(1) It was the exercise of the power of appointment that constituted the transfer of the property, and not its creation.

(2) Under the inheritance tax law of this state, the appointment when made is a taxable transfer, in the same manner as though the property to which such appointment relates belonged absolutely to the donee of the power, and had been bequeathed or devised by the will. Therefore this case is treated as though the testator had actually owned the property, and had bequeathed it to his nephews.

State ex rel. v. Probate Court of Ramsey County, 124 Minn. 508 (145 N. W. 390).

§ 829. Nonresident decedent - A nonresident decedent's personal property having a situs in this state is subject to the succession tax of this state, although the devolution of such property is governed by the law of the decedent's domicile.

State ex rel. v. Probate Court of St. Louis County, 128 Minn. 372 (150 N. W. 1094).

§ 830. Debts; stock of corporations, etc. The devolution of debts owed by residents of this state, whether evidenced by promissory notes or not, and of the stock of corporations of this state, and of the stock of national banks located in this state, is subject to a succession tax in this state, although the debts were owing to, and the stock was held by, nonresident decedents. State ex rel. v. Probate Court of St. Louis County, 128 Minn. 372 (150 N. W. 1094).

§ 831. Railway bonds held by nonresident - Under the Minnesota inheritance tax law (Laws 1905, p. 427, ch. 288, § 1, as amended by Laws 1911, p. 516, ch. 372, § 1 [G. S. 1913, § 2271]), providing for a succession tax when a transfer is by will or intestate law of property within the jurisdiction of the state and decedent is a nonresident, bonds of a railroad company, incorporated under the laws of Minnesota, having its principal place of business and general offices in the state, payable in New York, owned by a resident of Illinois and in his possession there at the time of his death, the persons succeeding thereto being residents of Illinois, the railway being subject to jurisdiction in states other than Minnesota, and it not being necessary to invoke the laws of Minnesota or resort to its courts, are not subject to

a succession tax in Minnesota, distinguishing State v. Probate Court of St. Louis County, 128 Minn. 371 (150 N. W. 1094). State v. Chadwick, 133 Minn. 117 (157 N. W. 1077, 158 N. W. 637).

§ 832. Railway bonds secured by mortgage-Whether the fact that an obligation of a debtor resident in Minnesota is secured by a mortgage of real property situated there gives a situs rendering the obligation subject to a succession tax in Minnesota is not decided; but where the obligation is secured by a mortgage of real property of the corporate debtor, organized under the laws of the state as a railway corporation, a portion of which is in Minnesota and a larger portion in other states through which the railroad passes where it is subject to jurisdiction and where the debt can be enforced and the mortgage foreclosed and the whole mortgaged property sold, the fact that the mortgage covers property in Minnesota does not give it a taxable situs supporting a succession tax.

State v. Chadwick, 133 Minn. 117 (157 N. W. 1077; 158 N. W. 637).

ILLEGAL TAX - RECOVERY OF MONEY PAID.

§ 833. Illegal tax, recovery of money paid-State v. Nelson, 41 Minn. 25, 42 N. W. 548, followed, sustaining the right of one who is compelled to pay an illegal tax, to avoid serious prejudice to important property rights, to recover the money paid. Mearkle v. County of Hennepin, 44 Minn. 546 (47 N. W. 165).

EXEMPTIONS.

- In

§ 834. Where estate descends to two or more legatees determining the value of the estate of a deceased person for the purpose of fixing the amount of the inheritance tax, where the estate descends to two or more legatees or devisees in equal shares, an exemption to each should be allowed.

State ex rel. v. Probate Court, 101 Minn. 485 (112 N. W. 878).

§ 835. Reciprocal exemption-The reciprocal exemption amendment to our inheritance tax law, made in 1911, applies only where the laws of another state impose an inheritance tax upon "transfers of personal property of decedents" but "exempt or do not impose a tax upon transfers of personal property of residents of Minnesota having its situs in such state"; and the laws of another state which impose such tax only where the property

passes to collateral relatives or strangers, but do impose such tax where personal property within such state, belonging to residents of Minnesota, passes by will to such collateral relatives or strangers, do not bring the property of residents of that state within such exemption.

State ex rel. v. Probate Court of St. Louis County, 128 Minn. 371 (150 N. W. 1094).

§ 836. Same-Two things are necessary to bring the residents of a foreign state within the exemption granted by Laws 1911, p. 278, ch. 209, § 2, subd. 2. Such state must in fact collect a succession tax, and it must not collect such tax from personal property within its jurisdiction belonging to citizens of Minnesota. If the foreign state either does not collect such tax upon the transfer of property belonging to its own citizens, or does collect it upon the transfer of personal property belonging to the citizens of Minnesota, the exemption does not apply.

