§ 221c repealed.

§ 221d repealed.

§ 227 amended.

specific public purpose, shall be exempted from and not subject to
the provisions of this article. There shall also be exempted
from and not subject to the provisions of this article per-
sonal property other than money or securities bequeathed to
a corporation or association wherever incorporated or located, or-
ganized exclusively for the moral or mental improvement of men
or women or for scientific, literary, patriotic, cemetery or historical
purposes or for two or more of such purposes and used exclusively
for carrying out one or more of such purposes. But no such cor-
poration or association shall be entitled to such exemption if any
officer, member or employee thereof shall receive or may be law-
fully entitled to receive any pecuniary profit from the operations
thereof except reasonable compensation for services in effecting
one or more of such purposes or as proper beneficiaries of its
strictly charitable purposes; or if the organization thereof for any
such avowed purpose be a guise or pretense for directly or in-
directly making any other pecuniary profit for such corporation
or association or for any of its members or employees or if it be not
in good faith organized or conducted exclusively for one or more
of such purposes.
There shall also be exempted from and not sub-
ject to the provisions of this article all property or any beneficial
interest therein so transferred to any father, mother, husband, wife,
widow or child of the decedent, grantor, donor or vendor if the
amount of the transfers to such father, mother, husband, wife,
widow or child is the sum of five thousand dollars or less; but if
the amount so transferred to any father, mother, husband, wife,
widow or child is over five thousand dollars, the excess above these
amounts, respectively, shall be taxable at the rates set forth in
the next section.

§ 4. Section two hundred twenty-one-c of such chapter, as added by chapter four hundred thirty-two of the laws of nineteen hundred twenty-two, is hereby repealed.

§ 5. Section two hundred twenty-one-d of such chapter, as added by chapter four hundred thirty-three of the laws of nineteen hundred twenty-two, is hereby repealed.

§ 6. Section two hundred twenty-seven of such chapter, as last amended by chapter four hundred seventy-six of the laws of nineteen hundred twenty-one, is hereby amended to read as follows: § 227. Liability of certain corporations to tax. If a foreign executor, administrator or trustee shall assign or transfer any stock or obligations in this state standing in the name of a decedent, or in trust for a decedent, liable to any such tax, the tax shall be paid to the tax commission or the treasurer of the proper county on the transfer thereof. No safe deposit company, trust company, corporation, bank or other institution, person or persons having in possession or under control securities, deposits, or other assets belonging to or standing in the name of a decedent who was a resident or nonresident, or belonging to, or standing in the joint names of such a decedent and one or more persons, including the shares of the capital stock of, or other interests in, the safe deposit company, trust company, corporation, bank or other institution

making the delivery or transfer herein provided, shall deliver or transfer the same to the executors, administrators or legal representatives of said decedent, or to the survivor or survivors when held in the joint names of a decedent and one or more persons, or upon their order or request, unless notice of the time and place of such intended delivery or transfer be served upon the tax commission at least ten days prior to said delivery or transfer; nor shall any such safe deposit company, trust company, corporation, bank or other institution, person or persons deliver or transfer any securities, deposits or other assets belonging to or standing in the name of a decedent, or belonging to, or standing in the joint names of a decedent and one or more persons, including the shares of the capital stock of, or other interests in, the safe deposit company, trust company, corporation, bank or other institution making the delivery or transfer, without retaining a sufficient portion or amount thereof to pay any tax and interest which may thereafter be assessed under the provisions of this article or under the provisions of articles ten-a and ten-b of this chapter on account of the delivery or transfer of such securities, deposits or other assets, including the shares of the capital stock of, or other interests in, the safe deposit company, trust company, corporation, bank or other institution making the delivery or transfer, under the provisions of this article, unless the tax commission consents thereto in writing. And it shall be lawful for the said tax commission or its representative to examine said securities, deposits or assets at the time of such delivery or transfer. Failure to serve such notice or failure to allow such examination or failure to retain a sufficient portion or amount to pay such tax and interest as herein provided shall render said safe deposit company, trust company, corporation, bank or other institution, person or persons liable to the payment of the amount of the tax and interest due or thereafter to become due upon said securities, deposits or other assets, including the shares of the capital stock of, or other interests in, the safe deposit company, trust company, corporation, bank or other institution making the delivery or transfer, and in addition thereto, a penalty of not less than five thousand or more than twenty-five thousand dollars; and the payment of such tax and interest thereon, or of the penalty above prescribed, or both, may be enforced in an action brought by the tax commission in any court of competent jurisdiction.

