Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1912-10-25
INHERITANCE TAX.
Thirty-ninth Article by the Min
nesota Tax Commission.

$dRc3 tcSIStEy tdXs anu the Lnr6e Mill
tax on money and credits, which have
sheen already covered in these articles,
the state imposes certain other special
taxes deserving of mention. such as
the inheritance tax, the tonnage tax
on vessels plying on International
waters. the bushel tax on grain. and
the liquor license tax.
The most important Of these is the
inheritance tax. Although not in
general usein this country until COM
| paratiely recent times the inheritance
tax is not a new invention. 1t was
employed by the Romans as part of
their fiscal system before the dawn Of
the Christian era and there is evidence
| that the Egyptians made use of it
even earlier than the Romans. In
many European countries it ras been
in successful operation for centuries.
From an economic standpoint no
| tax has more to commend it and none
is easier to defend. AS has been we'll
said This method of increasing the
public revenue is wise. simple and
efective-wise because it does not
touch private property during the life
Of the owner and thus places no bur-
den upon business activity; simple be-
cause the tax is easily ascertained and
collected while estates are being ad-
ministered in the probate court: effec-
tive because by the application of
pregressivesrates, it adds no burden
to the poor.sbut permits those who
have much to contribute to the govern
ment somewhat in proportion to their
ability to pay. 1t invades no natural
rights. Itssgiolates no maxim of the
law. 1t overleaps no constitutional
barriers. It is neither revolutionary
nor socialistic, but is.r on the contrary,
measure Of practical wisdom and
social justice. and has been truly
styled an institution of democracy. : -
In this state. six different legisla-
lures have stamp d the inheritance tax
with Their approval. The first in
heritance tax law. enacted in 1885,
was declared unconstitutional by the
fsupreme court. as were similar laws
passed IN 1897. 1901 and 1902. The
fifth attempt of the legislature to tax
inhgritances, Chapter 2SS, Laws of
l.l905, was successful being sustained
by the supreme court in a test case.
The present law imposes a tax up
on inh-ritances. ,,devises, bequests,
llegacjes, and gifts of every kind 1t
Iis in fact tax on the right to re-
ceive property, or any interest their
IN, or income therefrom in trust or
lotherwise.
Liberal exemptions from the tax
are allowed to husband or wife or
children of the decedent, the amount
under the present law being $40, 600.
Parents receive an exemption of
So. 600, and brothers and sisters,
81, 900. Certain smaller exemptions
are allowed more distant relatives.
The rate is imposed on the amount
in excess of the exemption and is
a graduated one, increasing as the
amount or value of the bequest in.
creases. For instance. in the case
of a wife or child, if the value OF
the property exceeds ten thousand but
does not exceed fifteen thousand doll.
ars, tax of one per cant would be
imposed on the amount in excess OF
the exemption. Upon all in excess
of fifteen thousand and under thirty
thousand the rate is one and one
half per cent, from thirty to fifty
thousand dollars two per cent; or
sums over fifty thouasnd dollars two
and one-half per cent. and on al
sums over one hundred thousand doll.
ars the rate is three per cent.
In the case of husband, or parents
: of the decedent, the rate starts al
one and one-half per cent and increases
to four and one-half per cent; fol
brothers and sisters and certain rela.
tives the rate begins at three per cent
and increases to nine per cent, fol
certain other relatives it begins al
four per cent and increases to twelve
,, per cent, and for strangers it ranges
from five to fifteen per cent.
1 In the earlier years. of the tax or
inheritances the entire revenue re.
ceived from this source WIS retained
by the state. Under an amendment
adopted in 1911 the county in which
the decedent resided now receives ter
per cent of the tax.
The re enue received from thi'
source for the fiscal year ending July
81, 1912 amounted TO $678, 513.
The total receipts since the enact
!, ment of the law to date exceeds So,
$50. 600. N 4.-r tssn