Case Name: Julius Catlin, Jr. et al., Executors of the Last Will and Testament of Stephen M. Buckingham, Deceased, Pl'ffs, v. St. Pauls Protestant Episcopal Church in the City of Poughkeepsie, The Trustees of Trinity College et al., Def'ts
Court: New York Supreme Court, General Term
Jurisdiction: New York
Decision Date: 1888-06-25
Citations: 17 N.Y. St. Rep. 707
Docket Number: 
Parties: Julius Catlin, Jr. et al., Executors of the Last Will and Testament of Stephen M. Buckingham, Deceased, Pl’ffs, v. St. Pauls Protestant Episcopal Church in the City of Poughkeepsie, The Trustees of Trinity College et al., Def’ts.
Judges: 
Reporter: New York State Reporter
Volume: 17
Pages: 707–710

Head Matter:
Julius Catlin, Jr. et al., Executors of the Last Will and Testament of Stephen M. Buckingham, Deceased, Pl’ffs, v. St. Pauls Protestant Episcopal Church in the City of Poughkeepsie, The Trustees of Trinity College et al., Def’ts.
(Supreme Court, General Term, Second Department,
Filed June 25, 1888,)
1. Collateral inheritance tax—Legacy to church not exempt from—Laws 1887, chap. 713 § 1.
Under Laws 1887 chap. 713, § 1, a legacy given to a church or a missionary society incorporated under the laws of this state, or to an institution of learning chartered under the laws of another are subject to a tax of five per cent. Dykman, J., dissenting.
2. Same—How construed—Foreign corporations not exempt.
The collateral inheritance tax must be construed with respect to the state laws giving exemption from taxation The Connecticut charter of an institution of learning situated in that state has no extra territorial force. The collateral inheritance tax must be construed with respect to the state laws giving exemption from taxation. 1)ykman, J., dissenting.
3. Same—Test of exemption.
The test of exemption from the collateral inheritance tax is legacies to all corporations not exempted by law from taxation in June 1887, must pay the said tax. Dykman, J., dissenting.
Conteoveesy submitted without action upon agreed case settled under the provisions of the Code. The necessary facts will be found in the dissenting opinion of Dykman, J.
Wilkinson & Cossum, for pl’ff; Davies & Rapallo, for def’t. Missionary Society; Lockwood & Hill, for def’t, Trinity College; W. Morgan Lee, for def’t, St. Pauls Church; O. D. M. Baker, for def’t, County Treasurer.

Opinion:
Barnard, P. J.
By the first section of chapter 713, Laws of 1887, a tax of five per cent is imposed upon collateral inheritances. The defendant, St. Paul's Church, is a religious corporation. A legacy is given to it. Another defendant, Trinity College, is an institution of learning, chartered under the laws of Connecticut. Another defendant is a Missionary Society, incorporated under the laws of this state. Are these three corporations to take the legacy free of the collateral tax? The words of the collateral tax law exempts all bequests and legacies " other than to or the societies, corporations and institutions now exempted by law from taxation."
As to the church, the Revised Statutes only exempts " every building for public worship, and the several lots where such buildings, are situated, and the furniture belonging to each of them." § 4, 2 R. S., 982, Banks (7th ed.). ' . ' •
The church does not fall within the exemption of subdivi sion 6 of that section: "All stocks owned by the state or by literary or charitable institutions."
The case shows no stock owned by the church. The section applies only to stock in state corporations, and upon this stock the corporations were made to pay the tax to the state and to the literary and charitable institutions. Chap. 195, Laws of 1885.
The church is not exempted under subdivision 7 of that chapter: " The personal estate of every incorporated company not made liable to taxation on its capital in the fourth title of this chapter." The fourth title, as it stood when that fourth section was drawn, contained provisions for the taxation of corporations upon their capital.
If the corporation made no profit, it was exempt. 2 R. S., 404 (2d ed.), § 9. Some corporations could commute (§ 11), and some were exempted unless an income of five per cent was made. § 12.
Sections 9, 10, 11, 12, 13 and 14 were repealed by chapter 456, Laws of 1857, and chapter 654, Laws of 1853; but the title still stands as one affecting corporations liable, because they derive an income upon capital or otherwise. The exemption in subdivision 7 only applied to the personal property of corporations which paid a tax on its stock, which was intended to include all its personal property. Churches were not included. The defendant church has therefore no exemption from the tax.
The same conclusion must be reached in the case of the missionary society. There is no law exempting them as missionary societies and the law (subdivision 6 and 7 of section 4 above), gave them no exemption from a tax upon personal property outside of stocks held in state corporations.
The case of Trinity college is different in this. It is a foreign corporation, but is exempt from taxation by its charter. The charter of Connecticut has no extra territorial force. The collateral inheritance tax must be construed with respect to the state laws giving exemption from taxation.
All corporations not exempted by law from taxation in June, 1887, is the test of exemption from the collateral inheritance tax.
The defendant Trinity college does not come within the description. The legacies should, therefore, all be held subject to the tax of five per cent.
Pratt, J., concurs.