The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-12-10
NEW FLORIDA
ESTATES TAX
IS DISCUSSED
Abolition Of Inheritance
Taxes There May Affect
Some Other States
{. {. CONVERSE TALKS
Speaks ut Meeting Of Bur.
leigh County Bar ASSOci-
alton Held Here

The action Of voters in Florida
in adopting an amendment 70 the
corst tuition of that state prohibit
ing it's legislature from cnacting
either inhrritanc" or income tax
Laws may have Il far-rraching i'm
pottaMre, {. &. Converse. state tax
commissioner. told members Of the
Hurlcigh County Bar Association,
meeting here last night.
''I is. of course, well understood
that the purpose which the law
makers Of Florida had in mind is TO
attract capital to that state said
Nh Converse. "Alrcady many men
of wealth spend much Of their time
there. and this constitutional pro-
incentive to them to transfer their
permanent residence and citizenship
TO that state
The particular bearing Of the ac-
ton, and possible consequences, on
inheritance taxes, was discussed by
the state tax commissioner. who at
the outset said there arc four
y
impose Inheritance taxes upon cor
poratc stock, as follows: CD Upon
the ground that the deccdcnt was Il
resident OF the taxing state; (2)
upon the grounds that the cOrpor-
alton was Incorporated or took its
charter from the taxing state: ,3)
upon the ground that the ccrtifi-
of ~, h.. ,f
dccedent's death actually within the
boundaries Of the taxing state: and
(4) upon the ground that the cor
poration in which the deccdent own
ed the certificates Of stock owned
real estate or other tangible prop
erty within the taxing state.
Wisconsin Effort
The Florida residents would es-
cape Inheritance taxes except under
laws which provide that inheritance
taxes upon the transfer Of corporate
stock may be imposed by those >tates
in which the corporations have
property, and a statute OF this char
acter has been declared invalid by
the supreme court of Wisconsin and
also by United States district
court in Wisconsin. Since there APP
pears to be much ground for belief
that the Florida plan will succeed
as anticipated, attention is directed
by other states to the possibility OF
losing wealth. Other states may be
forced into a conference on the sub
jcct. Mr. Converse said.
"Tha inheritance tax situation his
been such as to do violence to every
possible consideration of Justice ami
fairness" said the tax commss;ol-
err. There has been and is no sort
of comfy or understanding among
the states with reference to this
matter; no recognition by one state
Of the claims Of another state. and
no attempt to arrive at basic prin-
ciple of taxation just to taxpayers
and fair as between the states Will
net the result of the Florida lcgis-
lation be that the several states
which have heretofore proceeded in
inheritance tax matters us though
entirely oblivious to the rights of
states and in entire disregard Of
fairness to taxpayers, will now from
sheer selfinterest be forced into
conference, with the result that
they will arrive at fair method
Of imposing inheritance taxes, fair
as among the several states, and fair
to the taxpayer?
"ln seeking such a basis does it
not seem likely that they will event
ually come to adopt the Wisconsin
plan? That plan proceeds upon the
conception that when corporate stock
is taxes it is not fundamentally the
certificates Of stock which are being
taxed but it is the ownership of an
interest in the property Of the cor
poration, the certificates being mere
" evidence Of the ownership of such
interest"
Difficulty of Agreement
The fundamental difficulty in OBJ
tanning fair consideration of the
question of inheritance tax comes
from the fact that the Legislative
and administrative departments of
the several states have been inter
ested chiefly in system which
would bring to them the largest
amount Of revenue, and not the sys-
tenn fairest to all states. A confer
ence of federal and state taxing Of
ficia1s to consider the question has
been suggested, but there appear
difficulties in the path of an agree
ment being reached which would be
carried out in all states, Mr.. Con-
verse indicated.
The inheritance tax situation, Mr.
Converse said, presents Il fruitful
field for close study in the several
states, and the outcome from the
present muddle is entirely problem
atical