T~EA~ORNEY GENERAL
OF%%XAS
June 5, 1961
Honorable Robert S. Calvert
Comptroller of Public Accounts
Capitol Station
Austin, Texas
Opinion No. WW-1073
Re: Taxability for inheritance
tax purposes of bequests
to be expended by the
Foreign Mission Board of
Southern Baptist Convention
of Richmond, Virginia, for
the support of foreign
Dear Mr. Calvert: missions.
We quote the following excerpt from your letter requesting
the opinion of this office on the above captioned matter:
"J. W. Kimbrough died testate a resident of
Dallas County on April 28, 1959. Paragraph 4, Section
B, of the decedent's will reads as follows:
11(B. One-third thereof shall be given to the
Baptist Foundation of Texas as an endowment fund to be
known as the J. W. and Utie Kimbrough Memorial Fund,
the net income therefrom to be paid annually, or at
such shorter intervals as may be deemed expedient by
the said Baptist Foundation of Texas, to the Foreign
Mission Board of the Southern Baptist Convention,
Richmond, Virginia, for the support of foreign
missions.'
"The tax on the above bequest was assessed by
this Department on August 25, 1960, in the amount of
$1,573.17,and at the end of the ninety-day period
for paying the tax before a penalty accrues, the
attorneys for the estate remitted all the tax assessed
against this estate except the above sum assessed
against the Foreign Mission Board of the Southern
Baptist Convention and furnished us with a commitment
wherein the Foreign Mission Board irrevocably commit-
ted this bequest for use exclusively in the State of
Texas.
Honorable Robert S. Calvert, page 2 (WW-1073)
"It appears to us that the Foreign Mission
Board has violated the terms of the will when
making this commitment, for the will specifically
states that the bequest is for the support of
foreign missions. Furthermore, the Foreign Mis-
sion Board waited until the assessment was made
before they took any action to commit the funds
for use in the State of Texas.
"In view of the above, please advise whether
or not this bequest is exempt or taxable as pro-
vided in Article 14.06.11
Article 14.06, Taxation General, is a re-codification of
Article 7lZ, Vernon’s Civil Statutes. The pertinent parts of
Article 7122, which was in effect at the date of the death of
the decedent in this case, read as follows:
"If passing to or for 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, corpora-
tion or association not included in any of the
classes mentioned in the preceding portions of the
original Act known as Chapter 29 of the General
Laws of the Second Called Session of the 38th
Legislature, the tax shall be:
,t. . . .
"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 charitable organi-
zation, incorporated, unincorporated or in the
form of a trust, when such bequest, devise or
gift is to be used within this State. The exemption
from the tax under the preceding provisions of this
Article shall, without limiting its application
under other appropriate circumstances, apply to all
or so much of any bequest, devise or gift to or for
the use of the United States, or a religious, edu-
cational or charitable organization, which is, in
writing and prior to the payment of the tax, irre-
vocably committed for use exclusively within the
State of Texas or transferred to a religious,
educational or charitable organization for use
exclusively within this State."
Honorable Robert S. Calvert, page 3 (WW,lO73)
The fact that the Foreign Mission Board of the Southern
Baptist Convention did not commit the bequest for use exclu-
sively in Texas until after the tax was assessed is immate-
rial, as the statute quoted above only requires the commit-
ment to be made "prior to the paym ent of the tax," which was
done.
We cannot presume that the Foreign Mission Board of the
Southern Baptist Convention has expended, intends to expend,
or will expend, the bequest or any part thereof for any pur-
pose other than "for the support of foreign missions" and
thereby violate the trust as provided in the will. Foreign
missions could be supported by the expenditure of funds in
Texas and other states in various ways, for example: (a)
paying the salaries and travel expenses of foreign misaion-
arias while they are home on furlough, (b) furnishing a
dormitory, tuition and other expenses of these furloughed
missionaries while they are attending the Southern Baptist
Theological Seminary at Fort Worth for further training in
their foreign missionary work, (c) paying (in Texas) the
travel expense of foreign missionaries to their foreign
fields, (d) purchasing household furnishings for foreign
missionaries and medicines, medical equi ment and supplies
to be sent to foreign mission fields, (eP paying the salaries
and travel expenses of field helpers in Texas who devote all
their time to supporting foreign missions, and (f) buying
literature and publishing literature in the Board's own pub-
lishing house at El Paso for distribution in foreign mission
fields.
We are advised that the Foreign Mission Board of the
Southern Baptist Convention has , since its organization,
expended part of its funds in Texas to pay for the items
listed above, as well as many others--all of which are in
"support of foreign missions". We certainly cannot pre-
sume that such an organization would expend the funds in
question for uses other than "the support of foreign
missions", which is the sole purpose of its existence as
well as the direct mandate of the will.
Therefore, it is our conclusion that the Mission Board
of the Southern Baptist Convention has complied with tax-ex-
emption provisions of the statute by committing the bequest
"for use exclusively within the state of Texas" prior to the
payment of the tax on such bequest, and that there is no
basis for challenge of the Board's power to make such com-
mitment of the funds under the language of the will above
discussed.
Honorable Robert S. Calvert, page 4 (WW-1073)
SUMMARY
Where bequest "for support of foreign
missions" was unequivocably committed for
use exclusively within this State prior to
payment of tax and where the beneficiary
expends funds in Texas in support of its
foreign mission program, such beneficiary
would have power under the terms of the be-
quest to make such commitment and thereby
render the bequest exempt from taxation
under the provisions of Article 7122, V.C.S.
Yours very truly,
WILL WILSON
Attorney General of Texas
W:
Assistant
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APPROVED:
OPINION COMMITTEE:
W. V. Geppert, Chairman
L. P. Lollar
Joe Osborn
Arthur Sandlin
Linward Shivers
REVIEWED FOR THE ATTORNEY GENERAL
By: Morgan Nesbitt