Arizona republican., 1921-02-14
HOW THE PROPOSED
 INHERITANCE TAX LAW !. DIFFERS FROM OLD
(Constributecl

The policy of 8 tax upon inheritances having heen heretofore decided upon in this state. the question of an effec- tive law to give force to that policy is before the legislature of the state of Arizona.
 The present law in Arizona left the matter up to the superior court in the handling of estates. and to the state treasurer to collect such taxes as might appear to be due from inventories filed in estates, and by reason of the divided authority it is complained that many estates passed without paying any in- heritance tax whatever.
 An inheritance tax law was first enacted in Utah in 1901. and with ire quent amendments to cover defects, developed from experience is now en- forced in that state with excellent re- suits.
 The bill recently introduced in the legislature provides an inheritance tax to be levied on all estates amour ting to S10,0o0 or over after payment of debts, and defines what should be con sidered debts. The bill provides Tor the appointment of appraisers for the express purpose of appraising all prop erty of an estate which is charged or sought to be charged with an inherit
 
 ing officers of the court who take an oath to perform the duties thereof. The | bill makes it the duty of the court to issue a commission of appraisement to any estate which may be due to pay an inheritance tax. The appraisers give notice to the state tax commission and all other persons interested in the property to he appraised. and proceed to appraise t. Provides for an objec- l tion and for appeals from final ap- 1 praiSementS made Parties interested ] in estates appealing from such ap- Ipraisements are required to give bond 1 for the payment of the tax. as condi- l tion of the appeal The law contem- plates an appraisal to be made within l 30 days after the appointment of an eXecutor or administrator of the estate, and payment of the inheritance tax within 15 months of the death of the testator of intestate.
 In case of estates for life or term
 of years going to one person. and the
 main title to another an appraisement is made of the value of both for the purpose of the tax. If the bequest is made to the same person who is made | executor of the estate, the tax is ap- praised upon such portion of the prop
 erty. less what would be reasonable fees and compensation to such exec | utor. It is made the duty of the exec
 utor or administrator to pay the tax ] before distributing real estate te the heirs or devisees, and the tax remains q l lien on the real estate until it is paid In every case the executor or admins l trator is required to collect the tax by l deducting the amount thereof before distribution. Taxes are payable to the state tax commission, and if not paid l within 15 months of the testator's or l intestate's death. draw interest at the rate of eight per cent per anuum until paid.
 No final account of an executor or
 administrator will be accepted by the court, or allowed, except upon produc- .l tion of d receipt showing payment oi i the inheritance tax due thereon
 l The state tax commission is given
 authority to demand information from executors and administrators which will permit the commission to verify 1 the correctness of the tax
 An inheritance tax and lien book oi 1 inheritance taxes is kept by the clerl, of the court. and the executor and ad-
 ministrator of every estate is required
 to report the facts for the purpose oi making entries in such lien book. Il
 is made the duty of every clerk oi
 every superior court to examine al
 reports filed in his office of all foreign
 wills offered for probate in his court
 and the records of deeds and convey
 ances in the recorders office, and rs
 port to the state tax commission any facts which may be liable to inner
 itance tax. Citizens may also make such reports and it is made the duty of the state tax commission to investi
 gate reports and institute proceeding.
 to enforce such inheritance tax. The Utah law, after which senate bil l %, introduced by Senator Larson o Coconino county is modelled. provides l for regular reports on inheritance taxes to be made to the court by tn, , clerk for the purpose of still furthe investigating omissions of propert, 7 which should be subject to the tax.
 The cost of all proceedings is mad
 a lien upon the estate
 The law prohibits safe deposit com l panies and banks from transferrini s securities belonging to an estate and il upon the state tax commission, q
 least five days prior to the intende
 transfer.
 | The law provides for the paymen t of tax upon corporation stock befor
 a transfer thereof is made upon tn
 books of corporations in this state. { The main difference between tn r proposed law and the present law i t Arizona lies in the fact that after q 15 years test investigation shows tha q the results obtained in Utah and othe S states are effective, and accomplish tn n purpose of the law. The reason fo f recommending the enactment of sim y liar law in this state lies in the neces 2. sity for remodeling the present statui | so that it may achieve the end fC r which it was designed.