brother, sister, or any adopted child, in every such case the rate of tax shall be one dollar on every hundred dollars of the clear market value of such property received; provided, that any estate which may be valued at a less sum than five thousand ($5,000.00) dollars shall not be subject to any tax, the excess over such sum only being taxed. (Acts of 1909, p. 906.)

§ 403. Rate of Taxation in Case of Collateral Relatives.

Sec. 4. When the property or any interest therein shall pass to any uncle, aunt, niece, nephew, or any lineal descendant of the same, in every such case the rate of tax shall be two dollars on every one hundred dollars of the clear market value of such property received, in excess of the sum of $2,000.00. (Acts of 1909, p. 906.)

§ 404. Rate of Taxation in Other Cases.

Sec. 5. In all other cases the rate shall be as follows: On each and every one hundred dollars of the clear market value of all property and at the same rate for any less amount, on all estates of $10,000 and less, $3.00; on $5.00; on all estates exceeding $50,000.00, $6.00. Provided, that an estate of not exceeding $1,000.00 in value shall not be subject to tax. (Acts of 1909, p. 906.)

§ 405. Sec. 6.

Estates for Years or Life-Remainders.

When any person shall bequeath or devise any property to or for the use of grandfather, grandmother, father, mother, husband, wife, lineal descendant, brother, sister or any child thereof, an adopted child or any heir of an adopted child, or any lineal descendant thereof, during life or for a term of years, and remainder to another, the value of the prior estate shall within sixty days after the death of the testator, be appraised in the manner hereinafter provided and shall be taxable as provided in the preceding sections; and the inheritance tax on the remainder of the estate shall be held in abeyance until the beneficiary shall come into possession of same, and shall thereupon likewise be taxable as therein provided. (Acts of 1909, p. 906.)

§ 406. Bequests to Executors in Lieu of Compensation.

Sec. 7. Whenever a decedent appoints one or more executors or trustees and in lieu of their allowance makes a devise or bequest of property to them which would otherwise be liable to said tax, or appoints them his residuary legatees, and said bequests, devises or residuary legacies, exceed what would be a reasonable compensation for their services, such excess shall be liable to such tax, and the court of probate having jurisdiction of their accounts shall fix the amount of such compensation. (Acts of 1909, p. 907.)

§ 407. Time for Payment Interest.

Sec. 8. All taxes imposed by this Act shall be due and payable to the treasurer of the state by the executors, administrators, trustees, heirs or beneficiaries, at the death of the decedent, and if paid within twelve months

no interest shall be charged and collected thereon, but if not paid interest at the rate of nine per cent per annum shall be charged and collected from the time said tax became due. (Acts of 1909, p. 907.)

§ 408. Inventory-Collection of Tax.

Sec. 9. It shall be the duty of every administrator, executor or trustee having in charge or trust any property subject to said tax to file in the probate court of the county of the decedent's death in addition to the inventory of personal property now required, a true inventory of the real estate owned by the decedent at the date of his death, and to collect the tax thereon from the devisee or person entitled to said property; and he shall not deliver any specific legacy or property subject to said tax to any person until he has collected the tax thereon. (Acts of 1909, p. 907.)

§ 409. Legacies Charged upon Real Estate Collection of Tax.

Sec. 10. Whenever any legacies subject to said tax shall be charged upon or payable out of any real estate, the heir or devisee, before paying the same shall deduct said tax therefrom and pay it to the executor, administrator or trustee, and the same shall remain a charge upon said real estate until it is paid; and payment thereof shall be enforced by the executor, administrator or trustee in the same manner as the payment of the legacy itself could be enforced. If any such legacy be given in money to any person for a limited period, such administrator, executor or trustee shall retain the tax on the whole amount; but if it be not in money, he shall make an application to the court having jurisdiction of his accounts to make an apportionment, if the case require it, of the sum to be paid into his hands by such legatee on account of said tax and for such further order as the case may require. (Acts of 1909, p. 907.)

