corporation or to any society, corporation, institution or association of persons engaged in or devoted to any charitable, benevolent, educational, public or other like work (pecuniary profit not being its object or purpose) or to any person, society, corporation, institution or association of persons in trust for or to be devoted to any charitable, benevolent, educational or public purpose, by reason whereof any such person or corporation shall become beneficially entitled in possession or expectancy to any such property or to the income thereof, shall be exempt.

(2) Property of the clear value of three thousand dollars ($3,000.00) transferred to a widow or to a minor child of the decedent, and of one thousand dollars ($1,000.00) transferred to each of the persons described in the first subdivision of section 4, shall be exempt.

(3) Property of the clear value of five hundred dollars ($500.00) transferred to any person or corporation other than the persons described in said first subdivision of section 4.

(4) Provided, that when any estate on which the tax is due is large enough to pay the tax in full and leave a sum equal to or greater than the exemptions provided in subdivisions No. 2 and No. 3 of this section, the tax shall be paid on the value of the entire estate without deductions of the exemptions provided by subdivisions No. 2 and No. 3, or any other deduction or abatement whatever.

Sections 4 and 5 fix the rates as shown in the foregoing table.

§ 6. This act shall apply to all transfers from the estates of decedents whose death occurs subsequent to the date when this act takes effect, and not to transfers from estates when the decedent died prior to the taking effect of this act, except as provided in subdivision 5 of section 2.

§ 7. When any grant, gift, legacy or succession upon which a tax is imposed by section 2 of this act shall be an estate, income or interest for a term of years, or for life, or determinable upon any future or contingent event, or shall be a remainder, reversion or other expectancy, real or personal, the entire property or fund by which such estate, income or interest is supported, or of which it is a part, shall be appraised immediately after the death of the decedent and the market value thereof determined, in the manner provided in section 13 of this act, and the tax prescribed by this act shall be immediately due and payable to the state treasurer, and, together with the interest thereon, shall be and remain a lien on said property until the same is paid.

§ 8. Taxes excess over reasonable compensation of devise to executors or trustees in lieu of commissions.

§ 9. Provides that taxes are due at death. No interest until after six months. After twelve months a 10 per cent. penalty in addition to the interest except in case of necessary litigation or unavoidable delay but litigation to defeat the tax is not necessary litigation."

§ 10. (1) Any administrator, executor or trustee having in charge or trust any legacy or property for distribution, subject to the said tax, shall deduct the tax therefrom, or if the legacy or property be not money he shall collect the tax thereon, upon the market value thereof, from the legatee or person entitled to such property, and he shall not deliver, or be compelled to deliver, any specific legacy or property subject to tax to any person until he shall have collected the tax thereon; and whenever any such legacy shall be charged upon or payable out of real estate, the executor, administrator or trustee shall collect said tax from the heir or devisee thereof, and the same shall remain a charge on such real estate until paid; if, however, such legacy be given in money to any person for a limited period, the executor, administrator or trustee shall retain the tax upon the whole amount; but if it be not in money he shall make application to the probate court to make an apportionment, if the case require it, of the sum to be paid into his hands by such legatees and for such further order relative thereto as the case may require. (2) And all executors, administrators and trustees shall have full power to sell so much of the property of the decedent as will enable them to pay said tax, such sale to be had in the same manner as provided by statute for

the sale of lands of decedents to pay debts of the estate, and the amount of said tax shall be paid as hereinafter directed.

11. Provides that foreign executors or administrators shall not transfer assets within the state without paying the tax and that trust companies, safe deposit companies, banks, etc., shall not deliver securities of a decedent in their possession to an executor or administrator without retaining enough to pay the tax, interest and penalties unless the state treasurer shall consent in writing under a penalty of twice the tax and interest and gives the state treasurer the right to examine said securities.

§ 12. Provides that taxes shall be paid to general fund.

§ 13. Provides for the appointment of appraisers, notice to beneficiaries to fix the market value of property and compute like estates, remainders, annuities, etc., fixes appraiser's compensation and imposes a penalty for accepting fee or reward.

§ 14. Gives the probate court jurisdiction in inheritance tax cases.

15. Provides for collection of delinquent taxes by the attorney-general who may employ counsel. [Repealed by L. 1917]

§ 16. Provides for the enforcement of tax liens by the attorney-general. 8 17. Provides for actions to quiet title and to declare that property is not subject to the lien of any tax under this or any former act.

§ 18. Provides that actions under sections 16 and 17 shall be commenced in the probate court.

