Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1927-09-23

Challenging the constitutionality of
the Montana inheritance tax law, as
amended this year. and questioning
some decisions OF the state equaliza-
ton board, Sidney Sanner, chief coun-
sci for the w. A. Clark estate, has OPP
ened a fight against the states effort
to collect about $345, 900 in inheritance
tax. The estate already has paid ST.
$4,000 in inheritance tax to Montana
Judge ]. j. Lynch OF Butte heard Mr..
Sanner's arguments in district court.
The Clark attorney conferred his attack
upon theamended Inheritance tax law
which, though passed in 1927. was made
retroactive to 1924, nearly a year before
Senator Clark's death.
Mr.. Sanner pointed out that accord
ing to the state board Of equalization's
estimates, there is q tax balance due Of
S l3.590.49. Part OF this sum the Clark
estate does not protest. Following Mr..
Sanner's statement Judge Lynch took
the matter under advisement with the
request that the state board submit
briefs on the inheritance tax question.
Mr.. Sanner charged that the state
board has failed to deduct from the gross
value of the $40, 000, 900 estate Of the
late senator SO, 999 .66 of Montana taxes
due at the time of the senator's death.
In this respect the lawyer pointed out
an unusual condition.
Claims Deduction
THE first Monday OF March, 1925" he
said. was the second day of March:
therefore, the personal property tax for
that year was due and was a lien at
noon on March 2. Senator Clark died
on that day, after noon; therefore. at the
time of his death the personal property
taxes due the state and county from him
at noe OF that day. even though I'M
q debt, but being also a lien. were spe-
determined as to amount, were not only
officially within the deductions allowed
in the inheritance tax law"
Mr.. Sanner said that the contention
Of the state board is there was no debt
until the amount of the taxes was as
certained, which was not done until
after the senator's death.
The lawyer also charged that the state
board failed to make deduction for fed
eral estate tax due and payable, amount
ing to SO 1888 ,433. 80. He declared that
the board stands upon the act approved
March 8. 1927. whereby the provision for
deducting federal estate tax, which con-
stituted the inheritance tax law Of this
state when enato Clark died, was retro
active to June 1, 1924.
1T is our contention" the lawyer
said, that this statute is u~nconstitu-
tional and imperative upon the Clark
estate"
Continuing his argument, Mr.. Sanner
challenged the right of the board to tax
an allowance made for the family n
the widow Of Senator Clark.
THE state board" he stated, latter
properly deducting from the gross value
the amount Of SAFE, 981 SO. expended for
family support and widows allowance,
adds it to the widows legacy and taxes 1t.
1t has been repeatedly held in this state
and elsewhere that family support and
widows allowance is something carved
out of the estate by the statute in the
interest Of public policy and does not
pass by will or the intestate law. Hence,
1t is no part of the estate, taxable to the
widow or anyone else"
Charles Clark Note
MIR. Sanner further questioned the
action Of the state board in adding to
the tax upon Charles w. Clark an item
Of S126,875, being The forgiveness on
Jan. 5, 1925, of a certain note n In
terest due from Charles Clark to Sena-
tor Clark.
The lawyer argued that the cancel
lation was not made in contemplation
Of death. Instead, MIR. Sanner said: "The
debt was forgiven when Charles w. Clark
was Ill and his father wished to hasten
his o recovery by relieving his mind
about the debt, and in such forgiveness
was also recognition Of past services by
the son to the father"
In conclusion, Judge Sanner argued
that the total inheritance tax assessable
in Montana is 1892, 447.19, and not
81, 745, 086.45, a sthe state board con-
tends.