MASTER NEGATIVE NO. 95-82503 10 COPYRIGHT STATEMENT The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted materials including foreign works under certain conditions. In addition, the United States extends protection to foreign works by means of various international conventions, bilateral agreements, and proclamations. Under certain conditions specified in the law, libraries and archives are authorized to furnish a photocopy or other reproduction. One of these specified conditions is that the photocopy or reproduction is not to be "used for any purpose other than private study, scholarship, or research." If a user makes a request for, or later uses, a photocopy or reproduction for purposes in excess of "fair use," that user may be liable for copyright infringement. The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Struthers Author: Libbey New York Title: Digest of inheritance tax laws and list of principal. Place: New York Date: 191 MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD RESTRICTIONS ON USE: 498 L61 K«i Libbey & Struthers, 'New York. Digest of inheritance tax laws and list of principal stocks affected by their provisions. New York city, Lib- bey & Struthers, 1911. 1 p. 1., 76 p. 30} X 12"». 1. Inheritance and transfer tax — U. S. Library of Congress HJ5806.L5 Copy 2. 11-3633 ©Feb. 27, 1911; 2c. Mar New York, N. Y. • *> ••.•.»'' 1911; A 283094; Ubbey & Struthers, J \ FILM SIZE: . 3S fyifi^ TECHNICAL MICROFORM DATA REDUCTION RATIO -.1 X IMAGE PLACEMENT: lA IB IIB DATE RLMED: . (? 5 INITIALS: ^ ^ TRACKING # : FILMED BY PRESERVATION RESOURCES, BETHLEHEM, PA, 3 3 <^ 'V^ ^, ^, 'V? *#,7<^ ** > m -I 0) > o 3 3 'V? > ill •v? a; ^. ?> 'V? %f^ <^.^ o o 3 3 ^ O pisuPISIsilP ff I CO o CO ro bo O^ 00 o 1.0 mm 1.5 mm 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghi)klmnopqrstuvwxyz 1234567890 ABCDEFGH I JKLM NOPQRSTU VWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 ♦ «<' fS t^^ ^S 'S'. \* \° fp fd> -i? * ^ <^ V <^^^1^. 'b ^^ I? :

o m ■o . O 00 m > 3D O m ^JaW0^&i DIGEST OF STATE LAWS GOVERNING THE TAX ON LIffiERITANCES ■^ ~ . '•D V r* ■£»1 yifi^$ft^»9h m^^a^ if. LIBBEY& STRUTHERS BANKERS 55 GEDAR STREET, NEW YORK i**.^, --,- us\ mtljfCitpofBfttjgork LIBRARY School of Business DIGEST OF INHERITANCE TAX LAWS AND LIST OF PRINCIPAL STOCKS AFFECTED BY THEIR PROVISIONS 1911 LIBBEY & STRUTHERS BANKERS 55 CEDAR STREET, NEW YORK CITY •if o ^ :? 7 "' ^ i • V M ^4 ^ i/f : Digest of Inheritance Tax Laws I 1^ 4 -1 ^1 42^ FOREWORD (yQ^C^^iiyt-^ COPYEIGHT, 1911, BY LIBBEY & STRUTHEES I 3^^ 345X During the last few years there has been a con- stantly increasing tendency, on the part of the authorities of the states of this country, to impose inheritance taxes on property coming within their jurisdiction, including, in many cases, not only all the property of deceased residents, but also the shares of stock of domestic corporations which may be held, at his death, by a non-resident of the state. From the laws in most of the states to-day, an investor will best protect his heirs by confining his holdings to shares of corporations organized solely under the laws of the state of his residence and to coupon bonds of corporations wherever organized, provided the bonds are kept on deposit in the state of his residence. New York State, whose prominent position lends peculiar significance to its acts, has recently passed a law imposing a tax which, under certain conditions, is at the rate of 25 per cent, of any excess of the value of a bequest over a specific sum. Wisconsin also imposes a tax which under the same conditions is computed at the rate of 15 per cent, on such excess so that a beneficiary, other Libhey (| Struthers Digest of Inheritance Tax Laws than a near relative, receiving property by the will of a resident of New York, consisting of shares of stock of a Wisconsin corporation, would be deprived of nearly one-half the value of his bequest in excess of the sum specified. That there may be no uncertainty as to the comprehensiveness of the statutes, we quote be- low from the Wisconsin tax law. " A tax shall be and is hereby imposed upon any transfer of property, real, personal, or mixed, or any interest therein, or mcome therefrom in trust or otherwise, to any person, association, corporation, excepting county, town or municipal corporations within this state, for strictly county, town or municipal purposes, and corporations of this state organized under its laws solely for reUgious, charitable, or educational purposes, which shall use the property so transferred exclusively for the purpose of their organization withm the State, in the following cases:— By a resident of the state 1 When the transfer is by will or by the Intestate laws of this state from any person dying possessed of the property while a resident of the state. Non-resident's property within the state. 2. When the transfer is by will or intestate laws, of property within the state or within its jurisdiction and the decedent was a non- resident of the state at the time of his death. In contemplation of death. 3. When the transfer is of property made by a resident or by a non-resident when such non-resident's property is within this state or within its jurisdiction, by deed, grant, bargain, sale or gift made in contemplation of the death of the grantor, vendor or donor or intended to take effect in possession or enjoyment at or after such death. Libhey <% Struthers } Digest of Inheritance Tax Laws On clear market value. 6. The tax so imposed shall be upon the clear market value of such property at the rates hereinafter presc ibed and only upon the excess of the exemptions hereinafter granted. Transfer of stock by foreign executors. 