or corporation shall become beneficially entitled in possession or expectancy, to any such property, or to the income thereof.

The section then fixes the rates and exemptions shown above, makes executors and administrators personally liable until the tax is paid, and concludes as follows:

"Provided, further, that said tax shall be levied and collected upon the increase of all property arising between the date of death and the date of the decree of distribution, and upon all estates which have been probated before, and shall be distributed after the passage and taking effect of this act."

NOTE. (a) A serious typographical error which has misled text writers is corrected in a re-publication of above section in Montana Revised Codes of 1915, Vol. 3 p. 781.

(b) The unique provision taxing increase during administration is construed to include increase in value as well as in kind. Matter of Tuohy, 35 Mont. 431.

§ 7725. Provides that if remaindermen elect to defer payment until they get the property they may within one year file a bond in twice the amount of the tax with an inventory of the property to pay it with interest at 10 per cent, and must renew the bond every three years.

§ 7726. Taxes excess over reasonable fees of bequest to executors in lieu of commissions.

§ 7727. Makes taxes due at death. If paid within six months allows discount of 3 per cent. Charges interest at 10 per cent after ten months, and requires executors or administrators to file a bond for payment.

§ 7728. In case of unavoidable delay no interest for eighteen months and then at 7 per cent.

§ 7729. Requires the executor or administrator to deduct the tax from money legacy or collect it from the legatee; must not deliver property unless the tax is paid.

§ 7730. Gives power of sale to pay tax as in case of debts.

8 7731. Provides for receipts which must be produced on accounting to procure discharge.

§ 7732. Makes the bond of executors or administrators liable for the tax. § 7733. Executor or administrator may be removed and his bond held in case of failure to pay tax.

§ 7734. Makes administrators de bonis non liable in the same way as other administrators.

$7735. Provides for proportionate refund where debts have been proved after distribution.

§ 7737. Foreign executors. Tax on stocks or loans. Whenever any foreign executor or administrator shall assign or transfer any stocks or loans in this state, standing in the name of the decedent, or held in trust for a decedent, which shall be liable to the said tax, such tax shall be paid to the treasurer of the proper county on the transfer thereof; otherwise, the corporation permitting such transfer shall become liable to pay such tax; provided that such corporation had actual or constructive knowledge before such transfer that said stocks or loans are liable to said tax.

The other sections provide for the appraisal of the estate, appeal, rehearing and delinquent collections, substantially following the New York practice. Life estates and remainders are computed on mortality tables on a basis of 7 per cent.

THE 1917 AMENDMENT.

Chapter 40, L. 1917, reads as follows:

"87731. Every sum of money retained by an executor, administrator, or trustee, or paid into his hands for any tax on property shall be placed in a separate account and within ten days thereafter, he shall obtain an order of the court before whom the probate proceedings are pending, setting forth the county whereof decedent was a resident at the time of his death and showing the county or counties wherein the real property of decedent is situate, together with the amount thereof and the value of the same, as given by the appraisers of decedent's estate, and ordering such executor, administrator, or

trustee, to pay unto the several county treasurers of such county or counties such sum or sums so set aside in the following proportion:

"First. To the county treasurer of the county whereof decedent was a resident at the time of his death the whole amount of the tax due on the personal property of said decedent.

"Second. To each county treasurer of the counties wherein decedent owned real property, the tax due on the amount of property situate in such county according to the valuation set upon the same by the appraisers of decedent's estate; immediately after obtaining the aforesaid order such executor, administrator, or trustee shall pay to the county treasurer or treasurers named therein the sum or sums specified in such order, and the payment of said tax to every county treasurer shall be accompanied by a certified copy of such order, and the said county treasurer or treasurers shall give, and every executor, administrator, or trustee shall take duplicate receipts for such payment, one of which said receipts said executor, administrator or trustee shall immediately send to the treasurer of the state whose duty it shall be to charge the county treasurer so receiving the tax with the amount thereof due the state, and state treasurer shall seal said receipt with the seal of his office, if he have one, and countersign the same, and return it to the executor, administrator or trustee, whereupon it shall be a proper voucher in the settlement of his accounts; and an executor, administrator or trustee shall not be entitled to credits in his accounts, nor be discharged from liability for such tax, nor shall said estate be distributed unless he shall produce a receipt so sealed and countersigned by the state treasurer, or a copy thereof certified by him."

