UNITED STATES CIRCUIT COURT, SOUTHERN DISTRICT OF OHIO, WESTERN DIVISION.— No. 5375. William L. Snyder, executor of David L. Snyder, deceased, plaintiff, v. Bernhard Bettmann, collector, defendant. [On demurrer to amended petition.] David L. Snyder bequeathed to the city of Springfield, Ohio, $200,000 in United States Government bonds, "in trust to manage and invest the principal thereof in such manner as the laws of Ohio direct, or might direct, in case of guardian or minors, and to use and expend the net income arising from said trust, in the maintenance, improvement, and beautifying of the public park of said city known as Snyder Park, including any extensions thereof which said city might otherwise acquire." The defendant, Bernhard Bettmann, as collector of internal revenue for the first district of Ohio, collected from the plaiutiff, the executor of David L. Snyder, because of this bequest, an inheritance tax under the war-revenue law of 1898, and which the executor paid under protest, and afterwards applied to the Commissioner of Internal Revenue to have refunded; but the Commissioner of Internal Revenue refused the application, and this action is now brought to recover the amount of said tax, upon the ground that the law which authorized its levy and collection is in contravention of the Constitution of the United States. It is urged, in substance, that the legacy is property of the city of Springfield, devoted to the legitimate purposes of municipal government, and, therefore, nontaxable. But in view of the Supreme Court of the United States, as expressed in Knowlton v. Moore (178 U. S., 41), Plummer v. Coler (ibid., 115), Murdock v. Ward (ibid., 139), the tax is not levied upon the legacy, but upon the right to transmit the legacy from the deceased to the city of Springfield, through the agencies provided by the laws of Ohio, and it does not become the property of the city of Springfield until this toll or tax is taken out during the process of transmission. A tax has not been levied upon the property either as the property of the estate of David L. Snyder or as the property of the city of Springfield, but a duty or charge has been levied upon the estate of David L. Snyder for the privilege of transmitting the property to the city of Springfield. This right or privilege of transmission is a subject of taxation within the reach of either the National or State government. (Knowlton ". Moore, 178 U. S., 58, et seq.) The case of the United States v. Railroad Company (17 Wall., 322) does not support the contention of the plaintiff because the subject of taxation there was an investmen which the city of Baltimore had duly made in pursuance of the laws of the State of Maryland. The demurrer will be sustained and the petition dismissed at plaintiff's costs. Income, and additions subsequent to death of testator not subject to legacy tax Dept. No. 280 388 ........... Adopted child considered as a stranger in blood to foster parent; legacy tax... 437 Agreement to sell, calls, stamp tax; decision of United States Supreme Court.. 338 261 Assessment of taxes, reporting special-tax payers for, and revising circular 410.. 272 316 Assignment of storekeepers and storekeeper-gaugers, unlawful.. 306 Assignments of claims and transfers, when null and void.................. 276 Associations: Building and loan, stamp tax on.... 285 Proxies or powers of attorney, stamp tax on .... 270 Attorney-General, opinion of; capital and surplus of banks 262 270 Attorneys: District, instructions as to collection of judgments.. 348 United States, notification of indictment of internal-revenue officers Banks and stationers' documentary stamps, redemption of... Bay rum from Porto Rico subject to tax as distilled spirits. 283 440 446 262 401, 402 453 361 446 293, 401, 402 Dept. No. Beneficial interest, tax on clear value....... Bills of exchange, foreign, stamp tax on.. Claims for refund..... Refund of tax paid on........ Stamp tax on, declared unconstitutional by Supreme Court................ Stamp tax on, unconstitutional; decision of United States Supreme Court.. Bonds: Contractors', for public works, stamp tax....... Stamp tax on, in legal proceedings, under act of March 2, 1901. Stamp tax on, under act of March 2, 1901 State officers', stamp tax...... Used in Internal Revenue Service, requirements as to stamp tax.. Bottles containing wine for sale over a bar or otherwise, stamp tax. 349 301 385 355 333, 452 328 339 355 356 Branding and marking oleomargarine by retail dealers previous to sale of................. Fig or cherry, exempting distillers of, from certain provisions of law.. Brewer's sales of bottled beer, special tax.......... .............. Butlers and servants attached to foreign legations not required to pay stamp Calls: C. Stamp tax; decision of United States Supreme Court..... Subject to special tax and stamp tax, under act of March 2, 1901.... Capital and surplus of banks; opinion of Attorney-General.. 