2

tax law or laws for estate, inheritance, legacy, or succession taxes paid to any State or Territory or the District of Columbia. The remainder constitutes the estate tax of this State upon the estate of the decedent.

(109)

Payment of tax; interest. This tax is payable to the State tax department within 30 days after the ascertainment of the amount of inheritance tax and the amount of Federal estate tax on such estate. From the due date and until paid, interest is charged at the rate of 4 percent per annum. (109)

Disposition of proceeds. The proceeds of this tax are for the use of the State. (109)

Administration of act.-The administration and enforcement of the provisions of this act are vested in the State tax department. (109) Source of information.-Chapter 6, Article 11, Revised Code of Delaware, 1935.

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

DISTRICT OF COLUMBIA

INHERITANCE AND ESTATE TAXES

Inheritance Tax

Tax imposed. Under an inheritance tax act, effective August 18, 1937, a tax is imposed upon estates of decedents and upon the shares of beneficiaries of such estates as hereinafter provided. (1)

Transfers taxable. All real property and tangible and intangible personal property, or any interest therein, having its taxable situs in this District, transferred from any person who may die seized or possessed thereof, is subject to this tax. The transfers taxable include those made either by will or by law, or by right of survivorship. All such property, or interest therein, transferred by deed, grant, bargain, gift, or sale (except in cases of a bona fide purchase for full consideration in money or money's worth), made or intended to take effect in possession or enjoyment after the death of the decedent, or made in contemplation of death, to or for the use of the several classes of beneficiaries, in trust or otherwise, is subject to this tax; and this includes property of which the decedent has retained for his life or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death (a) the possession or enjoyment of, or the right to the income from such property, or (b) the right, either alone or in conjunction with any person, to designate the persons who shall enjoy or possess the property or the income therefrom. (1)

Same. In case a beneficiary dies within 6 months after the death of a decedent and before coming into the possession and enjoyment of any property passing to him, and before selling, assigning, transferring, or in any manner contracting with respect to his interest in such property, such property is taxed only once, and if the tax on the property so passing to said beneficiary has not been paid, then it is assessed on the property received from such share by each beneficiary thereof, finally entitled to the possession and enjoyment thereof, as if he had been the original beneficiary, and the exemptions and rates of taxation are governed by the respective relationship of each of the ultimate beneficiaries to the first decedent. All property and interest therein passing from a decedent to the same beneficiary, and all beneficial interests accruing to such beneficiary on account of the death of such decedent, are united and treated as a single interest for the purpose of determining the tax. (1)

Exemptions. The following property is exempt from this tax: Property transferred exclusively for public or municipal purposes, to the United States or the District of Columbia, or exclusively for charitable, educational, or religious purposes within the District of Columbia. Beneficiaries of class A are allowed an exemption of $5,000; class B, $2,000; class C, $1,000.

(1)

Classification of beneficiaries. The beneficiaries under this act are classified as follows: Class A: Father, mother, husband, wife, children by blood or adoption, or any other lineal descendants or lineal ancestors of the decedent. Class B: Brothers, sisters, nephews, and nieces, of the whole or half blood, of the decedent. Class C: Grandnephews and grandnieces of the decedent, and all other persons, except those mentioned in classes A and B, and all firms, institutions, associations, and corporations. (1)

Rates of tax. The tax is imposed on the clear market value of the property or interest therein at the time of the death of the decedent, and at the following rates: Class A: On all transfers in excess of the amount exempted, 1 percent; class B, 3 percent; class C, 5 percent. (1) Payment of tax; interest.-The personal representative of every decedent is required to pay this tax to the collector of taxes of the District of Columbia within 18 months of the date of the death of the decedent. Each beneficiary receiving property not under the control of a personal representative is required to pay this tax within 6 months of such date. If the tax is not paid when due, interest is charged at the rate of 1 percent per month, or fraction thereof, from the due date until payment. (4,7,11)

Tax lien. This tax is a lien for the period of 10 years on the property or interest therein from the date when the beneficiary becomes entitled to the same in possession or enjoyment. (10)

Disposition of proceeds.-The proceeds of this tax are paid into the general fund of the District of Columbia.

