Public Law 239.

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(/us/pl/75/238)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That when usedMarihuana Tax Act of 1937. in this Act—

(a)The term “person” means an individual, a partnership, trust,Definitions.“Person.” association, company, or corporation and includes an officer or employee of a trust, association, company, or corporation, or a member or employee of a partnership, who, as such officer, employee, or member, is under a duty to perform any act in respect of which any violation of this Act occurs.

(b)The term “marihuana” means all parts of the plant Cannabis“Marihuana.” sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or resin; but shall not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination.

(c)The term “producer” means any person who

(1)plants,“Producer.” cultivates, or in any way facilitates the natural growth of marihuana; or

(2)harvests and transfers or makes use of marihuana.

(d)The term “Secretary” means the Secretary of the Treasury and“Secretary;” “collector.” the term “collector” means collector of internal revenue.

(e)The term “transfer” or “transferred” means any type of“Transfer” or “transferred.” disposition resulting in a change of possession but shall not include a transfer to a common carrier for the purpose of transporting marihuana. Sec. 2.

(a)Every person who imports, manufactures, produces,Special occupational tax levied. compounds, sells, deals in, dispenses, prescribes, administers, or gives552away marihuana shall

(1)within fifteen clays after the effective date of this Act, or

(2)before engaging after the expiration of such fifteen-day period in any of the above-mentioned activities, and

(3)thereafter, on or before July 1 of each year, pay the following special taxes respectively:

(1)Importers, manufacturers, and compounders of marihuana, $24 per year.

(2)Producers of marihuana (except those included within subdivision

(4)of this subsection), $1 per year, or fraction thereof, during which they engage in such activity.

(3)Physicians, dentists, veterinary surgeons, and other practitioners who distribute, dispense, give away, administer, or prescribe marihuana to patients upon whom they in the course of their professional practice are in attendance, $1 per year or fraction thereof during which they engage in any of such activities.

(4)Any person not registered as an importer, manufacturer, producer, or compounder who obtains and uses marihuana in a laboratory for the purpose of research, instruction, or analysis, or who produces marihuana for any such purpose, $1 per year, or fraction thereof, during which he engages in such activities.

(5)Nonprofessional, etc., use. Any person who is not a physician, dentist, veterinary surgeon, or other practitioner and who deals in, dispenses, or gives away *Proviso*.Registered dealers, etc.marihuana, $3 per year: *Provided*, That any person who has registered and paid the special tax as an importer, manufacturer, compounder, or producer, as required by subdivisions

(1)and

(2)of this subsection, may deal in, dispense, or give away marihuana imported, manufactured, compounded, or produced by him without further payment of the tax imposed by this section.

(b)Computation of tax. Where a tax under subdivision

(1)or

(5)is payable on July 1 of any year it shall lie computed for one year; where any such tax is payable on any other day it shall be computed proportionately from the first day of the month in which the liability for the tax accrued to the following July 1.

(c)More than one place of business. In the event that any person subject to a tax imposed by this section engages in any of the activities enumerated in subsection

(a)of this section at more than one place, such person shall pay the tax with respect to each such place.

(d)More than one activity. Except as otherwise provided, whenever more than one of the activities enumerated in subsection

(a)of this section is carried on by the same person at the same time, such person shall pay the tax for each such activity, according to the respective rates prescribed.

(e)Registration requirements. Any person subject to the tax imposed by this section shall, upon payment of such tax, register his name or style and his place or places of business with the collector of the district in which such place or places of business are located.

(f)Furnishing of lists; payment of fee. Collectors are authorized to furnish, upon written request, to any person a certified copy of the names of any or all persons who may be listed in their respective collection districts as special taxpayers under this section, upon payment of a fee of $1 for each one hundred of such names or fraction thereof upon such copy so requested. Sec. 3. Employees of registered persons.

(a)No employee of any person who has paid the special tax and registered, as required by section 2 of this Act, acting within the scope of his employment, shall be required to register and pay such special tax.

(b)Public officials exempted. An officer or employee of the United States, any State, Territory, the District of Columbia, or insular possession, or political subdivision, who, in the exercise of his official duties, engages in any of the activities enumerated in section 2 of this Act shall not be required to register or pay the special tax, but his right to this553exemption shall be evidenced in such manner as the Secretary may by regulations prescribe. Sec. 4.

(a)It shall be unlawful for any person required toCertain activities without registration and payment of tax, unlawful. register and pay the special tax under the provisions of section 2 to import, manufacture, produce, compound, sell, deal in, dispense, distribute, prescribe, administer, or give away marihuana without having so registered and paid such tax.

