Milford chronicle., 1929-10-04
STATE INHERITANCE
TAX LAW MADE VOID
BY AMENDMENT
[Continaed from frst paael

, LN0HhtHHed TOW PTH pdgel
. has a law fixing the rates for in
her1tance tax but does not provide
anything to be taxed and therefore
in the opinion of lawyers, is void.
The defect was discovered by At
torney General Satterthwaite and
others two months ago. The defect
did not become generally known.
however, until about a week, ago,
when the laws passed by the last
Legislature appeared in printed vol
umes and numerous other people
discovered the error.
1t is understood that Secretary of
State Charles H. Grantland referred
the matter informally to the judges
and also to Attorney General Sat-
terthwaite and was advised that the
easiest way to remedy the condition
would be to call a special session of
the Legislature for the purpose.
Receipts from Inheritance tax in
the two fiscal years of 1927 and 1928
was 100000 each year which went
into the general fund. The receipts
in the previous fiscal year was larger
because of the immense amount paid
| Oh bAAC CoIclC VI Wlllldul u.
About $2,500,000 tax on this estate
has been paid into the State Treas
ury and under the law all above
100000 went into the sinking fund
A portion of the tax on this estate
is still in dispute but would not be
affected by the defect in the present
law for the reason that there was
law which was admitted to be legal,
when this tax became due.
What causes the worry is that
there might be other large amounts
become due from estates and in the
present muddle could not be collect
ed because, in the opinion of the at
torney general, there is no law.
1t is within the power of the Gov
ernor to call a special session of the
Legislature and in the call for the
meeting to confine the business to
remedying the defect in the inheri-
tance tax law.
1t is pointed out that it would take |
but short time to accomplish the |
purpose and it would be cheaper for |
the State to pay the expense of
short special session than it would |
be to lose the money which may be- |
come due from inheritance tax. 1t |
is probable that a decision on the |
matter will be reached shortly.
The question raised as to whether
Delaware really has an inheritance
tax law, has aroused considerable
interest among lawyers nd others,
and Henry Ridgely, one of the best
known lawyers in the State, Tuesday
afternoon expressed the opinion that
the law still stands despite the fact
that others may differ with him.
Mr.. Ridgely's Views
When spoken to on the subject
Mr.. Ridgely said:
Il read the articles. you refer to
and at once looked at the Legisla-
tive Act of 1929 amendatory of the
Delaware Inheritance Tax statute. l
had not seen this amendatory act
and it was not shown to
me nor was 1 consulted about it be-
fore its passage by the General As
sembly.
"If the effect Of the amendatory !
Act of 1929 is to emasculate the Del
tware Inheritance Tax statute as At {
orney General Satterthwaite is re- I
ported to have said, the results may '
'e even more serious than stated in
he press. However, while have the
trnOst respect for Mr.. Satter- !.
hwaite's opinion on legal questions, =
yhether in his official role or as 1 1
lember of the bar, am inclined to u
iffer with him in this particular in
tance if he has been correctly re-
orted. .
"It is true that the mandatory Act :
1929 was clumsily drafted and h,
in ignorance of the 1927 III
printed in Volume 35 of
lie Delaware Laws, but 1 believe, III
evertheless that the Legislative in III
mt to change merely the rate of the Hi
* and not affect the other provi- III
ons of the statute is manifest and iii
the holding that the Della iii
are inheritance tax law has not W
zen affected except as to the rate llI
taxation. But, although, as 1 be- Hi
eve, the situation will be saved I'LL
ithout a special Legislative session, I'LL
It the fact that a judicial ruling will I'LL
obably be required to quiet doubt I'LL
i'd uncertainty should be a warn Hill
10 luLur0 Legislatures dSdluSI Hill
ting on measures presented to IIll
EN- without the most careful and Hill
itical consideration" llIl
Opinion Not Yet Asked |
Attorney General Reuben Satter- W
waite, Jr., has not been asked for a Hi
rmal opinion but his is positive III|
at the safest plan would be to call Hill
special session of the Legislature Hill
d remedy the matter. Hill
It is understood that Secretary of Hill
ate Charles H. Grantland has ask Hill
the judges of the State courts for Hill
opinion on the matter but Mr.. Hill
antland is attending conven- Hill
n and will not be home for a few It'll
rs. 1t is not believed that an opin- HIN
has yet been given by the court. IIlll|
lges who were spoken to in ref lIllII
nee to the matter declined to dis lIIlIl
IS it. MIN
t is believed by many that unless lIlIl
law is remedied where it is al II||l
ed to be defective, that the Gov lllII
ment will continue to collect in IlI
itance tax while the State will ll
eive nothing. IlIll