Brown v. Peterson

• Decision Date: 27 January 1919
• Docket Number: No. 31310.,31310.
• Citation: 170 N.W. 444,185 Iowa 314
• Parties: BROWN, STATE TREASURER, v. PETERSON.
• Court: Iowa Supreme Court

185 Iowa 314

170 N.W. 444

BROWN, STATE TREASURER,

v.PETERSON.

No. 31310.

Supreme Court of Iowa.

Jan. 27, 1919.

Appeal from District Court, Henry County; Oscar Hale, Judge.

The opinion states the case. Affirmed.H. M. Havner, Atty. Gen., and C. A. Robbins, Asst. Atty. Gen., for appellant.

W. F. Kopp, of Mt. Pleasant, for appellee.

WEAVER, J.

Nellie B. Ockerson died intestate April 25, 1914, and her entire estate passed to collateral heirs subject to the inheritance tax provided by the statutes of Iowa. The administrator, conceding the liability of the estate to this charge, paid to the state treasurer an amount equal to 5 per cent. upon the net value of the entire estate. Upon filing his final report the state treasurer appeared, excepted thereto and objected to his discharge upon the ground that three of the collateral heirs sharing in the estate were natives and subjects of the kingdom of Sweden, and their inheritance was therefore chargeable with a tax of 20 per cent., instead of 5 per cent. This claim was contested by the administrator. On hearing before the trial court, the exceptions taken by the state treasurer were overruled, the administrator's report was approved, and he was ordered discharged. From this order the treasurer appeals.

[1] The liability of the estate to the payment of the inheritance tax being conceded, the sole question to be considered is the rate at which the charge is to be computed. The general provision of the statute (Code Supp. § 1481a) is that the rate generally applicable where inheritances are taxable is 5 per cent.; but where the property passes to heirs, devisees, or other beneficiaries, who are aliens and nonresidents of the United States, it shall be subject to a tax of 20 per cent. Does the record make a case for imposing a tax at the latter rate?

It is conceded by the appellant, as has been heretofore held by this court, that in so far as our inheritance tax may be found to be inconsistent with the stipulations or provisions of a treaty between the United States and any foreign nation or power, the latter must be allowed to prevail. It appearsthat at the date of the death of this intestate there was an existing treaty between the United States and Sweden in which is found the following provision:

“The citizens of each of the contracting parties shall have power to dispose of their personal goods within the jurisdiction of the other by sale, donation, testament, or otherwise, and their representatives, being citizens of the other party, shall succeed to their personal goods, whether by testament or ab intestato, and they may in accordance with and acting under the provisions of the laws of the jurisdiction in which the property is found take possession thereof, either by themselves or others acting for them, and dispose of the same at their will, paying such dues only as the inhabitants of the country wherein such goods are shall be subject to pay in like cases.”

[2] The trial court sustained the contention of appellee that this agreement between...