Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-04-11
INHERITANCE
TAX CODIFIED
Attorney Generals Bill Will
Replace the Personal Prop
erty Tax Measure

written by waiter j. CnflSty, ieSiS-
lative correspondent of much eXper-
fence, and is as follows:
The Sproul administration has
practically determined to abandon its
legislation requiring the counties TO
return to the State one-half of the
personal property tax. 1t will SUD-
stitute as a revenue raiser, the Daw-
son bill consolidating the inheritance
tax laws and giving the Auditor
General broad powers to collect these
taxes from the estates of nonresi-
dent decedents. At the present time
the Commonwealth is losing a very
large sum of money annually be-
cause of inadequate legislation.
The Dawson bill. which was in
troduced into the House this week,
was prepared by Attorney General
William /. Schaffer after conferences
on the subject with Auditor General
Charles A. Snyder. Originally there
had been discussion of combining the
inheritance and personal property
taxes, but Mr.. Schaffer says this plan
was not followed.
AS a result of the conferences of
Allegheny county and Philadelphia
officials with Governor William c.
Sproul and Mr.. Schaffer, the conclu-
sion was reached that if the bill to |
require the return of one-half OF the |
personal property tax to the State |
was passed, the bonding powers OF
these two large counties would be
seriously impaired. With the Alle- |
gheny river bridge raising projects
in Pittsburgh and the building of the
Philadelphia-Camd bridge placed |
+. 49,. ,f,-.,, ,TTNt n
bonding power. the Governor and
Attorney General have concluded it
would be unwise to push this legis- |
lation. Mr.. Schaffer says the new
Dawson bill probably will bring in
revenues equal to the amount which
would have been received from the |
personal property tax return.
This decision of the administration
will not only preserve the bonding
power of Allegheny county, but will
also save it about 900 a year it
would have had to turn over to the
State in cash. The personal proper
ty tax bill would have reduced the
bonding power of Philadelphia $7O,- |
100000 and that of Allegheny coun- |
ty $7,000,000.
The new Dawson bill consolidates
the present laws on collateral and
direct inheritance taxes. keeping in
mind the various decisions of the |
courts. The present rates of per
cent on direct and five per cent on |
collateral inheritances are continued. |
1t would repeal the collateral act of
May S. 1887. and the direct law of
July II, 1917, but provides that
nothing in this repeater shall affect |
or impair the lien of any taxes here
tofore assessed, or any tax due, ow-
it,F
the collection of the same, or to |
surrender any remedies, powers, |
rights or privileges acquired by the |
Comm onwealth" under the acts of |
1887 and 1917, cor to relieve any |
person or corporation from any tax
or penalty imposed" by these acts. |
The Dawson bill provides that a |
tax would be imposed upon the |
transfer of any property, real or
personal, or of any interest therein |
or income therefrom in trust or
otherwise to persons or corporations
in the following cases:
When the transfer is by will or by
the intestate laws of the State
from any person dying possessed of
property while a resident of Penn
Sy'vania, whether the property is
situated within the Commonwealth
or elsewhere.
When the transfer is by will or
jntestate law of real property within
the State, or of goods, wares or mer-
cnandise within the State, or shares
of stocks of corporations of this
State or of national banking associa-
tons located in Pennsylvania and
the decedent was a nonresident of
the Commonwealth at the time of his
death
When the transfer is of property
made by a resident or is of real
property within the State, or goods,
etc, or corporation or national bank
stocks of concerns located within
the State, made by a nonresident
by deed, grant, bargain, sale or gift
in contemplation of the death of the
granter, vendor or donor or intend
ed to take effect in possession or
enjoyment at or after such death.
When any person or corporation
comes into the possession of enjoy
ment by a transfer from a resident
or nonresident decedent, when such
nonresident decedent's property
consists of real property within this
Comm monWealth or of shares of stock
of corporations of this Common
wealth or of national banking asso-
Citations located in this Common
wealth of an estate in expectancy
OF any KIND or character which is
contingent or defeasible, transferred
by an instrument taking effect after
the passage of this bill, or any prop
erty transferred pursuant to a power
of appointment contained in any in
strument taking effect after the pass
age of this bill.
The powers and duties of the reg
lister of wills as the agent of the
state in collection of these taxes in
the cases of resident decedents re-
main about as at present, except the
fees he is permitted to retain. These
are fixed as follows on the gross tax
annually collected Three per cent
on $4,000 or less; two per cent on
amounts in excess of $4,000, and
not exceeding 100000; one per cent
on amounts from 100000 to 5000
600, and one-half of one per cent on
all amounts over 100000. There is
proviso that no register can re-
ceive more than $1,000 a year in
fees from both collateral and direct
inheritance taxes.
The collection of inheritance taxes
from the estates of nonresident de-
cedents, who died owning property
in Pennsylvania, is placed directly
in the hands of the Auditor General
This official whenever the occasion
may require, on the application of
any interested party or upon his own
motion" may oppoint an appraiser
TO value the property. The Auditor