Stamp act

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Stamp Act
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This article is about the general topic. For the tax on newspapers in the United Kingdom, see Stamp Act 1712. For the tax on printed material in the Thirteen Colonies, see Stamp Act 1765.

A stamp act is any legislation that requires a tax to be paid on the transfer of certain documents. Those who pay the tax receive an official stamp on their documents, making them legal documents. A variety of products have been covered by stamp acts including

playing cards, dice, patent medicines, cheques, mortgages, contracts, marriage licenses and newspapers. The items may have to be physically stamped at approved government offices following payment of the duty, although methods involving annual payment of a fixed sum or purchase of adhesive stamps
are more practical and common.

This system of taxation was first devised in the Netherlands in 1624 after a public competition to find a new form of tax.[1] Stamp acts have been enforced in many countries, including Australia, Canada, People's Republic of China, Ireland, India, Malaysia, Israel, the United Kingdom, and the United States of America.

The taxes raised under a stamp act are called stamp duty.

Australia

Stamps acts were enacted in various Australian states in 1878, 1882, 1886, 1890, and 1894, with amendments from 1892 to 1907.[2] According to these acts, stamps were required on many types of business transactions: negotiable instruments, promissory notes, bills of lading, and receipts.[2]

In Western Australia, duties of this type were overhauled in the Western Australian Stamp Act 1921, which took effect on 1 January 2010.[3] In South Australia, the Stamp Duties Act 1923 was first enacted in 1923, then revised or amended almost yearly until its current version of 2017.[4]

England and United Kingdom Stamp Acts

Stamps Act 1694

Stamps Act 1694
Act of Parliament
Commencement
28 June 1694
Repealed1 January 1871
Other legislation
Amended byStamps (Amendment) Act 1694
Repealed byInland Revenue Repeal Act 1870
Status: Repealed
Text of statute as originally enacted
Stamps (Amendment) Act 1694
Act of Parliament
6 & 7 Will. & Mar. c. 12
Dates
Royal assent22 April 1695
Repealed1 January 1871
Other legislation
AmendsStamps Act 1694
Repealed byInland Revenue Repeal Act 1870
Status: Repealed
Text of statute as originally enacted
Stamps Act 1697
Act of Parliament
9 Will. 3. c. 25
(Ruffhead: 9 & 10 Will. 3. c. 25)
Dates
Royal assent5 July 1698
Repealed1 January 1871
Other legislation
Repealed byInland Revenue Repeal Act 1870
Relates to
Status: Repealed
Text of statute as originally enacted
Stamps Act 1702
Act of Parliament
1 Ann. St. 2. c. 19
(Ruffhead: c. 22)
Dates
Royal assent27 February 1703
Repealed1 January 1871
Other legislation
Repealed byInland Revenue Repeal Act 1870
Status: Repealed
Stamps Act 1709
Act of Parliament
8 Ann. c. 5
(Ruffhead: c. 9)
Dates
Royal assent24 March 1710
Repealed1 January 1871
Other legislation
Repealed byInland Revenue Repeal Act 1870
Status: Repealed
Stamps Act 1710
Act of Parliament
9 Ann. c. 15
Ruffhead c. 21
Dates
Royal assent12 June 1711
Repealed1 January 1871
Other legislation
Repealed byInland Revenue Repeal Act 1870
Status: Repealed
Stamps (No. 2) Act 1710
Act of Parliament
9 Ann. c. 16
Ruffhead c. 23
Dates
Royal assent12 June 1711
Other legislation
Repealed byInland Revenue Repeal Act 1870
Status: Repealed

A

5 & 6 Will. & Mar. c. 21).[5] The duty ranged between 1 penny to several shillings
on a number of different legal documents including insurance policies, documents used as evidence in courts, grants of honour, grants of probate and letters of administration. It raised around £50,000 a year and although it was initially a temporary measure, it proved so successful that its use was continued.

Stamp Act 1712

Main article: Stamp Act 1712
Stamp Act 1712
Act of Parliament
Commencement
5 July 1765
Repealed1 July 1855
Status: Repealed
Stamps Act 1713
Act of Parliament
13 Ann. c. 18
(Ruffhead: 12 Ann. St. 2 c. 9)
Other legislation
Repealed byInland Revenue Repeal Act 1870
Status: Repealed

The Stamp Act 1712 was an act passed in the United Kingdom on 1 August 1712 to create a new tax on publishers, particularly of newspapers.[6][7][8] The initial assessed rate of tax was one penny per whole newspaper sheet, a halfpenny for a half sheet, and one shilling per advertisement contained within.[9] Other than newspapers, it required that all pamphlets, legal documents, commercial bills, advertisements, and other papers be issued the tax.[10] The act was increased in 1797 with greater taxes and wider spectrum of materials affected, reached its height around 1815 during the "taxes on knowledge" struggle, reduced in 1836, and repealed in 1855.[11]

The stamp tax was a tax on each newspaper and thus hit cheaper papers and popular readership harder than wealthy consumers, because it formed a higher proportion of the purchase price. The act had a

chilling effect on publishers; the tax is blamed for the decline of English literature critical of the government during the period, notably with The Spectator ending the same year of the tax's enactment.[12]
Its repeal in 1855 allowed a cheap press again.

