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internal revenue on such property in determining the value of the gift or the gross estate of such prior decedent, and only to the extent that the value of such property is included in the decedent's gross estate and not deducted under paragraph (1) or paragraph (3) of this subdivision;
(3) The amount of all bequests, legacies, devises, or transfers, except bona fide sales for a fair consideration in money or money's worth, in contemplation of or intended to take effect in possession or enjoyment at or after the decedent's death, to or for the use of the United States, any state, territory, any political subdivision thereof, or the District of Columbia, for exclusively public purposes, or to or for the use of any corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, or to a trustee or trustees, or a fraternal society, order, or association operating under the lodge system, but only if such contributions or gifts are to be used by such trustee or trustees, or by such fraternal society, order, or association, exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. If the tax imposed by section two hundred forty-nine-a, or any es tate, succession, legacy, or inheritance taxes, are, either by the terms of the will, by the law of this state, or by the law of the jurisdiction imposing the particular tax, payable in whole or in part out of the bequests, legacies, or devises otherwise deductible under this paragraph, then the amount deductible under this paragraph shall be the amount of such bequests, legacies, or devises reduced by the amount of such taxes; and
(4) An exemption of fifty thousand dollars.
In determining the amount of the net estate real property of the decedent situated outside this state but within the United States shall be included and the tax shall be computed in the same manner as if said real property were subject to taxation hereunder, but there shall be credited on the total amount of tax so ascertained the amount of tax imposed with respect to said real property and the tax on said real property shall be deemed to have been imposed at the lowest rates prescribed by section two hundred forty-nine-a of this article.
(a) The executor,
§ 249-d. Notice and return by executor. within two months after the decedent's death, or within a like period after qualifying as such, shall give written notice thereof to the tax commission. The executor shall also, at such times and in such manner as may be required by the tax commission, file with it a return under oath setting forth such information as the tax commission may require. The tax commission may require such return to be made in duplicate and may also require such supplemental returns or additional data as may be necessary to establish the correct tax:
(b) Return shall be made in all cases where the gross estate at the death of the decedent exceeds one million dollars. If the executor is unable to make a complete return as to any part of the gross estate of the decedent, he shall include in his return a description of such part and the name of every person holding a legal or beneficial interest therein, and upon notice from the tax commission such person shall in like manner make a return as to such part of the gross estate.
(c) Failure to make any return as herein provided shall subject the executor to a penalty of one thousand dollars to be recovered in an action brought by the attorney-general, and if such failure be with intent to evade the tax the executor shall be guilty of a misdemeanor; provided, however, that upon the return being filed the tax commission in its discretion may waive the penalty in any case where there was no intent to evade the tax.
§ 249-e. When tax due; discount and interest. The tax imposed by this article shall be due and payable at the time of the transfer and shall be paid to the tax commission which shall furnish duplicate receipts therefor. No executor shall be entitled to a final accounting of an estate in settlement of which a tax is I due unless he shall produce such final receipt or a certified copy thereof. Any person shall be entitled to a duplicate receipt upon the payment of fifty cents to the tax commission. Any person shall upon payment of fifty cents to the tax commission be entitled to a certificate that the tax upon the transfer of any real estate of which any decedent died seized has been paid. Such è certificate may be recorded in the office of the recording officer of the county where such real property is situated, in the book in which certificates issued pursuant to article ten of this chapter are recorded.
If the tax imposed by this article is paid within six months from the time of the transfer a discount of five per centum shall be allowed and deducted therefrom; if such tax is not paid within eighteen months from the time of the transfer interest shall be charged and collected thereon at the rate of ten per centum per annum from the time of the transfer, unless by reason of claims made upon the estate, necessary litigation or other unavoidable cause of delay, the tax commission shall determine that such tax could not be determined and paid as herein provided, in which case the tax commission may reduce the rate of interest to six per centum per annum for the period during which such cause of delay was operative.
§ 249-f. Determination of tax; refunds. As soon as practicable after the return is filed the tax commission shall examine it and shall determine the correct amount of the tax and if it then appears that an excess amount has been paid the same shall be refunded, without interest, out of the funds in the custody of the comptroller to the credit of such taxes. In case of failure to file a return as required by this article the tax commission may determine the tax on the basis of the best information available, subject to correction from time to time if it appears that a further
tax is due. Notice of the determination of any tax and an opportunity to be heard with respect thereto, shall be given to the executor.
249-g. Lien of tax; warrant for collection. The tax imposed by this article shall be and remain a lien upon the property transferred until paid and the executor of every estate shall be personally liable for the tax. Every executor shall have full power to sell so much of the property of the estate as will enable him to pay the tax in the same manner provided by law for the payment of a decedent's debts. The tax commission shall have power to enforce the lien hereby created by action, may maintain an action against the executor personally to recover the tax, or if the tax is not paid within eighteen months after the transfer the tax commission may issue a warrant under its official seal directed to the sheriff of any county, commanding him to levy upon and sell any or all of the real and personal property included in the net estate found within his county for the payment of the amount thereof, with interest as provided herein, and the cost of executing the warrant, and to return such warrant to the tax commission and pay to it the money collected by virtue thereof by a time to be therein specified, not later than sixty days from the date of the warrant. The sheriff to whom any such warrant shall be directed shall proceed upon the same in all respects with like effect and in the same manner as prescribed by law in respect to execu tions issued against property upon judgments of courts of record and shall be entitled to the same fees for his services in executing the warrant to be collected in the same manner. In the discretion of the tax commission a warrant of like terms, force and effect may be issued and directed to any of its employees designated for that purpose, and in the execution thereof such employee shall have all the powers conferred by law upon sheriffs, but shall be entitled to no fee or compensation in excess of actual expenses paid in the performance of such duty. If a warrant be returned not satisfied in full, the tax commission shall have the same remedies to enforce the claim for taxes against the executor as if the people of the state had recovered judgment against the executor for the amount of the tax.
