CHAPTER VIII.

TAXABLE TRANSFERS-§ 221, TAX LAW-EXCEPTIONS AND LIMITATIONS TAXABLE PERSONS- MUTUALLY ACKNOWLEDGED RELATIONSHIP OF PARENT AND CHILD "SPECIFICALLY EXEMPTED."

Taxable Transfers.

283. Exceptions and Limitations.

[§ 221, Tax Law.] When property real or personal or any beneficial interest therein, of the value of less than ten thousand dollars, passes by any such transfer to or for the use of any father, mother, husband, wife, child, brother, sister, wife or widow of a son, or the husband of a daughter, or any child

1. Chap. 41, Laws 1903-in effect March 16 of that year. - First taxes transfers of real property to 1-per cent. class.

2. Chap. 215, Laws 1891-in effect April 20 of that year. First taxes transfers of personal property to 1-per cent. class.

$ 221

Exceptions and Limitations.

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or children adopted as such in conformity with the laws of this state, of the decedent, grantor, donor or vendor, or to any child to whom any such decedent, grantor, donor or vendor for not less than ten years prior to such transfer stood in the mutually acknowledged relation of a parent, provided, however, such relationship began at or before the child's fifteenth birthday and was continuous for said ten years thereafter, and provided also that, except in the case of a stepchild, the parents of such child shall have been deceased when such relationship commenced, or to any lineal descendant of such decedent, grantor, donor or vendor born in lawful wedlock, such transfer of property shall not be taxable under this article; if real or personal property, or any beneficial interest therein, so transferred is of the value of ten thousand dollars or more, it shall be taxable under this article at the rate of one per centum upon the clear market value of such property. But any property devised or bequeathed to any person who is a bishop or to any religious,”

3. Chap. 713, Laws 1887 in effect June 25 of that year. - First included an adopted child in the 1-per cent. class of taxable persons.

4. Chap. 713, Laws 1887-in effect June 25 of that year. — First contained provision relative to mutually acknowledged relationship, except that by this amendment the relationship could exist between "any person " and the decedent, instead of "any child" and the decedent.

5. Chap. 88, Laws 1898-in effect March 21 of that year. - Provided for the mutual acknowledged relationship to exist only between “any child" and the decedent, providing further that such relationship must have begun at or before the child's fifteenth birthday and been continuous for ten years thereafter.

6. Chap. 204, Laws 1907-in effect April 25 of that year. - Inserted the word "stepchild" between the words "child" and "brother" in the first sentence of section 221.

Chap. 310, Laws 1908-in effect May 18 of that year. - Amended section 221 (supra) by striking therefrom the word "stepchild" in the first sentence as above indicated, and inserting the clause "except in the case of a stepchild" at the place in said section where it now appears in italics.

7. Chap. 368, Laws 1905-in effect June 1 of that year. Added a further proviso that the parents of such child shall be deceased when such relationship commenced.

8. Chap. 41, Laws 1903 - - in effect March 16 of that year. - Changed the phraseology of section 221 of the Act of 1896, to read as above, so as to include real as well as personal property in the limitation to the 1-per cent. class.

9. Chap. 169, Laws 1892-in effect March 19 of that year. — First exempted transfers to a bishop or religious corporation by adding such

Specifically Exempted.

§ 221

educational, charitable, missionary, benevolent, hospital or infirmary 10 corporation including corporations organized exclusively for bible or tract purposes 11 shall be exempted from and not subject to the provisions of this article. There shall also be exempted from and not subject to the provisions of this article personal property other than money or securities bequeathed to a corporation or association organized exclusively for the moral or mental improvement of men or women or for scientific, literary, library, patriotic, cemetery or historical purposes or for the enforcement of laws relating to children or animals or for two or more of such purposes and used exclusively for carrying out one or more of such purposes. But no such corporation or association shall be entitled to such exemption if any officer, member, or employee thereof shall receive or may be lawfully entitled to receive any pecuniary profit from the operations thereof except reasonable compensation for services in effecting one or more of such purposes or as proper beneficiaries of its strictly charitable purposes; or if the organization thereof for any such avowed purpose be a guise or pretense for directly or indirectly making any other pecuniary profit for such corporation or association or for any of its members or employees or if it be not in good faith organized or conducted exclusively for one or more of such purposes.1

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provision to section 1, Act of 1885. This provision became a part of section 2 of chapter 399, Laws of 1892, in effect May 1st of that year, and was continued in section 221 of the Act of 1896. The words "heretofore or hereafter" bequeathed, etc., which gave this provision a retroactive effect, were omitted by chapter 368, Laws of 1905 (supra). 10. Chap. 368, Laws 1905-in effect June 1 of that year. Also specifically exempts educational, charitable, missionary, benevolent, hospital, or infirmary corporations.

11. Chap. 458, Laws 1901-in effect April 22 of that year. — Also exempted "corporations organized exclusively for Bible or tract purровев."

12. Chap. 458, Laws 1901 — in effect April 22 of that year. — Also added the provision of this section in reference to the exemption of personal property other than money or securities bequeathed to certain corporations therein named.

§ 221

Limitations, to 1-Per Cent. Class.

284. The General Subject.

Section 220 imposes, in certain cases, a tax of 5 per cent. upon the transfer of property, real or personal, of the value of $500, or over, or any interest therein or income therefrom, in trust or otherwise, to persons or corporations not exempt by law from taxation on real or personal property, except as otherwise prescribed in the next section.

In section 221, certain exceptions and limitations are stated, which effects the taxability of all transfers mentioned in the preceding section, and when these two sections are read together it is apparent that the statute recognizes two classes of taxable persons, the transfers to whom are taxed at a different rate, and also two limitations respecting the value of the estate transferred, which alone determine the liability of the respective transfers to taxation. This section also exempts from the provisions of the act all transfers to certain persons and corporations therein named.

285. Limitations To the 1-Per Cent. Class.

Where the transfer is to or for the use of any father, mother, husband, wife, child, brother, sister, wife or widow of a son, or the husband of a daughter, or any child or children adopted as such in conformity with the laws of this State, of the decedent, grantor, donor. or vendor, or to any child to whom any such decedent, donor, or vendor, for not less than ten years prior to such transfer, stood in the mutually acknowledged relation of a parent, provided, however, such relationship began at or before the child's fifteenth birthday, and was continuous for said ten years thereafter, and provided also that, except in the case of a stepchild, the parents of such child shall be deceased when such