11. If a foreign executor, administrator, or trustee shall assign or transfer any stock or obUgations in this state standing in the name of a decedent or in trust for a decedent, Uable to any such tax, the tax shall be paid to the treasurer of the proper coimty or the state treasurer on the transfer thereof. Non-resident decedent; notice of transfer to attorney general. No safe deposit company, bank, or other institu- tion, person, or persons holding securities or assets of a non- resident decedent, shaU dehver or transfer the same to the executors, administrators, or legal representatives of said decedent, or upon their order or request unless notice of the time and place of such intended transfer be served upon the attorney general at least ten days prior to the said transfer; nor shall any such safe deposit company, bank or other institution, person or persons dehver or transfer any securities or assets of the estate of a non-resident decedent without retaining a sufficient portion or amount thereof to pay any tax which may thereafter be assessed on account of the transfer of such securities or assets under the provisions of this act unless the attorney general or pubhc administrator consents thereto in writing; and it shall be lawful for the attorney general or pubUc admims- trator, personally or by representative, to examine said securities or assets at the time of such delivery or transfer. Failure to serve such notice or to aUow such examination or to retain a sufficient portion or amount to pay such tax as herein provided, shall render such safe deposit company, trust company, bank or other institution, person or persons, Uable to the payment of the tax due upon said securities or assets in pursuance of the provisions of this act." Lihhey <% Struthers Digest of Inheritance Tax Laws The right of states to tax bequests made by non- resident decedents on shares of stock of domestic corporations has been upheld by the courts on the theory that the situs of property represented by capital stock is within the state of incorporation and that a state has the right to impose conditions attending succession in bodies of its own creation. In such cases, the tax is not upon the property but upon the right of succession thereto, being measured, however, by the value of the property. It may be stated that there is now a suit pending brought by the executors of the estate of a New York decedent contesting the right of the State of Wisconsin to impose an inheritance tax on shares of stock of one of its domestic corporations. The right to tax the shares of stock of domestic corporations, held by non-residents, is not availed of by all the states which have the power. In other words, some corporations organized under Ohio laws, for example, require only the tax waiver of New York State as an essential to trans- ferring stock of a New York decedent. That the right to tax exists, however, is beyond question and the enforcement is becoming more general. We quote as follows from a letter written us by the General SoUcitor of one of the largest Illinois corporations: "Before the passage of the present Libbey S^ Struthers I f Digest of Inheritance Tax Laws inheritance tax law of Illinois, approved June 14th, 1909, and in force July 1st, 1909, there was much laxity in the enforcement of the law and it was not generally observed. This, however, is no longer the case." Many investors are unaware of the onerous taxes which, in case of death, may be imposed upon shares which they own, and in order to indicate clearly the taxes which may be imposed, we have compiled from the statutes a digest of the inheritance tax laws of the various states. This digest is the result of a very careful analysis of the varying statutes and was compiled to assist us in answering the numerous questions which have come to us within the last few months. It is now printed in its present form for the use and guid- ance of our cUents. As will be apparent, we have made no attempt to discuss the working of the laws but wish simply to call attention to their salient features from a business point of view, in their bearing on the investment of funds, and to indicate the terms imposed by the different states. Where, as in the case of Colorado, the apparent intent is to tax the entire amount of large be- quests at progressively higher rates, we have used the wording, "bequests between $100,000 Libbey <% Struthers f / Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws --''^ and $500,000." Where, as in New York, the law expressly taxes only the excess over certain sums, at higher rates, we have used the wording "amounts between $100,000 and $500,000," these different wordings indicating two entirely diJBferent methods of taxation. For further reference, we have indicated under each state the principal corporations which are organized under its laws and which are, there- fore, subject to its inheritance tax requirements. This list is taken from the official Stock Exchange quotation sheet and is not intended to be a com- prehensive list of stocks. 