Opinion of the Justices , 85 N.H. 572 ( 1931 )

To the House of Representatives:

The undersigned, the justices of the supreme court, having received your resolution requiring their opinions as to the constitutionality of House Bill Number 227, make the following answer:

The bill provides for the imposition of a tax upon property passing by will or inheritance in such an amount as will make the total of such taxes laid by states, equal to the amount deductible from the federal estate tax, because so laid.

It makes the imposition of the proposed tax dependent upon the right to deduct the same from the amount of the federal estate tax, which would otherwise be payable in full to the federal government. We are unable to perceive wherein such a provision would violate any constitutional right of the taxpayer. The amount he is called upon to contribute for the support of government is not increased because he has to pay this state tax.

The nation lays a valid tax and makes valid provision for its partial distribution to the several states, through the process of local assess ments and the deduction thereof from the federal tax. Substance, not form, governs in these matters; and this is the substance of the whole transaction.

It is our opinion that if the bill is enacted it will be a valid law.

Robert J. Peaslee. Leslie P. Snow. John E. Allen. Thomas L. Marble. Oliver W. Branch.

March 3, 1931.