74TH C ONGRESS . SESS . II. CH. 690. J UNE 22, 1936 .
1675 pat e, directly or indirectly, in the profit s of the assoc iation, 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 accumulated and main- tained by it a reserve required by State law or a reasonable reserve for any necessary purpose . Such an association may market the Marketing products products of nonmembers in an amount the value of which does not o ma kin gf nonm emb ers and akin g pu rcha ses for . exceed the value of the products marketed for members, and may pu rchas e supp lies a nd equ ipmen t for nonmem bers in an amount the value of which does not exceed the value of the supplies and equipment purchased for members, provided the value of the pur- Limit . chases made for persons who are neither members nor producers does not exceed 15 per centum of the value of all its purchases . Business done for the United States or any of its agencies shall be Federal business dis disregarded in determining the right to exemption under this regarded . paragraph ; (13) Corporations organized by an association exempt under Exxemmppt on`o`n`ions the provisions of paragraph (12), or members thereof, for the tions of members . purpose of financing the ordinary crop operations of such mem- bers or other producers, and operated in conjunction with such association . E xem pti on sh all not be denied any such co rpo ra- tion because it has 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 issue d, and i f substa ntially all such stock (other t han non- voting preferred stock, the owners of which are not entitled or permitted to participate, directly or indirectly, in the profits of the corpo ration, upon dis solution or othe rwise, beyond t he fixed dividends ) is own ed by su ch assoc iation, or memb ers ther eof ; nor shall exemption be denied any such corporation because there is accumulated and maintained by it a reserve required by State law or a reasonable reserve for any necessary purpose ; (14) Corporations organized for the exclusive purpose of hold- Corp oration s as tr us- tees for exempted or- ing title to property, collecting income therefrom, and turning ganizations . over the entire amount thereof, less expenses, to an organization which itself is exempt from the tax imposed by this title ; (15) Corporations organized under Act of Congress, if such Instrumentalities of corporations are instrumentalities of the United States and if, the United States . under such Act, as amended and supplemented, such corporations are exempt from Federal income taxes ; `olun tar em ploy ees '
.beneficiary associations providin
vol untar y
assn emp lo y- (16)
y
g ees' beneficiary asso- for the payment of life, sick, accident, * or other benefits to the eiations . members of such association or their dependents, if (A) no part of their net earnings inures (other than through such payments) to the benefit of any private shareholder or individual, and (B) 85 per centum or more of the income consists of amounts col- lected from members for the sole purpose of making such pay- ments and meeting expenses ; 9
Teachers' associations. (17) Teachers retirement fund associations of a purely local ment fun d as soc iat ios . 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 solely of amounts received from public taxation, amounts received from assess ments upon the te aching sala ries o f memb ers, and income in respect of investments . (18) Religious or apostolic associations or corporations if Such Religious, etc., asso. eiati ons, hav ing a com- associat.ions or corporations have a. common treasury or community mon treasury, etc . treasury, even if such associations or corporations engage in busi-
