New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-04
STATE LOSES $4,000
ON ASTOR ESTATE TAX
Court of Appeals Decision viii
Cut New York'S Rev.
enueS Heavily.
LEGISLATURE MAY ACT
Amendment to the Transfer
Assessment Law Likely
To Be Offered at the
Next Session.

4 decision Of the Court Of Appeals re-
rogate affects the transfer tax on the es-
tate Of all persons who have died in the
last two years and means loss of many
thousands Of dollars TO the State Of New
York. The decision rules or the method
OF computing the transfer tax, and on the
estate of Colonel John Jacob Astor the
loss TO the state amounts TO $1,000
The decision Of the Court Of Appeals
was rendered on the appeal Of State Con-
troller Sohmer from a ruling by Surrogate
Fowler, in the estate Of Herman Schwarz.
wherein there was raised the question as
TO the method OF fixing the tax for which
the law Of 1911 provided. Surrogate Fowler
said in his decision that owing 10 the
change in the transfer tax law, made In
1911, the question of computing was some
what in doubt. and that ANY doubt as 10
the meaning OF a statute imposing a tax
| should be resolved in favor of the ciu-
zen"
The Court OF Appeals upholds the ruling
OF Surrogate Fowler. and II is likely that
an amendment will be offered 10 the
transfer tax law in the next session OF
the Legislature.
While the appeal Of the State Controller
was pending before the Court OF Appeals
the transfer tax was fixed by Surrogate
Cohslan at S3l6992 John Quinn. special
attorney for the State Controller In the
appraising OF the Aston estate. expected
I Ea 10
further payment. this belief being based
on the possibility that the ruling Of Sur
rogate Fowler would be reversed by the
higher court With the decision OF the
Court OF Appeals the tax will stand as
fixed and the State Controller will make
no further effort 10 have II increased. The
same decision will affect numerous other
appeals.
Under the transfer tax law there is an
exemption Of $500 on requests 10 a father.
mother. husband, wife. child. brother. sis
ter. widow OF a son OF husband OF a
daughter. After that the rate is ! per cent
on any amount In excess Of 500 and up
10 5000 per cent on 5000 and up 10
$4,000, per cent IN excess OF $4,000 and
up 10 800 90 and 4 per cent on any
an cunt In excess OF 81 900 90 The method
followed by the transfer tax appraisers
in computing the tax. before the ruling Of
Surrogate Fowler. was 10 exempt $500
and tax the next $500 at per cent. the
next $1,000 was taxed az per cent and
the next s75ooo al per cent
These amounts. with the exemption Of
s. 90. made the total 81 o. 90 which was
taxed before the per cent rate was
effective.
The executors Of the Schwarz estate
contended that the first $1,000 should be
taxed at per cent. the next $1,000 az
per cent and the next 10000 at per
cent which. with the addition Of the $500
exemption. would make a total u $4,000
before the per cent rate vas effective,
instead Of the total Of 81 5000 The state
therefore lost ! per cent on $4,000 and
per cent on SZ50.c0O. or total OF 1850 on
each transfer up TO $4,000. Under the
will Of Colonel Astor there were four
transfers in excess OF ti.3o5.cno on which
the state sustains total loss Of Sl2.Jo.