List of Statutes.

Statutes of Washington, c. 55, p. 67.

1899-1903. Supplement to Ballinger's Code, p. 114, s. 1655. Statutes of Washington, c. 93, p. 199.

1901.

1905.

1910.

1911.

Revenue Laws, ss. 204-221.

Remington & Bellinger's Annotated Codes & Statutes, vol. 2, c. 7, ss. 9182, 9199.

Statutes of Washington, c. 19, p. 60.

Power of Legislature.

It was urged that the state constitution grants to the legislature special and delegated powers, and legislative enactments, to be valid, must come within such grant of powers. But the court finds that the legislature in the absence of constitutional prohibition has the power to impose conditions by way of a tax upon legacies and successions. State v. Clark, 30 Wash. 439, 71 P. 20.

Wash. St. 1901, c. 55.

THE ACT OF 1901.

Approved March 6, 1901.

AN ACT RELATING TO THE TAXATION OF INHERITANCES and providing for disposition of same.

It was claimed that the title was not broad enough to sustain the provision which imposes a tax upon property passing by will. The court observes that the word "inheritance" is no doubt properly confined to property passing by descent or by operation of law. But by popular use this word has become applicable to cases of testacy and the court is therefore of opinion that the title of the act is broad enough to sustain the provision imposing a tax on the right of succession by will. In re White, 42 Wash. 360, 84 P. 831.

S. 1. All property within the jurisdiction of this state, and any interest therein, whether belonging to the inhabitants of this state or not, and whether tangible or intangible, which shall pass by will or by the statutes of inheritance of this or any other state, or by deed, grant, sale or gift made or intended to take effect in possession or in enjoyment after the death of the grantor or donor to any person in trust or otherwise, shall, for the use of the state, be subject to a tax as provided for in section two of this act, after the payment of all debts owing by the decedent at the time of his death, the local and state taxes due from the estate prior to his death, and a reasonable sum for funeral expenses, court

costs, including cost of appraisement made for the purpose of assessing the inheritance tax, the statutory fees of executors, administrators or trustees, and no other sum, but said debts shall not be deducted unless the same are allowed or established within the time provided by law, unless otherwise ordered by the judge or court of the proper county and all administrators, executors and trustees, and any such grantee under a conveyance, and any such donee under a gift, made during the grantor's or donor's life, shall be respectively liable for all such taxes to be paid by them, with lawful interest until the same shall have been paid. The inheritance tax shall be and remain a lien on such estate from the death of the decedent until paid.

Nature of Succession and of Tax.

The court finds that the right to inherit or to take on the death of the owner is a creature of law and not a natural right, and that an inheritance tax is not a tax on property but one on succession. State v. Clark, 30 Wash. 439, 71 P. 20.

Validity of Exemption.

It was claimed that an exemption of ten thousand dollars in value from estates going to lineals, which exemption was not extended to collaterals or strangers, violated the rule of equality in taxation. But the court observes that the rule invoked does not forbid a liberal classification for the purposes of taxation. The classification made here is manifestly reasonable and there is no inequality among the members of the same class. State v. Clark, 30 Wash. 439, 71 P. 20, 23.

Decree of Foreign Court.

The testator was a resident of Maine and died there leaving property both in Maine and in Washington. The Maine court ordered distribution of the estate of the testator within the state of Maine to collateral heirs and strangers in full, and this was done leaving the entire estate in Washington to pass to lineals.

The Washington court holds that it must presume that the authority of the Maine court was rightfully exercised and cannot hold the executor here or other legatees responsible for the errors of that court. The fact that the same persons acted as executors in both states and the fact that the executors were beneficiaries under the will can make no difference.

The Washington court has no right or power to review the judgment of the court of Maine. The executor in Washington had no opportunity to collect the inheritance tax from the collateral heirs and strangers to the blood, and this court will not compel

him to pay such tax out of his own funds or out of the funds belonging to other heirs or legatees. In re Clark, 37 Wash. 671, 80 P. 267.

S. 2. The inheritance tax shall be and is to be levied on all estates subject to the operation of this act on all sums above the first $10,000.00 where the same shall pass to or for the use of the father, mother, husband, wife, lineal descendant, adopted child, or the lineal descendant of an adopted child, one (1) per centum. On all sums not exceeding the first fifty thousand dollars, of three per centum, where such estate passes to collateral heirs to and including the third degree of relationship, and to six per cent where such estates pass to collateral heirs beyond the third degree or to strangers to the blood. On all sums above the first fifty thousand dollars and not exceeding the first one hundred thousand dollars, four and one-half per centum to collateral heirs to and including the third degree, and nine per centum to collateral heirs beyond the third degree or to strangers to the blood. And on all sums in excess of the first one hundred thousand dollars the tax shall be six per centum to collateral heirs to and including the third degree, and twelve per centum to collateral heirs beyond the third degree or to strangers to the blood.

S. 3. Except as to the limitations prescribed in section 2 from the inheritance tax and real property located outside the state passing in fee from the decedent owner, the tax imposed under section two shall hereafter be assessed against and be collected from property of every kind, which, at the death of the decedent owner is subject to, or thereafter, for the purpose of distribution, is brought into this state and becomes subject to the jurisdiction of the courts of this state for distribution purposes, or which was owned by any decedent domiciled within the state at the time of the death of such decedent, even though the property of said decedent so domiciled was situated outside of the state.

