extension of time is granted by the probate court. Taxes due under the provisions of (b) of the second paragraph hereof are payable within 3 months from the date of death of the grantor or donor, unless the grantee or donee enters into the possession of the property in the manner mentioned thereunder, in which case the tax thereupon becomes payable. Taxes not paid when due, unless an extension of time has been granted, bear interest from the due date to date of payment. (1088, 1090, 1093, 1096)

Tax lien. On all transfers made under the provisions of (b) of the second paragraph hereof, the tax is a first lien on the real or personal estate thus conveyed, until paid in full. (1050)

Disposition of proceeds. The proceeds of this tax are paid into the State Treasury. (1088)

Source of information.-Chapter 45, Title 8, Public Laws of Vermont, 1933.

Estate Tax

Tax imposed; rate. In addition to the tax imposed under the foregoing provisions, an estate tax is imposed upon all estates which are subject to an estate tax under the provisions of the Federal estate tax act,2 where the decedent at the time of his decease was a resident of this State. The amount of this tax is the amount by which 80 percent of said Federal tax exceeds the aggregate amount of all estate, inheritance, legacy, transfer, and succession taxes actually paid to the several States or the District of Columbia, in respect to any property in the estate of the decedent. (1116)

Filing returns.-The legal representative of the estate of each resident decedent whose estate is subject to the payment of a tax to the United States is required to file a duplicate of the United States tax return with the commissioner of taxes. (1119)

Payment of tax; interest. This tax becomes due and payable to the State treasurer within 2 years from date of decedent's death, unless the estate is transferred without decree of court, when the tax then becomes due and payable immediately. If the tax is not paid when due, interest is charged at the rate of 6 percent per annum. The commissioner of taxes may extend the time for payment with or without interest. (1117)

Tax lien.-Executors, administrators, trustees, grantees, donees, beneficiaries and surviving owners are liable for this tax until its payment, and such tax is a lien on all the property of the estate until paid. (1117)

Disposition of proceeds. The proceeds of this tax are paid into the State treasury. (1117)

Administration of act.-The commissioner of taxes administers the provisions of this act. (1119)

Source of information.—Chapter 45, Title 8, Public Laws of Vermont, 1933.

2 The provisions of law relating to this tax are shown on p. 7.

VIRGINIA

INHERITANCE, ESTATE, AND GIFT TAXES

Inheritance and Estate Taxes

Tax imposed. An inheritance tax is levied by this State upon the shares of the respective beneficiaries in all property within the jurisdiction of this Commonwealth, real, personal, and mixed, and any interest therein, which passes by any of the methods hereinafter enumerated, but subject to the exemptions granted.

(98)

Transfers taxable. This tax is levied upon all property which passes by will or by the laws regulating descent and distribution; by grant or gift made or intended to take effect in possession or enjoyment at or after death of the grantor or donor; by grant or gift made in contemplation of death; by a transfer under which the transferor has retained for his life the possession or enjoyment of the property, or the income therefrom, or the right to designate or change the beneficiaries who shall be entitled to possess or enjoy the property or the income therefrom; and which passes by virtue of the fact that it is held by the deceased and another as joint tenant with the right of survivorship or is deposited in any bank in their joint names and payable to either or the survivor, except such part thereof as may be shown to have originally belonged to such other person and never to have been received or acquired by the latter from the decedent for less than an adequate and full consideration in money or money's worth: Provided, That where such property or any part thereof or any part of the consideration with which such property was acquired, is shown to have been at any time acquired by such other person from the decedent for less than an adequate and full consideration in money or money's worth, there shall be excepted only such part of the value of such property as is proportionate to the consideration furnished by such other person. (98)

Same. The provisions of this law are applicable to so much of the estates of nonresident decedents as consists of real estate or tangible personal property located within this State, except where otherwise specifically provided. (120)

2

Additional estate tax.-The minimum tax imposed by this Commonwealth upon the transfer at death of the estate of a resident decedent is in no case to be less than the credit allowed by the Federal estate tax act, which credit is allowed by the said act on account of estate, inheritance, legacy, or succession taxes actually paid to any State or Territory or the District of Columbia in respect of any property included in the gross estate. Such minimum tax imposed by this State is in no case to be less than 80 percent of the tax imposed by said Federal act. (115)

Exemptions. The following transfers of property are exempt from this tax: All property which passes exclusively for State, county, or

The provisions of law relating to this tax are shown on p. 7.

municipal purposes, within this State; or for charitable, educational, or religious purposes within this State; or for the exclusive benefit of any institution, association, or corporation in this State, the property of which is exempt from taxation by the laws of this State. Beneficiaries of class A are allowed an exemption of $5,000; class B, $2,000; and class C, $1,000. (98)

