent of such person to the allowance of such credit or refund.

(b) CREDIT ON MONTHLY RETURNS.-Any person entitled to refund of tax under section 1850 paid, or collected and paid, to the United States by him may take credit therefor against taxes due upon any monthly return.

(c) ADJUSTMENTS FOR REFUNDED PAYMENTS.-Any person making a refund of any payment on which tax under section 1850 has been collected may repay therewith the amount of tax collected on such payment, and the amount of tax so repaid may be credited against the tax under any subsequent return.

SEC. 1855. REGULATIONS.

The Commissioner, with the approval of the Secretary, shall prescribe and publish all needful rules and regulations for the enforcement of this chapter.

SEC. 1856. APPLICABILITY OF ADMINISTRATIVE PROVISIONS.

All provisions of law (including penalties) applicable in respect of the taxes imposed by section 1700 shall, in so far as applicable and not inconsistent with this chapter, be applicable in respect of the tax imposed by section 1850.

SEC. 1857. DEFINITION OF SAFE DEPOSIT BOX.

For the purposes of this chapter, any vault, safe, box, or other receptacle, of not more than 40 cubic feet capacity, used for the safekeeping or storage of jewelry, plate, money, specie, bullion, stocks, bonds, securities, valuable papers of any kind, or other valuable personal property, shall be regarded as a safe deposit box.

SEC. 1858. PUBLICITY OF RETURNS.

For provisions with respect to publicity of returns under this chapter, see subsection (a) (2) of section 55 [in the note following section 1604].

CHAPTER 13-CIRCULATION OTHER THAN OF NATIONAL BANKS

SEC. 1900. RATE OF TAX.

(a) AVERAGE CIRCULATION OUTSTANDING.-There shall be levied, collected, and paid

(1) ENTIRE CIRCULATION.-A tax of one-twelfth of 1 per centum each month upon the average amount of circulation issued by any bank, association, corporation, company, or person, including as circulation all certified checks and all notes and other obligations calculated or intended to circulate or to be used as money, but not including that in the vault of the bank, or redeemed and on deposit for said bank; and

(2) CIRCULATION EXCEEDING 90 PER CENTUM OF CAPITAL.-An additional tax of one-sixth of 1 per centum each month upon the average amount of such circulation, issued as aforesaid, beyond the amount of 90 per centum of the capital of any such bank, association, corporation, company, or person.

In the case of banks with branches, the tax herein provided shall be assessed upon the circulation of each branch severally, and the amount of capital of each branch shall be considered to be the amount allotted to it.

(b) CIRCULATION PAID OUT.

(1) OWN CIRCULATION.-Every person, firm, association other than national bank associations, and every corporation, State bank, or State banking association, shall pay a tax of 10 per centum on the amount of their own notes used for circulation and paid out by them.

(2) OTHER CIRCULATION.-Every such person, firm, association, corporation, State bank, or State banking association, and also every national banking association, shall pay a like tax of 10 per centum on the amount of notes of any person, firm, association other than a national banking association, or of any corporation, State bank, or State banking association, or of any town, city, or municipal corporation, used for circulation and paid out by them. SEC. 1901. EXEMPTION FROM TAX.

(a) CIRCULATION REDUCED TO NOT OVER 5 PER CENTUM OF CAPITAL.-Whenever the outstanding circulation of any bank, association, corporation, company, or person is reduced to an amount not exceeding 5 per centum of the chartered or declared capital existing at the time the same was issued, said circulation shall be free from taxation; and (b) CIRCULATION UNDER REDEMPTION IN WHOLE.-Whenever any bank which has ceased to issue notes for circulation deposits in the Treasury of the United States, in lawful money, the amount of its outstanding circulation, to be redeemed at par, under such regulations as the Secretary shall prescribe, it shall be exempt from any tax upon such circulation.

(c) CIRCULATION OF INSOLVENT BANKS.

