The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-07-07
TAX COMMMISSION
REPORT RENDERED

states $1,000. The commission be-
lieves that the provisions of our law
in this regard are unduly harsh, fall
ing as it has to fall in many cases,
on the widow and children to whom
an inheritance tax of two per cent
is unduly burdensome. The commits
sion does not sympathise with the
argument that the right of inheri-
lance is a privilege granted by the
state, and that such privilege should
be equalled taxed. Within a certain
limitation there should be no tax upon
the right of the widow and children
to receive the fund which every man
should lay up for the care and main
tenance of his family after his death.
1t is more important to the Terri
tory that no hindrance even by way
OF an inheritance tax be placed on
the making of a home and the pro-
viding for the family, than that rev
enue accrue to the government from
this source. The commission recon-
mends that the exemption of direct
heirs be raised from one thousand
dollars to frye thousand dollars.
The statute now provides that a
discount of five per cent shall be al
lowed and deducted from the tax if
the tax is paid within six months
from the accruing thereof (Section 5
Act 102. Session Laws of 1867 In
the settlement of many estates adj
ministrators are not justified in pay
ing the debts of the decedent until
six months have expired after the
Of he, 10
ditors. (Section 1851 Revised Laws
OF HawaiD. The, six months now
provided for in the inheritance tax
raw runs from the death of the de-
Gedent AS practical matter the
statute as it now reads can not en-
courage early payment of the tax. AS
the discount was undoubtedly provid-
ed for in order to encourage early
payment, the commission recommends
that for the above reasons the time
within which the discount may be
obtained be extended to twelve
months. (See Exhibit B. Section -,
page ).
In Section 10 of the inheritance tax
law it is provided that in the compu-
tation of the value of future and con-
tingent or limited estates, income or
interest, certain standard tables be
used save that the rate of interest
to be assessed in computing the pre-
sent value of all future interests and
contingencies shall be six per centum
per annum." No such tables as those
referred to in the statute are readily
available, while tables do exist in
published form figured at a rate of
five per centum per annum. This
rate of interest is more nearly that
of the actual average earning capa-
city of trust funds in Hawaii than
is the rate Of six per centum. For
this reason and also because the five
per cent rate is not inequitable, the
commission recommends that a
change be made in the present sta
tute. (See Exhibit B, Section -, uage
>
Section rs of the inheritance tax
laws provides for the bringing of ac-
ticns to quiet title against the claim
of lien of any tax under this Act and
provides that "all actions under this
section shall be triable before the
Circuit Judge of the judicial circuit
which has or which had jurisdiction
Of the administration of the estate
of the decedent mentioned herein.
Paragraph B, Section 25, Chapter
1902 of the Session Laws of 1905). II
has been stated to the commission
) that the above paragraph as worded
was intended to take this limited
class of actions to quiet title away
= from the jury. In view of our judi
! cial system the commission does not
! consider the present provision of the
, paragraph advisable and therefore re
a commends the amendment set forth
i'll Exhibit B, Section -, page -, as
, more in consonance with our loca
system of jurisprudence.
Certain other suggestions for more
verbal changes in the various sec
= lions of the inheritance tax law above
commented on are made in Exhibi
"B, but in no case do the changes
e vary the meaning of the law
2. The commission recommends the
J. striking out in paragraph ~ of Chap
ter 1902 of the Session Laws of 1906
the provision which relates to tn
J. duties of the insurance commission
el III prescribing ludI ne SNAIL ueIel
> mine on the application of the Gil
II cult Judge all such future or cor
} tingent or limited estates, income o
y interest" upon the facts contained il
5 the report of the appraiser and shal
thereafter certify the same to tn
L Circuit Judge, and that such certif
e cate shall be conclusive evidence tina
u the method of computation adopte
r therein is correct. This provision ]
S unnecessary in view of the rest {
i the law. It's aid has never yet bee
Ne invoked in any determinations of tn
n inheritance tax as far as the con
C. mission Is advised. There is no rel
son why any such certificate shoul
&c be made conclusive evidence of an,
N thing.
n
N. FIRST AID TO NATURE.
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