In Maxwell v. Bugbee (1919) 250 U.S. 525, the court upheld a state inheritance tax that determined the tax rate by including the entire estate, wherever located. The plaintiffs challenged the statute setting forth the inheritance tax calculation, arguing it taxed nonresidents more than residents, giving residents privileges and immunities denied to nonresidents and denying nonresidents equal protection of the laws. The plaintiffs also alleged the statute deprived nonresidents of property without due process of law. ( Id. at p. 535.) The Maxwell court found the tax was not imposed on out-of- state assets: "It is not to be disputed that, consistently with the federal Constitution, a state may not tax property beyond its territorial jurisdiction; but the subject-matter here regulated is a privilege to succeed to property which is within the jurisdiction of the state. When the state levies taxes within its authority, property not in itself taxable by the state may be used as a measure of the tax imposed. . . . In the present case the state imposes a privilege tax, clearly within its authority, and it has adopted as a measure of that tax the proportion which the specified local property bears to the entire estate of the decedent. That it may do so, within limitations which do not really make the tax one upon property beyond its jurisdiction, the decisions to which we have referred clearly establish. The transfer of certain property within the state is taxed by a rule which considers the entire estate in arriving at the amount of the tax. It is in no just sense a tax upon the foreign property, real or personal." (Maxwell, supra, 250 U.S. at p. 539.)