1 < i ( 1 i INDEX OF STATES OF INCORPORATION Railroad Stocks Atchison, Topeka & Santa Fe Kansas Atlantic Coast Line Virginia Baltimore & Ohio Marylandand Virginia Buffalo, Rochester & Pittsburgh . . . New York Central Railroad of New Jersey New Jersey Chesapeake & Ohio Virginia Chicago & Alton Illinois Chicago, BurUngton & Quincy Illinois Chicago & Eastern Illinois Illinois Chicago Great Western Illinois Chicago, Milwaukee & St. Paul Wiscon^n Chicago & Northwestern Wisconsin and Illinois Chicago, Rock Island & Pacific Railway Illinois Chicago, St. Paul, Minneapolis & Omaha • • Wisconsin Cleveland, Cincinnati, Chicago & St. Louis Ohio Cleveland & Pittsburgh Ohio and Indiana Colorado & Southern Colorado Delaware & Hudson New York Delaware, Lackawanna & Western .Pennsylvania Denver & Rio Grande Colorado and Utah Erie New York Erie & Pittsburgh Pennsylvania Great Northern Preferred Minnesota Hocking Valley. : Ohio Illinois Central Illinois JoUet & Chicago Illinois Kansas City Southern Missouri Continued Libhey 8^ Struthers Libhey § Struthers 6 Digest of Inheritance Tax Laws INDEX— Continued Lake Shore & Michigan Southern . . lUinoiSy Indiana, Michigan f Ohio, Pennsylvania and New York. Lehigh Valley Pennsylvania Long Island New York Louisville & Nashville Kentucky Manhattan Railway New York Michigan Central Michigan Mmneapolis, St. Paul & Sault Ste. ) Minnesota, Wisconsin j^aiie ^ ^^ Michigan Missouri, Kansas & Texas Missoun and Kansas Missouri Pacific Missoun, Kansas and Nebraska Morris & Essex New Jersey Nashville, Chattanooga & St. Louis . Tennessee New York Central New York New York, Chicago & St. Louis .... Ohio, Indiana, New York, Pennsylvania and Illinois New York & Harlem New York New York, Lackawanna & Westem.iVeti? York New York, New Haven & Hartford .Connecticut, Massachu- setts and Rhode Island New York, Ontario & Western New York Norfolk & Western Virginia Northern Pacific Wisconsin Pacific Coast Company New Jersey Pennsylvania Raikoad Pennsylvania . r^- iL 1 Pennsylvania, Ohio, Pittsburgh, Cincinnati, Chicago & f ^^^ Virginia, In- St. Louis ) diana and Illinois Pittsburgh, Ft. Wayne & Chicago. .Ohio, Indiana, Illinois, and Pennsylvania Pittsburgh, McKeesport & Youghio- gheny Pennsylvania ^^ * Continued " Digest of Inheritance Tax Laws INDEX— Continued Pittsburgh, Yoimgstown & Ashta- bula Pennsylvania and Ohio Reading Company Pennsylvania Rensselaer & Saratoga New York Rock Island Company New Jersey Rome, Watertown & Ogdensburg New York St. Louis & San Francisco Missouri St. Louis Southwestern Missouri Southern Pacific Company Kentucky Southern Railway Virginia Toledo, St. Louis & Western Indiana Union Pacific Utah Utica & Black River New York Vandalia Indiana and Illinois Wabash Missouri Western Maryland Maryland Wisconsin Central Wisconsin Industrial and Miscellaneous Stocks Amalgamated Copper New Jersey American Agricultural Chemical . . .Connecticut American Can New Jersey American Car & Foundry New Jersey American Cotton Oil New Jersey American Express New York American Locomotive New York American Smelting & Refining New Jersey American Smelters Securities New Jersey American Sugar New Jersey American Telephone & Telegraph. .New York American Tobacco New Jersey American Woolen New Jersey Brookljm Union Gas New York Central Leather New Jersey Consolidated Gas, of New York . . .New York Continued Libhey (% Struthers Libbey (% Struthers 8 Digest of Inheritance Tax Laws I^jyEXr— Concluded General Electric New York International Harvester New Jersey Mackay Companies Massachusetts National Biscuit New Jersey National Lead New Jersey Pressed Steel Car New Jersey Pullman • • .lUinois RepubUc Iron & Steel New Jersey United Fruit New Jersey United States Express New York United States Rubber New Jersey United States Steel New Jersey Virginia Carolina Chemical New Jersey Wells Fargo Colorado Westinghouse Pennsylvania Libhey <% Struthers 10 i Digest of Inheritance Tax Laws EXAMPLE The chief value of this pamphlet to the average individual lies in his ability, by consulting the index, to determine the tax which will at his death, be assessed on his estate, and also to determine on which securities this tax bears most heavily, with a view, if desirable, to arranging his invest- ments so as to avoid the double tax. Take, for example, a resident of New York who dies leaving his property to an heir other than an immediate relative, his estate consisting of the following securities on deposit within the State of New York: Pnee Value 1,000 shares Chicago Milwaukee & <( »< tt it St. Paul Common 128 New York Central 111 United States Steel Preferred 119 Illinois Central 136 New York, New Haven & Hartford 150 $100,000 New York City 48 of 1958 99 100,000 Lake Shore & Michigan South- em Debenture 4s of 1928 93 100,000 Atchison, Topeka & Santa Fe General 4s of 1995 99 1,000 1,000 1,000 1,000 $128,000 111,000 119,000 136,000 150,000 99,000 93,000 99,000 $935,000 In New York, the tax would be assessed on the entire estate as follows : Amount of Rate Tax $25,000 5 per cent. $1,250 75,000 10 per cent. 7,500 400,000 15 per cent. 60,000 435,000 20 per cent. 87,000 $155,750 Libhey (% Struthers 11 Digest of Inheritance Tax Laws In Wisconsin, the $128,000 value of Chicago, Milwaukee & St. Paul Common would be taxable as follows: Amount of $100 24,900 25,000 50,000 28,000 Rate Exempt 5 per cent. 73^ per cent. 10 per cent. 123^ per cent. Tax $1,245 1,875 5,000 3,500 $11,620 In New Jersey, the $119,000 value of United States Steel Preferred would be taxable as follows: Amount of $iia,ooo Rate 5 per cent. Tax $5,950 In Illinois, the $136,000 value of Illinois Central Stock would be taxable as follows: Amount of $136,000 Rate 10 per cent. Tax $13,600 In Connecticut the $150,000 value of New York, New Haven & Hartford Stock, would be taxable as follows : Amount of $150,000 Rate 5 per cent. Tax $7,500 The three issues of bonds, being in coupon form, would be subject only to the one tax imposed by the State of New York on the entire value of the estate. Libhey ^ Struthers 12 Digest of Inheritance Tax Laws ALABAMA No Inheritance