The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-01-05
Blue Earth County Legacies
Affected BY Decision.
inheritance TAX LAW GOES.
Opinion Of the Supreme Court; Will
Turn Many Dollars Into Various
County Strong Boxes.

From Saturdays Daily.
The Inheritance tax law passed by the
last legislature is constitutional.
The supreme court so decided in al
opinion filed yesterday, and as reported
in last evenings Free Press. The find
ings are sweeping.
The estate covered is that of the late
Paul d. Ferguson of st. Paul, and un
der it both Probate Judge +. w. Bazillt
and the Ramsey county district court
are reversed, and County Treasure,
Foote sustained in his application for a
writ of mandamus to compel the carry
ing out of the law.
In addition, the findings of the SUI
preme court are made applicable to the
estate of John Martin of Hennepin
county, and also the estate of V. Simp-
son, of Winona, the executors of which
contested the validity of the act.
The ruling of the supreme court at
once makes available nearly 100000 in
inheritance taxes, which have been held
up pending the courts findings.
The executors of the Paul ID. Fergu-
son estate will have to pay to the state
tax of $4,000. So.
The constitutiopality of the law was
the principal bone of contention, those
fighting it contending that the statute
was in violation of the constitutional
mandate of equality in taxation.
This the court refused to allow, hold.
ing that while the mandate applied to
property, this was not tax on money
but simply on the right to inherit. On
this point the court says:
"Ihe law conforms to system sus-
tanned and supported by the authori
ties generally and is not repugnant tc
constitutional principles. Three distinct
classes are created, and each are equal
Ability or faculty to pay has come to
be the test of determining the business
of taxation. 80
A careful consideration of the entire
subject leaves in our minds no doubt
that the trainers of the constitutional
amendment on which this law is based
intended to depart from the rule OF
equality as respects an inheritance tax
1t was another step of the evolution OF
taxes in this state. The statute is not
obnoxious to the constitution and must
be sustained"
Another contention raised was the
faulty construction of the act. This
the court partially admits, but it con-
siders the intent of the legislature, and
will not permit it to interfere with the
carrying out of the law.
Justice Brown wrote the opinion and
he covers the points raised in the find
ings in his syllabus as follows:
Drew VS.. Tiff, 70 Mimi. 173, constru
ing section l., article TX, of the state
constitution, as modified by the inheri
lance tax amendment, followed and APP
piled,
Chapter 2sS, general laws 1905, i'm
posing tax upon certain devises, be
quests, inheritances and gifts, held con
stitutional and valid legislative enact
ment.
The classified and progressive features
of the statute are in accordance will
the general principles of the law on thu
subject of Inheritance taxation and au
thorized by the amended constitution.
Whether a distinction should be made
between collateral and lineal descendants
is matter of legislative discretion ant
not judicial question.
Certain indefinite and ambiguous pro
visions of the statute above referred t.
considered in the light of the genera
| rule that inaccurately drawn statute
will be construed to effectuate the in
tention of the legislature, and tn
statute held not, imperative or void TO
the antiquities referred to.
| The rule of strict construction ordi
narily applied to the operation and effec
of statute imposing tax upon tn
citizen, and to proceedings Hereunder
does not apply to its Interpretation
Judgment reversed.
The case for the state was conducte,
by Attorney General Young.
The tax ON legacies of over $1,000
and under $4,000 is w per cent. lie
gacies of $4,000 and less than 100000
3 per cent. Legacies over 100000,
per cent.
The Blue Earth county estates affect
ed by the decision are those of r. L
| Hubbard and Thomas O. Jones.