Stamp Duties Management Act 1891 and Stamp Act 1891

Stamp Duties Management Act 1891
Act of Parliament
54 & 55 Vict. c. 38
Dates
Royal assent21 July 1891
Other legislation
Repeals/revokes
Status: Amended
Text of statute as originally enacted
Text of the Stamp Duties Management Act 1891 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.
Stamp Act 1891
Act of Parliament
Stamps Act 1871
  • Canadian Stock Stamp Act 1874
  • Sea Insurance (Stamping of Policies) Amendment Act 1876
    • Status: Amended
    Text of statute as originally enacted
    Text of the Stamp Act 1891 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

    All the above Acts were superseded by the Stamp Duties Management Act 1891 and the Stamp Act 1891, which still constitute the bulk of UK law on stamp duties today.

    The modern UK Stamp Act

    From 1914 to 1928, the Director of Stamping at the

    US Treasury notes). These were issued for denominations of £1 and 10's to enable coins to be removed from circulation and were not convertible to gold. Existing Bank of England banknotes in higher denominations continued to circulate alongside the Treasury Notes. In 1963 production of postage stamps passed to the General Post Office
    .

    The

    Finance Act 1986 introduced Stamp Duty Reserve Tax. From October 27, 1986, the charge was imposed on 'closing' transactions at the London Stock Exchange
    which until then had been transactions where no document was used and therefore exempt from Stamp Duty.

    A public display of Stamp Office

    Charter Mark by John Major
    's Advisory Committee as a reward for its public service.

    Stamp duties are the oldest taxes still raised by the HM Revenue and Customs.

    Israel

    Main article: Taxation in Israel

    Israel used to have a stamp duty on signed documents,[13] which was regulated by the 1961 "Stamp Tax on Documents" (Law 5731-1961),[14] the 1965 "Stamp Tax on Documents Regulations",[13] and subsequent Additions.[13] The stamp duty was repealed as of 2006.[15]

    People's Republic of China

    Main article: Taxation in China

    As part of domestic taxation, the PRC includes a stamp tax as one of the "behavioural taxes". Foreign investors are also subject to a stamp tax. Stamp taxes in China are governed by "Provisional Regulations of the People's Republic of China Concerning Stamp Tax Detailed Rules for Its Implementation", implemented in 1988. In 1997, stamp taxes produced revenue of 26.63 billion yuan and comprised 3.6% of China's gross domestic product.

    United States

    Stamp Act 1765

    Main article: Stamp Act 1765
    See also: American Revolutionary War § Background and political developments

    After Great Britain was victorious over France in the Seven Years' War – which manifested in America as the French and Indian War – a small Stamp Act was enacted that covered all sorts of documents. The Stamp Act 1765 (short title Duties in American Colonies Act 1765; 5 Geo. 3. c. 12) was a direct tax imposed by the British Parliament on the colonies of British America. The act required that many printed materials in the colonies be produced on stamped paper produced in London and carrying an embossed revenue stamp.[16][17] These printed materials were on every legal document, magazine, and newspaper, plus many other types of paper used throughout the colonies, including playing cards.[18] Unlike previous taxes, the stamp tax had to be paid in valid British currency, not in colonial paper money.

    The purpose of the tax was to help pay for troops stationed in North America. The British government felt that the colonies were the primary beneficiaries of this military presence, and the colonial population should pay at least a portion of the expense. The colonists claimed their constitutional rights were violated since only their own colonial legislatures could levy taxes.

    No Taxation without Representation" reflected an increasingly major grievance that led to the American Revolution.[20] The Americans saw no need for the troops or the taxes; the British saw colonial defiance of their lawful rulers.[21]

    The Stamp Act met great resistance in the colonies. Colonial assemblies sent petitions and protests. Local protest groups, led by colonial merchants and landowners, established connections through correspondence – the so-called "

    tax collectors were attacked.[20] Protests and demonstrations initiated by the newly formed Sons of Liberty often turned violent and destructive as the masses became involved. A word used frequently by colonists was "liberty" during the Stamp Act upheaval. Opponents of the new tax staged mock funerals in which "liberty's" coffin was carried to a burial ground. They insisted that liberty could not be "taken away without consent."[23]

    A more reasoned approach was taken by some elements.

    John Dickinson of Pennsylvania. The statement echoed the recent resolves of the Virginia House of Burgesses, which argued that colonial taxation could only be carried on by their own assemblies.[18]
    The delegates singled out the Stamp Act and the use of the vice-admiralty courts for special criticism, yet ended their statement with a pledge of loyalty to the King.