Tax. Lihbey 4 Struthers 13 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws ARIZONA No Inheritance Tax. t I ARKANSAS Grandfather, grandmother, father, mother, husband, wife, lineal descendant, brother, sister or adopted child: All bequests 1 per cent. Provided that in the case of any estate whose aggregate value is $5,000 or less, all property passing to legatees of this class shall be exempt. Uncle, aunt, niece, nephew or lineal descendant thereof: All bequests 2 per cent. Provided that in the case of any estate whose aggregate value is $2,000 or less, all property passing to legatees of this class shall be exempt. All other beneficiaries: Bequests of $10,000 or less between $10,000 and $20,000 '' $20,000 and $50,000 above $50,000 Provided that in the case of any estate whose aggregate value is $1,000 or less, all property passing to legatees of this class shall be exempt. NOTE. — The Attorney General of Arkansas construes the inheritance tax as not applicable to the stock of Arkansas corporations held by a non-resident and states that, while the laws of Arkansas are silent on the subject^ he is of the opinion that the sitv^ of property is the sUils of its owner. n H ii 3 per cent. 4 per cent. 5 per cent. 6 per cent. Lihhey (% Struthers Libbey (% Struthers 14 15 Digest of Inheritance Tax Laws CALIFORNIA Property bequeathed for charitable, educa- tional; religious and such purposes is exempt. Husband, wife, lineal descendant, lineal ances- tor or adopted child: ^- Digest of Inheritance Tax Laws MASSACHUSETTS— Con^inwed In the case of foreign estates, consisting in whole or in part of stocks of a railroad, street rail- way, telegraph or telephone company incorpo- rated under the laws of Massachusetts, and also of some other state, the amount of property con- strued to be subject to the Massachusetts tax shall be determined by the proportion of such company's line lying within the State of Massa- chusetts. Property of a resident of Massachusetts which is not within the state at the time of his death shall not be taxable under the provisions of this act if legally subject in another state or country to a tax of like character and amount, provided such tax be actually paid or guaranteed; if sub- ject in another state to a tax of like character but of less amount, and such tax is paid or guaran- teed, the property shall be taxable under this act to the extent of the difference between the tax actually paid and the amoimt for which such property would be liable under the Massachu- setts laws. Property of a non-resident decedent which is within the jurisdiction of Massachusetts, if sub- ject under the laws of the state or country of his residence to a tax of like character with that im- posed by this law, shall be subject only to such portion of the tax hereby imposed as may be in excess of the tax imposed by the laws of such other state or country : provided that a like exemption Continued Liibhey § Struthers 40 Digest of Inheritance Tax Laws MASSACHUSETTS— Continued is made by the laws of such other state or country in favor of the estates of citizens of Massachusetts. Railroad Stocks New York, New Haven & Hartford. , Miscellaneous Stocks Mackay Companies. Libbey 8^ Struthers 41 Digest of Inheritance Tax Laws W MICHIGAN Father, mother, husband, wife, child, brother, sister, wife or widow of a son, husband of a daugh- ter, adopted child or lineal descendant: $2,000 or less Amounts greater than $2,000 All other beneficiaries : $100 or less Amoxmts greater than $100 exempt. 1 per cent. exempt. 5 per cent. Where a bequest exceeds the amount of the spe- cific exemption, the entire bequest is taxable. Railroad Stocks Lake Shore & Michigan Southern. Michigan Central. Minneapolis, St. Paul & Sault Ste. Marie. Libhey § Struthers 42 Digest of Inheritance Tax Laws MINNESOTA All beneficiaries: Bequests of $10,000 or less " between $10,000 and $50,000 " " $50,000 and $100,000 Bequests above $100,000 3 5 exempt. j per cent. per cent. per cent. The above rates apply to the excess over $10,000 Railroad Stocks Great Northern Preferred. Minneapolis, St. Paul & Sault Ste. Marie. Libbey 8^ Struthers 43 Digest of Inheritance Tax Laws MISSISSIPPI No Inheritance Tax, MISSOURI Property transferred exclusively for religious, charitable, or educational purposes is exempt. Father, mother, husband, wife, adopted child or lineal descendant: All bequests All other beneficiaries : All bequests , Railroad Stocks Kansas City Southern. Missouri, Kansas & Texas. Missoiu-i Pacific. St. Louis & San Francisco. St. Louis Southwestern. Wabash. exempt. 5 per cent. Libbey 8$ Struthers Libbey (% Struthers ^rX 45 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws ^ MONTANA Father, mother, husband, wife, child, brother, sister, wife or widow of a son, husband of a daughter, adopted child, or lineal descendant: All bequests 1 per cent. Provided that in the case of any estate whose total value is less than $7,500 all the property which passes to legatees of this class shall be exempt. All other beneficiaries: All bequests 5 percent. Provided that any estate which may be valued at less than $500 shall not be taxable. NOTE: — The Supreme Court of Montana has held that where the total value of an estate^ wherever sitwded^ amounts to more than $7,600, all the property within the jurisdiction of Montana shall be taxed according to the relationship of the heneftdary. NEBRASKA Father, mother, husband, wife, child, sister, brother, wife or widow of a son, husband of a daughter, adopted child or lineal descendant : $10,000 or less Excess over $10,000 exempt. 