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erty in another State, sold by direction of the will, brought here for distribution. Matter of Swift, 47 N. Y. St. Repr. 47 (1892). A bequest to be applied to the maintenance of a burial lot. Vinot, 26 N. Y. St. Repr. 610; S. C., 7 N. Y. Supp. 517 (1889). A legacy to a creditor of an amount actually due him. Rogers, 30 N. Y. St. Repr. 943; 10 N. Y. Supp. 22 (1890).

A bequest in payment of unsettled accounts and claims against testator, which, in fact, exceed amount of the legacy. Matter of Underhill, 2 Connoly, 262 (1890).

Matter of

Matter of

A legacy given "in consideration of a home for me, at his house, during my life." Matter of Hulse, 39 N. Y. St. Repr. 402; S. C., 15 N. Y. Supp. 770 (1890).

Shares of stock of a foreign corporation owned by a nonresident testator, the certificates of which are in this State. Matter of James, 59 N. Y. St. Repr. 768 (1894).

A legacy under the will of a nonresident who leaves assets in this State, if not paid out of the assets here. Matter of James, 59 N. Y. St. Repr. 768 (1894).

The right to a legacy which has never been reduced to possession, and which is kept within this State, without the will of the deceased legatee, is not the subject of taxation under Laws 1887, chap. 713, as amended by Laws 1891, chap. 215. Matter of Phipps, 59 N. Y. St. Repr. 769 (1894). See decisions under exemption clause, post.

The mere fact that there is an equitable conversion by the terms of the will does not render the real estate taxable under the Transfer Tax Act. Matter of Sutton (Surrogate's Court, Westchester county), 15 Misc. 659; affirmed, 3 App. Div. 208 (1896).

In a proceeding taken to compel the payment of a transfer tax, it appeared that the domicile of the decedent was in the State of Connecticut; that at the time of his death he owned bonds issued by railroad corporations incorporated under the laws of New York, and stocks of various corporations incorporated under the laws of New York; that all the bonds and the certificates for all the stock in question had been, and at the time of the decedent's death were, in his possession at his domicile; that he left a will by which all these were bequeathed to residents of the State of Connecticut and that all had been transferred, before the institution of this proceeding, by the executors to the residuary legatees. Held, that neither the stocks nor bonds were taxable in the State of New York; that while they were property, they were property in the hands of the holders and not property of the corporations, and that, in so far as they were held by nonresidents of the State, they were property beyond its jurisdiction. Matter of Bronson, 1 App. Div. 546 (1896).

Decisions under Exemption Clause.

By Laws 1889, chap. 191, as amended by Laws 1890, chap. 553, religious, educational, bible, etc., corporations were exempted from the provisions of the Collateral Inheritance Tax Act. The acts of 1890 and 1889 are

repealed by this chapter; but section 220 exempts from the provisions of the taxable transfer article persons or corporations, exempt by law, from taxation on real or personal property, and section 4, subdivision 7 exempts from taxation the same class of corporations as were exempted in the act of 1889, as amended by the act of 1890. It seems that no change has been made in the law, so far as such class of corporations are concerned.

For exemptions generally, see § 4 of this chapter.

In determining what "societies, corporations and institutions" are "exempted by law from taxation," within meaning of the act, it is sufficient if the society claiming exemption belongs to a class exempted by a general statute. The rule of strict construction does not require that only such societies be deemed exempt as are declared so to be by their charter. Matter of Miller, 5 Dem. 132 (1887).

The exemption in favor of corporations, etc., "exempted by law from taxation," operates in favor of the corporation, etc., whose property is exempted by law from taxation. Estate of Hunter, 22 Abb. N. C. 24; 6 Dem. 154 (1888).

The tax imposed by the collateral inheritance clause is a special and not a general one, and, therefore, exemptions thereunder are to be construed strictly in favor of taxpayers and against the government. Matter of Vassar, 127 N. Y. 1; S. C., 37 N. Y. St. Repr. 239; reversing 58 Hun, 378; S. C., 34 N. Y. St. Repr. 328; 12 N. Y. Supp. 203 (1891).

The provisions of Laws 1890, chap. 553, exempting charitable and other corporations, were not retroactive. In re Wolfe, 15 N. Y. Supp. 539 (1891). And do not apply to foreign corporations. Matter of Prime, 64 Hun, 50; 136 N. Y. 347; 45 N. Y. St. Repr. 832; 49 id. 658 (1892).

The words " now exempted by law," refer to exemptions under the laws of this State, and the exemption of a foreign corporation, under the laws of the State in which organized, does not withdraw it from the operations of said act. Catlin v. Trustees of Trinity College, 113 N. Y. 133; 22 N. Y. St. Repr. 189 (1889).