If the tax or any part thereof is paid by, or collected out of that part of the estate passing to or in the possession of any per son other than the executor in his capacity as such, such person shall be entitled to reimbursement out of any part of the estate still undistributed or by a just and equitable contribution by the persons whose interest in the estate of the decedent would have been reduced if the tax had been paid before the distribution of the estate or whose interest is subject to equal or prior liability for the payment of taxes, debts, or other charges against the estate, it being the purpose and intent of this article that so far as is practicable and unless otherwise directed by the will of the decedent the tax shall be paid out of the estate before its distribution.
§ 249-h. Disposition of revenues. The tax commission shall deposit all taxes collected by it under this article in a responsible bank, banking house or trust company in the city of Albany designated by the comptroller, to the credit of the comptroller on account of the estate tax. Every such bank, banking house or trust company shall execute and file with the comptroller an undertaking to the state, in the sum, and with such sureties, as are required and approved by him, for the safekeeping and prompt payment on legal demand therefor of all such moneys held by or on deposit in such bank, banking house or trust company, with interest thereon on daily balances at such rate as may be agreed upon. Every such undertaking shall have indorsed thereon, or annexed thereto, the approval of the attorney-general as to its form. The tax commission shall on the first day of each month I make a verified return to the treasurer of all taxes received by it under this article, stating for what estate, and by whom and when paid; and shall credit itself with all expenditures made since its last previous return for refunds lawfully chargeable on account of I such taxes. The comptroller shall on or before the tenth day of each month pay to the treasurer the balance of such taxes remaining in his hands at the close of business on the last day of the previous month.
All taxes levied and collected under this article when paid into the treasury of the state shall be applicable to the expenses of the state government and to such other purposes as the legislature shall by law direct.
§ 249-i. Exemptions in other articles not applicable. No exemption enumerated in any other article of this chapter shall be construed as being applicable in any manner to the provisions of this article.
§ 249-j. Limitation of time. The provisions of the civil practice act relative to the limitation of time of enforcing a civil remedy shall not apply to any proceeding or action taken to levy, appraise, assess, determine or enforce the collection of any tax or interest prescribed by this article; provided, however, that as to real property in the hands of bona fide purchasers the tax shall be presumed to be paid and cease to be a lien as against such purchasers after the expiration of six years from the date of accrual. § 249-k. Powers of tax commission. The powers conferred upon the tax commission by sections one hundred seventy-one and cne hundred seventy-one-b of this chapter shall, so far as applicable, be exercisable with respect to the provisions of this article.
§ 249-1. Duration of article. This article shall continue in effect only so long as the United States estate tax act shall contain a provision allowing credit of twenty-five per centum of the tax imposed thereby on account of estate, inheritance, legacy or succession taxes paid to any state or territory or to the District of Columbia.
§ 2. This act shall take effect immediately.
AN ACT to amend the tax law, in relation to payment of corporation tax and penalty for failure, when franchise tax on business corporation is payable, and lien of transfer tax and collection by executors, administrators and trustees.
Became a law April 2, 1925, with the approval of the Governor. Passed, three-fifths being present.
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section one hundred and ninety-seven of chapter sixty-two of the laws of nineteen hundred and nine, entitled "An act in relation to taxation, constituting chapter sixty of the consolidated laws," as last amended by chapter three hundred and thirty-two of the laws of nineteen hundred and twenty-four,1 is hereby amended to read as follows:
§ 197. Payment of tax and penalties. A tax or fee imposed by section one hundred and eighty-one of this chapter shall be due and payable immediately after the close of the first year of car rying on business in this state, and without interest or penalty if paid within thirty days after notice of such tax or fee has been given, as provided in section one hundred and ninety-six of this chapter. A tax imposed by section one hundred and eighty-two of this chapter shall be due and payable on or before the fifteenth day of March in each year. A tax imposed by section one hundred and eighty-six of this chapter shall be due and payable on or before the fifteenth day of January in each year. A tax imposed by sections one hundred and eighty-four or one hundred and eighty-five of this chapter shall be due and payable on or before the fifteenth day of August in each year. A tax imposed by sec tion one hundred and eighty-seven of this chapter shall be due and payable on or before the first day of May in each year. A tax imposed by sections one hundred and eighty-eight or one hun dred and eighty-nine of this chapter2 shall be due and payable on or before the first day of September in each year. A tax imposed by section one hundred and ninety-one of this chapter on a foreign banker or a foreign investor shall be due and payable on or be fore March first in each year. If such tax or fee in any case is not paid within thirty days after the same becomes due, the corporation, association, joint-stock company, unincorporated company,3 person or partnership, liable to pay the tax or fee shall pay, in addition to the amount of such tax or fee, a sum equal to five per centum thereof, and one per centum additional for each month the tax or fee remains unpaid, which sum shall be added to the tax or fee and paid or collected therewith. Every corporation. association, joint-stock company, unincorporated company,' person or partnership failing to make the annual report required by this 1 Previously amended by L. 1915, ch. 315; L. 1917, ch. 707; L. 1922, ch. 408. 2 Words of this chapter new.
3 Words " unincorporated company" new.