§ 2. This act shall apply to all estates remaining undistributed at the time this law shall take effect and the tax shall be determined and collected as in other cases.

§ 3. All acts and parts of acts inconsistent with the provisions of this act are hereby repealed, as far as they effect the provisions hereof.

84. This act shall take effect and be in force from and after its passage and approval by the Governor.

NEBRASKA

Taxes property of non-residents within the state.

TABLE OF RATES AND EXEMPTIONS

REVISED STATUTES OF 1913, AS AMENDED BY CHAPTER 113, LAWS

OF 1915.

§ 6622. All property, real, personal and mixed which shall pass by will or by the intestate laws of this state from any person who may die seized or possessed of the same while a resident of this state, or, if decedent was not a

resident of this state at the time of his death, which property or any part thereof shall be within this state, or any interest therein or income therefrom, which shall be transferred by deed, grant, sale or gift made in contemplation of the death of the grantor, or bargainor, or intended to take effect, in possession or enjoyment after such death, to any person or persons or to any body politic or corporate in trust or otherwise, or by reason thereof any person or body corporate shall become beneficially entitled in possession or expectation to any property or income thereof, shall be and is subject to a tax, at the rate hereinafter specified to be paid to the treasurer of the proper county for the use of the state and all heirs, legatees and devisees, administrators, executors and trustees shall be liable for any and all such taxes until the same shall have been paid as hereinafter directed.

The rest of the section prescribes the rates and exemptions as shown in the foregoing table.

§ 6624. All taxes imposed by this act, unless otherwise herein provided for, shall be due and payable at the death of the decedent, and interest at the rate of 7 per cent per annum shall be charged and collected therefrom for such time as such taxes are not paid; provided, that if said tax is paid within one year from the accruing thereof, interest shall not be charged or collected thereon, and in all cases where the executors and administrators or trustees do not pay such tax within one year from the death of the decedent they shall be required to give a bond in the form and to the effect prescribed in section 2 of this act, for the payment of said tax together with interest.

§ 6625. Requires the executor or administrator to deduct the tax from money or collect it from beneficiary in case of property, which must not be delivered unless the tax is paid. Requires the heir to deduct the tax before paying a legacy charged on real estate. When property is given for a limited period the court apportions the tax.

§ 6626. Gives power of sale for payment of tax in the same way as in case of debts.

§ 6627. Provides for receipts which must be produced on final accounting. § 6628. Whenever any of the real estate of which any decedent may die seized shall pass to any body corporate or to any person or persons or in trust for them or some of them, it shall be the duty of the executor, administrator or trustee of such decedent to give information thereof, in writing, to the treasurer of the county where said real estate is situated, within six months after they undertake the execution of their expected duties, or if the facts be not known within that period, then within one month after the same shall have come to their knowledge.

§ 6629. Whenever debts shall be proved against the estate of the deceased after distribution of legacies from which the inheritance tax had been deducted in compliance with this act, and the legatee is required to refund any portion of the legacy, a proportion of the said tax shall be paid to him by the executor or administrator; if the said tax has not been paid into the county treasury or by the county treasurer if it has been so paid.

§ 6630. Whenever any foreign executors or administrators shall assign or transfer any stocks or loans in this state standing in the name of the decedent, or in trust for a decedent which shall be liable to the said tax, such tax shall be paid to the treasury or treasurer of the proper county on the transfer thereof; otherwise the corporation making such transfer shall become liable to pay such taxes, provided that such corporation has knowledge before such transfer that said stocks or loans are liable for such taxes.

§ 6631. When any amount of the said tax shall have been paid erroneously to the county treasurer it shall be lawful for him, on satisfactory proof rendered to him of said erroneous payment, to refund and pay to the executor, administrator or trustee, person or persons who have paid any such tax in error, the amount of such tax so paid provided that all applications for the repayment of the said tax shall be made within two years of the date of said payment.

The rest of the statute, sections 6632 to 6641, makes the usual provisions for appointment of appraisers, valuation, appeal and reports of state officers.

Under the 1915 amendment to section 6632 the county court is empowered to make an order on proper proof that the estate is not subject to any tax, thus avoiding unnecessary appraisal of small estates, following the New York practice.

