New-York tribune., 1918-04-21
Tax on Non
Resident Holdings

Resident Holdings
2. All shares of stock Of New Yo,l
| corporations, or the proceeds of AL.
OF such stock, are made taxab)a =.
to non-residents. This provision /.
manifestly in conflict with the oth.,
provision hereinbefore discussed. b..
cause under the first provision th.
stock as we'll as bonds of New York
corporations is made taxable to tn.
extent of the real property in the state
whereas by the later provision r..
ferring to the stocks only the laneuars
OF the bill does not provide for an
apportionment. This conflict is we'll
calculated to occupy the energies Of
the courts, the funds of the state and
of litigants for long time. 1t is also
to be noted that the proceeds of sale
OF stock are made taxable. This Ian.
guage is not ineligible. 1t might
have been intended to cover thereby
cash legacy which the executors are
directed to pay out of the proceeds Of
stock sold by the executors; but the
statute does not make this definite and
certain, and it might we'll be argued
that the provision in question was in
tended to reach any cash found on de.
Iosit in New York State which would
equal in amount the sums which the
decedent was alleged to have received
in his lifetime from the sale of stock
OF New York corporation. Of course,
such high-handed proceeding might
} mot be upheld by the highest courts
but it is extremely dangerous to place
officials in the position where such
claim can be asserted and used as
lever to exact taxes from an estate
which is not prepared to 60 to the ex-
rense of long and tedious litigation.
! Resident
Defined
8. The definition of resident has
been amended so as to include: "This
provision shall include any decedent
who shall have dwelt or lodged within
thls state for as many in the aggregate
as $40 days within the period of twen-
ty-four months prior to his or her
DEATH" Curiously enough, this provi.
sion follows much less stringent pro.
vision in the present law, to witt
Deeming a decedent to be resident
when such person shall have dwelt or
shall have lodged in this state during
and for the greater part of any period
OF twelve consecutive months in the
twenty-four months next preceding his
or her death. However, it is not be-
lieved that this matter is of the same
Importance as the features before dis
cussed, and manifestly the amendment
was drafted on account of an adverse
decision by the court in the litigation
arising from the attempt to make tax
able the estate Of Hetty Green, which .
litigation had been decided unsatis'
factorily to the taxing authorities.
The whole law is miserably drawn
and is more calculated to harass and
annoy than to produce revenue and
should be vetoed. The State Of New
York has profited by the present wise
and just inheritance tax law which is
HOW in force. New York institutions
have built up a large business with
ron-residents based upon the good
faith of this state and its reputation
as being a fair state in its dealings
with such ncn.residents. The economic
effect of such legislation is not mat,
ter of judgment, but is one OF prac''cai
experience, which was learned AZ
costly price at the time of the so-caiiea
Hughes inheritance tax law OF lSiV'
and it is believed that the present IS
no time to interfere with the economic
conditions existing in this state.