    Opposition to the Stamp Act was not limited to the colonies. In Canada, Nova Scotia largely ignored the Act; they allowed ships bearing unstamped papers to enter its ports, and business continued unabated after the distributors ran out of stamps.

    St. Kitts and Nevis, with rioting and blockage of stamp delivery. Montserrat and Antigua also succeeded in avoiding the use of stamps. In Jamaica there was also vocal opposition, and much evasion of the stamps.[26]
    British merchants and manufacturers, whose exports to the colonies were threatened by colonial boycotts, also pressured Parliament.

    The act was repealed in early 1766, although the Declaratory Act maintained Parliament's right to tax the colonies.[20]

    Revival

    Main article: Revenue stamps of the United States

    "Revenue stamps" were revived in the United States during the American Civil War. In 1862, the United States (Union) government began taxing a variety of goods, services, and legal dealings, in an effort to raise revenue for the great costs of the war.[27] To confirm that taxes were paid a "revenue stamp" was purchased and appropriately affixed to the taxable item.[27] This excise tax continued until the federal government finished paying the war debt in 1883, at which time the tax was repealed.[27]

    In 1898, revenue stamps were again issued, to provide funding for the

    stock certificates, bills of lading, manifests, and marine insurance. To pay these tax duties revenue tax stamps were purchased and affixed to the taxable item or respective certificate.[28]

    Revenue stamps were issued at irregular intervals for alcohol products, tobacco products, matches, proprietary medicines, and perfumes.[29] Revenue stamps were finally discontinued on December 31, 1967.

    References

    1. ISBN 0116414189
    2. ^ a b Commonwealth Bureau of Census and Statistics, Melbourne (1908). Official Year Book of the Commonwealth of Australia, Containing Authoritative Statistics for the period 1901-1907 and Corrected Statistics for the period 1788 to 1900. Vol. 1.-1908. Melbourne, Australia: McCarron, Bird & Co. pp. 675–676.
    3. ^ Leuii, Janina (19 May 2010). "Changes to the Western Australian Stamp Act 1921". Insider. Thomson Reuters. Retrieved 12 October 2017.
    4. ^ Stamp Duties Act 1923 (PDF), Government of South Australia, 15 March 2017
    5. ISBN 978-0-7864-0783-5
      .
    6. JSTOR 456958
      .
    7. ^ Downie, J. A. (1979). "7 - The Stamp Act of 1712". Robert Harley and the Press: Propaganda and Public Opinion in the Age of Swift and Defoe. Cambridge University Press. Retrieved 2013-10-07.
    8. ^ "BBC News - The key moments that shaped the British press". Bbc.co.uk. 2012-11-17. Retrieved 2013-10-07.
    9. ISBN 9780674858329
      . Retrieved 2013-10-07.
    10. ^ "Stamp Act". Infoplease.com. Retrieved December 14, 2012.
    11. ^ "A brief timeline of UK newspaper publishing". Making the Modern World. The Science Museum. Retrieved December 5, 2012.
    12. ISBN 978-0-87413-750-7
      . Retrieved 10 December 2012.
    13. ^ a b c Department of Customs & VAT (5 May 2004). "Notice to the Public: Stamp Tax". The State of Israel. Retrieved 27 November 2017.
    14. OL 3361544M
    15. ^ Taxation and Investment in Israel 2012: Reach, relevance and reliability (PDF), Deloitte Touche Tohmatsu Limited, p. 14
    16. ^ Morgan and Morgan (1995), pp. 96-97.
    17. Revenue Society
      : 87–89.
    18. ^ a b c "A Summary of the 1765 Stamp Act". Education. The Colonial Williamsburg Foundation. Retrieved 12 October 2017.
    19. ASIN B01FGOQCC4
      .
    20. ^
      History
      . A&E Television Networks, LLC. Retrieved 12 October 2017.
    21. ASIN B01K2REAH4
      .
    22. ^ Weinsteiger, Brigitte. "Colonial American Timeline". Building Community: Medieval Technology and American History. Pennsylvania State University, Center for Medieval Studies. Retrieved 12 October 2017.
    23. ASIN B011DC94BO
      .
    24. JSTOR 359557
      .
    25. OCLC 1654202
      .
    26. JSTOR 2946860
      .
    27. ^ a b c "5000-dollar Washington". Arago: People, Postage & the Post. Smithsonian National Postal Museum. Retrieved 12 October 2017.
    28. ^ Garbade, Kenneth D. (2012). Birth of a Market: The U.S. Treasury Securities Market From the Great War to the Great Depression. Cambridge, Massachusetts: MIT Press. p. 29.
    29. ^ "General Issues". Arago: People, Postage & the Post. Smithsonian National Postal Museum. Retrieved 12 October 2017.
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