Title: Dickinson v. Maurer

State: florida

Issuer: Florida Supreme Court

Document:

229 So. 2d 247 (1969)
Fred O. DICKINSON, Jr., Comptroller of the State of Florida, As Commissioner of Revenue, Appellant,
v.
Mark MAURER, As Executor of the Estate of Fred L. Franks, Deceased, Appellee.
No. 38337.

Supreme Court of Florida.
December 10, 1969.
Larry E. Levy, Asst. Gen. Counsel, Office of Comptroller, for appellant.
Douglass B. Shivers, of Cotten, Shivers, Gwynn & Daniel, Tallahassee, for appellee.
BOYD, Justice.
This case is before us on appeal from a decision of the Circuit Court of Leon County initially construing Section 11, Article IX, Florida Constitution of 1885, F.S.A., which is controlling herein and provides in pertinent part as follows:
The constitutional provision above quoted is implemented by Florida Statute § 198.02, F.S.A., which is as follows:
Decedent Fred L. Franks, a resident of Broward County, died on June 21, 1965. He had an estate of about $30,000 until approximately 18 days before he died. His daughter, Ruth L. Stephani, predeceased him by 18 days, leaving him her entire estate of around $300,000 after taxes, which he never lived to enjoy. Ruth Stephani's federal estate tax of over $100,000 and Florida estate tax of approximately $9,000 were paid. The Franks' estate was allowed a credit under federal law for "tax on prior transfers" to which the estate of Fred L. Franks was entitled due to the short period of time elapsing between his inheritance from his daughter and his own death. As a result of this credit, the estate of Fred L. Franks had no federal tax to pay.
Federal Form 706 for the estate of Fred L. Franks reflected a "gross estate tax" of $72,237.28 and a credit was allowed by the United States of $72,237.28 for "tax on prior transfers." The Federal Estate Tax Closing Letter received by the estate of Fred L. Franks from the United States District Director of Internal Revenue showed no federal estate tax liability.
Notwithstanding there is no federal estate tax liability the State Comptroller's Office contends that the Franks' estate owes the State of Florida the sum of $4,573.73 plus interest at six per cent per annum from September 21, 1966. The Comptroller's Office states it computes this tax based on Florida Statute § 198.02, F.S.A., supra, and on 26 U.S.C.A. § 2013 (c), which provides in pertinent part as follows:
The executor of the estate of Fred L. Franks, the appellee herein, filed a complaint seeking abatement of this tax in the Circuit Court of Leon County. That Court, after hearing, ordered the assessment of the Commissioner of Revenue of Florida of an estate tax against the Franks' estate be abated and declared said assessment null and void.
The question for determination is whether the State of Florida can impose an estate tax on an estate which is wholly exempt from federal estate taxes. Appellant contends that under the provisions of Section 2013(c) of the U.S. Code set out above, the state estate tax must be computed before deducting the credit for tax on prior transfers, with the result that a prior estate tax credit of $67,661.55, rather than $72,237.28, should be allowed, and the difference, $4,575.73, is due the State of Florida as estate tax. The cases of Wells v. Gay[1] and Green v. State ex rel. Phipps[2] cited by appellant do not support the State's imposition of an estate tax in the case before us.
Appellant's contention might have merit were it not for the overriding intent of the people in adopting Section 11, Article *249 IX, of the Florida Constitution of 1885. As stated by the eminent trial judge below:
In the Green case,[3] we held:
The Florida estate tax is geared to the federal estate tax. We hold that when an estate of a Florida resident is not subject to federal estate taxes, as in this case, it is likewise not subject to Florida estate tax.
The Order of the Circuit Court is affirmed.
It is so ordered.
ERVIN, C.J., and DREW, CARLTON and ADKINS, JJ., concur.
[1]  58 So. 2d 690 (Fla. 1952).
[2]  166 So. 2d 585 (Fla. 1964).
[3]  Id. at 589.