666 Acts, 1939. — Chap. 486.

ChapASQ An Act relating to the taxation of wages, salary orCOMPENSATION OF OFFICERS AND EMPLOYEES OF THEUNITED STATES, CERTAIN BODIES POLITIC OR CORPORATEAND CERTAIN AGENCIES AND INSTRUMENTALITIES THEREOF.

Emergencypreamble.

G. L. (Ter.Ed.), 62, § 5,

etc., amended.

Taxationof incomeof federalemployees,etc.

G. L. (Ter.Ed.), 62, § 22,

amended.

Whereas, The deferred operation of this act would tendto defeat its purpose, therefore it is hereby declared to bean emergency law, necessary for the immediate preserva-tion of the public convenience.

Be it enacted, etc., as follows:

Section 1. Section five of chapter sixty-two of the Gen-eral Laws is hereby amended by striking out subsection (6),

as most recently amended by section eight of chapter fotir

hundred and eighty-nine of the acts of nineteen hundredand thirty-five, and inserting in place thereof the follow-

ing:—(6) The excess over two thousand dollars of the income,

as defined in section six, derived from professions, employ-ments, trade or business shall be taxed at the rate of oneand one half per cent per annum. In determining such in-

come the rental value of living quarters furnished any indi-

vidual as part of his compensation shall be included. Thewages, salary or compensation received prior to Januaryfirst, nineteen hundred and thirty-nine, for personal services

of officers and employees of the United States, any territory

or possession or political subdivision thereof, the District of

Columbia, or any agency or instrumentality of any one or

more of the foregoing, shall be exempt unless such officers

and employees are officers or employees of any corporateagency or instrumentality which is not exempt from federal

income taxation, or which, if so exempt, is one (a) a majorityof the stock of which is not owned by or on behalf of the

United States, and (6) the power to appoint or select a

majority of the board of directors of which is not exercisable

by or on behalf of the United States. Retirement allow-

ances, however described, from the commonwealth or anycounty, city, town or district thereof, or from any person,

if not exempt by law, and interest received in the course

of business by persons subject to the provisions of sections

seventy to eighty-five, inclusive, of chapter one hundredand forty, shall be taxed under this subsection.

Section 2. Said chapter sixty-two is hereby further

amended by striking out section twenty-two, as appearingin the Tercentenary Edition, and inserting in place thereof

the following:— Section 22. Every individual inhabitant

of the commonwealth, including every partnership, associa-

tion or trust, whose annual income from all sources exceeds

two thousand dollars shall annually make a return of his

entire income, except income derived (a) from real estate,

(6) from dividends exempt from taxation under section one,

(c) from interest upon bonds or other obligations of the

United States, (d) from interest upon such bonds, notes and

Acts, 1939. — Chap. 487. 667

certificates of indebtedness of the commonwealth and poht-ical subdivisions thereof as are exempt from taxation underclause twenty-fifth of section five of chapter fifty-nine, (e)

from loans secured exclusively by duly recorded mortgageof real estate, taxable as real estate, situated in the com-monwealth, to an amount not exceeding the assessed valueof the mortgaged real estate less the amount of all prior

mortgages, and (/) from wages, salaries or compensationexempted from taxation by subsection (6) of section five.

Every other individual inhabitant, including every partner-

ship, association or trust, who receives income taxable un-der section one or subsection (a) or (c) of section five shall

make an annual return of such taxable income.Section 3. Except as otherwise provided in section one,

this act shall apply with respect to taxes assessed in or onaccount of the year nineteen hundred and thirty-nine andthereafter. Approved August 12, 1939.

An Act further defining the term dependent child(JJ^ar) 487

UNDER THE LAW PROVIDING AID TO DEPENDENT CHIL-^'

DREN.

Whereas, The deferred operation of this act would tend to Emergency

defeat its purpose, therefore it is hereby declared to be an preamble.

emergency law, necessary for the immediate preservation of

the public convenience.

Be it enacted, etc., as follows:

Section one of chapter one hundred and eighteen of the g. l. (Ter.

General Laws, as appearing in section one of chapter four^^f ^^t"^^^'

hundred and thirteen of the acts of nineteen hundred and amended,

thirty-six, is hereby amended by inserting after the word"sixteen" in the fourth line the following:— , or under theage of eighteen if found to be regularly attending school, —so as to read as follows :

— Section 1 . The following words Definitions.

and phrases as used in this chapter, unless the context other-

wise requires, shall have the following meanings: —"Dependent child", a child under the age of sixteen, or

under the age of eighteen if found to be regularly attendingschool, who has been deprived of parental support or care byreason of the death, continued absence from home or physi-cal or mental incapacity of a parent, and who is living

with his father, mother, grandfather, grandmother, brother,sister, stepfather, stepmother, stepbrother, stepsister, uncleor aunt in a place of residence maintained by one or more of

such relatives as his or their own home, whether or not theyor any of them have a settlement within the commonwealth."Aid to dependent children", money payments with re-

spect to a dependent child or dependent children.

"Department", the department of public welfare.

"Parent" shall include any relative described in the para-graph of this section defining "Dependent child", in respectto dependent children in his or her care or custody.

Approved August 12, 1939.