Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-01-01
STATE TREASURER Di1cLoeEo
HEAVY LOSSES TO STATES
REVENUES.
IGNORANCE or LAW
BLAMED FOR CONDITIONS.
Hundred Of Thousands Of Dollars Re-
main uneolIsetsd, Dating Back ~
Far a. Twenty Ysars--Lssislativs
Action TO Be ereusht--Exaet Amount
Can Not Be Estimated.

Des Moines. Jan. How hundreds
OF thousands Of dollars in state revenue
has failed Of collection under the coll
lateral inheritance tax law Is being
brought slowly to light thru the efforts
Of officials in the office Of the state
treasurer.
The fault for failure of collecti ~
runs back thru the past twenty years
since the enactment of the law and Is
not chargeable to any branch Of tho
state government. the report shows.
Big Revenue Source.
The collateral Inheritance tax pro-
vides for the collection of 8 per cent
of inheritances left to others than di-
rect heirs of the deceased. except in
case Of aliens, where 20 per cent is col
lectable unless the recipient is a citi-
zen of country with which the
United States has reciprocal treaties.
A report OF the treasurer of state
shows that receipts from this tax since
july II amounts to s264,f5f4S. an in
crease over collections for the same
period last year Of $46.1S1.23. The
state revenue derived from this tax at
present is exceeded only by the general
property tax and the tax from insur-
ance companies.
Cannot Estimate Amount.
Just what amount is due the state in
unsolicited collateral inheritance taxes
can not even be estimated, it is said.
Investigation has shown that there
probably are thousands Of dollars out
standing unknown to property owners
against whose property the tax is n
perpetual lien accommodating interest
at the rate of per cent.
For some months past representa-
tive of the state treasurer's office has
been travelling over the state unearth.
ing wills and records, Of the distribu-
ton of property where no wills were
left by the deceased
He has found many cases where
the collateral inheritance tax has not
been paid.
The situation. It is pointed out, Is
not an attempt on the part Of heirs to
elude the law, but in practically every
case either ignorance OF the law Or
neglect on the part OF county clerks
and heirs to make proper remittances
under the law.
One instance Of a tax which had run
for twenty years was found. The
original amount was little in excess
Of $500. With the interest winch had
accumulated during tie twenty, years
the amount due was nearly doub.a the
original tax It il pointed out that in
many cases tiie burden of aging a
collateral inheritance tax ,ung over
due falls on an innocent purchaser
after the original owner has either
died or left the community.
Seeks Legislative Action.
f.. II. Hoyt, state treasurer, some
time ago started campaign to bring
to light these uncollected taxes. Let
tiers were sent ont to lawyers all ovel
the state asking that they take par
ticular notice Of this law and bring to
the attention Of the treasurers office
such cases as they might find.
TT is in no way an attempt to
elude the law" Mr.. Hbyt said. 1T is
simply a condition that has grown
slowly until now it represents an
enormous source of unsolicited reve-
nue."
During the month just passed total
Of $S4,s85.9s was collected in collat-
eral Inheritance taxes.
Mr.. Hoyt plans to lay the situation
before the coming session of the Iegis-
lature in the hope that some measures
will be taken providing a means for
collecting these unpaid taxes and in.
surfing that future taxes Of this nature
be paid when due.