Taxes! Taxes!

Examples of the 1862 series

 In 1862, the second year of the Civil War, the government decided it needed more revenue to pay for the war effort. A plan for revenue stamps was put together. The revenue would be on documents with legal implications, such as deeds, mortgages, wills, etc. Bank checks, playing cards, and photographs were also to be taxed. A private contractor was hired and the stamps went into use. Each stamp had a portrait of George Washington. As with many taxes, once everyone became accustomed to them they were here to stay.

Higher value stamps from the 1862 series

By 1871 the government became aware of fraud with the use of revenue stamps. They were printed on paper that did not readily absorb ink and enterprising individuals were washing the ink off and re-using stamps. After several trials the government settled on a new design and more absorbent paper.

Large Persian Rug, 1870's

The king of Federal revenue stamps is called the "Large Persian Rug" to distinguish it from the $200 "Small Persian Rug." Very few of these exist. To pay $500 in taxes on an estate would have been very rare but t did happen. 

 To increase revenue the Federal Government levied taxes on items deemed luxuries. Tobacco was taxed, as well as playing cards, matches, and patent medicines. This area of stamp collecting is a world unto itself.

Private die stamps, including playing cards, matches, and patent medicines, had designs that were approved by the government. Manufacturers took advantage of the tax and used their stamps as a form of advertisement. Often they had a picture of the founder of the company, or another image that touted the quality of the product inside.

1860's proprietary tax stamp for matches.

1890's cigarette tax stamps

Beer was taxed by the fraction of a barrel until the 1940’s. These early, large (3” square) beer stamps are popular with collectors 

1930's oleomargarine stamp

1930's potato tax stamp

1940's Federal car stamp

A 1933 tax stamp for fermented fruit juice before Prohibition was repealed!

Documentary stamp from 1898

New York stock transfer stamps from the 1930's

During the Great Depression a variety of products were taxed, represented by the stamps shown here. States levied their own taxes on various transactions such as the sale of stocks. With the onset of World War II such taxes also supported the war effort.