Case Information
*1 OFFICE OF THE AT7ORNEY GENERAL OF TEXAS AUSTIN
Xoaorable 000. B. AeppuKI, page 2
rnheritMoe Tar IAUS. I l ttaoh the aompleta OS- fg ~~~~em8bove srtste for your use in The question o? ths aature of an lntersrt ¶a 8 part- am4 its situ8 Sar lnbarltanoe tax ptqoaea, vm oon- nership, S-intha opinio0,0r~uirt8tit httorm~wni~obn Jla&y ad&esrsd to you wu&r date of August 5, 1937, relat- Jmg to the of J. A. Lamb. We quote frcaa that opinions
Vhe eusstlos you vish uuuered la vhather or not a 9utnerrhi9 intorest in real$y ownad, by is tumble in Texu user a AaA-rerfdant dawdent the hh~it~o8 TPX Iav of this state.
%u 8re respeatfully advlnecl that this prt- nerrhip interest oven though the 9artawrrhi9 pmpertybs iathoa*ture ofrHlpP~rtJ,is it0t tubb in ~8 d~0 to the mt th8t btm its mltue Ia at the do&ol& of the alfner. The all 6iaou88ioA or the lav byudine plr-=@hw appears in Vol. X, far. Jur. 207-595.
u all iidng%bls uw lnter*rt 15 s. u. 5691 noore vsr stmas, .aA&r: T;;. f.$st mstioal Bank ot xertol-4, et al.,
888 &la0 ff&uon & Otis on In-
hem+; l&lea, 4th Ed., psgs 590. ‘8The IL 8. B. Ct. h88 loid doa tb role ths intmst of a partner In puturship
that l ah080 assets oaautitut88 in wtlaa 8nd I.8 In- sub cot trsnsfsr t&lb& puwnsl property Ln&aM88 t8x ial ths stats of deosdont 18 dad- .,, l Sea BlMgett tl)e 8llbewp, 277 II. 5. 1..
“‘6 ~Qiquestion8hly thi.8 opkrion oorrectly stated tin 210 u of thi date it vu nittan. That 8 9artwrrhi9 intorent i* M ‘lnt&nglblem 88-t even a to t&e real ertata ourmttb ,$e z~~:xie rurdoubtrdl atin uu l@v h Tea- t intangible Lretm ax% rubjeot to en bheritenoe tax oUy in the stats of the ovner~s dcaloile (~arnerr~ ROSA E Trust Co. v. st8te of Nl.nwsot8 (1929), 280 II. 5. 204, 74 L. MEd. *3 Honorsble 000.
50 J. ct.
98, 65 A.L.R. 1oooj Bddvin 1. nl8~Ourl (1930) u. a. 5436, 74 L. pd. lO%, 50 8* Ct. 436, 72 A.L.R. 403~ B8nk VS. Nalne (1931) 264 U. 8. 3l.2, 76 L. Gl. Fi.?St 88tiOlMtl 174) ~a@ unequlrooa~~~ ovurruled bJ tha United 313, 52 3. ct. _- -- 3U&OS oupmme Gourt on rpr1 27, 1942, its d8018loa la atate Tax Camlssltna of Utah v. U&lab, 22 a. ct. 1000, 06 L. Pd. 911. The opl.nion o? the Court In tha Aldrich 088e re- (1903) 168 U.3. SUthOritJ Of ~h8kStOM Illller, Vi-8 ti Ct. 277, 57 L. IEd. 439 vblah had been overruled l89, 23 a* r by Fezmere' Loan 6 Trust Co. Y. Unneaota, rupra) and eoceptr U tb# jUFi8biOtiOd b8iS fOr Stlt8 inbrritUIO8 tU88 th8 OrikriOil sues 2-e flhS@C%Sd above aited, i.e., It [8] State, b bJ the di888nt~ OpiniOM it8 lW, aV88 I34 the t&t8 prokatlon to propa2-t~ w effeot to 4 right L it proparty, may l xsot M lnherltsnae tax qmn the transfer thereof aa a tmrert ln Texao and giver aSfeet to partncmhip pertaerrhlp, WSl’ property of the "Quid pro qUO.Y A tbSt the bV Of hXU re tz;' eon-reridant estate owned by a lm thlr crlterlon to [8] psrtn.errhlp @VaS pl'OtWtiiM t0 th8 phy#iOti it vould in- intwest therein, and th0rer0rr Texan nay deuand anlahcri- tu upon tramfar of the prtnarahlp interest at the tame death of the partwr, though Iw be domloiled in another 4tate.