Sales of produce from a farm, which was not self-supporting, owned by a charitable society, was held not to be income under Laws 1889, chap. 462, and was exempt from taxation. People ex rel. Society of the New York Hospital v. Purdy, 58 Hun, 386; S. C., 34 N. Y. St. Repr. 893; 12 N. Y. Supp. 307; affirmed in 126 N. Y. 679.

It seems the words "incorporated company," do not embrace corporations for religious, literary or charitable purposes, not having a capital, but were intended to include only such business and stock corporations, as by the charter are under special circumstances exempted from taxation on their capital. Catlin v. Trustees of Trinity College, 113 N. Y. 133; S. C., 22 N. Y. St. Repr. 189 (1889).

An exemption from taxation of its real estate alone, does not exempt a bequest to a charitable institution from payment of the Collateral Inheritance Tax. Matter of Forrester, 35 N. Y. St. Repr. 776; S. C., 12 N. Y. Supp. 774 (1890).

Corporations and Institutions Exempt.

The Lenox library of New York city. Matter of Lenox, 31 N. Y. St. Repr. 959 (1890).

An institution for the blind which receives no pay from patients, under any circumstances. Matter of Underhill, 2 Connoly 262 (1890).

The Brooklyn Home for Consumptives, its inmates being supported entirely by charity. Matter of Herr, 32 N. Y. St. Repr. 724; S. C., 10 N. Y. Supp. 680 (1890).

The Faith Home for Incurables. Matter of Neale, 32 N. Y. St. Repr. 910; S. C., 10 N. Y. Supp. 713 (1890).

A charitable institution maintaining a hospital supported wholly by voluntary contributions. Matter of Curtis, 1 Connoly, 471; S. C., 25 N. Y. St. Repr. 1028; 7 N. Y. Supp. 207 (1889).

A home for aged men supported and maintained by charity was held exempt as an almshouse, although its inmates were required to pay a certain sum upon their admission, and to transfer any property they might own to the home. Matter of Vassar, 127 N. Y. 1 (1891).

The New York Association for Improving the Condition of the Poor. Matter of Lemmets, 31 N. Y. St. Repr. 959; S. C., 9 N. Y. Supp. 805 (1890).

A society incorporated in this State for the establishment and maintenance of one or nore houses for the care of indigent aged persons, and the care and education of destitute and orphaned children. Estate of Hunter, 22 Abb. N. C. 24; S. C., 6 Dem. 154 (1888).

A hospital, which, by terms of its charter, is exempt from taxation on all personal property, is exempt from a tax upon a bequest of personal property. Matter of Vassar, 127 N. Y. 1 (1891).

A society which conducts an institution which is exempt as being a house of industry, although no special exemption from taxation is contained in the charter. Matter of Herr, 55 Hun, 167; S. C., 27 N. Y. St. Repr. 591; 7 N. Y. Supp. 852 (1889).

Corporations and Institutions not Exempt.

A legacy to an institution whose inmates are required to pay for any of the benefits received. Matter of Lenox, 31 N. Y. St. Repr. 959; Matter of Keech, 32 id. 227; affirming 26 id. 433; S. C., 7 N. Y. Supp. 331.

The Presbyterian Boards of Home and Foreign Missions. Matter of Board of Foreign Missions, 58 Hun, 116; S. C., 33 N. Y. St. Repr. 789; 11 N. Y. Supp. 310 (1890).

A bequest to a church corporation for the building of a new church, or the repair of an old one. Matter of Van Kleek, 121 N. Y. 701; S. C., 31 N. Y. St. Repr. 896; reversing 55 Hun, 472 (1890).

The Society for the Prevention of Cruelty to Animals. In re Keith's Estate, 22 N. Y. St. Repr. 337; S. C., 5 N. Y. Supp. 201 (1889).

The Bank Clerks' Mutual Benefit Association, a charitable society transacting business as a mutual benefit insurance association. Estate of Jones, 22 Abb. N. C. 50; S. C., 18 N. Y. St. Repr. 383; 2 N. Y. Supp. 671 (1888).

A legacy to Trinity College. Catlin v. Trustees of Trinity College, 22 Abb. N. C. 28; S. C., 49 Hun, 278. Legacies to a religious corporation and to a missionary society, both incorporated under the laws of this State, were held subject to the tax. Id.