1 percent. Uncle, aunt, niece, nephew or lineal descendant thereof: $2,000 or less Excess over $2,000 All other beneficiaries: Estates of $5,000 or less " between $5,000 and $10,000 " " $10,000 and $20,000 " *' $20,000 and $50,000 " above $50,000 exempt. 2 percent. 2 per cent. 3 per cent. 4 per cent. 5 per cent. 6 per cent. Provided that any estate which may be valued at less than $500 shall not be taxable. Railroad Stocks Missouri Pacific. Libbey § Struthers Libbey <% Struthers 46 47 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws NEVADA No Inheritance Tax. NEW HAMPSHIRE Property passing to charitable, educational or religious societies of New Hampshire whose prop- erty is by law exempt from taxation, also property passing to municipal authorities of New Hamp- shire for public purposes, is exempt. Father, mother, husband, wife, lineal descend- ant, brother, sister, adopted child, or lineal de- scendant of adopted child, wife or widow of a son or husband of a daughter: All bequests exempt. All other beneficiaries: All bequests 5 percent. Lihhey S^ Struthers 48 Libhey S^ Struthers 49 Digest of Inheritance Tax Laws NEW JERSEY Religious, hospital, library, and charitable be- quests are exempt. Father, mother, husband, wife, lineal descend- ant, brother, sister, wife or widow of a son or hus- band of a daughter: All bequests exempt. All other beneficiaries : Less than $500 $600 or over exempt. 6 per cent. Where a non-resident leaves property partly within the State of New Jersey and partly with- out, and the estate passes in part to persons who would be taxable under the New Jersey law, the tax due in the State of New Jersey is estimated according to the ratio which the value of the New Jersey property bears to the total value of the estate. Railroad Stocks Central Railroad of New Jersey. Morris & Essex. Pacific Coast Company. Rock Island Company. Miscellaneous Stocks Amalgamated Copper. American Can. American Car & Foundry. American Cotton Oil. American Smelting & Refining. Continued Libhey 8^ Struthers 50 Digest of Inheritance Tax Laws NEW JERSEY— Con^int^ American Smelters Securities. American Sugar. American Woolen. Central Leather. International Harvester. National Biscuit. National Lead. Pressed Steel Car. Republic Iron & Steel. United Fruit Company. United States Rubber. United States Steel. Virginia Carolina Chemical Company. Libhey 4 Struthers 61 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws I' NEW MEXICO No Inheritance Tax. NEW YORK Bequests to educational, religious and chari- table corporations and associations of this state are exempt. Father, mother, husband, wife, lineal descend- ant, brother, sister, wife or widow of a son, hus- band of a daughter, or child adopted in conformity with the laws of New York: Amounts of $25,000 or less 1 per cent. " between $25,000 and $100,000 2 per cent. « « $100,000 and $500,000 3 per cent. « " $500,000 and $1,000,000 4 per cent. " above $1,000,000 5 per cent. It is specifically provided that legatees of this class are exempt on inheritances to the value of $500, although in the case of father, mother, widow or minor child, there is an exemption of $5,000. The above rates apply to the excess above the exemption. All other beneficiaries: Amounts of $25,000 or less 5 per cent. " between $25,000 and $100,000 10 per cent. " " $100,000 and $500,000 15 per cent. " " $500,000 and $1,000,000 20 per cent. " above $1,000,000 25 per cent. Provided that a bequest of $100 or less shall be exempt. Property not specifically bequeathed shall be deemed to be transferred proportionately to the general legatees named in the will. Note : — In a decmon handed down by the Court of Appeals of New York State on the taxation of stock of the Boston <& Albany Railroad, it was held that New York State covM tax only a portion of the valine of the stock of companies which Continued Lihhey § Struthers 53 Digest of Inheritance Tax Laws NEW YGRK-^Continued were incorporated both in New York and some other states, and in cases such as this, the amount taxed is determined by the proportion of such company's property lying within the State of New York. At the present time, the inheritance tax office is allowing the deduction of the exemptions specificaUy allowed, infigunng the tax on bequests exceeding the exemptions. This allowance M not definitely provided in the law. We are further informed by the inheritance tax offix^e that wh^e a nonresident dies leaving securUies in a safe deport vault mthin New York State, a tax is claimed by the State of New York on gU bonds which may be thus held mthin the btate, also of course, upon the stock of its domestic corpora- tions, but not upon the stock of foreign corporations. Railroad Stocks Buffalo, Rochester & Pittsburgh. Delaware & Hudson. Erie. Lake Shore & Michigan Southern. Long Island. Manhattan Railway. New York Central. New York, Chicago & St. Louis. New York & Harlem. New York, Lackawanna & Western. New York, Ontario & Western. Rensselaer & Saratoga. Rome, Watertown & Ogdensburg. Utica & Black River. Miscellaneous Stocks American Express. American Locomotive. American Telephone & Telegraph. Brooklyn Union Gas. ConsoHdated Gas. General Electric. United States Express. Lihhey <% Struthers Digest of Inheritance Tax Laws NORTH CAROLINA Religious, educational and charitable bequests are exempt. Husband or wife : All bequests exempt. Lineal descendant, lineal ancestor, brother, sister, or adopted child: $2,000 or less exempt. Excess above $2,000 %oil per cent. Descendant of a brother or sister : $2,000 or less Excess above $2,000 Uncle, aunt, or descendant of either: $2,000 or less Excess above $2,000 Granduncle, grandaunt, either : $2,000 or less Excess above $2,000 All other beneficiaries: exempt. IJ^per cent. exempt. 