§ 19. An act, entitled "An act to impose a tax based upon the right of succession to gifts, legacies and inheritances in certain cases, and to provide for the collection of such taxes," approved May 31, 1909, and all acts and parts of acts in conflict with this act are hereby expressly repealed; provided, nothing in this act shall be construed to affect or prevent the collection of any inheritance tax which may have become due and payable, and has not yet been paid under the laws in force prior to the passage of this act.

§ 20. Whereas, it is necessary for the immediate preservation of the public peace, health and safety that this act becomes a law immediately; therefore, be it enacted that this act take effect and be in force from and after its passage.

The Act of 1917 adds the following procedure provisions:

§ 3. There is hereby created for a term of twelve (12) years an office to be known as the inheritance tax attorney, for the state of Arkansas, and the governor, with the advice and consent of the Senate shall appoint some person learned in the law, who shall be inheritance tax attorney for the state, for a term of two years, and who shall take and subscribe to the oath of office prescribed by the constitution of this state for officers. The inheritance tax attorney shall have the power to file complaint in the name of the state in the probate court of any county having jurisdiction of the estate, from which any taxes under this act may be due or owing, against the administrator, or executor of such estate, or against the heirs, legatees, beneficiaries or other persons having or claiming to have any interest in said estate, if there is no administrator or executor, alleging that the inheritance tax is due and unpaid, or that the value of said estate upon which the inheritance tax is owing, is unknown. Upon filing of the complaint, a summons shall be issued and served upon the defendants and the case shall stand for trial at the next regular or adjourned term of the court; provided the term shall not begin within ten days from the service of the summons. The case shall be tried before the probate judge without a jury, upon oral testimony or depositions, and he shall render judgment in favor of the state for whatever sum he may find is due by said estate as inheritance taxes. An appeal may be taken from the judgment of the probate court to the circuit court for the plaintiff, without bond, by the inheritance tax attorney filing his motion and prayer therefor, either in the probate court or with the clerk of the circuit court. The defendants, or any of them, may appeal to the circuit court in the same manner as appeals are now taken, or may hereafter be taken, from the probate court.

§ 4. The inheritance tax attorney may examine under oath in the proceeding provided for in section 2 of this act, the administrator, executor,

heirs, legatees, beneficiaries or other person having, or claiming to have any interest in the estate, or any other person having any knowledge of the property of the estate or its value. When it has been determined how much tax is due under this act, the inheritance tax attorney shall certify the amount thereof to the state treasurer, and all taxes shall be paid direct to

the treasurer of the state.

§ 5. The inheritance tax attorney shall devote his entire time to the discharge of the duties of his office and shall not engaged in any occupation or business interfering or inconsistent with the duties of his office. He shall receive as his salary the sum of three thousand dollars ($3,000.00) per annum, payable as other salaries are paid; and in addition thereto, his necessary traveling expenses, which shall be itemized, verified and filed with the auditor of state each month, and when so filed, the auditor shall draw his warrant, separate from any salary warrant, from the amount of his traveling expenses, which shall be deducted from any taxes collected under this act before the same is credited to the general revenue fund.

§ 6. The inheritance tax attorney shall be provided with suitable and necessary offices, furniture, supplies and stationery, and shall also be allowed one stenographer who shall be paid a salary not to exceed seventy-five dollars ($75.00) per month, to be paid by the state as other salaries are paid. § 7. If any non-resident of this state shall die leaving any property in this state subject to taxation under this act, the probate court of any county wherein any of such decedent's property is situated, shall, on petition of inheritance tax attorney, appoint some suitable person administrator of the estate of such decedent, or rquire the public administrator to take charge of such property until the amount of inheritance tax owing under this act is determined and paid.

§ 8. The probate judge shall not approve the settlement of any administrator or executor until the inheritance taxes due under the inheritance tax laws is paid.

§ 9. Any action provided for by the inheritance tax laws of this state may be brought at any time before the estate is fully administered.

§ 10. Section 15 of Act No. 197 of the Acts of 1913 and all laws and parts of laws in conflict herewith are hereby repealed, and this act being necessary for the immediate preservation of the public peace, health and safety an emergency is hereby declared to exist, and this act shall be in force and effect from and after its passage.

Prior Statutes: L. 1901, Act 156, p. 295; L. 1903, Act 89, p. 153; L. 1907, Act 345, p. 852.; L. 1909, Act 303, p. 904.

Taxes property of non-residents within the State.

CALIFORNIA.