State v. United States

LUMBARD, Circuit Judge:

This appeal confronts us with the question whether a veteran’s estate which es-cheats to the United States under 38 U.S.C. § 5220(a) is subject to New York estate taxation. New York appeals from a judgment in the Southern District, Cannella, J., that such property cannot constitutionally be taxed by the state. We affirm this ruling because we find that the federal statute precludes state taxation of property passing to the United States under § 5220.

According to the facts stipulated to by the parties, Charles W. Brown, a physical education teacher retired from the New…