262 Capital of banks; special tax..... 401, 402 Cards, playing, special tax not required on manufacture of.. 410 Certificates, sales of warehouse...... 300 Charitable and religious institutions, bequests to, exempt from legacy tax.......... 299 Checks of sheriffs, bank, stamp tax....... 283 Cherries or figs, brandy from, exempting distillers of, from certain provisions 288 Dept. No. Supplemental to regulations No. 8, revised Cider, strawberry, special tax.... Cigarette, cigar, tobacco, and snuff stamps, redemption of, under act of March Cigarette stamps, difference in appearance of. Cigarettes: Changes in records relating to sales of....... Records of daily sales....... Use, redemption, etc., of. Cigars : Changes in records relating to sale of............ Porto Rican, subject to internal-revenue tax... Circular letters: 321 341 433 360 307 366 341, 354 360 312 332 407 327 307 Changes in records relating to the sale of stamps for beer, cigars, etc.. Stamp tax requirements on bonds used in Internal Revenue Service........ Additional instructions relative to articles of merchandise of Porto Rican 407 ........... Broker, second-class, instructions relative to (No. 598) 318 Cancellation of beer stamps; modifying circular 604 (No. 605) 381 ............. 347 Cancellation of stamps (No. 604) modifying circular 602. 368 Collection of internal-revenue tax upon articles of merchandise from Porto 387 Compensation limit of gaugers, storekeepers, and storekeeper-gaugers 447 Equalization of wantage (No. 594). 296 Examination of grain distilleries and duties of examining officers (No. 439 Exempting distillers of brandy from figs or cherries from certain provi- 288 Exemptions of druggists from special tax as liquor dealers (No. 608).............. 421 427 Extending time for filing returns with collectors by manufacturers of and 281 Instructions relative to special tax created by act approved March 2, 1901 292 Modification of the definition of mixed flour (No. 600).... 322 Records of operations of grain distilleries and duties of officers in charge 438 Redemption of documentary and proprietary stamps (No. 596). 305 361 Stamp tax on bonds, construction of statute (No. 610).. 432 Tax-paid spirits in hands of wholesale liquor dealers and rectifiers October Circulars-Continued. Unlawful assignment of storekeepers and storekeeper-gaugers (No. 597) .. Unlawful use of penalty envelopes (No. 599)... Use of telegraph in transaction of official business (No. 613)....... Circulars by numbers: ......... No. 578. Revised, tax-paid spirits in hands of wholesale liquor dealers and Dept. No. 306 297 319 444 269 397 No. 589. Vouchers of deputy collectors........ 269 No. 591. Extending time for filing returns with collectors by manufac- 281 No. 592. Exempting distillers of brandy from figs or cherries from certain 288 No. 593. Instructions relative to special tax, created by Act approved 292 ...... No. 594. Equalization of wantage.. 296 No. 595. Unlawful issue of receipts for moneys received in payment of 297 No. 596. Redemption of documentary and proprietary stamps.. 305 No. 597. Unlawful assignment of storekeepers and storekeeper-gaugers.. 306 318 319 No. 600. Modification of the definition of mixed flour.... No. 603. Redemption of stamps by banks or stationers.... No. 607. Additional instructions relative to articles of merchandise of 407 No. 608. Exemption of druggists from special tax as liquor dealers...... 421 427 432 No. 611. Records of operations of grain distilleries and duties of officers in 438 No. 612. Examination of grain distilleries, and duties of examining offi- cers.... 439 No. 613. Use of telegraph in transaction of official business.. 444 No. 614. Compensation limit of gaugers, storekeepers, and storekeeper- Refunding; when transfers and assignments are null and void.. Collateral, stamp tax on shares of stock pledged as, to secure future payment 277 417 Collection of internal-revenue tax upon articles of merchandise from Porto 387 Collectors, deputy, vouchers of....... 269 Collectors' record of stills, No. 115 337 Compensation limit of gaugers, storekeepers, and storekeeper-gaugers 447 Compounding liquors by retail liquor dealers, special-tax liability. 418 ............. Computation of legacy tax... 435 Contractors for public works, bonds and guaranties of, stamp tax.. 356 Conveyances, stamp tax on 287, 364, 365, 382 Court, no special tax required for sales made in obedience to mandates of........ 316 |