(b)In any suit or proceeding to enforce the liability imposed byPresumptive evidence of production, and liability therefor. this section or section 2, if proof is made that marihuana was at any time growing upon land under the control of the defendant, such proof shall be presumptive evidence that at such time the defendant was a producer and liable under this section as well as under section 2. Sec. 5. It shall be unlawful for any person who shall not have paidShipments, etc, except as prescribed, unlawful. the special tax and registered, as required by section 2, to send, ship, carry, transport, or deliver any marihuana within any Territory, the District of Columbia, or any insular possession, or from any State, Territory, the District of Columbia, any insular possession of the United States, or the Canal Zone, into any other State, Territory, the District of Columbia, or insular possession of the United States: *Provided*,*Proviso*.Exceptions. That nothing contained in this section shall apply to any common carrier engaged in transporting marihuana; or to any employee of any person who shall have registered and paid the special tax as required by section 2 while acting within the scope of his employment; or to any person who shall deliver marihuana which has been prescribed or dispensed by a physician, dentist, veterinary surgeon, or other practitioner registered under section 2, who has been employed to prescribe for the particular patient receiving such marihuana; or to any United States, State, county, municipal, District, Territorial, or insular officer or official acting within the scope of his official duties. Sec. 6.

(a)It shall be unlawful for any person, whether or notTransfer except on written order from transferee unlawful. required to pay a special tax and register under section 2, to transfer marihuana, except in pursuance of a written order of the person to whom such marihuana is transferred, on a form to be issued in blank for that purpose by the Secretary.

(b)Subject to such regulations as the Secretary may prescribe,Exemptions. nothing contained in this section shall apply—

(1)To a transfer of marihuana to a patient by a physician, dentist,Professional use by physician, etc. veterinary surgeon, or other practitioner registered under section 2, in the course of his professional practice only: *Provided*, That such*Proviso*.Record to be kept. physician, dentist, veterinary surgeon, or other practitioner shall keep a record of all such marihuana transferred, showing the amount transferred and the name and address of the patient to whom such marihuana is transferred, and such record shall be kept for a period of two years from the date of the transfer of such marihuana, and subject to inspection as provided in section 11.

(2)To a transfer of marihuana, made in good faith by a dealerIssue on written prescription. to a consumer under and in pursuance of a written prescription issued by a physician, dentist, veterinary surgeon, or other practitioner registered under section 2: *Provided*, That such prescription shall be*Proviso*.Details required. dated as of the day on which signed and shall be signed by the physician, dentist, veterinary surgeon, or other practitioner who issues the same: *Provided further*, That such dealer shall preserve suchPreservation. prescription for a period of two years from the day on which such prescription is filled so as to be readily accessible for inspection by the officers, agents, employees, and officials mentioned in section 11.

(3)To the sale, exportation, shipment, or delivery of marihuanaExportation to a country regulating entry. by any person within the United States, any Territory, the District of Columbia, or any of the insular possessions of the United States, to any person in any foreign country regulating the entry of mari-554huana, if such sale, shipment, or delivery of marihuana is made in accordance with such regulations for importation into such foreign Promulgation of rules.country as are prescribed by such foreign country, such regulations to be promulgated from time to time by the Secretary of State of the United States.

(4)Use by public officials. To a transfer of marihuana to any officer or employee of the United States Government or of any State, Territorial, District, county, or municipal or insular government lawfully engaged in making purchases thereof for the various departments of the Army and Navy, the Public Health Service, and for Government, State, Territorial, District, county, or municipal or insular hospitals or prisons.

(5)Transfer of seeds to registered person. To a transfer of any seeds of the plant Cannabis sativa L. to any person registered under section 2.

(c)Order forms; preparation, sale, etc. The Secretary shall cause suitable forms to be prepared for the purposes before mentioned and shall cause them to be distributed to collectors for sale. The price at which such forms shall be sold by said collectors shall be fixed by the Secretary, but shall not exceed 2 cents each. Whenever any collector shall sell any of such forms he shall cause the date of sale, the name and address of the proposed vendor, the name and address of the purchaser, and the amount of marihuana ordered to be plainly written or stamped thereon before delivering the same.

(d)Use of. Each such order form sold by a collector shall be prepared by him and shall include an original and two copies, any one of which shall be admissible in evidence as an original. The original and one copy shall be given by the collector to the purchaser thereof. The original shall in turn be given by the purchaser thereof to any person who shall, in pursuance thereof, transfer marihuana to him and shall be preserved by such person for a period of two years so as to be readily accessible for inspection by any officer, agent, or employee mentioned in section 11. The copy given to the purchaser by the collector shall be retained by the purchaser and preserved for a period of two years so as to be readily accessible to inspection by any officer, agent, or employee mentioned in section 11. The second copy shall be preserved in the records of the collector. Sec. 7. Tax on transfers.*Ante*, p. 553.

