Untitled Texas Attorney General Opinion

Honorable Robert S. Calve& ,OpinionNo. C- 350 Comptroller of Public Accounts Capitol Station Re: Whether devise and Austin, Texas bequest to Bishop Garriga is exempt ~’:\ from inheritance taxes by virtue OP. ,,‘: an irrevocable com- mitment to use Dear Mr. Calvertt within this State. We quote the’following excerpt from your letter request- ing the opinion of this office on the above captioned question. ‘Ue desire the opinion of your office with respect to the proper exemption applicable to a bequest under the Second Paragraph of the last will and testament of Frank J. .Onzon,who died a resident of Nueces County on August 4, 1964. *The Second Paragraph of t!hedecedent’s will reads as follows: ‘1 will, bequeath and devise to my beloved sister, Katherine H. Onzon generally known as Katie M. Gnzon for her natural life time my homestead at 508 Waco St. In Corpus Chrlatl, Texas, *. .,. ; better described being lot Thirteen in Block Thirty-two (32) on the Bluff portion of Corpus Christi in Nueces: County, together with all of my other property real, persnnal and mixed of which I shall die seized and possessed, And upon her death said homestead shall .’ pass to and vest In our very good cousin, Patrick J. Dunne, who has taken such great interest in us both. And all other of said property she m8y leave to and for Bishop M. S. Garriga.’ -1702- HonOr8ble Robert Si Calvert, ~Page2 : OpinIonNo. (C-358) "Bishop Garriga ,hasmade an irrevocable com- mitment to use said bequest exclusively within the State of Texas in order to be exempt from the ln- heritance tax as~provided in Article 14.06, Chapter lb,,Title 122A, Taxation General. flernonls Civil Statuteg7." You have furnished us with a copy of the commitment, which is in the form of an affidavit; adw e,xecutedand sworn to, in which af.fiantsays that "he hereby, In writing, states th8t.the gift, devise or bequest In said Will is irrevocably committed for use exclusively within the State of Texas or within the other geographical areas permitted by such Statute so that such gift, devise or bequest is exempt from~Inheritance taxes Underthe laws of the State of Texas." Article 14.06 provides, in part, 8s follows: : "If ,passlng,toorfor the use of the united States, to or for the use of any other person or religious, educational or charitable,organization or institution, or to any other person; tiorporationor,asso~i8tlon not included In any of the classes mentl0ne.dIn ,the preceding portions of the original.Act known 8s Chapter 29 of the General Laws of the Second Called Session of the ;;;;y;;ighth Legislature, the tax : on any value in excess of $ 500 and F% exceeding $10,000 . .~. Thereafter, the tax percentage:increases in stated Value brackets up to 20% on any value In excess of one million dollars. The pertinent exemption provisions read as follows: 'Provided, however, that this Article Shall not apply on property passing to or for the use of the United States, or to or for the use of'any religious, educational or -1703- Honorable Robert 5. Calvert, Page 3 Opinion No. (C- 36) . charitable organization, incorporated, unincorporated or in the form of a trust, when such bequest, devise or gift 1s to be used within this State. The exemption from tax under the pre- ceding provisions of this Article shall, without limiting Its appl%- ;' Cation under other appropriate circum- stance8, apply to all or so much of any bequest, devise or gift to or for the use of the United States, or a religious, educational or charitable organieatlon, which is, in writing ana prior to the payment of the tax, Irrevocably committed for use ex- clusively within the State of Texas or transferred to a religious, educational or charitable organi- zation for use exclusively within this State. “Provided, further, that If the PtiOperty80 passing is to or for the use of a religious, educational, or charitable organization which con- ducts Its operations on a regional . basis, one such region of which in- cludes the State of Texas, or any part thereof, then a bequest, devise or gift to be used within such region shall be deemed to be used within this State. For purpose of this paragraph a region shall comprise not more than five COntiguOuS states, either in whole or in part, one of which is the State ,,” of Texas. For purpoaee of this para- graph, 8 religious, educational; or charitable organization,shall include, but not be limited to, a youth program of physical fitness, character aevelop- ment, and citizenship training or like program,: The last Raragraph of'Artlcle 14.06 provides an exemption for property paaaing to or for the use of any religious, educational or charitable organieatlon, incorporated, unincorporated or in the form of 8 trust, . *" under stated conditions which could not be applicable to the facts pre- sented by the question under consideration. -1704- Honorable Robert S. Calvert, Page 4 Opinion No. (C-358) . 14.06 are The charitable exemptions provided in Article expressly limited to property passing to or ror tne use of any religious, eduC8tlonal or charitable organization; The devise and bequest in question passed, at the death of the decedent, to an Individual, the Bishop. You are therefore 8aViSea that he cannot obtain exemption by committing the property to use within this State and that the proper .* exemption to be allowed him is that provided for “any other person” under Article 14.06, toe., $500. ::, i:, SUWMARY A devise and bequest to a Bishop, in his Individual capacity, who makes an irrevocable commitment to use it within this State is not exempt from inheritance taxes but is subject to tax under Article 14.06, Vernon’s Civil Statutea. Yours very truly, WAGGONER CARR Attorney General of Texas MMcGP:dl APPROVBD: OPINION COMMITTEE W. V. Geppert, Chairman J. H. Broadhurst Ivan Williams Ralph Rash Charles Swarmer APPROVED FOR THE ATTORNEY GENERAL W Stanton Stone -1705-