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Re: Sale of Las Vegas water system to the Las Vegas Valley Water District. Los Angeles - June 17* 1954 AIR MAIL 80-11 Mr. W. R. Rouse: (ce - Mr. Mr. * Mr. Mr. Wm. Reinhardt W. H. Hulslzer R. M. Sutton C. M. Bates ) W M . R» JUN 18 1954 Cl 02>£ xOLl The Escrow Instructions for the transfer of the Las Vegas water system to the District requires us to instruct the escrow agent as to the amount of docu­mentary stamps required under Section 3482 of the Internal Revenue Code to be affixed to the conveyance documents. Since we hope to close the escrow on July 1st, the instructions should be given promptly. The tax applies to transfers of real property but not to transfers of personal property. Under State law, it is fairly well settled that those pipelines and similar facilities upon lands owned in fee by the owner of the facilities are real property, but there is a difference of opinion with respect to pipelines in streets and upon other rights of way which are not permanent In character. 73 C.J.S. 161, Notes 76-78. The Internal Revenue Department has departed from its former practice of following State law in assessing stamp taxes. See General Counsel's Memorandum 23295 in CCH Tax Service 42680.173 where real property Is defined as embracing those Interests which endure for a period, the termination of which is not fixed or ascertained by a specific number of years. In Rudolph vs. Pfettomac Electric Power Company, 24 Fed. (2) 882, it was held that poles, wires aridf conduits upon public property were not taxable as real estate. I discussed the stamp tax question in this trans­action with a local representative of the Excise Division of the Bureau of Internal Revenue, and although he could B. R, D, JUN 18 1884 4 ?’’-3 0 0 I