The Challis messenger. (Challis, Idaho) 1912-current, 1925-09-23
EASING TIRE BURDEN
OF STATE TAXATION
Banker Points Out Benefits OF
Community Property Sys-
tenn In Some States.

favorable aspects Of tax syseems
arc now among the most highly pr11eo
| assets OF our states, It u pointed oot
IN the American Bankers Association
Journal In connection with an article
ON how California, which has never
had q state income tax. cuts sta.e
and Federal death taxes nearly IN naal
BY the community property" system.
l. n. Roseberry. Vice President se-
curity Trust and Savings Bank Los
Angeles. author Of the article, says
that q recent amendment to the La1
law enables future residents o. ene
state to take advantage OF 1t. hei-
erence L. made to former articie "
Assistant Secretary Of the Treasury
Dewey, voicing the need for death ta1
reform and citing q hypothetical case
involving California inheritance ta4es
which might have been levied IN iSzo.
Since that time the laws have been
changed. Mr.. Rosebery declares 80
that tho figures then given do not
correctly represent the present situa-
ton. He says:
Ever since its admission Califor
MIA has had the community properly
system. Eight other states have =
similar system. Community proper
ty' is property accumulated by mar
lied persons during their marriage,
except that which Is acquired by gifI
bequest or inheritance. Approximate
" IS per cent Of all property In the
state Is community property Such
property in California enjoys the most
favorable position in regard to death
taxes, both state and Federal, of any
state in the Union (excepting posi-
bly, the eight other states having q
similar property system) including
states Boosting Of no inheritance tax
whatever. The California 'communi-
ty property system is recognized for
the purpose OF levying Federal estate
taxes, and only one-half Of 1t is now 80
taxed, while in Florida the whole es-
tate Of a decedent u subject to the
Federal levy.
How the Law WORKS
'sCalffornia's law expressly provides
that upon the death Of either husband
or wife, testate, only one-half of their
net community property shall be
subject to inheritance taxes. The
same exemption applies upon the
death Of the husband, interstate. while
the whole net community property IL
totally exempt from all state inner
itance taxation upon the death Of tho
wife intestate. The Federal estate
tax law now follows precisely the Cal
lfornia law In this respect.
"As the result Of an amendment
made to the California Inheritance
lax law by the 1925 Legislature, thiS
from state Inheritance
axes likewise now extends to com
nunity property Of nonresident mar
led persons. who hereafter take up
heir legal residence in the state.
This puts community property. IN .
nora favorable position regarding |
leath taxes than exists in any other |
tate In tho Union. with the possible
54C0Qt4On VI Tic VtA0k COhkxnuhASy
property states. This extension Of the
will add Is per cent to
in the state coming under
his definition, which means that ap-
fortunately 80 per cent Of all prop
'rty probated in California will enjoy
he lightest death taxes In America
ITO illustrate, the following exam
lie Of man survived BY wife and
wo minor children Is computed, the
state consisting Of community prop
'rty' all left by viii to the wife and
One-half of such property
vould go under the law to the wife
Without any death taxes.s and the
Their half only would BE- subject to
9th state Inheritance and Federal
state taxes.
~As a subject Of comparison. take
state which has NO inheritance tax.
UGH as Florida. II the comparison
ere made with the states which i'm
ose inheritance taxes but do not have
10 community property system, the
vantage In favor Of California would
rem be more striking.
Estate Of 100000 rotaI Tax
AIHormo 1890. ....sssss Mono
on inheritance tax Btate.... fb00
dvantags In favor Of Can-
- - ESTATE 81 iiaoo.occi ~
IiYoIn1 .s...: ...s....ss o06
o-inheritancs-tax state .... a000
ivantags In favor Of Cah-
Relate 81 100000 ''s'
lifornia $500. 6779
IN inheritance tax state. ~ iS000
ivantaSs in favor Of Can-
ornIn ......... I.110