Administration of act.-The Commissioners of the District of Columbia have supervision of the enforcement of these provisions. (9) Source of information.-Chapter 690, Title V, Article I, Seventyfifth Congress, first session.

Estate Tax

Tax imposed. In addition to the inheritance tax imposed by the above provisions, a tax is imposed upon the transfer of the estate of every decedent who dies a resident of the District of Columbia, which tax is equal to 80 percent of the Federal estate tax.2 The provisions of this act became effective August 18, 1937. (18, 25)

Credits allowed. There is credited against and applied in reduction of this estate tax the amount of any estate, inheritance, legacy, or succession tax imposed by any State or Territory of the United States, in respect of any property included in the gross estate for Federal estate tax purposes; but only such taxes as are actually paid and credit therefor claimed and allowed against the Federal estate tax may be applied against and in reduction of this estate tax. In no event is this estate tax to exceed the difference between the maximum credit which might be allowed against said Federal estate tax and the aggregate amount of the taxes described in this paragraph allowable as a credit against the Federal estate tax. The purpose of this tax is to secure for the District of Columbia the benefit of the credit allowed under the Federal estate tax act. (19, 20, 21)

Payment of tax. This tax is payable to the collector of taxes of the District of Columbia within 30 days after the determination of said taxes by the assessor of said District. (24)

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

132222-393

Disposition of proceeds. The proceeds of this tax are paid into the general fund of the District of Columbia.

Administration of act.-The Commissioners of the District of Columbia have supervision of the enforcement of these provisions. (9) Source of information.-Chapter 690, Title V, Article I, Seventyfifth Congress, first session.

FLORIDA

ESTATE TAX

2

Tax imposed; resident decedents; rate.—A tax is imposed upon the transfer of the estate of every person dying after the effective date of this act, who at the time of death was a resident of this State, the amount of which is a sum equal to the amount by which the credit allowable under the Federal revenue act for estate, inheritance, legacy, and succession taxes actually paid to the several States exceeds the aggregate amount of all estate, inheritance, legacy, and succession taxes actually paid to the several States (other than the State of Florida) in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with his estate. (3)

Same; nonresident decedents.-A tax is imposed upon the transfer of real property situate and tangible personal property having an actual situs in this State of every person who at the time of death was not a resident of this State but was a resident of the United States, the amount of which is a sum equal to such proportion of the amount of the credit allowable under the Federal revenue act 2 for estate, inheritance, legacy, and succession taxes actually paid to the several States, as the value of the property taxable in this State bears to the value of the entire gross estate wherever situate. (4) Same; alien decedents.—A tax is imposed upon the transfer of real property situate and tangible personal property having an actual situs in this State and upon intangible personal property physically present within this State of every person who at the time of death was not a resident of the United States, the amount of which is a sum equal to such proportion of the credit_allowable under the Federal revenue act for estate, inheritance, legacy, and succession taxes actually paid to the several States, as the value of the property taxable in this State bears to the value of the estate taxable by the United States wherever situate. Stock in a corporation organized under the laws of this State is deemed physically present within this State. The amount receivable as insurance upon the life of a decedent who at the time of his death was not a resident of the United States, and any moneys deposited with any person carrying on the banking business by or for such a decedent who was not engaged in business in the United States at the time of his death, are not deemed to be physically present in this State. (5)

2

Filing_returns.-Returns are required to be filed with the State comptroller, as commissioner of revenue, in all cases where the gross estate at the death of the decedent exceeds $50,000, and in the case of the estate of every decedent who at the time of his death was not domiciled in the United States, whose gross estate includes any real property situate and tangible personal property having an actual situs in this State and intangible personal property physically present

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