(a)There shall be levied, collected, and paid upon all transfers of marihuana which are required by section 6 to be carried out in pursuance of written order forms taxes at the following rates:

(1)Rates. Upon each transfer to any person who has paid the special tax and registered under section 2 of this Act, $1 per ounce of marihuana or fraction thereof.

(2)Upon each transfer to any person who has not paid the special tax and registered under section 2 of this Act, $100 per ounce of marihuana or fraction thereof.

(b)Payment by transferee; by transferor. Such tax shall be paid by the transferee at the time of securing each order form and shall be in addition to the price of such form. Such transferee shall be liable for the tax imposed by this section but in the event that the transfer is made in violation of section 6 without an order form and without payment of the transfer tax imposed by this section, the transferor shall also be liable for such tax.

(c)Payment by means of stamps. Payment of the tax herein provided shall be represented by appropriate stamps to be provided by the Secretary and said stamps shall be affixed by the collector or his representative to the original order form.

(d)Provisions of law made applicable.Internal revenue stamps. All provisions of law relating to the engraving, issuance, sale, accountability, cancelation, and destruction of tax-paid stamps provided for in the internal-revenue laws shall, insofar as applicable and555not inconsistent with this Act, be extended and made to apply to stamps provided for in this section.

(e)All provisions of law (including penalties) applicable inNarcotic Drug Act.[38 Stat. 785](/us/stat/38/785).[26 U. S. C. 1040–1061, 1383–1391](/us/usc/t26/s1040–1061/1383–1391). respect of the taxes imposed by the Act of December 17, 1914 (38 Stat. 785; U. S. C., 1934 ed., title 26, secs. 1040–1061, 1383–1391), as amended, shall, insofar as not inconsistent with this Act, be applicable in respect of the taxes imposed by this Act. Sec. 8.

(a)It shall be unlawful for any person who is aTransferee required to pay transfer tax failing to pay, etc. transferee required to pay the transfer tax imposed by section 7 to acquire or otherwise obtain any marihuana without having paid such tax; and proof that any person shall have had in his possession anyProof of possession. marihuana and shall have failed, after reasonable notice and demand by the collector, to produce the order form required by section 6 to be retained by him, shall be presumptive evidence of guilt under this section and of liability for the tax imposed by section 7.

(b)No liability shall be imposed by virtue of this section uponNo liability on enforcement officer. any duly authorized officer of the Treasury Department engaged in the enforcement of this Act or upon any duly authorized officer of any State, or Territory, or of any political subdivision thereof, or the District of Columbia, or of any insular possession of the United States, who shall be engaged in the enforcement of any law or municipal ordinance dealing with the, production, sale, prescribing, dispensing, dealing in, or distributing of marihuana. Sec. 9.

(a)Any marihuana which has been imported,Forfeiture of contraband marihuana. manufactured, compounded, transferred, or produced in violation of any of the provisions of this Act shall be subject to seizure and forfeiture and, except as inconsistent with the provisions of this Act, all the provisions of internal-revenue laws relating to searches, seizures, and forfeitures are extended to include marihuana.

(b)Any marihuana which may be seized by the United StatesConfiscation of seizures. Government from any person or persons charged with any violation of this Act shall upon conviction of the person or persons from whom seized be confiscated by and forfeited to the United States.

(c)Any marihuana seized or coming into the possession of the United States in the enforcement of this Act, the owner or owners of which are unknown, shall be confiscated by and forfeited to the United States.

(d)The Secretary is hereby directed to destroy any marihuanaDestruction, etc. confiscated by and forfeited to the United States under this section or to deliver such marihuana to any department, bureau, or other agency of the United States Government, upon proper application therefor under such regulations as may be prescribed by the Secretary. Sec. 10.

(a)Every person liable to any tax imposed by this ActRecords, returns, etc. shall keep such books and records, render under oath such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe.