Foreign religious corporations. Matter of Balleis, 144 N. Y. 132; affirming 60 N. Y. St. Repr. 792; Matter of Taylor, 62 id. 570; Catlin v. Trustees of Trinity College, 113 N. Y. 133 (1889). See, also, In re Wolfe, 15 N. Y. Supp. 539

The provisions of 1 R. S. 388, § 4, subd. 7, exempting from taxation the personal property of every incorporated company not made liable to taxation on its capital, in the fourth title of the chapter containing it, does not include an incorporated college or religious society, and such society is not, therefore, exempt, in absence of a special provision in its charter, from the collateral inheritance tax. Catlin v. Trustees of Trinity College, 113 N. Y. 133; S. C., 22 N. Y. St. Repr. 189; affirming 22 Abb. N. C. 28; 17 N. Y. St. Repr. 707 (1889).

The clause in the Collateral Inheritance Tax Law of 1887 (chap. 713, § 1), exempting from taxation thereunder bequests to "the societies, corporations and institutions now exempted by law from taxation," was not intended to apply to bequests to municipal corporations. Matter of Hamilton, 148 N. Y. 310 (1896).

§ 221. Exceptions and limitations.- When the property or any beneficial interest therein passes by any such transfer to or for the use of any father, mother, husband, wife, child, brother, sister, wife or widow of a son or the husband of a daughter, or any child or children adopted as such in conformity with the laws of this state, of the decedent, grantor, donor or vendor or to any person to whom any such decedent, grantor, donor or vendor for not less than ten years prior to such transfer stood in the mutually acknowledged relation of a parent, or to any lineal descendant of such decedent, grantor, donor or vendor born in lawful wedlock, such transfer of property shall not be taxable under this act, unless it is personal property of the value of ten thousand dollars or more, in which case it shall be taxable under this act at the rate of one per centum upon the clear market value of such property. But any property heretofore or hereafter devised or bequeathed to any person who is a bishop or to any religious corporation shall be exempted from and not subject to the provisions of this act.

[Revisers' Note.- L. 1892, chap. 399, § 2.]

In case of lineal descendants, the limitation of $10,000 is attached to the estate of the decedent, and not to the several and particular estate

Matter of Hoffman, 62 N. Y. St. Repr. 245;

passing to the successor. 143 N. Y. 327; Matter of Hall, 68 N. Y. St. Repr. 538. But it has been decided that where the distributive shares of children in the estate of a deceased father are less than $10,000 each, although exceeding in the aggregate such sum, they are not taxable. Matter of Skillman, 66 N. Y. St. Repr. 140; 10 Misc. 642 (1894).

The interest of a child of the deceased, deposited to the credit of a partition action, is not exempt from taxation by Laws 1892, chap. 399, § 2. Matter of Stiger, 58 N. Y. St. Repr. 529 (1892).

In the provision which imposes a tax upon all property, which passes by will or by the intestate laws to any person other than "to or for the use of father, mother, husband, wife, children, brother and sister, and lineal descendants, born in lawful wedlock, and the wife or widow of a son, and the husband of a daughter," the term, "lineal descendants," includes only the direct descendants of the testator or intestate, and does not include the children of brothers and sisters of the deceased. Matter of Miller, 45 Hun, 244; affirming 5 Dem. 132 (1887). See, also, Matter of Smith, id. 90 (1886).

The interest of a deceased infant in a fund, arising from a partition sale of lands, is not real property, and not exempt from taxation by section 2 of the Transfer Tax Act. Matter of Stiger, 7 Misc. 268.

Real estate converted by the will into personalty on the theory of equitable conversion becomes subject to the collateral inheritance tax, though otherwise if it had been directly devised. Matter of Wheeler, 51 N. Y. St. Repr. 513 (1892).

Though a will bequeaths all the property to the executor individually, where there was an enforcible agreement creating a valid trust in favor of testator's brother, entered into between the testator and executor at the time the will was executed, such trust is within the exemption of the statute providing for taxation of gifts, legacies and collateral inheritance. Matter of Farley, 15 N. Y. St. Repr. 727 (1888).

Where the personal estate of a decedent consisted exclusively of her distributive share, in a deceased sister's estate, the latter residing in another State, and no part of such share came to decedent's possession, but was remitted for distribution after her death, it was held that it was not liable to taxation. Matter of Thomas, 3 Misc. 3SS (1893).

Provision of Laws 1892, chap. 399, § 2, applies only to domestic corporations of the character specified. Matter of Balleis, 63 N. Y. St. Repr. 27; 144 N. Y. 132 (1894).

Laws 1892, chap. 169, exempts a devise to a bishop where the tax was due but not paid when said act was passed. Roman Catholic Church of The Transfiguration v. Miles, 66 N. Y. St. Repr. 759 (1895).

Where testator died in 1887, giving his entire estate, on the death of his wife, to several nephews and nieces, subject to the payment of life annuities, such annuitants are not presently taxable under Laws 1887, chap. 713. Matter of Roosevelt, 62 N. Y. St. Repr. 130; 143 N. Y. 120 (1887).

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