The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-05-08
LONG BATTLE
FOR. M'KENZIE
TAX IMPENDS
Reported That New York
State Also Will Seek to
Collect Inheritance Tax
OBSTACLES IN WAY
State May Not BE Able TO
Collect Its Judgment If
1t Obtains One

! long legal battle is impending
over the question of the inheritance
tax on the estate of Alexander Nc
kenzic, former North Dakota politi
Gal leader. who died in st. Paul
leaving an estate valued at $4,000
or more. Not only are the states OF
! Minnesota and North Dakota inter.
csted, but it is reported that the
state of New York has made inquiry
| with view of collecting inheritance
tax because children and heirs of
Mr.. Mckenzie lived in that state.
Minnesota has the jump on the
other states. His will was probated
in the Ramsey county court at St.
Paul, and the court found that Mr..
|, Mckenzie was a resident of Mime
sofa and assessed an inheritance tax
upon the entire value of the intang-
ible property owned by his estate.
North Dakota entered the field,
through the state tax commissioner,
asserting that Mr.. Mckenzie was a
resident Of Bismarck at the time Of
his death. that the situs of intang-
iblc personal property was in Bis
marck. and that Burlcigh county and
state of North Dakota are entitled to
the inheritance tax upon all his in
tangible property, plus North Dakota
real estate. The value of this real
estate is estimated from $1,000 to
$4,000.
North Dakota claims Mr.. Mckenzie
voted in Bismarck, although he spent
most Of his time in st. Paul. The
states claim to inheritance tax rests
solely on his being resident of
Bismarck at the time of his death.
Should the state prove this, it would
expect court ordersasscssing a tax
upon the entire value of the intang-
lblc property, plus the North Dakota
real estate.
However, if a decree is obtained,
the state will have difficulty col
lcctlng the tax, which may amount to
about 100000. The state. could make
his North Dakota real estate subject
t" seizure for payment Of the tax,
but this property is valued at abou.
half the tax. Generally, officials
say, state courts will not give effect
to DEGREES of courts of other states
with reference to inheritance tax
matters, and neither will federal
courts. Also, it is reported. numer.
Gus creditors claims will be flied
against the North Dakota rea! es-
tate, and the creditors would claim
precedence over the state. Should
the creditors lose, litigation result.
ing might be so expensive as to con
sumo substantial portion of the
North Dakota real estate.
Efforts have been made by North
Dakota and Rurleigh county officials
to effect compromise under the
terms of which the executor would
pay stated sum in full settlement
of the claims made by Burleiph
county and North Dakota, which
amount would be less than the. tax
upon the total value of the intangible
pl operty plus the North Dakota real
estate. but would be much in excess
OF the tax upon the North Dakota
real estate alone. The efforts at a
compromise settlement have not sue
ceeded, and the case still is on the
calendar of County Judge 1. c. Da-
vies, with hearing scheduled Nav
10.
Most of the Mckenzie estate con.
sists of stocks and bonds, held in a
st. Paul trust company.