State ex rel. v. Probate Court of St. Louis County, 128 Minn. 371 (150 N. W. 1094).

CONSTITUTIONALITY, VALIDITY AND CONSTRUCTION.

§ 837. Equality of taxation -The mandate of equality of taxation, as near as may be, of § 1, art. 9, of the State Constitution, applies to inheritance taxes exactly as it does to taxes on property except as otherwise expressly provided in the last proviso to the section, relating to an inheritance tax. Drew v. Tifft, 79 Minn. 175 (81 N. W. 839).

§ 838. Laws 1902, ch. 3, unconstitutional-Laws 1902, ch. 3, relating to the taxation of inheritances, is unconstitutional, for the reason that it purports to make the rate of taxation ten per cent, or double the constitutional limitation, in the case of collateral heirs and other parties.

State ex rel. v. Harvey, 90 Minn. 180 (95 N. W. 764).

§ 839. Construction of Laws 1905-The classified and prógressive features of the inheritance tax (Laws 1905, p. 427, ch. 288) are in accordance with the general principles of law on the subject of inheritance taxation and authorized by Const. (Minn.) art. 9, § 1, as amended. Whether a distinction should be made. between collateral and lineal descendants is a matter of legislative discretion, not a judicial question.

State ex rel. v. Bazille, 97 Minn. 11 (106 N. W. 93).

§ 840. Construction of R. L. Supp. 1909-Inheritance tax statute (R. L. Supp. 1909, § 1038, subd. 1 and 2) construed and held, that inheritance taxes must be computed in all cases upon the true value of the inheritance above an exemption of $10,000; that when such valuation is less than $50,000 the tax rate thereon is one and one-half per cent; that when such valuation is $50,000 or over, and less than $100,000, the rate is three per cent; and that when such valuation is $100,000 or over, the rate is five per cent.

State ex rel. v. Probate Court of Hennepin County, 111 Minn. 297 (126 N. W. 1070).

§ 841. Construction of language - The language of our stat ute indicates an intention on the part of the legislature to impose a succession tax in all cases in which it has the power to impose such tax, and the statute cannot be construed as applying only where the devolution of the property is governed by our laws. State ex rel. v. Probate Court of St. Louis County, 128 Minn. 372 (150 N. W. 1094).

§ 842. Power of state to impose succession tax — The state has undoubted power to impose a succession tax in respect to all property upon which it has power to impose an ordinary tax, and, in addition thereto, it has power to impose a succession tax in respect to certain sorts of intangible property upon which it cannot impose such ordinary tax.

State ex rel. v. Probate Court of St. Louis County, 128 Minn 372 (150 N. W. 1094).

CHAPTER XIV.

MINNESOTA TAX COMMISSION.

I. Creation and Appointment of.

II. Acts, Powers and Duties.

I. Creation and appointment of (See G. S. 1913, § § 2333 to 2342 Inclusive).

§ 843. Laws 1907 constitutional-Laws 1907, ch. 408, creating the state tax commission, and Laws 1909, ch. 294, relating to the procedure looking to reassessments of property thereby, held valid as against certain constitutional objections.

State v. Minn. & Ontario Power Co., 121 Minn. 421 (141 N. W. 839).

G. S. 1913, § 2333. Commission created There is hereby created a commission, to be designated and known as the Minnesota tax commission. ('07 c. 408 § 1)

G. S. 1913, § 2334. How appointed — The said Minnesota tax commission shall be composed of three members, who shall be appointed by the governor by and with the advice and consent of the senate. The three persons first composing said commission shall be appointed within ten (10) days after the passage of this act and before the adjournment of the present legislature, if practicable. ('07 c. 408 § 2)

G. S. 1913, § 2335. Terms of commissioners — Removal Of such three persons composing said commission, one shall be appointed and designated for a term ending Jan. 31st, 1909; one for a term ending Jan. 31st, 1911, and one for a term ending Jan. 31st, 1913, each of said periods and terms of office to begin upon the qualification of the person appointed therefor. Upon the expiration of the terms of the three commissioners first to be appointed as aforesaid, each succeeding commissioner shall be appointed and hold office for the term of six years, except in the case of a vacancy as hereinafter provided, and each commissioner shall hold office until his successor shall have been appointed and qualified. The governor shall have power to remove a commissioner for inefficiency, neglect of duty or malfeasance in office, but, before removal, the commissioner shall be furnished with a copy of the charges against him, and have an opportunity to be heard in defense. ('07 c. 408 § 3)

G. S. 1913, § 2336. Subsequent appointments - Vacancies — After the appointed of said first three commissioners, or except when appointed to fill a vacancy, each commissioner shall be appointed on or before the last Monday in January next preceding the commencement of the term for which he