the general topic of domicile and situs discussed in another chapter,' and it remains here merely to consider the propositions of law which have been determined with respect to such questions of domicile and situs arising under the various constitutional provisions, Federal and State. These adjudications seem to have resolved themselves into several propositions: (1.) Under the maxim "Mobilia sequuntur personam," it seems to be generally conceded that the State of the decedent's domicile has the power of imposing a succession, legacy or inheritance tax upon the personal property of such decedent, whether sit uate there or in a foreign country (and perhaps upon the real estate in a foreign State), and whether bequeathed to resident or alien legatees.2 There can be no doubt that the legislature has the power to impose the tax not only where it affects citizens of the State, but also where non-residents or aliens claim by inheritance or by will property located there. Every State in the Union, in the absence of a constitutional prohibition, has the authority to regulate by law the devolution and distribution of an intestate's property situated within the jurisdiction of that State, and personal property situated elsewhere 1 See Chapter IV. 2 Chapter IV, sec. 3; Tyson v. State, 28 Md. 577; Mager v. Grima, 8 Howard, 490; Eyre v. Jacob, 14 Grat. 422; State v. Dalrymple, 70 Md. 294; 17 Atl. 82; In re Short's Estate, 16 Penn. St. 63; Com. v. Smith, 5 Id. 143; Alexander's Appeal, 3 P. L. J. (Clark), 87; U. S. v. Hunnewell, 13 Fed. Rep. 617; In re Ewing, 1 Cromp. & J. 151-158; Com's. App. (Bittinger's Est.), 129 Pa. St. 338; 18 Atl. 132. but owned by a resident, and to prescribe who shall take and who shall not be capable of taking it.1 (2.) It has been held, under the law of Maryland, that tangible personal property, i. e., bonds and securities that are situate in the taxing State are liable to the succession and legacy tax, although the decedent was not domiciled there but died in another State of which he was a citizen, and where his will was probated and in which his collateral legatees resided, and left neither debts nor collateral legatees in such taxing State.2 The same power exists in Parliament, but the intention to tax the personal property of such nonresidents must be clearly expressed. Under this doctrine they are exempted under the legacy act, and to some extent taxed under the succession act. Where a non-resident is owner of tangible property within the State, and the State imposes a tax upon it, the tax is not a charge against the owner personally, but must be enforced against the property itself. The State has no jurisdiction to assess such a tax against the owner personally.* (3.) That as to real estate situate beyond the 1 State v. Dalrymple, and cases, supra. 2 State v. Dalrymple, supra. Such would also now seem to be the law of New York as to both foreign testates and intestates, where there is property within the State. Matter of Enston, 113 N. Y. 183; Matter of Vinot, 7 N. Y. Supp. 517; Matter of Lawr. G. Clark, 9 Id. 444; Matter of Romaine, N. Y. Law Jour. March 19, 1890. See Chapter IV, sec. 4 (b). 3 Per Cranworth, Lord Chan, Wallace v. Atty.-Genl. L. R. 1 Ch. App. I. See Chapter IV, sec. 4 (a). • Cooley on Taxation, 2d ed. 21, citing Peo. v. Supervisors, 11 N. Y. 563; see Hilton v. Fonda, 86 Id. 339. jurisdiction of the State, where the owner was domiciled at the time of his death, it is beyond the constitutional power of such State to tax the same by any direct tax.1 Accordingly it has been held that the statute of Pennsylvania, passed in 1887, which attempted to impose a tax and to make it a lien upon real estate situate in the State of Maryland was, so far as the real estate was concerned, a direct tax thereon and beyond the jurisdiction of the State, and the statute was held, pro tanto, unconstitutional. The court conceded, however, that the State might impose a succession tax upon such foreign real estate where it belonged to a citizen, but not a direct tax. 8 (4.) But where real estate situate in a foreign country or State, and thus beyond the jurisdiction of the owner's domicile, be directed by will to be converted into personalty, the tax may be imposed, as there is then an equitable conversion, and the tax is in reality only imposed upon the proceeds of the real estate.* 19. General questions as to State jurisdiction.Surrogates' courts are constitutionally empowered to determine the tax, as it is simply an incident in the 1 Com's. App. (Bittinger's Est.), 1889, supra; 24 W. N. C. 273; s. c. 18 Atl. Rep. 132, distinguishing Commonwealth v. Smith, 5 Penn. St. 142; see, also, Kintzing v. Hutchison, 34 Leg. Int. 365. and cases cited, supra, sec. 5. 2 P. L. 1887, 79; Appendix. 3 Com's. App. (Bittinger's Est.), supra. 4 Miller v. Commonwealth, 1886, 111 Penn. St. 321; Matter of Howard, 5 Dem. 483, and cases cited Chapter IV. See, also, supra, sec 5. settlement of the estate of deceased persons.' And the power to impose a succession tax may be delegated by the legislature to counties and municipal corporations, though it should be plainly and unmistakably conferred, and the law will be strictly construed.2 1 Matter of McPherson, 1887, 104 N. Y. 306; Wallace v. Myers, 38 Fed. Rep. 184. Peters v. Lynchburg, 76 Va. 927; Schoolfield v. Lynchburg, 78 Id. 366. Constitutional rule considered with reference to valuation of life-estates, see Williams' Case, 3 Bland Ch. 186. CHAPTER III. EXEMPTIONS.1 1. Taxation the general rule. 2. Policy of Inheritance and Succession Tax Laws. (a) New York. (b) Pennsylvania. (c) Maryland. (d) Virginia. (e) West Virginia. (g) Connecticut. (h) North Carolina. 4. Charitable, religious and other corporations and objects. 5. Foreign corporations. 6. Adopted and illegitimate children, etc. 7. Widows, and husbands of deceased daughters. 8. Next of kin, lineal and lawful descendants. 12. Legacies when exempt under acts of Congress. § 1. Taxation the general rule.-As taxation is held to be the general rule extending to all species of property, so exemption is the exception to such rule, with the further important qualification that statutes purporting to grant exemption from general taxation 1 See, also, Chapter IV as to resident and non-resident decedents; Chapter VI as to constructive exemptions, remainders, trusts, powers and legacies. |