The provisions of the act for the ascertain ment and assessment of these taxes are too elaborate to permit even a brief statement of them in this place.
Income in the federal constitution and in come tax act is 'used in its common or ordi nary meaning, and not in its technical or economic sense; Van Dyke v. Milwaukee, 146 N. W. 812.
Where a tax is within the legitimate au thority of the federal government, it may be measured in part by the income from prop erty not in itself taxable. A distinction exists between an attempt to tax property beyond the reach of the taxing power and to meas ure a legitimate tax by income derived in part at least from the use of such property ; Flint v. Stone Tracy Co., 220 U. S. 107, 31 Sup. Ct. 342, 55 L. Ed. 389, Ann. Cas. 1912B, 1312.
It has been held in Indiana that Life inswr cvnee policies are not taxable, as there is no statute regulating it, or any manner of as sessing for valuing such policies ; State Board of Tax Com'rs v. Holliday, 150 Ind. 216, 49 N. D. 14, 42 L. R. A. 826.
The proceeds of a life policy issued by a New York corporation to a resident of New Jersey, who always kept it in the latter state, is not subject to a New York inheritance tax on "property within the state ;" it appeared that at the death of the insured the com pany had sufficient assets in New Jersey to pay the policy ; In re Gordon's Estate, 186 N. Y. 471, 79 N. E. 722, 10 L. R. A. (N. S.) 1089. It is said that the difficulty of impos ing general property taxes on life insurance policies does not apply to inheritance taxes ; 20 Harv. L. Rev. 423, citing In re Knoedler's Estate, 140 N. Y. 377, 35 N. E. 601.
Patent rights are not taxable ; Com. v. Pet ty, 96 Ky. 452, 29 S. W. 291, 29 L. R. A. 786; Com. v. Mfg. Co., 151 Pa. 265, 24 Atl. 1107, 1111; nor trade-marks; Corn. v. Warehouse Co., 132 Ky. 521, 116 S. W. 766, 21 L. A. (N, S.) 30, 136 Am. St. Rep. 186, 18 Ann. Cas. 1156 ; nor the good will of a newspaper ; Hart v. Smith, 159 Ind. 182; 64 N. E. 661, 58 L. IL A. 949, 95 Am. St. Rep. 280.
A state may not tax agencies of the federal government; Farmers' Bank v. Minnesota, 232 U. S. 516, 34 Sup. Ct. 354, 58 L. Ed. (bonds issued by a municipality of a terri tory of the United States) ; or the property of a bank in which United States bonds are included ; Home Say. Bk. v. Des Moines, 205
U. S. 503, 27 Sup. Ct. 571, 51 L. Ed. 901; Farmers' Bank v. Minnesota, 232 U. S. 516, 34 Sup. Ct. 354, 58 L. Ed. -; or the ob ligations of the United States; Plummer v. Coler, 178 U. S. 115, 20 Sup. Ct. 829, 44 L. Ed. 998 ; or United States revenue stamps ; Palfrey v. Boston, 101 Mass. 329, 3 Am. Rep. 364 ; or the salary of a federal officer ; Dob bins v. Erie Co., 16 Pet. (U. S.) 435, 10 L. Ed. 1022; or the Bank of the United States; McCulloch v. Md., 4 Wheat. (U. S.) 316, 4 L. Ed. 579 ; but stock in a national bank may be taxed to the owner ; note 3 L. R. A. (N. S.) 584 ; or its real estate, but not both ; Fred erick Co. v. Bank, 48 Md. 117. The Bank of the United States is not a private corpora tion, but a public one created for national purposes, and therefore beyond the taxing power of a state; Osborn v. Bank, 9 Wheat. (U. S.) 738, 6 L. Ed. 204; so is land of the United States ; Van Brocklin v. Tennessee, 117 U. S. 155, 6 Sup. Ct. 670, 29 L. Ed. 845 ; and also where it has sold real estate reserv ing the legal title till all payments are made and conditions performed ; Mint Realty Co. v. Philadelphia, 218 Pa. 104, 66 Atl. 1130, 11 Ann. Cas. 388. (But it is otherwise where all the conditions precedent to a sale thereof have been perfected, but the legal title re mains in the United States ; McDaniel v. Traylor, 196 U. S. 423, 25 Sup. Ct. 369, 49 L. Ed. 533); so of public lands located under a warrant, but the equitable title has not passed ; Sargent v. Herrick, 221 U. S. 404, 31 Sup. Ct. 574, 55 L. Ed. 787. A state cannot tax the franchises of a telegraph company received from the United States to use mili tary and post roads ; Western U. Tel. Co. v. Wright, 185 Fed. 250, 107 C. C. A. 356; but see Western U. Tel. Co. v. Trapp, 186 Fed. 114, 108 C. C. A. 226 ; so also the operations of the Union Pacific Railroad, which was chartered by congress ; but its property may be taxed ; Union P. R. Co. v. Peniston, 18 Wall. (U. S.) 5, 21 L. Ed. 787. The states have no power to tax franchises conferred by congress without its permission ; Califor nia v. R. Co., 127 U. S. 1, 8 Sup. Ct. 1073, 32 L. Ed. 150. They may tax liquor in a United States bonded warehouse ; Thompson v. Ken tucky, 209 U. S. 340, 28 Sup. Ct. 533, 52 L. Ed. 822.