The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-02-15
Law DECLARED VOID
SUPREME COURT SAYS THAT THE
INHERITANCE TAX is UNCON-
STITUTIONAL
DECISION MOST IMPORTANT
Involves Tax on Large Number of
Estates That Have Been Held In
Abeyance-Law Held to BE Invalid
on Every Point but One = Chief
Justice Start Writes the ODin-
lon.

The supreme court In decision writ
ten by Chief Justice Start, yesterday de-
clared the inheritance tax law uncon-
stitutionaI. The court does not contend
that the taxation of inheritances by the
state is Illegal. but the particular law
In question is so shaped as to be in
direct violation with the constitution Of
Minnesota, which is, on this point, unlike
that of any other state.
The decision Is a most important one.
as 1t involves the tax on a number Of
large estates that has been held In
allegiance. pending the decision Of the
case. The question first came to the
supreme court from Mcleod county, and
attorneys for the PilIsbury and Donald
son estates filed briefs contending that
the law was unconstitutional
The court on every point, with one ex-
ception, holds the law to be invalid and
at direct variance with the constitution
of the state of Minnesota. Chief Justice
Start in his opinion states that in many
states and as far back as 1926, inheritance
taxes have been levied. and the civil
Roman law in 1880 also countenanced
The taxation of inheritances. The con-
stitutior of Minnesota, however, pro-
vides that inheritances may be taxed,
but 1t must be on an equal basis, and
the law in question. inasmuch as it
taxes only personal property, is uncon-
stftutional. 1t makes a distinction be-.
tween personal and real property includ-
ing only the one, which is distinctly pro-
hibited by the constitution. Minnesota
|, ds the only state where the constitution
in express terms limits the power Of the
legislature in the levying of an Inherit
ance tax. The question here arises, does
the act conform with the constitution
The supreme court says 1t does not.
Where the distinction is made between
two classes of property the court con-
tends that 1t is not an equal levy as
called for by the constitution. The con-
stitution says:
'tAn taxes to be raised in this state
shall be as nearly equal as may be, and
all property on which taxes are to be
levied shall have cash valuation and
be equaliZed and uniform throughout tho
| state
Provided, further, that there may be by
| law levied and collected q tax upon all
inheritances, devises. requests, legacies
and gifts of every kind and description.
above a fixed and specified sum of any
and all natural persons and corporations.
| OuCH lolN dOONO ouIli CACiupIOd ouiii iiios
be uniform or may be graded, but shall
not exceed a maximum of per cent.
| The Minnesota law passed by the leg1s-
| lature makes discrimination between
| the lineal and collateral heirs Of the
amount to be exempt, and the court
| holds that in conflict with the equality
provision Of the constitution. The syl-
labus is as follows:
| State Of Minnesota, Lincoln Drew. APP
| pellant, VS.. M. C. Tiff. as Judge Of the
! probate court of Mcleod county. Min
| nesota, respondent.
| 1. The mandate of equality of taxa
| ton, as near as may be- of section 1, ar
| ticle 9, of the state constitution, applies
! taxes on property, except as otherwise
| expressly provided in the last provisc
to the section. relating to an inheritance
! tax law.
T. 2. Chapter 295, Laws of 1897, which at
| tenpts to lay an inheritance tax is un-
constitutional for the reasons: (a) 1t ex-
| cludes from its operation real property
! and lays the tax upon inher1tances OF
personal property alone. (b) 1t exempts
! from it's operation persons and corpora
tions whose property is exempt by law
| from taxation. Co It allows larger
! exemption to lineal heirs than to collat-
| erals and does not lay the tax on the
excess of the value of the property re-
| ceived above a uniform exempted sum.
| 8. The statute is not unconstitutional
| because it taxes collateral heirs and dis
| tributes at higher rate than lineals for
| the constitution expressly authorizes such
| graduation of the tax. Order reversed.
START O. r