Page:United States Statutes at Large Volume 45 Part 1.djvu/864

 SEVENTIETH CONGRESS. SEss. I. Cx. 852. 1928. (5) Cemetery companies owned and operated exclusively for the benefit of their members or which ar e not operated for profit ; and any corporation chartered solely for burial purposes as a cemetery corporation and not permitted by its charter to engage in any business not necessarily incident to that pur- pose, no part of the net earnings of which inures to the benefit of any private shareholder or individual ; (6) Corporations, and any community chest, fund, or founda- tion, organized and operated exclusively for religious, chari- table, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private share- holder or ind ividua l ; (7) Business leagues, chambers of commerce, real estate boards, or boards of trade, not organized for profit and no part of the net earnings of which inures to the benefit of any private shareho lder o r indi vidual ; (8) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclu sively to ch aritab le, ed ucation al, or recre ationa l purpo ses ; ( 9) Cl ubs o rgan ized and o perat ed e xclus ively for plea sure, recreation, and other nonprofitable purposes, no part of the net earnings of which inures to the benefit of any private share- holder ; (1 0) Ben evolen t life insur ance a ssocia tions o f a pu rely l ocal character, mutual ditch or irrigation companies, mutual or coop- erative telephone companies, or like organizations ; but only if 85 per centum or more of the income consists of amounts col- lected from members for the sole purpose of meeting losses and expenses ; (11) Farmers' or other mutual hail, cyclone, casualty, or fire insur ance compa nies or a ssoci atio ns (i nclud ing i nter insur ers and reciprocal underwriters) the income of which is used or held for the purpose of paying losses or expenses ; (12) Fa rmers', frui t grow ers', or lik e assoc iation s orga nized and operated on a cooperative basis (a) for the purpose of marketing the products of members or other producers, and turning back to them the proceeds of sales, less the necessary marketing expenses, on the basis of either the quantity or the value o f the produc ts fur nished by th em, or (b) fo r the purpos e of purchasing supplies and equipment for the use of members or other persons, and turning over such supplies and equipment to th em at actu al c ost, plus nece ssary expe nses. Exem ption shall n ot be denied any s uch as sociat ion bec ause i t has capita l stock, if the divi dend rate of such stock is fixed at not to ex ceed the legal rate of interest in the State of incorporation or 8 per centum per annum, whichever is greater, on the value of the consideration for which the stock was issued, and if substan- tially all such stock (other than nonvoting preferred stock, the owners of which are not entitled or permitted to participate, directly or indirectly, in the profits of the association, upon dissolution or otherwise, beyond the fixed dividends) is owned by producers who market their products or purchase their supplies and equipment through the association ; nor shall exemption be denied any such association because there is accum ulate d and mai ntain ed by it a res erve requi red by St ate 813 INCOME TAX Mutual cemetery co mpan ies . Corporations, com- munity chests, etc ., for religious, scientific, pur- poses, etc. Business leagues, etc. Civic leagues, em- ployees' associations, etc. Pleasure clubs . Local life insurance, mu tual ditch, etc., co mpan ies . Farmer' mutual casualty insurance co mpan ies . Cooperative associa- tions of farmers, etc ., for marketing their products. Purchasing supplies and equipment for members. Capital stock associa- tions restricted .

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