In Iowa it was held that a herd of cattle within the state of Missouri, belonging to a residett of Iowa, was not subject to an in heritance tax upon his decease; Weaver's Estate v. State, 110 Ia. 328, 81 N. W. 603.
Where a testator died domiciled in Illinois, leaving property consisting in part of a debt due him in New York and in part of a net sum held on deposit account by a trust company of that state, it was held that, al though the whole succession had been taxed in Illinois, the New York tax on the transfer was also valid, and that the fact that two states, dealing each with its own law of suc cession, both of which have to be invoked by the party claiming rights, have taxed the right which they respectively confer, gives no ground for complaint on constitutional grounds; Blackstone v. Miller, 188 U. S. 189, 23 Sup. Ct. 277, 47 L. Ed. 439.
When land in another state is directed by. will to be sold, it is not thereby subjected to succession tax of that other state ; In re Shoenberger's Estate, 221 Pa. 112, 70 Atl. 579, 19 L. R. A. (N. S.) 291, 128 Am. St. Rep. 737.
A provision in a will for the care of testa tor's grave is not subject to collateral inher itance tax ; Morrow v. Durant, 140 Ia. 437, 118 N. W. 781, 23 L. R. A. (N. S.) 474, 17 Ann. Cas. 850. But where the gift was to a ceme tery company to be used for that purpose, it was held subject to the tax; In re Fay's Es tate, 62 Misc. 154, 116 N. Y. Supp. 423 ; Long's Estate, 22 Pa. Super. Ct. 370. See note to 23 L. R. A. (N. S.) 474.
A state inheritance tax may be levied on the exercise of a power of appointment as though the estate belonged to the person exer cising the power, and, although the power was created prior to the act, it does not de prive the appointee of his property without due process of law; Chanler v. Kelsey, 205 U. S. 466, 27 Sup. Ct. 550, 51 L. Ed. 882.
A state can lay an inheritance tax or transfer tax on United States bonds; Plum mer v. Coler, 178 U. S. 115, 20 Sup. Ct. 829, 44 L. Ed. 998; Succession of Levy, 115 La. 377, 39 South. 37, 8 L. R. A. (N. S.) 1180, 5 Ann. Cas. 871. A state may tax its own bonds or those of its municipalities, and this does not impair the obligation of the con tract; Orr v. Gilman, 183 U. S. 278, 22 Sup. Ct. 213, 46 L. Ed. 196 ; though issued tax free; Corn. v. Herman, 16 W. N. C. (Pa.) 210.
A state inheritance tax imposed upon a legacy to the United States is not invalid as an attempt to tax the property of the United States, since it is imposed upon the legacy before it reaches the hands of the govern ment; U. S. v. Perkins, 163 U. S. 625, 16 Sup. Ct. 1073, 41 L. Ed. 287. So also In re Harriot's Estate, 145 N. Y. 543, 40 N. E. 246. The United States may levy an inheritance tax on a bequest to a city or state ; Snyder v. Bettman, 190 U. S. 249, 23 Sup. Ct. 803, 47 L. Ed. 1035.
On the death of a non-resident intestate, his estate immediately passes to his next of kin, and the right of the state to inheritance tax vests at once ; In re Ramsdill's Estate, 190 N. Y. 492, 83 N. E. 584, 18 L. R. A. (N.
S.) 946; but on the death of a testator it is otherwise ; see 21 Harv. L. Rev. 435.
No inheritance tax can be collected when a legatee renounces; In re Stone's Estate, 132 Ia. 136, 109 N. W. 455, 10 Ann. Cas. 1033; contra, In re Frank's Estate, 9 Pa. Co. Ct. 662.
For the inheritance tax laws of all the states, see Bancroft, Inheritance Taxes (1911).
The war revenue (1898) stamp duty im posed on sales of corporate stock is in the category of duties, imposts and excises, and is not a direct tax; Thomas v. U. S., 192 U. S. 363, 24 Sup. Ct. 305, 48 L. Ed. 481.
The New York State tax of two cents a share on transfers of stock made within the state does not violate the equal protection clause of the 14th amendment; nor does it deprive non-resident owners of stock trans ferring, in New York, shares of non-resident corporations, of their property without due process of law ; nor does it interfere with in terstate commerce; New York v. Reardon, 204 U. S. 152, 27 Sup. Ct. 188, 51 L. Ed. 415, 9 Ann. Cas. 736.
Income Tao. The 16th amendment of the federal constitution, 1913, gave the power to levy a tax on incomes from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration. The act of congress of October 3, 1913. imposed a tax of one per cent. per annum upon the entire net income arising from all sources in the preceding cal endar year, to every citizen, whether at borne or abroad, and to every person residing in the United States, though not a citizen there of, and a like tax was imposed upon the net income from all property owned and of every business, etc., carried on in the United States by persons residing elsewhere. In addition to this tax, which is called in the act "the normal income tax," there is also imposed up on the net income of every individual an ad ditional income tax, called in the act "the additional income tax," of one per cent. per annum upon the amount by which the total net income exceeds $20,000 and does not ex ceed $50,000, two per cent. per annum upon the amount by which the total net income ex ceeds $50,000 and does exceed $75,000, three per cent. per annum upon the amount by which the total net income exceeds $75,000 and does not exceed $100,000, four per cent. per annum upon the amount by which the total net income exceeds $100,000 and does not ex ceed $250,000, five per cent. per annum upon the amount by which the total net income ex ceeds $250,000 and does not exceed $500,000, and six per cent. per annum upon the amount by which the total net income ex ceeds $500,000.