§ 223 Relating to Discount and Interest. until the cause for delay was removed, after which 10 per cent. was chargeable. Matter of Fayerweather, 143 N. Y. 114. 377. Liability to Pay Is an Accrued Right. Where the liability to pay interest had been incurred under the Act of 1887, but proceedings were not commenced until after the passage of the Act of 1892, the saving clause of that act (section 24), reserving from the repealing clause "any right accruing, accrued, or acquired prior to May 1, 1892," applies to the liability to pay the interest, and 6 per cent. could only be charged from and after the expiration of the eighteen months. Matter of Fayerweather, 143 N. Y. 114. 378. Other Decisions Relating to Discount and Interest. Matter of Moore, 90 Hun, 162, 35 N. Y. S. 782; Matter of Milne, 76 Hun, 328, 27 N. Y. S. 727; People v. Prout, 117 N. Y. 650, affg. 53 Hun, 541, 6 N. Y. S. 457. 379. Corresponding Sections of Former Acts Relating to Discount and Interest. In the original Act of 1885, section 4 provided that if the tax was paid within one year from the decedent's death, interest was charged at the rate of 6 per cent.. unless the tax was paid within six months from the accrual thereof, in which event no interest was charged and a deduction of 5 per cent. was allowed. If the tax was not paid within one year then interest at the rate of 10 per cent. per annum was to be charged and computed from the accrual of the tax until payment was made, and the executor, administrator, or trustee was required to give a bond for the payment of the tax and interest. Section 5 of this act provided that the pen Id.; Former Acts Relating to. § 223 alty of 10 per cent. should not be charged where, by reason of claims made upon the estate, necessary litigation or other unavoidable cause of delay the estate could not be settled at the end of one year from the decedent's death, but in such cases only 6 per cent. per annum should be charged upon the tax from the expiration of such year until the cause of such delay was removed. Chapter 713, Laws of 1887, in effect June 25th of that year, amended section 4 above, by providing that if the tax was paid within eighteen months from the decedent's death no interest should be charged and the representatives of the estate were required to give a bond only after the expiration of the eighteen months if the tax remained unpaid. This act also amended section 5 by charging the 6 per cent. penalty incurred by necessary and unavoidable delay, from the expiration of the eighteen months after decedent's death until the cause of delay was removed. Matter of Fayerweather, 143 N. Y. 114; Matter of Heller, N. Y. Law Journal of July 16, 1904. Chapter 399, Laws of 1892, in effect May 1st of that year, consolidated sections 4 and 5 of the Act of 1885, and substantially re-enacted the provisions of said sections in section 4 of that act, except that in cases where the penalty had been remitted from 10 to 6 per cent. the interest commenced from the accrual of the tax, instead of a period eighteen months thereafter, and continued until the cause of such delay was removed, after which 10 per cent. was charged. This amendment also provided that where a bond was given to defer payment of tax, interest should be at the rate of 6 per cent. from the accrual of the tax until paid. The provisions of the Act of 1892 were re-enacted § 223 Id.; Former Acts Relating to. in section 223 of chapter 908, Laws of 1896, in effect June 15th of that year, and has remained unchanged. By chapter 368, Laws of 1905, in effect June 1st, the provision in reference to giving a bond to defer the payment of taxes was omitted, section 226 of the Act of 1896, referring to deferred payments, having been entirely omitted in the Act of 1905, and the word "penalty "" was omitted from the title to this section. TAXABLE TRANSFERS CHAPTER X. LIEN OF TAX AND COLLECTION THEREOF, 224, TAX LAW - - REFUND OF TAX ERRONEOUSLY PAID, § 225, TAX LAW 380. Lien of tax and collection by executors, administrators and trustees. 381. The general subject. 382. The tax is a lien upon the property until paid. 383. The two-year limitation to enforce payment does not apply. 384. Neither the two nor six-year limitation apply to this statute. 385. Limitations prescribed by section 282 of the Tax Law. 386. Only applies to bona fide purchasers. 387. Liability of purchasers of real property within six years from accrual of tax. 388. Collection of tax by executors, etc. 389. Executors, administrators or trustees - liability. 390. Executors liable, although estate has been distributed. 391. Tax on transfer of real estate - not to be assessed against executor. 392. Sale of what property to pay tax. 393. Surrogate cannot decide executor's liability to pay tax on motion. 394. Administrator cannot be sued individually for transfer tax withheld. INTEREST ON REFUNDS. 395. When executor's liability ends. 396. Subrogation—for the benefit of creditors. 397. Duty of foreign executrix as to marshaling assets. 398. When order should relieve executors from liability of paying tax. 399. Refund of tax erroneously paid. 400. The general subject. 401. Provisions of this section are exclusive. 402. Power of surrogate to order refund. 403. Surrogate cannot direct Comptroller to refund. 404. Refund after time to appeal has expired. 405. The two-year limitation chapter 382, Laws 1900. 406. When proceeding is commenced within the twoyear limitation. 407. Application for refund must be made within one year from reversal or modification of order. 408. When interest attaches to refund. 409. Mandamus will lie to enforce payment of interest on refund. 410. Statute need not provide for interest when directing a refund. § 224 Lien and Collection of Tax. 411. Amendment of 1907 prohibiting payment of interest on refunds. 412. Right to refund is not a vested right. 413. Refund of temporary payment. 414. Order need not direct Comptroller to refund. 415. Taxing debts, etc., erroneously allowed. 380. Lien of Tax and Collection by Executors, Administrators and Trustees. [§ 224, Tax Law.] Every such tax shall be and remain a lien upon the property transferred until paid and the person to whom the property is so transferred, and the executors, administrators and trustees of every estate so transferred shall be personally liable for such tax until its payment.1 Every executor, administrator or trustee, shall have full power to sell so much of the property of the decedent as will enable him to pay such tax in the same manner as he might be entitled by law to do for the payment of the debts of the testator or intestate. Any such executor, administrator or trustee having in charge or in trust any legacy or property for distribution subject to such tax shall deduct the tax therefrom and shall pay over the same to the state comptroller or county treasurer, as herein provided. If such legacy or property be not in money, he shall collect the tax thereon upon the appraised value thereof from the person entitled thereto. He shall not deliver or be compelled to deliver any specific legacy or property subject to tax under this article to any person until he shall have 1. Chap. 399, Laws 1892-in effect May 1 of that year. First contained provision relating to the lien of all taxes and also the personal liability of the executors, etc., for payment of the tax, although under section 4, Act of 1885, as amended by chapter 713, Laws 1887, if executor, etc., did not pay tax within eighteen months from decedent's death, he was required to give a bond for the payment of said tax and interest, and a legacy charged on real estate remained a charge thereon until paid. (Sec. 6, Act 1885.) Section 7 2. Chap. 483, Laws 1885-in effect June 30 of that year. of the Act of 1885 gave the executor, etc., power to sell so much of the property of decedent as would enable them to pay the tax. This provision was re-enacted by the Act of 1892 (supra), becoming a part of section 5 of that act, and was also re-enacted as a part of section 224 of the Act of 1896, chapter 908. |