3 per cent. or descendant of exempt. 4 per cent. Bequest of $2,000 or less between $2,000 and $5,000 $5,000 and $10,000 $10,000 and $25,000 $25,000 and $50,000 above $50,000 it it H exempt. 5 per cent. 7 J^ per cent. 10 per cent. 123^ per cent. 15 .^..percent. Lihhey ^ Struthers 54 55 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws 51 f NORTH DAKOTA Property passing to charitable, educational or religious interests within the state is exempt. Father, mother, husband, wife, lineal descend- ant, adopted child, or lineal descendant thereof: AU bequests exempt. All other beneficiaries: $25,000 or less Excess above $25,000 exempt. 2 per cent. Where a foreign estate owns property in North Dakota and the executor has discretion in using specific securities to pay bequests which under the North Dakota law would be exempt from taxa- tion, the amount of the North Dakota property which shall be deemed liable to taxation shall be determined by the ratio of the value of the North Dakota property to the value of the total estate wherever situated. Libbey 8^ Struthers OHIO Public, educational and charitable bequests are exempt. Father, mother, husband, wife, brother, sister, niece, nephew, lineal descendant, adopted child, or lineal descendant of adopted child, wife or widow of a son or husband of a daughter : 56 All bequests All other beneficiaries: $200 or less Excess over $200 Railroad Stocks Cleveland, Cincinnati, Chicago & St. Louis. Cleveland & Pittsburgh. Hocking Valley o Lake Shore & Michigan Southern. New York, Chicago & St. Louis. Pittsburgh, Cincinnati, Chicago & St. Louis. Pittsburgh, Ft. Wayne & Chicago. Pittsburgh, Youngstown & Ashtabula. exempt. exempt. 5 per cent. Libbey <% Struthers 57 f OKLAHOMA Bequests to corporations of this state organized solely for religious, charitable and educational purposes are exempt. Husband, wife, lineal descendant, lineal ances- tor, or adopted child : $5,000 or less exempt. $10,000 or less (to a widow) exempt. First $5,000 in excess of these exemptions 1 per cent. On amounts in excess of $5,000 above these exemptions, the rate is increased 1/125 of 1 per cent, for every $100 in- crease in the bequest. Brother, sister, or descendant of either, wife or widow of a son or husband of a daughter: $500 or less First $2,000 above $500 exempt. IJ^per cent. On bequests in excess of $2,500 the rate is increased 1/50 of 1 per cent, for each $100 increase in the bequest. Uncle, aunt, or descendant of either : $250 or less exempt. First $2,000 above $250 3 per cent. On bequests in excess of $2,250 the rate is increased 1/50 of 1 per cent for each $100 increase in the bequest. Granduncle, grandaunt, or descendant of either: $150 or less exempt. First $500 above $150 4 per cent. On bequests in excess of $650 the rate is increased 1/10 of 1 per cent, for every $100 increase in the bequest. Continued Digest of Inheritance Tax Laws OKLPiSOMk— Continued Other beneficiaries: $100 or less First $500 above $100 exempt. 5 per cent. On bequests in excess of $600 the rate is increased 1/10 of 1 per cent, for each $100 increase in the bequest. Where the rate of tax may change through the happening of future events, the tax is to be com- puted at the highest rate which would in any event apply, and provision is made for refunding such excess as may be charged. ,'• Libhey 8^ Struthers Libbey <§ Struthers 58 59 ^il Digest of Inheritance Tax Laws i I ill OREGON Bequests to benevolent, charitable, or educa- tional institutions incorporated and operating within this state are exempt. Grandfather, grandmother, father, mother, husband, wife, child, brother, sister, wife or widow of a son or husband of a daughter, adopted child or lineal descendant: $5,000 or less Excess over $5,000 exempt. 1 per cent. It is provided that in the case of an estate which shall be valued at less than $10,000, property passing to the above beneficiaries shall be exempt from taxation. Uncle, aunt, niece, nephew or lineal descend- ant of the same: $2,000 or less Excess over $2,000 exempt. 2 per cent. It is provided that in the case of an estate valued at less than $5,000, any property passing to the above beneficiaries shall be exempt from taxation. All other beneficiaries* $500 or less Amounts between $500 and $10,000 $10,000 and $20,000 $20,000 and $50,000 above $50,000 u If If tl u exempt. 3 per cent. 4 per cent 5 per cent. 6 per cent. Libbey 8^ Struthers 60 Digest of Inheritance Tax Laws PENNSYLVANIA Father, mother, husband, wife, lineal descend- ant, wife or widow of a son: All bequests exempt. All other beneficiaries: All bequests 5 per cent. Provided that no estate which may be valued at less than $250 shall be subject to tax. NOTE: — In a report to he made to the legislature by a committee appointed to revise the corporation and revenue laws, recommendations will he made to impose a tax of 1 per cent, on hequests to direct descendants and a graded inherit^ ance tax on other hequests. Railroad Stocks Delaware, Lackawanna & Western. Erie & Pittsburgh. Lake Shore & Michigan Southern. Lehigh Valley. New York, Chicago & St. Louis. Pennsylvania Railroad. Pittsburgh, Cincinnati, Chicago & St. Louis. Pittsburgh, Ft. Wayne & Chicago. Pittsburgh, McKeesport & Youghiogheny. Pittsburgh, Yoimgstown & Ashtabula. Reading Company. Miscellaneous Stocks Westinghouse. Libbey <% Struthers 61 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws ,::lt RHODE ISLAND There is no inheritance tax in force in the State of Rhode Island at the present time but a law has been favorably reported by the Tax Commission and will probably be passed at the next session of the legislature. Railroad Stocks New York, New Haven & Hartford. SOUTH CAROLINA No Inheritance Tax. Ill Libbey 8^ Struthers Libbey 4 Struthers 62 63 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws {\\ (; I I SOUTH DAKOTA Father, mother, husband, wife, child, brother, sister, wife or widow of a son or husband of a daughter, lineal descendant, or adopted child : $5,000 or less exempt. $20,000 or less (to a widow) exempt. Excess over exemptions l per cent. Uncle, aunt, niece, nephew or lineal descendant of same: $500 or less Excess over $500 All other beneficiaries: exempt. 