Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1904-10-27
NOLr NIARILY DIS
S1I.N ED

Sections = and ~ of act M. 20, 1892
provides for the voluntary dissolution
Of all Vermont corporations upon f'ling
with the secretary Of State and commits
sioner Of state taxes sworn statement
signed by the secretary and treas ,rer or
any two directors elected AZ the last reGu
lar election Of officers. This feature Of
the law ha< proven very satisfactory 10
corpora tions and to this department
schedule showing the corporations which
have compiled with the lac in this re-
spect IL hehowith submitted.
COLLATERAL INHERITANCE TAX
Our collateral inherita nee tax law which
was enacted in 1896 provided in substance
that all property. whether tangible or in
tangible. within the jurisdiction Of this
State and passing by will or the laws NJ
descent 10 collateral heirs or leSatees that
are strangers to the blood. -hall ne sun
ioct to tho collateral inheritance tax.
Since the adjournment of tho last gen.
eral assembly tho supreme court decided
in 70 Clara r. Josyn's estate, that the
situs OF a debt for tho purposes OF thss
act Is at til" duniicile of the debtor 70
that If tho debtor lives without the state
the proceeds ~ the debt are exempted
from tho collateral inheritance tax.
In other words. as tho law now stands.
if A living in the city of Montpelier holds
a note against Y living in Lebanon. y. w..
Nv is required by statute law to include
that note in his tax inventory an April
!. If. pcrchance- A should die on the first
day Of April the s,tus Of tho dent AT 'he
instant of his death is transferred from
Montpelier to Lebanon. in SO Far as the
collateral inheritance tax act is CON
cerned so that III, Intangible rr ,perty
in the note, IA a e to him while IN lie
at the place Of his doricile is not subject
To the provisions of the collateral inherit
ance tax law although the money form
ing the basis Of the debt may have been
loaned to him in Vermont TO B. then q
"esdent in Nerpont but who su5sepue NJ
Is moved TO Lebanon prior to AZ de-
cease should tho debt remain unpaid IN
Ill n. following first day of April. As
administrator must return it IN ne tai
inventory, and the listers Of the city OF
MONTPELIER must set it i'll tho Arani lis,
therein; but for tho purpose OF assessing
the collateral iuhcritunce tax II is a FOR
eign asset. The Gitus Of the property ina y
therefore. be in two places IN The same
day for the purposes Of taxation, md
all depending upon the survival ~ th'
creditor.
The situation is thus sharply brought
to your attention. rot in the spirit Of crit
cism Of tho decision Of the court but o
the law itself that such action ,0Ly b,
taken hereunder as shall u. ie"m *
pedieni
The law, as it now stands. allows con
siderable sums of money. held by wealth,
persons in the Stat and inVe>, d or dc
posted elsewhere, to escape taxation.
1t is tho practice III some of The othe
states, and particularly in Ma ssacnJ
sets. to require all debts 80 bc axe,
under tho collateral Inheritance law a
III" IomIcllc of the creditor. They also -
quire all stock AMI DEPOSITS lCld b!
people residing without the state. 20 pa,
E such before tho transfer can >" mad
or tn" deposit paid.
For tn nurpuso of showing the mum
hcr and SIZE of the collateral ivhcrt
aucSe taxes pad during tn" last onui#
term. have classified tho same accord
> irg to tho amount paid with IN" following
results: