Page:United States Statutes at Large Volume 47 Part 1.djvu/217

 72d CONGRESS. SESS. I. CH. 209 . JUNE 6, 1932 . 193 SEC. 103. EXE MPT ION S F ROM TAX ON CORPORATIONS. INCOME TAX Th e fol lowin g org anizat ions shall be ex empt from taxati on un der Exempt ions fro m tax this title- on corporations. (i ) Labor, agricult ural, or horticu ltural o rganizat ions ; Labor, agr ic ult ur al, (2 Mutual savings banks not having a ca pit al stock repre- etc . IvIutual savin g s se nted by shares ; banks . (3) Fraternal beneficiary societies, orders, or associations, (A) soFrattenal beneficiary operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge sys- tem ; and (B) providing for the payment of Lfe, sick, accident, or other benefits to the members of such society, order, or asso- ciation or their dependents ; Domes tic b uildi ng and loan asso ciati ons su bstan tiall y all Domestic building (4) ~-, and loa n associations ; the business of which is confined to making loans to members ; and cooperative banks . cooperative banks without capital stock organized and operated for mutual purposes and without profit ; (5) Cemetery companies owned and operated exclusively for Companies. cemetery the benefit of their members or which are not operated for profit ; and any corporation chartered solely for burial purposes as a cem- etery corporation and not permitted by its charter to engage in any business not necessarily incident to that purpose, 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- corp orations , com. mun ity che sts, etc., for ti on, orga nized an d operate d exclus ively fo r religi ous, cha ritable, relig ious, etc ., pur. scientific, literary, or educational purposes, or for the prevention pO5e of cruelty to children or animals, no part of the net earnings of which inures to the ben efi t of any priv ate sh are hol der or individual ; (7) Business leagues, chambers of commerce, real-estate boards, Business leagues, et c. or boards of trade, not organized for profit and no part of the net earnings of which inures to the benefit of any private share- holder or individual ; (8) Civic leagues or organizations not organized for profit but ploy' asso ciat ions , operated exclusively for the promotion of social welfare, or local etc • associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular mu nicipali ty, and the net e arnings of which are dev oted exc lusively to charitable, educational, or recreational purposes ; Pleasure clubs. (9 ) Clubs organized and op erated exclusively for p leasure, recreation, and other nonprofitable purposes, no part of the net ea rnings o f which inures to the ben efit of any priv ate shar eholder Local life insurance, (1 0) Be nevol ent li fe in suran ce as sociat ions of a purely loca l mutual ditc h, etc ., character, mutual' ditch or irrigation companies, mutual or companies. cooperative telephone companies, or like organizations ; but only if 85 per centum or more of the income consists of amounts col- lected fr om members for the so le purpose of meeting losses and expenses ; Farmers' mutual (11) Farmers' or other mutual hail, cyclone, casualty, or fire cas ual ty insu ran ce insurance companies or associations (including interinsurers and companies . reciprocal underwriters) the income of which is used or held for the purpose of paying losses or expenses ; F , ~ Farmers' cooperative (12) armers, fruit growers', or like associations organized and associations. o p,erated on a cooperative basis (a) for the purpose of marketing products. their 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 of the products Purch asing su pplies furnished by them, or (b) for the purpose of purchasing supplies and equipme nt for and equipment for the use of members or other persons, and turn- 3051 1 -38-13