Cory

Kenneth Cory, State Controller (Controller), appeals from a decision of the superior court overruling his objection to the amended report of the inheritance tax referee with respect to the estate of Dorothy T. Cottle (Cottle). The sole issue presented on appeal is whether the provisions of Revenue and Taxation Code section 13957 (section 13957) are operative for the estates of persons dying after December 31, 1974.

Cottle died on December 7, 1981. The original report of the inheritance tax referee reported total tax due the state in the amount of $1,691,614.04. The executor, Harry J. Kaplan, objected to that report on the ground that the referee had not valued the principal asset of the estate, approximately 70 acres of land, under the provisions of section 13957 although the executor had requested such valuation. After a hearing, the court ruled that the provisions of section 13957 apply to the estates of persons dying both before and after December 31, 1974, and ordered the referee to value the property in accordance with that section.

The referee thereafter filed an amended report, valuing the property pursuant to section 13957 and reporting total tax due the state…