Page:United States Statutes at Large Volume 47 Part 1.djvu/218

 194 72d CONGRESS. SESS. I. CH. 209. JUNE 6, 1932. INCOME Tag ing over such supplies and equipment to them at actual cost, plus cap ita l stock also- necessary expenses. Exemption shall not be denied any such asso- ciations rest ricted. ciation because it has capital stock, if the dividend rate of such stock is fixed at not to exceed the lega l rate of intere st 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 substantially all such stock (other than nonvoting preferred stock, the owners of which are not entitled or permitted to par- ticipate, 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 accumu- lated and maintained by it a reserve required by State law or a keting products products on mar- reas onable reser ve for any n ecessa ry purp ose. Su ch an associ a- members. tion may market the products of nonmembers in an amount the value of which does not exceed the value of the products marketed for members, and may purchase supplies and equipment for non- members in an amount the value of which does not exceed the valu e of t he sup plies and eq uipmen t purch ased f or mem bers, pro- Purchases by non- vided the value of the purchases made for persons who are neither members. members nor producers does not exceed 15 per centum of the value Organizations by ex- of all i ts purchases ; empt associ ations for (13) Corporations organized by an association exempt under the financing members. crop or members. provisions of paragraph (12), or members thereof, for the purpose of financing the ordinary crop operations of such embers or other producers, and operated in conjunction with such association. Exemption shall not be denied any such corporation because it has st Diividend rat e of capital stock, if the dividend rate of such stock is fixed at not to exceed 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 substantially 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 corporation, upon dissolution or Reserve allowed . otherwise, beyond the fixed dividends) is owned by such associa- tion, or members thereof ; nor shall exemption be denied any such cor porat ion b ecau se th ere i s acc umul ated and m aint ained by it a reserve required by State law or a reasonable reserve for any necessary purpose ; Corporations as trus- (14) Corporations organized for the exclusive purpose of hold- tees for exempted organ- izations. ing title to property, collecting income therefrom, and turning over the entire amount thereof, less expenses, to - an organization which itself is exempt from the tax imposed by this title ; et Federal land banks, (15) F ederal land banks, natio nal fa rm-loan assoc iation s, and u leacP• s0. Federal intermediate credit banks, as provided in the Federal Farm Loan Act, as amended ; - Voluntar y em- (16) Voluntary employees' beneficiary associations providing p dates ' beneficiary as- for h, payment of life, sick, accident, or other benefits to the lo yeeon s' members of such association or their dependents, if (A) no part of th eir ne t earn ings i nures (other than t hrough such paymen ts) 'to the benefit of any private shareholder or individual, and (B) 85 per centum or more of the income consists of amounts collected from members for the sole purpose of making such payments and meeting expenses ; Loc alteachers're tire- (17) Te achers ' reti rement fund associ ations of a p urely local mentfundassociationst character, if (A) no part of their net earnings inures (other than through payment of retirement benefits) to the benefit of any private shareholder or individual, and (B) the income consists