Tin ooMt;tutioll8l lnUb1t1oa agslnst th8 t4x8t10n of intan@ by my state othur t&n thet af the tiodent*r dOdoiL8, hSVi.nfj b~nr~oved by the Al6rioh We, 8uah 4 psrtnerriip lntere8t owned b 8 non-rerldent in Texas real la, ve bellevs, taxsb 8 under hrtlolt 7117, R. C. S., I ertate
1925, vhlch reada in part as follovat
-hll SwmrtY vlthln ths jurlrdlotlon or oorporate or in- tW.8 &ate, nrl or pereonsl, nru interest therein, . . . uhath- ~,O&of&?oinbab itUtt8 Of this E-t@ OF t0 vho 8re not idnb1tuat8, regardle88 perrow vhether ruch property Is 1008tdh ulidn 0~ vith- out t&la State, uhioh rhall pus ab8olute4 or ln tiW,t by Vi11 Or’ by thr hV8 Of d8808nt W dirtrl- butlon of tbi8 or q other Ytate . . . alull, upan pesaiag to or for the we of any pusan, cor- poret+.l or UaWiStiOn, be 8ubjMt a tax.
. . . @m-l@ 0-J
Honorable Cteo. If. Ylaepp8r6, page 4 tht Situp th# VSbS Of th8 YOU 8-k -t’I
w+U'8t+9 +tSIWS> iItTO+ PUl OS tate la the Ullbw L. BIu l St8tS a088 Mt Wrtnt t0 U ur oh l @ th. b,Xi8f10~‘8 speaitla exemption, no tu 18 due under Chs 5 of our in- herltanor tu &v, vhiab inoludes Artlale 7 7 quoted above. Ioo~ns~~tbrsfu~t~~tbrnoar~uO&p- tU $h Or fit& m, bug &ti6& 7i&, vWXiOU’8 &UWtSt-
l d citfi k btStUt88 Of Texas. Claptar +Avu uiukdbythe Leglslsture ial9~3vlth the 9 l d intS&iCCI (U StSt- d in zieotlm 3, t.&sroof) "to 4 et oaly 0 8uffiolant ad- “(b) j%stato 4uaa4441o~. lmwa~‘. and io
hultsxme t8x88. ha tax Up08 d by seation il0
ViththS S#SOU% Of~O8td8, OF l WOO@@ipn t8XVS 48tU- OF %ZTitOX'~ O? the WS- any po88O88lorr of the United f+t8tSS, tn FOS~Qt oi w Zpm2’tJ b8htd8d in th8 8UOhtwS &b8%d -8 eSt8k(AOthZ81udirrg~ tba l St8tO Of 4 puson other than . %!h8~t~OWd~thi88Ub- per oenttm of ths tax sot exsud %8@08crbby800tiCUl8~. . .*
Furthm irdiaation of thole&v&tlvv puqoae ia r5-A iotobs fouadin8ect~ons 8,14 ths l autunt mad15 thsreof, &98d U fO11OvS: %eu. a. SeatIons 1 to 7, i.NdWiTS, Of tl&a shall SO u not sllmys be Oonskord t6:bSl’SUO mbl8 th8tOt81 w Oft-8 to the atat8 awl tha Fdual oablzml Upan .thS @@ate@ Of dOOO&klt8 th8 w &XlFpOS~ Of 8ddititi t0 &CO Sti t&X w fd.l 8dVUltw o&~&~ge~Wli,80zu! avntaredltelloved by
t af1926,tothoav vholmre 9d.d M7 CStXte, i.IbritUlO4, le@Ct~, m 8WOe88iOll tu to say 8tata or territory m to the Mstrlat *5 Honorable Oeo. Ii. Aeppml, pgo 5
c of ColmblR, in res~et any poperty inohded dWOdUit'@ -048 l St8t@. in -
