Legal Dictionary of Pakistan

stock-transfer tax

A tax levied by the federal government and by some states on the transfer or sale of shares of stock. - Often shortened to transfer tax. "Some state statutes impose special taxes, usually in the form of a stamp tax, upon sales and agreements for sale and other transfers of stock in corporations. Such a tax is in the nature of an excise tax on the transfer. Taxes on the issuance and transfer of corporate stock, commonly known as 'stock transfer taxes' and payable by means of stamps, are constitutional, as within the power of state governments." 71 Am. Jur. 2d State and Local Taxation § 643, at 896 (1973).