Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1906-06-29
INHERITANCE TAX
LAW SUSTAINED
SUPREME COURT DECIDES ACT AT
FECTING MANY ESTATES
CONSTITUTIONAL.
AID VALOREM LAW is UPHELD.
Method of Taxation of Railroads Is Valid,
but State Is Ruled Against III
Penalty Cases.

MADISON, Wis, June 22.-[ Special.l
The state supreme court, late yesterday
afternoon, handed down decisions declar-
al, and also upheld the ad valorem and
the civil service laws.
The decision in the railroad penalty
cases went against the state. the court
deciding that the state could not recover
any $4,000 penalties, claimed as for
FIXTURES against the railroads for filing
false and untrue reports OF gross earn
ings for purposes Of taxation under the
old license fee system.
Justice Winslow wrote the opinion in
the Inheritance tax case.
The constitutionality of this law, and
of any similar law, the court says, is
now attacked upon the following general
grounds:
That the right to take property by In
heritance or by will is a natural right pro-
tected by the constitution, which cannot
be wholly taken away or substantially i'm
paired by the Legislature.
That the constitution Of this state limits
the power of taxation to property only, and
that this tax Is an excise levied upon right
or privilege, and hence unconstitutional.
That even If the Legislature has power,
H.
this law violates the constitutional require
ment that the rule of taxation shall be uni
form.
Text of Decision.
The opinion in part is as follows:
With the first of these propositions we
trary proposition has been stated by the
great majority of the courts of this coun-
try, Including the supreme. court of the
United States. The unanimity with which
1t is stated is perhaps only equaed by the
paucity of reasoning by which it Is support
ed. In its simplest form it is thus stated:
descent Is the creature Of the law and not
a natural right"
The fasy ths ,dsa that the
at will is Very apparent That there are
inherent rights existing in the people prior
to the making Of any of our constitutions
is fact recognized So we arrive at the
Inheritance taxation may be justified under
the power Of reasonable regulation and tax
alton of transfers Of property.
Tax Law Scope.
The second contention is that taxes can
only be levied on property. So we meet
the question whether any taxes other than
taxes upon property can be constitutlonally
levied in Wisconsin. There are no express
words in the constitution limiting taxation
Consideration of the third point brings
us to the third point of the argument, and
in fact partly answers 1t, namely, the OBJ
Iates the rule Of uniformity. In view of
our construction Of section 1 of article =,
Of our constitution, by which we hold that
question seems to be free from reasonable
doubt.
The progressive feature of the act involves
greater difficulty. BY this feature increased
rates of taxation are imposed as the amount
of the bequest increases. 1t is said that
this is rank discrimination, that there Is
no difference in situation justify1ng diff
ference in classification, and that classified
ton Of persons cannot be based on mere
differences in ability to pay 1t Is some (,
cense taxes have been levied upon the pro-
gressive plan, increasing as the earnings
per mile increase, since 1876, without ques-
ton, and that street railroads and electric
lighting companies are now subject to a
like progressive rate of taxation:
We are content to follow the decisions of
the United States supreme court, and hold
that the progressive feature does not vlo-
late the constitution
Therefore. the demurrer is sustained and
Judgment dismissing the complaint ordered.
Of Great Importance.
The case of Nunnemacher as trustee
against the state of Wisconsin involved
the validity of chapter A, laws of 1908,
which provides for tax on the transfer
of real and personal property under the
interstate laws of this state when any
a resident of this state. Since the enact
ment of this law there has been paid
into the state treasury sums of money
amounting to 1924 ,233.S7. A former
statute passed in 1899 was held uncon-
stitutional by the supreme court. This
case, while only involving a tax of $4,000,
really involved all of the taxes paid here
tofore under the act, for had the state
lost it would have been under obligation
at least of moral nature. to reimburse
those who have paid in under the law.
The case arose over the estate of Ed
ward B. Hull a son-in-law of Herman
Nunnemacher of Milwaukee, who died
several years ago in France. His es-
tate was probated in Waukesha county
and was among the earliest estates, to
which the present Inheritance tax law
applies Mr. Nunnemacher paid the tax
under protest and Immediately started
suit against the state for its recovery.
The Pabst estate, the Schandein estate
and the property of several other wealthy
persons who have died within the last
three years are affected by the decision
in this suit, and the Inheritance tax in all
these cases has been paid under protest.