§ 7. Section two hundred and twenty-eight of such chapter, as § 228 last amended by chapter four hundred and seventy-six of the laws amended. of nineteen hundred and twenty-one, is hereby amended to read as follows:

§ 228. Jurisdiction of the surrogate. The surrogate's court of every county of the state having jurisdiction to grant letters testamentary or of administration upon the estate of a decedent whose property is chargeable with any tax under this article, or to appoint a trustee of such estate or any part thereof, shall have juris4 Previously amended by L. 1920, ch. 454.

235

amended.

diction to hear and determine all questions arising under the provisions of this article, and to do any act in relation thereto authorized by law to be done by a surrogate in other matters or proceedings coming within his jurisdiction.

When it is made to appear to a surrogate of any county in this state that a safe deposit company, trust company, bank, person or corporation has in its possession or under its control papers of a decedent of whose estate such court has jurisdiction or that the decedent had leased from such a corporation a safe deposit box, and that such papers or such safe deposit box may contain a will of the decedent, or a deed to a burial plot in which the decedent is to be interred, he may make an order directing such safe deposit company, trust company, bank, person or corporation to permit a person named in the order to examine such papers or safe deposit box in the presence of a representative of the tax commission and an officer of such safe deposit company, trust company, bank or corporation, or agent of such person, and if a paper purporting to be a will of the decedent, or the deed to a burial plot is found among such papers, or in such box, to deliver such will to the clerk of the surrogate's court of such county, or such deed to such person as may be designated in such order. The clerk of said court shall furnish a receipt upon the delivery to him of the will.

§ 8. Section two hundred and thirty-five of such chapter, as last amended by chapter four hundred and seventy-six of the laws of nineteen hundred and twenty-one, is hereby amended to read as follows:

§ 235. Proceedings by district attorneys. If, after the expiration of eighteen months from the accrual of any tax under this article, such tax shall remain due and unpaid, after the refusal or neglect of the persons liable therefor to pay the same, the tax commission shall notify the district attorney of the county, in writing, of such failure or neglect, and such district attorney shall apply to the surrogate's court for a citation, citing the persons liable to pay such tax to appear before the court on the day specified, not more than three months after the date of such citation, and show cause why the tax should not be paid. The surrogate, upon such application, and whenever it shall appear to him that any such tax accruing under this article has not been paid as required by law, shall issue such citation, and the service of such citation, and the time, manner and proof thereof, and the hearing and determination thereon and the enforcement of the determination or order made by the surrogate shall conform to the provisions of the code of civil procedure or surrogate court act for the service of citations out of the surrogate's court, and the hearing and determination thereon and its enforcement so far as the same may be applicable. The surrogate or his clerk shall, upon request of the district attorney or the tax commission, furnish, without fee, one or more transcripts of such decree which shall be docketed and filed by the county clerk of any county of the state without fee, in the same manner and with the same effect as provided by law for filing and docketing transcripts of decrees of the surro

gate's court. The costs awarded by any such decree after the collection and payment of the tax to the tax commission or county treasurer may be retained by the district attorney for his own use. Such costs shall be fixed by the surrogate in his discretion, but shall not exceed in any case where there has not been a contest, the sum of one hundred dollars, or where there has been a contest, the sum of two hundred and fifty dollars. Whenever the surrogate shall certify that there was probable cause for issuing a citation and taking the proceedings specified in this section, all expenses incurred for the service of citations and other lawful disbursements shall be paid out of moneys appropriated for such purpose, upon order of the tax commission. In proceedings to which the tax commission is cited as a party under section two hundred and thirty of this chapter, it is authorized to designate and retain counsel to represent it and to pay the expenses thereby incurred out of money appropriated for such purpose.