2 per cent. $100 or less Bequests between $100 and $10,000, $10,000 and $20,000, $20,000 and $50,000, " above $50,000, These rates apply only to the excess over the exemption of $100. ff If H it exempt. 4 per cent. 6 per cent. 8 per cent. 10 per cent. NOTE:— The opening clause of the inheritance tax law reads as follows: *'All property, real, personal and mixed, which shall, by will or by the intestate laws of this state, pass from any person who may die seized or possessed of the same while a resident of this state, or if decedent was not a resident of this state at the time of his death, which property, or any part thereof, shall be within this state, shall be and is subject to a tax at the rate hereinafter specified^' In this connection we are advised by the Attorney General of South Dakota, as follows: *' / advise you that under a recent decision of our Supreme Court, our inheritance tax law was declared unconstitutional. The matter is still pending before the Supreme Court on rehearing, and will be Continued Libhey 8^ Struthers SOUTH lyKKOTk— Continued disposed of at the October term of our Supreme Court, I advise you further that the provisions of the inheritance tax law, even if the law should finally be sustained on rehearing, do not seem to include personal property where the decedent was domiciled in another state at the time of his deathJ* Libhey (% Struthers 64 65 • ! •' I Digest of Inheritance Tax Laws « TENNESSEE Bequests to charitable institutions are held to be taxable. Father, mother, husband, wife, or lineal de- scendant (not including adopted children) : All bequests exempt. All other beneficiaries: AU bequests 5 per cent. Provided that any estate which may be valued at less than $250 shall be exempt. Railroad Stocks Nashville, Chattanooga & St. Louis. < Libbey S^ Struthers 66 Digest of I nheritance Tax Laws TEXAS Property passing to any charitable, educational, or religious organization within this state is exempt. . Father, mother, husband, wife, or direct hneal descendant : All bequests ^^^"^P^' Lineal ascendant, brother, sister, or lineal de- scendant of same : exempt. $2,000 and $10,000 2 percent. $10,000 and $25,000 2J^ per cent. $25,000 and $50,000 3 percent. $50,000 and $100,000 3^ per cent. $100,000 and $500,000 4 percent. above $500,000 5 per cent. $2,000 or less Amounts between u u u it u it it Uncle, aunt, or lineal descendant of either : $1,000 or less Amounts between $1,000 and $10,000 $10,000 and $25,000 $25,000 and $50,000 $50,000 and $100,000 $100,000 and $500,000 above $500,000 All other beneficiaries : $500 or less It u u tl it a tt tt exempt. 3 per cent. 4 per cent. 6 per cent. 6 per cent. 7 per cent. 8 per cent.. exempt. Amounts between it ' « it a it i* " above $500,000 $500 and $10,000 4 percent. $10,000 and $25,000 5H percent. $25,000 and $50,000 7 percent. $50,000 and $100,000 S}4 per cent. $100,000 and $500,000 10 per cent. 12 per cent. Libhey (% Struthers 67 iiliiiiia^^^ ■Illriiliilllili Digest of Inheritance Tax Laws UTAH AU property in excess of $10,000 passing by will is subject to a tax of 5 per cent, of its value. In determining the amount of tax to be paid the sum of $10,000 shall be deducted from the value of the entire estate and the tax shall be com- puted and paid on the entire remainder. The ex- emption does not apply to individual legatees. Where any property within the state belongs to a foreign estate, the amount of exemption which can be clahned in Utah is determined by the ratio of the property within the state to the value of the whole estate. Railroad Stocks Denver & Rio Grande. Union Pacific. 1 Dig-est of Inheri tance Tax Laws VERMONT Bequests to religious or charitable institutions in Vermont are exempt. Father, mother, husband, wife, lineal descend- ant, step child, adopted child, child of a step child or adopted child, wife or widow of a son or hus- band of a daughter: All bequests All other beneficiaries: All bequests exempt. 5 per cent. Where a tax has been imposed under the laws of some other state or country on a legacy taxable in Vermont, the legatee Uable in Vermont will be required to pay such tax as will bring the entire amount, including that paid in such other state or country, up to 5 per cent. Libbey 8^ Struthers 68 i Lihhey <% Struthers 69 L^est of Inheritan ce Tax Laws VIRGINIA Property passing exclusively for charitable educational or religious purposes, or for state' county or municipal purposes is exempt from tax. Grandfather, grandmother, father, mother, husband, wife, brother, sister, or lineal descendant : / / All bequests All other beneficiaries: All bequests Railroad Stocks Atlantic Coast Line. Baltimore & Ohio. Chesapeake & Ohio. Norfolk & Western. Southern Railway. exempt. 5 per cent. Digest of Inheritance Tax Laws WASHINGTON Property passing for charitable purposes and for the relief, education or support of the poor is exempt. Father, mother, husband, wife, lineal descend- ant, adopted child or lineal descendant thereof: $10,000 or less Excess above $10,000 exempt. 