March 2, 1977

You inquire as to the rate of tax to be assessed on income received by holders of a new Growth Certificate. The Growth Certificate would be a time deposit of less than $100,000 as defined in Regulation Q of the Board of Governors of the Federal Reserve System (sec. 217.1 (c)(2)). The Growth Certificate would state that the face amount would be payable at the expiration of a certain specified time not less than thirty days after the date of the instrument.

Based on the foregoing, it is hereby ruled:

Interest earned on Growth Certificates shall be includible in Part B gross income as defined in M.G.L. c. 62, s. 2 (b)(2).

Very truly yours,

/s/Owen L. Clarke

Owen L. Clarke
Commissioner of Corporations
and Taxation

LR 77-8