196 Pa. 72 | Pa. | 1900
Opinion by
Conceding that the legacies in this case are all for charities, their liability to the tax upon collateral inheritances must be ad
It is. very-manifest from the language of the statute, that the subject of the taxation enacted is the whole estate or interest that passes to the persons who are the recipients, and the duty imposed is five per cent of the whole amount, and there can be no discharge from liability for the amount of the same except by actual payment of the whole of the tax. There is no kind of exception, qualification, condition or reservation as to what it is that is the subject of the tax. It is the whole of the estate that passes. There is no exemption from the tax hi favor of charities. That which the legatee gets and keeps is the aggregate sum bequeathed, less the amount of the tax. The tax must be retained by the person who has the decedent’s property in charge. It is, therefore, not a tax upon the property or
A very good illustration of this distinction is afforded in the case of Strode v. Commonwealth, 52 Pa. 181; It was held that the estate of a decedent composed of United States securities, passing collaterally, is liable to collateral inheritance tax. Distinctly and as United States securities they were exempt from taxation, but as assets which passed to collaterals they were not entitled to the exemption which pertained to them as part of the estate of the decedent who owned them. It was held, practically, that, while as bonds of the United States they were not subject to taxation, yet as assets passing to collaterals they were subject to the payment of the collateral inheritance tax. In the opinion of the court below which was affirmed with approval it is said, “Now this is not to be viewed as a tax assessed upon the estate of the decedent or of any one, but a restriction upon the right of acquisition by those who under the law regulating the transmission of property are entitled to take as beneficiaries without consideration. The state is made one of the beneficiaries. It lays its hands upon estates under such circumstances, and claims a, share, and whether the share is exacted as a tax or duty or whatever else, or the machinery employed in levying an ordinary tax is adopted or not, it is of no consequence. . . . The act of the legislature is not liable to the imputation that it countenances the appropriation of private property for public use without consideration for the estate never vests without the charge.” Woodwabd, C. J., delivering
In Orcutt’s Appeal, 97 Pa. 179, holding the same doctrine, we said in the opinion: “ The tax does not attach to the very articles of property of which the deceased died possessed. It is imposed only on what remains for distribution after expenses of administration, debts and rightful claims of third parties are paid or provided for. It is on the net succession to the beneficiaries and not on the securities in which the estate of the decedent was invested.”
Enough has been said to show the radical difference between the levying of a tax upon the specific property of a legatee after it has became vested in possession, and imposing a charge or tax upon the right to have the property by way of succession to the estate of a decedent. The assignments of error are dismissed.
Decree affirmed and appeal dismissed at the cost of the appellants.