Qea. 14. me Imherltawe tax t&et 18 here- upon every kneflolsry~8 rhuv of by hpoeed of maion-WSlbmt deoedont Shallb8 a tU & UOUlt, bMl’8 tb SU Nt%O -Oh, t0 th. Va- ti.W tU fW VhbhthS bMSfiSlSP~‘8 htW.St if t& WItin WtStO WWP8 SitU8t- Vopld k lhbh ed In Texu, tha to-1 valw ai the bulefl- dUy’@ ShU’8 Of thC deoedeattr *@tit* rhl8h 18 8ltwtsd in 2~0~. before aLlov&ble~knefloluy Q&uatlow ere mad., bears to ths total V81W of th@ bM@fi~~‘S Mtin SbNFW ti tb *State Of the aon-real&eat daudMt 8huewr SitWfeb, be- fora allowable benafiaiaq era maQe.a doduat1ow %6tfon 15. I8 th OVUlt 8 FVS~d~#lt Of 88t8tO Subj8Ot t0 this StSte &bS, kSVitO6 w mlnhrultuL88tu,8ltu8ted tlyvIthInMd ~t~'vIthmt thi8 Ytao, Inhsr1tMoe tax tr SlSpSOdUQOSithS~Of~b@iWflCl~Of 88tit8 8itWt.d in %X88 &Uli k l t8X 8ti
rhi~8hl1bO~thO~MNtiOtOt~88OUt and inkn@t SWh tu VOUld k if hiX WitiFS S- 'I vUe SitUtd in Tam, b8SOn dlOVam bSW?i- aiuy&dwtIoLLa besrstott.uJtotalvalw
BUdi b8&iO48 Sbrn in SWh dOW&Wltt8 e@- t&S, VhUOVU SitWtOd, bO?OM &hWbb b.W- fl4iwy bdutIow am mdhn & l933, UhM k%S.ptU SA UU QUSt9d, it VW Settled by First B8tsbAl lav, uider the dostrine ataouwd Bank vs. that lldne, @up@, no pmputy, vhsthsr tallglbl.0 011 i.ntMgs- blm, Oould b8 SUbjWt to UL InbritM tU in 1DofO thM QDI State.. AtthttlmmlnUn&bleawul4ktumdoaly~tha Toxu ~1114 not have ool- Et&e “Or the &Wbllt t 8 dUbtie. leot4d-MlnhsrltMae t.uupon or8ny nature cmaed i!Un&ibb@ by 8 non-nrldont, ltha undo2 !i a~ Chsptm,5-A. It i8 Mt t0 bV piu@uwd wt tbb h~@~t~U~intUldVd thX’.fOn, *6 Ileo. Ii. ;rhepp-rd, p-e Ectaorsbla It 18 l voll-reoognlaed ruls of th#WdO. ue to bs eorrrtrwd In the
u gat of oondZtlonr an6 Was lu l x.lrtLng u of th e 6ate the* wuotatmt. Ui~O86 bd.88iO~i V. T. & li. 0. Rfiib086 42 8. Y. (2d) lO9. co., of 5-A ale8rly ths above quotsd 9r0virian8 h&Awta that tbleg9alatare aouldnothwe intsndrd tu the thereby l8poae6 to l poly to aa~ proparty upon vhiah tmnsfer tsxu might be aolleotadbymon th~oaa 8Ute. Tbopmtl- cm1 otmfu8lon W@ll.lti?Z@ when tvo or aOra 8tStU should .8& 8ttesrpt to oollaat 00% of t&e ?daral tu ir'8d.Cevident. Xf Tax88 were to aolleot 80$ of the Federal.tax cm intmgibh prOj3Uty U&XXI Uhi8h t.h@ St8tS Of t&W dOo6&8nt'8 dO#llaile WI l lro lo- a taxeqaulilto~ oftha 1926 Pedisl-al tsx, thla &%I$ oft&8 Fedwaltu~ are- 88mepjqwrtyVOUhlbe -St aPaUe8tl~rLdlauloua, all6wuobwouldbe in rultrhiuh18 owflbt ulth tha l xp reo r direotlon OS aeotloa 8 of Chapter +A Vhid l’8G4ldF88 thSt t;he chS9tOZ' “Ihdl 81V*a8 b OOM~Wd payable the 80 U rrot to &are&!e the totti -butt O? t-8 OOV@RW~~ aomblw6.g stat8 M& tb ?kbral Uo eonalutle, thweforo. Chapter 5-A surf be thet OQWlZWd in the bV OB the li&tt Of th pr@WiliPg UFiSdiO- tibU Of ShtSS t0 -88 ilbritUC8 t8XO8 88 Of 193 f rhiti i wan8 that the tax ic1$088a by Chaptm 5-Aornbe l pplledonly to Suoh property u Texu ha6 jurl86iFotIon to tax unflar the Bnr& V. ti, It fOl.bVS doatrizu Of F%P@t Ilatie SV9PL that no tu aan be lqwsed uular ChOpter 5-A on p@rtnU- #hi9 lntomt ln Tuu rod owiod bywllbur L. Sell, dwsued.
uo uo r oturzd.lq your fUe 00 this 4t8te h uMvit.h.
YOUFS very truly