The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-24

contributed by general property. This
indirect source OF taxation, together
with the income derived from corpora
tons and stock transfers. soon lowered
the State tax rate from 200 to nothing.
The justice OF this assessment is
best expressed in the language Of the
State Comptroller. who recently de-
clared that the foundation OF must of
the great fortunes rests largely in the
special privileges conferred by the
State. Because such fortunes cali
'or greater protection" said Mr.,
Travis, land because 1t IS impossible
} compel them 10 pay their fair share
Of costs. it is only just Glat such a
AK should be imposed, II only to COM
'ensate for the benefits"
Originally the cost OF appraisal was
aid by the county treasprers out of
he proceeds OF the tax. ., Owing 10 the
expense and gross errors this method
has been changed. Larger revenues at
a reduced cost are now obtained 10y
the Comptroller's representatives scat
erred throughout the State. Much en-
erget!C and sklful work is required
in the enforcement of the law, as all
sorts Of devices are employed by some
persons OF wealth TO escape this tax
over s162 ,eee,s3e.15 has been collected
from the tax since its adoption n
quarter Of a century ago.
How the Law Operates.
How the tax is administered and
what proportions OF an estate become
liable may be illustrated as follows:
John Smith died on the first day OF
this month. He left an estate OF
S2.s00,000 and Ivy his will made pro-
vision for its distribution among his
wife, child and relatives. Under the
provisions Of the law of New York and
OF nearly every other State an ap-
praisal or investigation OF the extent
and value Of his property must first
be made by the State before any of
it can be disposed OK
In New York the state Controllers
office, through its local transfer tax
attorneys and appraisers. found that
the dacedent Smith had left a personal
estate Of S2,7o0,00O and real estate Of
100000. After his funeral it became
known that his personal debts, funeral
and testamentary expenses and com
missions of an executor appointed by
him in his will to carry out It's provi-
sions amounted to 100000.
Deducting this sum there remained
81 ,697 900 liable to taxation. In lieu OF
her dover rights--one-t third OF all her
husbands real and personal property
Smith gave his widow all his real es-
tate by his will. In addition he gave
her a legacy Of 100000, to his son 81,
600 600 to his brother $500 900, to n ia
vored nephew 100000, TO friend $780,
900, 10 his church $4,000 and to his
college $4,000.
With the exception Of the last two
requests the State is required to i'm.
pose tax on all transfers, appor.
toned according to the relationship
and the amount. For example. the tau
, upon the 100000 bequest to his
widow. consisting OF a legacy OF $780,
900 and all his real estate, amounting
TO 100000, would be assessed upor
1895, 900, because under the law no ta1
car be imposed upon the first $1,000
Upon tho next $4,000 a tax OF l pei
cent. Is imposed, on the next $4,000 q
! per cent tHNi on tHe UTSl SlVu,UUu
! per cent. and upon the balance, $7a5.'
900, 4 per cent, making the aggregate
tax upon the Widows share s36,550.
How the Rates Differ.
The tax upon the 100000 left b!
! Mr. Smith to his son would amount T.
the same as that on the widows share
The entire amount, 100000, left by tht
teetator to his brother becomes sub
teot TO the tax, az no exemption is al
lowed, as in the case of father
mother, husband, wife or child. Tn,
rate. however, is different, for In thi!
instance the first $4,000 is assessed a
2 per cent, the next $4,000 at PEI
cent, the first 500 900 at 4 per cent
and the second 100000 at per cent
making the total tax sll750.
To his nephew Mr.. Smith bequeathet
$500. 900, but as no exemption Is al
lowed this sum beasmes liable to tn