Classification of beneficiaries. The beneficiaries under this act are classified as follows: Class A: Father, mother, grandfather, grandmother, husband, wife, children (by blood or adoption), grandchildren, and all other lineal ancestors and lineal descendants, of decedent. Class B: Brothers, sisters, nephews and nieces, of the whole or half blood. Class C: Grandnephews and grandnieces of decedent, and all persons other than members of classes A and B, and all firms, institutions, associations, and corporations. (98)

Rates of tax. This tax is determined upon the aggregate actual value at the time of the death of the decedent of all property within the jurisdiction of this Commonwealth, which passes from the decedent to each beneficiary, and it is levied at the following rates upon the amounts in excess of the exemptions granted: (98)

Filing returns. The personal representative of every decedent whose gross estate is in excess of $1,000 is required to file a return with the department of taxation within 4 months after the death of the decedent. (102)

Payment of tax; interest.-This tax is payable to the State treasurer at the expiration of 1 year after the death of the decedent; if not paid when due, interest is charged at the rate of 1 percent per month, or fraction thereof, from the due date until date of payment. If the amount due is not determinable until more than 11 months after decedent's death, then the penalty is not added until 30 days after the tax is determinable. (108)

Tax lien.-Property of which a decedent dies seized or possessed subject to this tax, in whatever form of investment it may happen to be, and all property acquired in substitution therefor, is charged with a lien for all taxes and interest thereon which are or may become due on such property; but said lien does not affect any personal property after the same has been sold or disposed of to a bona fide purchaser for value. (109)

Securing payment of taxes due other States.-Provisions exist in this law requiring executors and administrators to file proof that all death taxes, interest, and penalties due the State of domicile of a nonresident decedent have been paid or secured, unless letters testa

mentary or administration have been issued on the estate of such decedent in the State of his domicile. These provisions are applicable only in the event the laws of said State of domicile contain a provision whereby the payment of similar taxes, interest, and penalties due this State is reasonably assured. (120a)

Disposition of proceeds. All taxes collected under the provisions of this act are paid into the State treasury and credited to the general fund of the Commonwealth for the support of the government. (118) Administration of act.-The department of taxation administers and enforces the provisions of this act. (116)

Source of information. Chapter 9 of the Tax Code, Virginia Code of 1936, Annotated.

Gift Tax

Tax imposed.-A State gift tax is levied upon the shares of the respective beneficiaries in all property within the jurisdiction of this Commonwealth, real, personal, and mixed, and any interest therein, which, in any one calendar year, passes by gift. (120–1)

Gifts taxed. This tax applies whether the gift is in trust or otherwise and whether it is direct or indirect. In the case of a gift made by a nonresident, the tax applies if the property is within the jurisdiction of this State only. (120-1),

Exemptions. Same provisions as are applicable to the inheritance (120-1)

tax.

Classification of beneficiaries. Same provisions as are applicable to the inheritance tax. (120-1)

Rates of tax. Same rates as are applicable to transfers of property under the inheritance tax law.

(120-1)

Filing returns. Every person who, within any calendar year, makes any gift or gifts taxable hereunder is required to make a report thereof to the department of taxation on or before March 15 following the close of such calendar year, but said department may grant a reasonable extension of time for such filing. (120-14)

Payment of tax; interest.-This tax is payable to the department. of taxation by the donor on or before March 15 following the close of the calendar year. If a donor fails to file a return, a penalty of 10 percent of the tax is added, plus interest upon the tax and penalty at the rate of 6 percent per annum from the original filing date until the date of assessment. Unpaid taxes, penalties, and interest bear interest at the rate of 6 percent per annum from due date until date of payment. (120-4, 120-5)

Tax lien. This tax is a lien upon all gifts that constitute the basis for the tax for a period of 10 years from the time they are made; if not paid by the donor when due, each donee is personally liable, to the extent of their respective gifts, for the tax assessed or assessable thereon. Any part of the property comprised in a gift that may have been sold by the donee to a bona fide purchaser is divested of the lien imposed, and the lien, to the extent of the value of such gift, attaches to all the property of such donee (including after-acquired property), except any part sold to a bona fide purchaser. (120-6)

Credits allowed. In case a tax has been imposed under this act upon any gift, and thereafter upon the death of the donor the amount thereof is required by the inheritance tax law of this State to be included in the gross estate of the decedent, then there is credited against and applied in reduction of the inheritance tax, which would

otherwise be chargeable against the estate of the decedent or the respective shares of the beneficiaries thereof under said inheritance tax law, an amount equal to the tax paid with respect to such gift. (120-13)

Securing payment of taxes due other States. Same provisions as are applicable to the inheritance tax. (120a)

Disposition of proceeds. The proceeds of this tax are paid into the general fund of the State treasury. (Chapter 137, Session Law of 1934.)

Administration of act.-The department of taxation administers and enforces the provisions of this act. (120–4)

Source of information.-Chapter 9A of the Tax Code, Virginia Code of 1936, Annotated.