Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-08-13
GR|NNAN CR|T|C|zEs
DIRECT INHERITANCE TAX
onaracterizes Act OF Last Lcgisla.
ture as Violently Discriminatory
In Its Terms.
QUESTIONS ITS VALIDITY
Says 1t Is Notable for Severity, IL
Not Ferocity, Of Tax Rate Sought
to Be Imposed, and VIII Drive
Wealthy Men From State.

IN severe criticism Of the direct
inheritance tax enacted at the last
session of the Legislature. which he
characterizcs as violently discrimina-
tory' with severe. IL not ferocious, rates,
Judge Daniel Grinnan. writing in the
august number of the Virginia Law
register. expresses serious doubt OF
the acts constitutionality, and OBJ
serves that. should it stand the test
OF the courts. 1T will serve as "A notice
10 all men OF means to move out of
virginia before they die il they intend
70 leave their estates TO persons not
within the favored classes mentioned
In the act"
judge Grinnan, in attacking one fca-
ture OF tho act, points out that, while
II provides necessary machinery for
assessing the tax on estates passing
by will or administration" 1t makes
no provision whatever for levying the
tax against persons receiving real
estate by the statute OF desccnts.
Though the tax, he says. is imposed
and made lien on the land. the alb
sence Of an assessing tribunal which
determines the value OF the property
makes the statute OF no effect.
QUESTIONS WHETHER ACT
Is NOT REALLY VOID
The subject mentioned under that
last head" he says. raises the further
question whether the whole act under
discussion is not null and void as being
an unwarranted and unreasonable dis
elimination against persons receiving
estates by viii or administration"
who are taxed heavily, in favor of per
sons receiving lands by descent, who
are not taxed at all.
The legislature of Virginia Is
clothed with power 10 make reason
able and fair classification of subjects
for purposes of taxation. but this
power cannot be exercised In a whim-
steal fashion. and IL viii he hard TO
justify upon any sound basis an in
herltance tax law aimed only at estates
passing by Will or administration
but exemptnG that large class Of real
property which passes every year to
the heirs Of iandholdcgs dying intes-
tate"
Judges Of tho pIobai. courts OF the
larger cities and clerks of the circuit
courts clothed with PROBATE jurisdic-
ton are designated by the act 10 act
tax assessors upon estates passing
by will or administration. requiring
them TO determine the inheritance tax
10 be paid and TO certify tho order 10
the treasurer OF the city or county
and TO the Auditor OF Public Accounts.
No such machinery, however. is pro-
vided for. the assessment Of taxes
upon real estate passing by the statute
OF descents
I'm order for tan 20 he valid"
writes Judge Grinnan. the statute
must create some assessing tribunal
which determines the value OF the
property liable to the tax and the
amount Of the tan upon such values.
and, without the existence OF such a
tribunal. the Law cannot be executed
and is null and void. Under the for
mer collateral inheritance tax laws,
persons who are liable to the tax on
receiving lands by descent would 20
from official 70 oincial asking vainly
whose business ii was 10 fix the tax so
II could be paid: and this same omis-
sion still remains III the present act.
though II the act is unconstitutional
In this respect the taxpayer has no
special Gus" Of grievance"
Judge Grinnan complains also Of the
rates imposed by the statute. especially
those which apply 10 collateral heirs
or strangers.
The act under discussion" he says.
lis notable for the severity, IL not the
ferocity. of the tax rates sought to I've
imposed. The rate rises very rapidly
with the size OF "A dead mans estate
passing to non favored classes. From
$4,000 to $50, 600. the tax is at the
primary rate OF per cent fixed for the
first $4,000 of property; from $4,000
up to s25o,o0o the tax is IN per cent:
from s25O.ooo up TO sl.oo0,ooo. the tax
is 30 per cent
The direct inheritance tax bill was
introduced in the Senate by Senator
Walter E. Addison, Of LynchburG, and
passed practically without discussion.
In the House. il was changed In some
minor details. Money arising from the
tax Is placed to the credit OF the public
school fund Of the Commonwealth. and
will be apportioned according 10 school
population. to he used for the primary
and grammar grades.