For exemption in case of insolvent banks, see section 3798.

SEC. 1902. RETURNS AND PAYMENT OF TAX.

(a) CIRCULATION OUTSTANDING.

(1) TIME FOR MAKING RETURN.-A true and complete return of the monthly amount of circulation as aforesaid for the previous six months shall be made and rendered in duplicate on the first day of December, and the first day of June, by each of such banks, associations, corporations, companies, or persons, with a declaration annexed thereto, under the oath of such person, or of the president or cashier of such bank, association, corporation, or company, in such form and manner as may be prescribed by the Commissioner, that the same contains a true and faithful statement of the amounts subject to tax, as aforesaid; and

(2) TO WHOM RETURN MADE.-One copy shall be transmitted to the collector of the district in which any such bank, association, corporation, or company is situated, or in which such person has his place of business, and one copy to the Commissioner.

(3) CALCULATION AND TIME FOR PAYMENT OF TAX.-The taxes provided in section 1900 (a) shall be paid semi-annually, on the first day of January and the first day of July; but the same shall be calculated at the rate per month as prescribed by said section, so that the tax for six months shall not be less than the aggregate would be if such taxes were collected monthly.

(4) RETURN AND PAYMENT WHEN STATE BANK CONVERTED INTO NATIONAL BANK.-Whenever any State bank or banking association has been converted into a national banking association, and such national banking association has assumed the liabilities of such State bank or banking association, including the redemption of its bills, by any agreement or understanding whatever with the representatives of such State bank or banking association, such national banking association shall be held to make the required return and payment on the circulation outstanding, so long as such circulation shall exceed 5 per centum of the capital before such conversion of such State bank or banking association.

(b) CIRCULATION PAID OUT.-The amount of circulating notes referred to in section 1900 (b), and of the tax due thereon, shall be returned, and the tax paid at the same time, and in the same manner, and with like penalties for failure to return and pay the same, as provided by law for the return and payment of taxes on circulation imposed by subsection (a) of that section.

SEC. 1903. ESTIMATION OF OUTSTANDING CIRCULATION IN DEFAULT OF RETURN.

In default of the returns provided in section 1902, the amount of circulation and notes of persons, town, city, and municipal corporations, State banks, and State banking associations paid out, as aforesaid, shall be estimated by the Commissioner, upon the best information he can obtain.

SEC. 1904. PENALTY FOR REFUSAL OR NEGLECT TO MAKE RETURN OR PAYMENT.

For any refusal or neglect to make return and payment, any bank, association, corporation, company, or person in default as described in the preceding section shall pay a penalty of $200, besides the additional penalty and forfeitures provided in other cases.

SEC. 1905. DEFINITION OF BANK OR BANKER.

Every incorporated or other bank, and every person, firm, or company having a place of business where credits are opened by the deposit or collection of money or currency, subject to be paid or remitted upon draft, check, or order, or where money is advanced or loaned on stocks, bonds, bullion, bills of exchange, or promissory notes, or where stocks, bonds, bullion, bills of exchange, or promissory notes are received for discount or for sale, shall be regarded as a bank or as a banker.

SEC. 1906. APPLICATION OF CHAPTER TO NATIONAL BANKS.

The provisions of this chapter, relating to the tax on the circulation of banks, and to their returns, except as contained in sections 1900 (b) (2), 1901 (a) and (b), 1902 (a) (4), and such parts of sections 1902 (a) (1) and (2) and (b), 1903, and 1904 as relate to the tax of 10 per centum on certain notes, shall not apply to associations which are taxed as national banks.

[For tax on national bank circulation, see R. S. 5214-5218, as amended by acts of Mar. 3, 1883 (22 Stat. 488, § 1), and June 10, 1921 (42 Stat. 24, § 304), and the acts of Mar. 14, 1900 (31 Stat. 49, § 13), and Dec. 21, 1905 (34 Stat. 5, § 1; 12 U. S. C. 541–547).]