McNaughton v. Newport
Citation | 67 Idaho 91,170 P.2d 601 |
Decision Date | 28 June 1946 |
Docket Number | 7295 |
Parties | McNAUGHTON et al. v. NEWPORT, Commissioner of Finance |
Court | United States State Supreme Court of Idaho |
Appeal from District Court, First Judicial District; Shoshone County; Albert H. Featherstone, Judge.
Judgment affirmed.
Frank Langley, Atty. Gen., and R. W. Beckwith, Asst. Atty. Gen for appellant.
Inheritance tax on transfer of stocks of corporations is payable in state of domicile of corporation where statute so provides. In re Bronson's Estate, 150 N.Y. 1, 44 N.E. 707, 34 L.R.A. 238, 55 Am.St.Rep. 632; Gamble v. Dawson, 1912, 67 Wash. 72, 120 P. 1060, Ann.Cas.1913D, 501; McDongald v. Lilienthal, 174 Cal. 698, 164 P. 387 L.R.A.1917F, 267; In re Sack's Estate, 232 A.D 433, 250 N.Y.S. 113; State Tax Commission of Utah v. Aldrich, 316 U.S. 174, 62 S.Ct. 1008, 86 L.Ed. 1358, 139 A.L.R. 1436.
Where two acts deal with the common subject matter the one which deals with it in the more particular way will prevail. State v. Taylor, 58 Idaho 656, 78 P.2d 125; State v. Jones, 34 Idaho 83, 199 P. 645.
William F. McNaughton, of Coeur d'Alene, and Therrett Towles, of Spokane, Washington, for respondents.
State of Idaho is not entitled to levy and collect an inheritance tax by reason of the death of a resident of the State of Washington upon the transfer of stocks in Idaho corporations belonging to his estate. I.C.A. §§ 14-403 and 14-408; Rem.Rev.Stat. Wash., § 11201-a, 1941 Suppl., p. 583.
Courts do not favor double taxation. Reciprocal exemption provision of Transfer and Inheritance Tax Act should be interpreted so as to avoid double taxation on same succession by other States. Legislative will is controlling factor. I.C.A. §§ 14-403 and 14-408; Rem.Rev.Stat. Wash., § 11201-a, 1941 Suppl., p. 583; 28 Am.Jur., Inheritance, Estate and Gift Taxes, Sec. 200, p. 104; State v. Davis, 88 Kan. 849, 129 P. 1197, Ann.Cas.1914B, 688; Bliss v. Bliss, 221 Mass. 201, 109 N.E. 148, L.R.A.1916A, 889.
In construing provisions of statute imposing inheritance tax, regard must be had for general scheme of statute as a whole, and its various provisions should be so interpreted as to make it a harmonious whole. All parts of act should be considered, compared, and construed together. Ingard v. Barker, 27 Idaho 124, 147 P. 293; Idaho Gold Dredging Co. v. Balderston, 58 Idaho 692, 78 P.2d 105; Wright v. Village of Wilder, 63 Idaho 122, 117 P.2d 1002.
Statutes relating to same subject matter, particularly when passed at same session of legislature, should be construed together and, if possible, so as to harmonize and give effect to each provision. Peavy v. McCombs, 26 Idaho 143, 140 P. 965; Perrault v. Robinson, 29 Idaho 267, 158 P. 1074.
Appellant's contention that provision of Transfer and Inheritance Tax Act dealing with transfer of stock in Idaho corporations is a special statute and should prevail over general sections of Act, including reciprocal exemption provision, is not applicable as there is no conflict or repugnancy in said provisions of the Act, one impliedly referring to the other. I.C.A. §§ 14-403 and 14-408; Oregon Short Line R. Co. v. Minidoka County, 28 Idaho 214, 153 P. 424.
John Dolan died testate April 12, 1945, in the State of Washington. His last will and testament was admitted to probate April 27, 1945 in the Superior Court of the County of Spokane. William F. McNaughton, a resident of the State of Idaho, and the Seattle-First National Bank, operating through its Spokane branch were, by said court, appointed executors of the last will and testament of said decedent, and thereupon qualified as such, and ever since have been and are the duly appointed, qualified and acting executors of the last will and testament of said deceased. At the time of his death decedent was the owner of 1,000 shares of the capital stock of Dayrock Mining Company, 40,121 shares of the capital stock of Highland-Surprise Consolidated Mining Company, and 21,000 shares of the capital stock of the Chester Mining Company. These shares were of the value of approximately $ 39,500, practically all of which stood in the name of decedent. There were no dividends or income due the estate of decedent on any of said shares at the time of his death, and decedent owned no real estate in Idaho. However, a number of the certificates representing decedent's ownership of stock in said Chester Mining Company were in decedent's safety deposit box in a bank in the County of Shoshone, Idaho, while certificates for the balance of the stock hereinbefore mentioned were in possession of decedent at the time of his death in the State of Washington, and certificates representing all of said stock are now in the possession of respondents as executors of the will of said decedent. The Commissioner of Finance of the State of Idaho claimed the transfer of said shares of stock from decedent, as a result of his death, was subject to the inheritance tax imposed by the provisions of the Transfer and Inheritance Tax Act of the State of Idaho, particularly Sections 14-403 and 14-408, I.C.A.
This action was commenced in the Probate Court of the County of Shoshone, State of Idaho to secure a declaratory judgment determining whether the stock owned by the decedent in said Idaho corporations is taxable under our Transfer and Inheritance Tax Act or whether such stock is exempt from the payment of an inheritance tax.
In the complaint, it was alleged, so far as is pertinent here, that:
August 31, 1945, appellant Commissioner answered the complaint so filed in the Probate Court by the executors. He admitted all the allegations of the complaint excepting those contained in the paragraphs, above quoted. Those appellant Commissioner denied. The cause was tried before Hon. Thomas B. Kelly, sitting without a jury, September 22, 1945. October 12, 1945, findings of fact and conclusions of law were made and filed and judgment and decree entered thereon in favor of respondents and against appellant. October 22, 1945, Commissioner Newport appealed from the judgment of the Probate Court to the District Court of the First Judicial District of the State of Idaho in and for the County of Shoshone.
The cause was tried de novo in that court November 19, 1945, before Hon. Albert H. Featherstone, sitting without a jury. December 11, 1945, findings of fact and conclusions of law were made and filed and on the same day judgment was entered thereon in favor of respondents and against appellant Commissioner. The appeal to this court is from the judgment of the District Court.
Our Transfer and Inheritance Tax Act was enacted in 1929, Chap. 243, S.L.1929, p. 469. It is now Chapter 4, Sections 14-401 to 14-428, I.C.A., both inclusive. So far as material here, Section 14-403 ( ) provides:
[14-403 I.C.A.] "Tax on shares of stock in domestic corporation owned by...
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