1 per cent. Heirs to and including the third degree of re- lationship, as brother, sister, uncle, aunt, nephew or niece: Amounts of $50,000 or less 3 per cent, between $50,000 and $100,000 43^ per cent, above $100,000 6 per cent. ti tt All other beneficiaries : Amounts of $50,000 or less between $50,000 and $100,000 above $100,000 ti « 6 per cent. 9 per cent. 12 per cent. Lihhey ^ Struthers 70 Libbey (% Struthers 71 Digest of Inheritance Tax Laws Digest of Inheritance Tax Laws If i i m I H WEST VIRGINIA Property bequeathed for educational, scientific, religious, or charitable purposes in the State of West Virginia is exempt. Husband, wife, lineal descendant, or lineal an- cestor : $10,000 or less $15,000 or less (to a widow) Amounts of $25,000 or less If a u u exempt. exempt. 1 per cent. on excess over exemption. between $25,000 and $50,000 IJ^ per cent. $50,000 and $100,000 2 percent. $100,000 and $500,000 23^ per cent. above $500,000 3 per cent. tt a Brother or sister (not including half brother or half sister): Amounts of $25,000 or less 3 per cent. " between $25,000 and $50,000 43^ per cent. $50,000 and $100,000 6 per cent. $100,000 and $500,000 73^ per cent. above $500,000 . 9 per cent. u u u n u All other beneficiaries: Amounts of $25,000 or less 5 per cent. " between $25,000 and $50,000 7J^ per cent. " " $50,000 and $100,000 10 percent. " " $100,000 and $500,000 123^ per cent. " above $500,000 15 per cent. A transfer of personal property of a resident of West Virginia, v^hich is not within the state at the Continued Libbey § Struthers 72 WEST ymGmik— Continued time of his death, shall not be taxable under this act, if subject in any other state or country to a tax of like character and amount to that hereby imposed, if such other tax be actually paid or guaranteed. If subject in another state or coun- try to a tax of like character but of less amount, the property shall be taxable under the West Virginia laws to the extent of the difference be- tween such other tax and the amount for which the property would be liable under West Virginia laws. In the case of foreign estates, the laws of West Virginia impose an inheritance tax on stocks or registered bonds of corporations organized in West Virginia, the certificates for which shall be held vdthout the state, where the laws of the state or country where such decedent resided shall at the time of his death, impose a similar tax upon the shares of the capital stock or registered bonds of corporations organized under the laws of such state or country and held by a resident of West Virginia. Railroad Stocks Pittsburgh, Cincinnati, Chicago & St. Louis. Libbey 8^ Struthers 73 ill ^ ■'* t Digest of Inheritance Tax Laws WISCONSIN Bequests to religious, charitable and educa- tional corporations of Wisconsin are exempt. Husband, wife, lineal descendant, lineal ances- tor, adopted child or lineal descendant thereof : Amounts of $2,000 or less exempt. " $10,000 or less (to a widow) exempt. " $25,000 or less 1 per cent. on excess over exemptions. between $25,000 and $50,000 13^ per cent. $50,000 and $100,000 2 per cent. $100,000 and $500,000 2J^ per cent. above $500,000 3 per cent. it u u it it it ti It Brother, sister, or descendant of either, wife or widow of a son or husband of a daughter : Amounts of $500 or less " " $25,000 or less t( tt tt it ti exempt. IK per cent, on excess over exemption, between $25,000 and $50,000 2^ per cent. $50,000 and $100,000 3 per cent. $100,000 and $500,000 3% per cent, above $500,000 4^ per cent. tt it Uncle, aunt, or descendant of either: Amounts of $250 or less " $25,000 or less it tt tt tt it exempt. 3 per cent, on excess over exemption, between $25,000 and $50,000 43^ per cent. $50,000 and $100,000 6 percent. $100,000 and $500,000 7J^ per cent, above $500,000 9 per cent. ContiniLed n tt Libbey § Struthers Digest of Inher itance Tax Laws YflSCONSlN— Continued Granduncle, grandaunt, or descendant of either: Amounts of $150 or less exempt. " $25,000 or less 4 per cent. on excess over exemption. between $25,000 and $50,000 6 per cent. $50,000 and $100,000 8 per cent. $100,000 and $500,000 10 per cent. above $500,000 12 per cent. « u it tt tt All other beneficiaries : Amounts of $100 or less " $25,000 or less (( tt tt tt tt tt tt 10 per cent. 12}^ per cent. 15 per cent. exempt. 5 per cent. on excess over exemption. between $25,000 and $50,000 7 H per cent. $50,000 to $100,000 $100,000 to $500,000 above $500,000 Railroad Stocks Chicago, Milwaukee & St. Paul. Chicago & Northwestern. Chicago, St. Paul, Minneapolis & Omaha. Minneapolis, St. Paul & Sault Ste. Marie. Northern Pacific. Wisconsin Central. Libbey S^ Struthers 74 75 1 if! I Digest of Inheritance Tax Laws WYOMING Father, mother, husband, wife, child, brother, sister, wife or widow of a son or husband of a daughter, lineal descendant or adopted child : $10,000 or less Excess over $10,000 All other beneficiaries: All bequests 5 per cent. Provided that any estate which may be valued at less than $500 shall not be subject to tax. exempt. 2 per cent. Libbey 8^ Struthers 76 ^^^4\%^:ym4^* i L^f V ^ ' ^ a o,^.,- \'wm ■1 ^/^;-M H ''" ''■ -^a^H L^'' !-''.i^^H ^.'^''- J^H ^^^^^^^H ''^.'38H ^^^^^^1 .«'<"^H ^^^^1 ET^59R^ ;- -.^^•1 - ■'■"■" '•' ;'" " '- - . '^ " ^ % ;■- i-:^ ■ '-f- -\J^ -■.■ '--/»■:: r:.- ^^ ^^^ IRVlKa PRESS 11» anaiSl Ealta^inrty-flwt Street New York V-,,; ■ • W^ \ 1 r^y^-^^^ife^^^PHM^ 'l) ■J.'i ^ ■.4. - ■. 'i ■■ »*;:.- ' -•...■-"♦*v'^i_«.i , :.--.■ • *.^ f fcVs •>;«4#'M-."' ■'**?,*^^_. ■'.•Jf^./