S. 4. In case of any property belonging to a foreign estate, which estate, in whole or in part, is liable to pay a collateral inheritance tax in this state, the said tax shall be assessed upon the market value of said property remaining after the payment of such debts and expenses as are chargeable to the property under the laws of this state. In the event that the executor, administrator or trustee of such foreign estate files with the clerk of the court having ancillary jurisdiction and with the state treasurer duly certified statements exhibiting the true market value of the entire estate of the decedent owner, and the indebtedness for which the said estate has been adjudged liable, which statements shall be duly attested by the judge of the court having original jurisdiction, the beneficiaries of said estate shall then be entitled to have deducted such proportion of the said indebtedness of the decedent from the value of the property as the value of the property within this state bears to the value of the entire estate.

Ss. 5, 6, and 7 provide for the inventory and appraisal.

S. 8 covers the assessment of the tax on life estates and estates for years.

S. 9 covers the tax on legacies to executors above compensation for their services.

Ss. 10-18 cover the assessment, collection and payment of the tax.

AMENDMENTS.

Wash. St. 1905, c. 93. Approved March 9, 1905.

AN ACT TO EXEMPT BEQUESTS AND DEVISES, when made for certain charitable purposes, from the payment of any tax or sum under any inheritance tax law, and remitting any such tax claimed to be due on any such bequest or inheritance.

S. 1. All bequests and devises of property within this state when the same is for one of the following charitable purposes, namely: The relief of aged, impotent (indigent) and poor people; maintenance of the sick or maimed or the support or education of orphans or indigent children shall be exempt from the payment of any tax or sum under any inheritance tax law; and any property in this state which has been devised or bequeathed for such charitable purposes, and upon which a state inheritance tax is claimed or is owing, is hereby declared to be exempt from the payment of such tax, and the same is hereby remitted.

Wash. St. 1905, c. 114, approved March 9, 1905, amends Wash. St. 1901, ss. 13 and 15.

Wash. St. 1905, c. 115, approved March 9, 1905, s. 2, clause 3, gives the state tax commission authority over the enforcement of the direct and collateral inheritance law and the collection of taxes provided for therein.

Wash. St. 1907, c. 217, approved March 16, 1907, amends Wash. St. 1901, ss. 1, 2, 4, 7, 9, 10, 12, 14, 17, 18 and repeals s. 5, and amends ss. 1 and 2 of the amendatory act of 1905.

Approved March 16, 1907.

Wash. St. 1907, c. 217. S. 2. That section two (2) of said act be and the same is hereby amended to read as follows: Sec. 2. The inheritance tax shall be and is to be levied on all estates subject to the operation of this act on all sums above the first $10,000.00, where the same shall pass to or for the use of the father, mother, husband, wife, lineal descendant, adopted child, or the lineal descendant of an adopted child, one (1) per centum. On all sums not exceeding the first fifty thousand dollars, of three per centum, where such estate passes to collateral heirs to and including the third degree of relationship, and to six per cent where such estates pass to collateral heirs beyond the third degree, or to strangers to the blood. On all sums above the first fifty thousand dollars and not exceeding the first one hundred thousand dollars, four and one-half per centum to collateral heirs, to and including the third degree, and nine per centum to collateral heirs, beyond the third degree, or to strangers to the blood. And on all sums in excess of the first one hundred thousand dollars, the tax shall be six per centum to collateral heirs to and including the third degree, and twelve per centum to collateral heirs beyond the third degree or to strangers to the blood: Provided, That on all sums passing to or for the benefit of collateral relatives or strangers of the blood, who are aliens not residing in the United States, a tax of twenty-five per centum shall be levied and collected.

Alien Tax Invalid as to Certain Treaties.

Wash. St. 1907, c. 217, s. 2, imposed an inheritance tax of twentyfive per cent on collaterals or strangers who are aliens not residing

in the United States, and a tax of only three per cent on property passing to citizens of the United States. This provision is void as contravening the words of the treaty between the United States and Norway and Sweden of 1827, article 17, which provides that inheritances passing from one country to the other "shall be exempt from all duty called droit de detraction on the part of the government of the two states respectively," and that the heirs shall have the right to receive the succession without having occasion to take out letters of naturalization.

The treaty between Norway and Sweden and the United States of 1827 uses the words "goods and effects" to designate the property the treaty is applicable to, but the court holds that these words. include real estate, following Adams v. Akerlund, 168 Ill. 632, 48 N. E. 454, and University v. Miller, 14 N. C. 207.

The treaty of 1827 further provided for succession by "heirs," and the court notes that this word has a technical common law meaning restricting it to those who take by inheritance only, while by the civil law it applies to all persons who are called to the succession whether by act of the party or by operation of law. As the word is used in this treaty by countries in one of which the common law prevails and the other of which the civil law prevails, there does not appear to be any reason for here attributing to it the technical meaning of either of these systems of law in preference to the other, and hence the word "heirs" includes those who receive by will as well as those who receive by operation of law. Stixrud, 58 Wash. 339, 109 P. 343, 349.

Alien Tax.-Validity under State Constitution.

The question whether the Washington statute of 1907, c. 217, s. 2, is unconstitutional in view of the provisions of the Washington state constitution, in so far as it placed a higher tax on aliens than it did on residents, was not decided in In re Stixrud, 58 Wash. 339, 109 P. 343.

Wash. St. 1911, c. 19, abolished the twenty-five per cent tax on non-resident aliens.

THE PRESENT ACT.

Wash. St. 1901, c. 55, as amended.

S. 1. Property subject to inheritance tax. All property within the jurisdiction of this state, and any interest therein, whether belonging to the inhabitants of this state or not, and whether tangible or intangible, which shall pass by will or by the statutes of inheritance of this or any other state, or by deed,