§ 410. Valuation and Appraisement of Property.

Sec. 11. The value of such property as may be subject to said tax shall be its actual value as found by the court of probate, after notice to all persons interested in the succession to said property [shall be] served for the time and in the manner required by law in proceedings for the assignment of dower. But the state treasurer, or any person interested in the succession to said property, may apply to the court of probate having jurisdiction of the estate, or to any circuit court having jurisdiction in case there is no administration, and on such application said court shall appoint three disinterested persons who, being first sworn, shall view and appraise such property at its actual market value for the purposes of said tax, and shall make return thereof to the court, which return may be accepted by the said court, and if accepted shall be binding. And the fees of the appraiser shall be such as are customary in the administration of estates. In the case of annuity or life estate the value thereof shall be determined by the tables of mortality employed by insurance actuaries, and five per centum compound interest. (Acts of 1909, p. 908.)

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§ 411. Jurisdiction of Probate Court.

Sec. 12. The court of probate having either principal or auxiliary jurisdiction of the settlement of the estate of a decedent shall have jurisdiction to hear and determine all questions in relation to said tax that may arise affecting any devise, legacy or inheritance under this act, subject to appeal as in other cases, and the state treasurer, through the attorney general, shall represent the interests of the state in any such proceedings. (Acts of 1909, p. 909.)

§ 412.

Account of Executor not Settled Until Tax Paid.

Sec. 13. No final settlement of the account of any executor, administrator or trustee shall be confirmed by any probate court unless it shall show and the court shall find that all taxes imposed by the provisions of this act upon any property or interest therein belonging to the estate to be settled by said account shall have been paid, and the receipt of the treasurer of the state for such tax shall be the proper voucher for such payment. (Acts of 1909, p. 909.)

§ 413. Duty of Attorney General-Appointment and Compensation of Attorneys.

Sec. 14. It shall be the duty of the attorney general to appear for or in behalf of the state treasury, and institute proceedings in the proper form for the enforcement of the provisions of this act, whenever, from information by the state treasurer, or from any probate judge, or otherwise obtained, he shall have reason to believe any of the taxes provided for herein have become past due. And when requested in writing by any probate judge, he shall assist in the adjustment and collection of any such taxes which shall have accrued under this act, and whenever, in the judgment of the attorney general it becomes necessary and expedient, he shall have the power to appoint attorneys to assist him in any of the duties herein required of him, and the compensation of such attorneys shall be two per cent of all amounts actually collected, except where there may be litigation over past due taxes, in which event the compensation shall be five per cent of all amounts actually recovered, said compensation to be deducted from the amount of taxes so collected. Provided, that any attorney appointed hereunder shall be a resident of the congressional district in which such action for the collection of inheritance tax may be brought or in which the administration of any estate liable therefor may be pending. (Acts of 1909, p. 909.)

§ 414. Repeal of Conflicting Acts.

Sec. 15. That all laws and parts of laws in conflict herewith be and the same are hereby repealed, and that this act take effect and be in force from and after its passage. (Acts of 1909, p. 910, approved May 31, 1909.)

CHAPTER XXIV.

CALIFORNIA STATUTE.

(Statutes of 1905, pp. 341, 374; Statutes of 1909, p. 557; Statutes of 1911, pp. 713-727.)

§ 415. Transfers Subject to Tax-Lien-Persons Liable-Market Value— Power of Appointment.

§ 416.

§ 417.

Classification of Beneficiaries-Tax Rates on Estates Under $25,000.
Rates of Taxation on Estates Over $25,000.

§ 419.

§ 420.

Estates for Years or Life-Remainders and Contingent Interests.
Bequests to Executors in Lieu of Compensation.

§ 421.

Time for Payment of Tax-Interest and Discount.

§ 425.

§ 426.

§ 427.

§ 428.

§ 429.

