Document: 338 U.S. 251 70 S.Ct. 1 94 L.Ed. 37 TREICHLERv.STATE OF WISCONSIN. No. 20. Argued Oct. 11, 12, 1949. Decided Nov. 7, Mr. Alexander W. Schutz, Milwaukee, Wis., for appellant. Harold H. Persons, Madison, appellee. Jusice CLARK delivered the opinion of Court. This is an appeal from a decision Supreme Court Wisconsin, 254 Wis. 24, 35 N.W.2d 404, arising order County Milwaukee County, levying certain death taxes on estate Fred A. Miller, deceased, under applicable statutes Wisconsin. The question validity Wisconsin emergency tax inheritances, § 72.74(2), Wis.Stat.1947, when tested in light Due Process Clause Fourteenth Amendment to Constitution United States. decedent died testate December 19, 1943, resident At his gross was $7,849,714.84. Property located valued at $6,869,778.61; remainder $979,936.23 consisted real and tangible personal property situated States Illinois Florida.1 Commissioner Internal Revenue assessed net federal against sum $3,076,131.19, inclusive 80% basic subject credit state as provided by 301(b) Act 1926, 44 Stat. 70, amended, 26 U.S.C. 813(b), U.S.C.A. 813(b). $630,709.62. has triad known (1) normal inheritance tax, (2) (3) tax. levied §§ 72.01 72.24, this case $220,682.12. It only within State not controversy here. To take advantage provisions legislature also enacted amount credit, less 'the aggregate all estates, inheritance, transfer, legacy succession paid any or territory District Columbia, respect said decedent.' 72.50, Wis.Stat.1947. well out-of-state are deducted credit. computed $352,701.79. However, provision explicit attack statute, which involved appeal, 72.74(2) Emergency Tax Inheritances. section scrutiny provides: 'In addition imposed sections 72.24 72.50 72.61, relief purposes, rehabilitation returning veterans World War II, construction improvements institutions other post-war public works projects relieve unemployment hereby upon transfers taxable uner made subsequent March 27, 1935 prior July 1, 1949 shall be equal 30 per cent sections.' As apparent, computation additional involves four factors: jurisdictions, taxes, (4) 30% rate imposed. In applying yardstick decedent's estate, authorities took total that $630,709.62, first it states than Wisconsin—Illinois ($35,616.26) Florida ($21,709.45)—and Wisconsin's ($220,682.12), left due then calculated taking latter amount, plus result, $172,015.20, due. will seen taxing formula reduced, no longer factor computation. For while thereof added give already been subtracted Hence, extending cancel.2 What left, simply rated measured entire regardless situs, therefore including Florida. court below thought presence 87.52% Miller's justified its statement taxed property. And argues 'other 20%' over 'more absorbs, is, mathematical basis, attributable to' 12.48% outside But but own; did apportion state, therein fortuity cannot help jurisdiction. See Owensboro National Bank v. Owensboro, 1899, 173 664, 683, 19 537, 542, 43 850. same must deductions have necessary relation proportion Wisconsin.3 We think clear entered authorized part property, situs Normal Inheritence Taxes...$220,682.12 Estate Tax:— U. S. Tax... $630,709.62 Less:— (a) Taxes above....... $220,682.12 (b) Inheritance Taxes. 35,616.26 (c) 21,709.45 Total Taxes......... 278,007.83 Difference 352,701.79 above. Total....... $573,383.91 30%...... 172,015.20 Taxes.... $745,399.11 may do. Frick Pennsylvania, 1925, 268 473, 45 603, 607, 69 1058, 42 A.L.R. 316, Pennsylvania based wherever located. Frick's art collection New York. unanimous ruled Pennsylvania's 'in so far attempts transfer personalty having actual states, contravenes process law clause invalid.' statute more sophisticated Pennsylvania's, terms ultimate consequences one. quite unnecessary know either what jurisdiction compute challenged exaction. Nor we inclined discard rule. consistently upheld domicile's levy intangible with technical title without Blodgett Silberman, 1928, 277 48 410, 72 749. economic effects burdens system control our results, limited words Amendment. Commission Utah Aldrich, 1942, 316 174, 181, 62 1008, 1011, 86 1358, 139 1436, citing Holmes, J., dissenting Baldwin Missouri, 1930, 281 586, 595, 50 436, 439, 74 1056, 1303. reches beyond borders fastens confers nothing return Since location complete dominion physical objects sought see Green Van Buskirk, 1869, 7 Wall. 139, 150, 109; Curry McCanless, 1939, 307 357, 363, 59 900, 903, 83 1339, 123 162, cases cited, can offer quid pro quo. A equipped implements power diplomacy boundaries root Federal Government's undoubted right measure foreign Bennett, 1914, 232 299, 34 433, 58 612; Burnet Brooks, 1933, 288 378, 53 457, 77 844, 747. if afforded ask return, offends duty enforce.4 hold invalid insofar judgment reversed cause remanded proceedings inconsistent opinion. Reversed. Justice BLACK dissents. He agrees Court's holding logically follows interpretation case, believes interpreted gives expansive legislation justifies. DOUGLAS consideration case. record does reveal exact nature held whether 'tangible' meaning infra, question. however, parties agree clearly accept assumption. 2 follows: (80% tax—Wisconsin tax—taxes Florida). reduces to: Deductions thus significance. State's table reads: 3 different might presented, begin rather intend intimate situation. 4 Of course refused governed do would placed premium avoidance taxes. York ex rel. C. & H.R. Co. 1906, 202 584, 597, 714, 717, 1155; Southern Pacific Kentucky, 1911, 222 63, 32 13, 56 96; cf. Northwest Airlines Minnesota, 1944, 322 292, 64 950, 88 1283, 153 245. Commonwealth Coal Co., 1901, 197 Pa. 551, 47 740; Norfolk W.R. Board, 97 Va. 23, S.E. 779.

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