Prior Statutes: L. 1901, ch. 54; L. 1905, ch. 117; L. 1907, chs. 103 and 104, L. 1911, ch. 107.

NEVADA

Taxes all property of non-residents within the state.

LAWS OF 1913, CHAPTER 266. BECAME A LAW MARCH 26, 1913. Section 1. A tax shall be and is hereby imposed upon the transfer of any and all property within the jurisdiction of this state, and any interest therein or income therefrom, whether belonging to the inhabitants of this state or not, and whether tangible or intangible, not hereinafter exempted, which shall pass in trust or otherwise by will or by the statutes of inheritance of this or any other state or by deed, grant, sale or gift made without valuable and adequate consideration in contemplation of the death of the grantor, vendor, assignor or donor or intended to take effect in possession or enjoyment at or after such death, as specified in this act. For the purposes of this act, the ownership of shares of stock in a corporation owning property in this state shall be considered as the ownership of such interest in the property so owned by such corporation, as the number of shares so owned shall bear to the entire issued and outstanding capital stock of such corporation; and notes and other evidences of indebtedness secured by mortgage on real estate situated in this state are and shall be, upon the owner's death, subject to the inheritance tax hereinafter provided.

§§ 2, 3 and 4. Impose the rates and exemptions shown in the foregoing table.

§ 5. Provides that remaindermen may elect not to pay the tax until they get the property by filing an inventory and bond within one year in twice the amount of the tax and renewing the bond every five years.

$ 6. Taxes bequests to executors in lieu of commissions when in excess of reasonable compensation.

§ 7. Makes all taxes due at death. If paid within six months allows discount of 5 per cent. No interest until after eighteen months, then 10 per cent from date of death, and executor or administrator must file a bond.

§ 8. In case of unavoidable delay interest after eighteen months reduced to 7 per cent.

89. Requires the executor or administrator to collect the tax from beneficiary or deduct it from money lagacy or share.

$10. Gives power of sale to pay the tax and no final accounting allowed unless tax receipt is produced.

§ 11. Requires the executor or administrator to pay the tax, provides for receipts and duplicate copies thereof.

§ 12. Provides for proportionate refund of tax if debts are proved against estate after distribution.

§ 13. Gives jurisdiction of the tax proceedings to the district court in which the probate is pending.

§§ 14 to 23. Provide for the appointment of appraisers and the usual proceedings for the valuation of the estate and collection of the tax closely following the New York practice.

$24. Whenever any property belonging to a foreign estate which estate, in whole or in part, is liable to pay an 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.

§ 25. If a foreign administrator, executor or trustee shall assign or transfer any corporate stock or obligations in this state standing in the name of the decedent, or in trust for a decedent and liable to the tax herein provided, the tax must be paid to the county treasurer of the county in which such transfer is made before the transfer thereof; otherwise the corporation permitting its stock to be so transferred shall be liable to pay such tax, and it is the duty of the state controller and the district attorney of the proper county to enforce the payment thereof.

§§ 26-29. Provide for the collection of delinquent taxes.

§ 30. The words "estate" and "property as used in this act shall be taken to mean the real and personal property or interest therein of the testator, intestate, grantor, bargainer, vendor, or donor passing or transferred to individual legatees, devisees, heirs, next of kin, grantees, donees, vendees, or successors, and shall include all personal property within or without the state. The word "transfer " as used in this act shall be taken to include the passing of property or any interest therein, in possession or enjoyment, present or future, by inheritance, descent, devise, succession, bequest, grant, deed, bargain, sale, gift, or appointment in the manner herein described. The word "decedent" as used in this act shall include the testator, intestate, grantor, bargainer, vendor, or donor.

The words "contemplation of death" as used in this act shall be taken to include that expectancy of death which actuates the mind of a person on the execution of his will, and in nowise shall said words be limited and restricted to that expectancy of death which actuates the mind of a person in making a gift causa mortis, and it is hereby declared to be the intent and purpose of this act to tax any and all transfers which are made in lieu of or to avoid the passing of the property transferred by testate or intestate laws.

§ 31. This act shall take effect thirty days from and after the date of its approval.

Prior Statutes: None prior to above act.