State Ex Rel. Commissioner of Revenues v. Carney

This appeal presents for decision the question: Are the proceeds of life insurance, up to $40,000, exempt under the Estate Tax Law of Arkansas, which is Act 136 of 1941? Stated another way, the question is: Does the language “applicable federal revenue act” mean the federal revenue act in effect at the time of the death of the deceased, or the federal revenue act in effect when Act 136 of 1941, was enacted?

The appellees, as executors of the estate of George D. Carney, -Sr., made aii estate tax return to the Arkansas Revenue Commissioner as provided by law, and paid the State the tax which the…