Page:United States Statutes at Large Volume 53 Part 2.djvu/638

 PUBLIC LAWS-CH. 367-JULY 26, 1939 Life interest or for term of years; pay- ment of tax. Value of future in- terest. Vested future inter- est; tax payment. Where future inter- est is contingent. Optional payment. Praeiso. Bond. Tax upon transfer to be a lien. Tax upon transfer of a contingent future interest, payment. "SEC. 7. In the case of any grant, deed, devise, descent, or bequest of a life interest or term of years, the donee for life or years shall pay a tax only on the value of his interest, determined in a manner as the Commissioners by regulation may prescribe, and the donee of the future interest shall pay a tax only on his interest as based upon the value thereof at the time of the death of the decedent creating such interest. The value of any future interest shall be determined by deducting from the market value of such property at the time of the death of such decedent the value of the precedent life interest or term of years. Where the future interest is vested the donee thereof shall pay the tax within the time in which the tax upon the precedent life interest or term of years is required to be paid under the provisions of sections 4 and 6 of this article, as the case may be. Where the future interest is contingent the personal representative of such decedent or the persons interested in such contingent future estate shall have the option of (1) paying, within the time herein provided for the payment of taxes due upon vested future interests, a tax equal to the mean between the highest possible tax and the lowest possible tax which could be imposed under any contingency or condition whereby such contingent future interest might be wholly or in part created, defeated, extended, or abridged; or (2) paying the tax upon such transfer at the time when such future interest shall become vested at rates and with exemptions in force at the time of the death of the decedent: Provided, That the personal representa- tive or trustee of the estate of the decedent or the persons interested in the future contingent interest shall deposit with the assessor a bond in the penal sum of an amount equal to twice the tax payable under option (1) hereof. Such bonds shall be payable to the District and shall be conditioned for the payment of such tax when and as the same shall become due and payable. The tax upon the transfer of future interests or remainders shall be a lien upon the property or interest transferred from the date of the death of the decedent creating the interests and shall remain in force and effect until ten years after the date when such remainder or future interest shall become vested in the donee thereof. If the tax upon the transfer of a contingent future interest is paid before the same shall become vested, such tax shall be paid by the personal representative out of the corpus of the estate of the decedent, otherwise by the person or persons entitled to receive the same. "ARTICLE II-ESTATE TAXES Estate taxes. "SEC. 1. In addition to the taxes imposed by article I, there is hereby imposed upon the transfer of the estate of every decedent who, after this title becomes effective, shall die a resident of the Dis- trict, a tax equal to 80 per centum of the Federal estate tax imposed t2 .a. Ct410. by subdivision (a) of section 301, title III, of the Revenue Act of edits. 1926, as amended, or as hereafter amended or reenacted. cred its . "SEC. 2. There shall be credited against and applied in reduction of the tax imposed by section 1 of this article the amount of any estate, inheritance, legacy, or succession tax lawfully imposed by any State or Territory of the United States, in respect of any property 2s4tsc.. i 4; included in the gross estate for Federal estate-tax purposes as pre- Supp. IV, 1411. scribed in title III of the Revenue Act of 1926, as amended, or as Limitation. hereafter amended or reenacted: Provided, however, That only such taxes as are actually paid and credit therefor claimed and allowed against the Federal estate tax may be applied as a credit against and in reduction of the tax imposed by section 1. Taxlimitations. "SC. 3. In no event shall the tax imposed by section 1 of this article exceed the difference between the maximum credit which [53 STAT.

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