Payment to County Treasurer-Duty of Controller-Receipts.
Refunding Excess Payments.

Transfer or Delivery of Stock, Securities, Deposits-Notice.
Appraisers and Appraisement.

Jurisdiction of Courts.

§ 431.

Actions to Enforce Tax and Lien-Quieting Title.

§ 432.

§ 433.

Notice to District Attorney that Tax is Due-Special Attorneys.
Costs of Proceedings Against Delinquents.

§ 434.

Payment by County to State Treasurer.

§ 435. Commissions of County Treasurer.

§ 436. Employment of Attorney by County Treasurer.

§ 437. Employment of Counsel by State Auditor.

Refusal of Officers to Discharge Duties-Penalty Therefor.
Definitions of Words Used in Statutes.

§ 441. Repeal of Prior Statutes.

§ 415. Transfers Subject to Tax-Lien-Persons Liable-Market ValuePower of Appointment.

Sec. 1. A tax shall be and is hereby imposed upon the transfer of any property, real, personal or mixed, or of any interest therein or income therefrom, in trust or otherwise, to persons, institutions or corporations, not hereinafter exempted, to be paid to the treasurer of the proper county, as hereinafter directed, for the use of the state, in the following cases:

(1) When the transfer is by will or by the intestate or homestead laws of this state, from any person dying seised or possessed of the property while a resident of the state, or by any probate homestead set apart from said property.

(2) When the transfer is by will or intestate laws of property within the state and the decedent was a nonresident of the state at the time of his death.

(3) When the transfer is of property made by a resident, or by a nonresident when such nonresident's property is within this state, by deed, grant, bargain, sale, assignment or gift, made without valuable and adequate consideration in contemplation of the death of the grantor, vendor, assignor or donor, or intended to take effect in possession or enjoyment at or after such death. When any such person, institution or corporation becomes beneficially entitled in possession or expectancy to any property or the income therefrom, by any such transfer, whether made before or after the passage of this act.

(4) Such taxes shall be and remain a lien upon the property passed or transferred until paid, and the person to whom the property passes or is transferred, and all administrators, executors, and trustees of every estate so transferred or passed, shall be liable for any and all such taxes until the same shall have been paid as hereinafter directed; provided, that unless sued for within five years after they are due and legally demandable, such taxes shall cease to be a lien as against any bona fide purchaser of real property; and provided that no such lien shall cease within five years from the date of the passage of this act. The tax so imposed shall be upon the market value of such property at the rates hereinafter prescribed and only upon the excess over the exemptions hereinafter granted.

Whenever any person or corporation shall exercise a power of appointment derived from any disposition of property made either before or after the passage of this act, such appointment when made shall be deemed a transfer taxable under the provisions of this act in the same manner as though the property to which such appointment relates belonged absolutely to the donee of such power and had been bequeathed or devised by such donee by will; and whenever any person or corporation possessing such a power of appointment so derived shall omit or fail to exercise the same within the time provided therefor, in whole or in part, a transfer taxable under the provisions of this act shall be deemed to take place to the extent of such omission or failure, in the same manner as though the persons or corporations thereby becoming entitled to the possession or enjoyment of the property to which such power related had succeeded thereto by a will of the donee of the power failing to exercise such power, taking effect at the time of such omission or failure. (Stats. 1905, p. 341; Stats. 1911, p. 713.)

§ 416. Classification of Beneficiaries-Tax Rates on Estates Under $25,000. Sec. 2. When the property or any beneficial interest therein so passed or transferred exceeds in value the exemption hereinafter specified and shall not exceed in value twenty-five thousand dollars the tax hereby imposed shall be:

(1) Where the person or persons entitled to any beneficial interest in such property shall be the husband, wife, lineal issue, lineal ancestor of the decedent or any child adopted as such in conformity with the laws of this state, or any child to whom such decedent for not less than ten years prior to such transfer stood in the mutually acknowledged relation of a parent,