§ 9. Such chapter is hereby further amended by adding thereto Art. 10A a new article to be numbered article ten-a and to read as follows: 248a-248p)

ARTICLE 10-A

TAXABLE TRANSFERS-NONRESIDENTS

Taxable transfers-nonresidents.

Section 248.

248-a. Deductions.

248-b. Rates of tax.

248-c. Accrual and payment of tax.

248-d. Discount and interest.

248-e. Lien of tax; warrant for collection.

248-f. Refund of tax erroneously paid.

248-g. Transfer in contemplation of death.

248-h. Receipts for taxes.

248-i. Disposition of revenues.

248-j. Returns of taxable property.

248-k. Exemptions.

248-1. Limitation of time.

248-m. Powers of tax commission.

248-n. Taxes upon devises and bequests in lieu of com-
missions.

248-0. Assessment of tax.
248-p. Reciprocity.

§ 248. Taxable transfers-nonresidents. A tax shall be and is hereby imposed upon the transfer by a nonresident or in case of a nonresident decedent of any property real or personal, or of any interest therein or income therefrom in trust or otherwise, in the following cases:

1. When the transfer is by will or intestate laws of any of the following items from any person dying seized or possessed thereof while nonresident of this state;

(a) Real or tangible personal property within this state.

(b) Shares of stock or certificates of interest of corporations organized under the laws of this state, or of national banking as

(§§ 248,

added.

sociations located in this state, or of joint stock companies or associations organized under the laws of this state and including all dividends and rights to subscribe to the stock of such corporations, joint stock companies or associations or banks.

(c) The interest of such decedent in any partnership business conducted, wholly or partly, within the state of New York to the extent of the interest of the decedent in the partnership property within this state and the good will of such business within this state.

(d) Capital invested in business within this state, including good will.

2. When the transfer is of property included within any of the classes specified in subdivision one of this section and is made by deed, grant, bargain, sale or gift made in contemplation of the death of the grantor, vendor or donor, or intended to take ef fect in possession or enjoyment at or after such death, or where any change in the use or enjoyment of property included in such transfer, or the income thereof, may occur in the lifetime of the grantor, vendor or donor by reason of any power reserved to or conferred upon the grantor, vendor or donor, either solely or in conjunction with any person or persons to alter, or to amend, or to revoke any transfer, or any portion thereof, as to the portion remaining at the time of the death of the grantor, vendor or donor. thus subject to alteration, amendment or revocation. If any one of the transfers mentioned in this subdivision is made for a valuable consideration, the portion of the transfer for which the grantor or vendor receives equivalent monetary value is not taxable, but the remaining portion thereof is taxable.

3. 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 article, such appointment when made shall be deemed a transfer taxable under the provisions of this article 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 donce by will.

4. Whenever property included within any of the classes specified in subdivision one of this article is held in the joint names of two or more persons, or as tenants by the entirety, upon the death of one of such persons the right of the surviving tenant by the entirety, joint tenant or joint tenants, person or persons, to the immediate ownership or possession and enjoyment of such property, shall be deemed a transfer taxable under the provisions of this article in the same manner as though (a) in the case of tenancies by the entirety one-half of the property to which such transfer relates belonged absolutely to the deceased tenant by the entirety, and (b) in all other cases in the same manner as though a fractional part of the property to be determined by dividing the value of the entire property by the number of joint tenants, joint depositors or persons belonged absolutely to the deceased joint tenant, joint depositor or person; and had been bequeathed to the