The Hawaiian gazette., 1903-06-12
MUST PAY
INCOME TAX
Big Estates Liable
For Two Per
Cent.

of Oahu for this year will be more than
double the amount collected last year.
or the first year that the new law was
in operation. This isn't because there
has been any sudden increase in the in
come earning capacity of the property
of the country, but is simply owing to
the death of three of the wealthiest citi-
zens of Honolulu.
The income tax which will be collect
ed from the legatees under the Wills of
the late Paul Isenberg. j, b. Atherton
and $. C. Allen will probably approx
innate 100000. But small portion Of
either of these estates is liable for the
inheritance tax. If this tax, which is
paid only where the property is be-
queathed elsewhere than to direct heirs
was assessable against these three es-
tates. the Territory would be enriched
by fully half a dillon dollars.
The inheritance law which imposes a
tax of five per cent, exempts persons
who are members of the decedent's
family. The law as to this is as fol-
lows.
Section $40. All property which shall
pass by will, or by the intestate law OF
this Republic. from any person who
may die seized or possessed of the same
while resident of this Republic, or
If such decedent was not a resident of
this Republic, at the time of death,
which property or any part thereof,
shall be within the Republic, or any in
terest therein or income therefrom
which shall be transferred by deed,
grant, sale or gift made or intended to
take effect in possession or enjoyment
after the death of the grantor or bar
gainor, to any person or persons. or to
any public or corporate, in trust or 9TH
erwise or by reason whereof any body
public or corporate shall become bene-
ficially entitled In possession or eXpec-
fancy to any property, or to the income
thereof, other than to or for the use
of his or her father, mother husband,
wife, child or adopted child, adopted as
such in conformity with laws of this
Republic, or grandchild. or Incorporated
or private schools now exempted by law
from taxation, by reason whereof any
such person or school shall become
beneficially entitled, in possession or ex-
pectancy, to any such property, or to
the income thereof, shall be and Is sub
ject to tax of five dollars on every
hundred dollars of the clear market
value of such property, and at and after
rate for any less amount to be paid to
the Minister of Finance for the use of
the government, and all administrators.
executors and trustees shall be liable
for any and all such taxes until the
same shall have been paid as herein
after directed, provided that an estate
which may be valued at less sum
than five hundred dollars, shall not be
subject to such duty or tax"
INCOME TAX LAW.
Assessor Pratt is of the opinion that
the legatees under the wills of the three
millionaires are liable to the income
tax, as far as personal property is con-
cerned and the bulks of all three es-
tates consists of stocks, bonds and other
forms of personal property. The in
come tax law says:
Section 8. In estimating the gains,
profits and income by any person or
there shall be included all
notes, bonds and other securities, ex-
cept such bonds of the Territory of Ha-
wall or of municipalities hereafter
created by the Territory the principal
and interest of which are by the law
Of their issuance exempt from all tax
alton profits realized within the year
preceding from sales of real estate, in
'luding leaseholds purchased within two
years, dividends upon the stock of any
corporation: the amount of all pre-
miums on bonds, notes or coupons; the
amount of sales of all movable prop
erty, less the amount expended in the
or production of the same, and
N the case of a person not including
any part thereof consumed directly by
him or his family money and the value
IF all personal property acquired by
gift or inheritance, and all other gains,
profits and income derived from any
source whatsoever"
In the schedule also of taxable prop
,rty under the income law is listed
Money and the value of other Personal
Property acquired by gift or inheri-
ance,"
The Isenberg estate was appraised at
omething over five million dollars, the
Allen estate at less than 81, 100000, while
10 inventory of the Atherton estate has
een filed in court, but 1t is expected
o total as much as the Allen prop
rty, Nearly all of the property listed
of n personal nature, which 1t Is re-
orted Is taxable under the income law
Whether the tax can be levied against
he property where 1t is left in trust Is
question, but II it can, the Territory
ill receive 5000, 900 more in taxes this
ear, than had beep expected.