(b)Any person who shall be registered under the provisions ofStatements by registered persons. section 2 in any internal-revenue district shall, whenever required so to do by the collector of the district, render to the collector a true and correct statement or return, verified by affidavits, setting forth the quantity of marihuana received or harvested by him during such period immediately preceding the demand of the collector, not exceeding three months, as the said collector may fix and determine. If such person is not solely a producer, he shall set forth in such statement or return the names of the persons from whom said marihuana was received, the quantity in each instance received from such persons, and the date when received. Sec. 11. The order forms and copies thereof and the prescriptionsOrder forms, precriptions. etc.; inspection. and records required to be preserved under the provisions of section5566, and the statements or returns filed in the office of the collector of the district under the provisions of section 10

(b)shall be open to inspection by officers, agents, and employees of the Treasury Department duly authorized for that purpose, and such officers of any State, or Territory, or of any political subdivision thereof, or the District of Columbia, or of any insular possession of the United States as shall be charged with the enforcement of any law or municipal ordinance regulating the production, sale, prescribing, dispensing, Copies of returns.dealing in, or distributing of marihuana. Each collector shall be authorized to furnish, upon written request, copies of any of the said statements or returns filed in his office to any of such officials of any State or Territory, or political subdivision thereof, or the District of Columbia, or any insular possession of the United States as shall be entitled to inspect the said statements or returns filed in the office of the said collector, upon the payment of a fee of $1 for each 100 words or fraction thereof in the copy or copies so requested. Sec. 12. Penalty provisions. Any person who is convicted of a violation of any provision of this Act shall be fined not more than $2,000 or imprisoned not more than five years, or both, in the discretion of the court. Sec. 13. Negativing exemption in indictment, etc. It shall not be necessary to negative any exemptions set forth in this Act in any complaint, information, indictment, or other writ or proceeding laid or brought under this Act and the burden of proof of any such exemption shall be upon the defendant. In the absence of the production of evidence by the defendant that he has complied with the provisions of section 2 relating to registration or that he has complied with the provisions of section 6 relating to order forms, he shall be presumed not to have complied with such provisions or such sections, as the case may be. Sec. 14. Rules to be prescribed.*Post*, p. 772. The Secretary is authorized to make, prescribe, and publish all necessary rules and regulations for carrying out the provisions of this Act and to confer or impose any of the rights, privileges, powers, and duties conferred or imposed upon him by this Act upon such officers or employees of the Treasury Department as he shall designate or appoint. Sec. 15. Scope of Act. The provisions of this Act shall apply to the several States, the District of Columbia, the Territory of Alaska, the Territory of Hawaii, and the insular possessions of the United States, except the Philippine Islands. In Puerto Rico the administration of this Act, the collection of the special taxes and transfer taxes, and the issuance of the order forms provided for in section 6 shall be performed by the appropriate internal-revenue officers of that government, and all revenues collected under this Act in Puerto Rico Virgin Islands.shall accrue intact to the general government thereof. The President is hereby authorized and directed to issue such Executive orders as will carry into effect in the Virgin Islands the intent and purpose of this Act by providing for the registration with appropriate officers and the imposition of the special and transfer taxes upon all persons in the Virgin Islands who import, manufacture, produce, compound, sell, deal in, dispense, prescribe, administer, or give away marihuana. Sec. 16. Saving clause. If any provision of this Act or the application thereof to any person or circumstances is held invalid, the remainder of the Act and the application of such provision to other persons or circumstances shall not be affected thereby. Sec. 17. Effective date. This Act shall take effect on the first day of the second month after the month during which it is enacted. Sec. 18. Short title. This Act may be cited as the “Marihuana Tax Act of 1937.” Approved, August 2, 1937. To permit the erection of the Shenandoah Memorial in or near Ava, Ohio. 1937-08-02 554 Chapter 50 Stat. 557 75 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-11-23 public 557 [CHAPTER 554] AN ACT To permit the erection of the Shenandoah Memorial in or near Ava, Ohio. August 2, 1937[[H. R. 7564](/us/bill/75/hr/7564)][[Public, No. 239](/us/pl/75/239)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That section 1 ofShenandoah Memorial, Ava, Ohio.Location modified.[49 Stat. 1371](/us/stat/49/1371).*Post*, p. 775. the Act entitled “An Act authorizing the erection of a memorial to those who met their death in the wreck of the dirigible Shenandoah”, approved May 22, 1936, is hereby amended to read as follows: “That the Secretary of the Treasury be, and he is hereby authorized and directed to erect in or near Ava, Ohio, a suitable tablet or marker to commemorate the heroic services rendered by Commander Landsdowne and other members of the crew who died when the Navy dirigible Shenandoah was destroyed.” Approved, August 2, 1937. For the protection of oyster culture in Alaska. 1937-08-02 556 Chapter 50 Stat. 557 75 1 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2024-11-23 public [CHAPTER 556] AN ACT For the protection of oyster culture in Alaska. August 2, 1937[[H. R. 1561](/us/bill/75/hr/1561)][

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26 USC 1040–1061

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