OFFICE OF THE AT7ORNEY GENERAL OF TEXAS
AUSTIN
Xoaorable 000. B. AeppuKI, page 2
rnheritMoe Tar IAUS. I lttaoh the aompleta OS-
fg ~~~~em8bove srtste for your use in
.
question
The o? ths aature of an lntersrt ¶a 8 part-
nership, am4 its situ8 Sar lnbarltanoe tax ptqoaea, vm oon-
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 estate of J. A. Lamb. We quote frcaathat opinions
Vhe eusstlos you vish uuuered la vhather
or not a 9utnerrhi9 intorest in real$y ownad, by
a AaA-rerfdant dawdent is tumble in Texu user
the hh~it~o8 TPX Iav of this state.
%u 8re respeatfully advlnecl that this prt-
nerrhip interest oven though the 9artawrrhi9
pmpertybs iathoa*ture ofrHlpP~rtJ,is
it0ttubb in ~8 btm d~0 to the mt th8t
its mltue Ia at the do&ol& of the alfner. The
all 6iaou88ioA or the lav byudine plr-=@hw
appears in Vol. X, far. Jur. 207-595.
u all iidng%bls lnter*rt uw
15 s. u. 5691 noore vsr stmas,
.aA&r:T;;.f.$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
that ths intmst of a partner In puturship
assets oaautitut88 l ah080 in wtlaa 8nd I.8 In-
t&lb& puwnsl property sub cot to trsnsfsr
Ln&aM88 t8x ial ths stats of deosdont 18 dad-
.,, l Sea BlMgett tl)e8llbewp, 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 la to t&e real ertata ourmttb ,$e
z~~:xie rurdoubtrdlatin uu l@v h Tea- 1
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.
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~
Fi.?St88tiOlMtl B8nk VS. Nalne (1931) 264 U. 8. 3l.2,76 L. Gl.
313, 52 3. ct. 174) ~a@ unequlrooa~~~
_- -- ovurruled bJ tha United
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.niono? the Court In tha Aldrich 088e re-
Vi-8 ti SUthOritJ Of ~h8kStOM Illller, (1903) 168 U.3.
l89, 23 a* Ct. 277, 57 L. IEd. 439 r vblah had been overruled
by Fezmere' Loan 6 Trust Co. Y. Unneaota, rupra) and eoceptr
U tb# jUFi8biOtiOd b8iS fOr Stlt8 inbrritUIO8 tU88 th8
OrikriOil flhS@C%Sd bJ the di888nt~ OpiniOM I34 the t&t8
sues 2-e above aited, i.e., It 8 State, b it8 lW, aV88
prokatlon to propa2-t~ w effeot to 4 right L proparty, it
ma ylx so t Mlnherltsnaetax qmn the transfer thereof aa a
"Quid pro qUO.Y A lm thlr crlterlon to 8 psrtn.errhlp in-
estate
tmrert ln Texao retz;' owned by a eon-reridant it vould
WSl’ tbSt the bV Of hXU @VaS pl'OtWtiiM t0 th8 phy#iOti
property of the pertaerrhlp, and giver aSfeet to 4 partncmhip
intwest and th0rer0rr Texan
therein, nay deuand anlahcri-
tame tu upon the tramfar of the prtnarahlp interest at the
death of the partwr, though Iw be domloiled in another 4tate.
Tin ooMt;tutioll8llnUb1t1oa 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
ertate la, ve bellevs, taxsb I8 under hrtlolt 7117, R. C. S.,
1925, vhlch reada in part as follovat
-hll SwmrtY vlthln ths jurlrdlotlon or
tW.8 &ate, nrl or oorporate or in-
pereonsl,
nru interest therein, . . . uhath-
~,O&of&?oinbab itUtt8 Of this E-t@ OF t0
perrow vho 8re not idnb1tuat8, regardle88 of
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 to a tax.
. . . @m-l@ 0-J
Honorable Cteo.If.Ylaepp8r6,page 4
YOU 8-k tht Situp th# VSbS Of th8 -t’I
w+U'8t+9 +tSIWS> iItTO+ PUl OState la the Ullbw L.
BIu lSt8tSa 088
Mt Wrtnt t0 U l@ th.
ur o h 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-
ld c itfik b tStUt88Of Texas. Claptar +Avu uiukdbythe
Leglslsture ial9~3vlth the 9 8 ld intS& iCCI (U StSt-
ld 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 lWOO@@ipn t8XVS 48tU-
to OF %ZTitOX'~ O? the WS-
any po88O88lorr of the United
f+t8tSS, tn FOS~Qt oi w Zpm2’tJ b8htd8d in th8
-8 eSt8k(AOthZ81udirrg~ 8UOhtwS &b8%d
tb a lSt8tO Of 4 puson other than
. %!h8~t~OWd~thi88Ub-
sot exsud 80 per oenttm of ths tax
%8@08crbby800tiCUl8~. . . .*
Furthm irdiaation of thole&v&tlvv puqoae ia
th slautunt of r5-A iotobs fouadin8ect~ons 8,14
mad15 thsreof, &98d U fO11OvS:
%eu. a. SeatIons 1 to 7, i.NdWiTS, Of
tl&a Chapter shall sllmys Oonskord beSO u not
t6:bSl’SUO th8tOt81 w Oft-8 mbl8
to the atat8 awl tha Fdual oablzml
Upan .thS @@ate@ Of dOOO&klt8 th8 w &XlFpOS~ Of
Sti 8ddititi t&X w t0 &CO 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
Honorable Oeo. Ii.Aeppml, pgo 5
c
of ColmblR, in res~et to any poperty inohded
in - dWOdUit'@ -048 lSt8t@ .
Qea. 14. me Imherltawe tax t&et 18 here-
by hpoeed upon every kneflolsry~8 rhuv of the
estate of maion-WSlbmt deoedont Shallb8 a tU
-Oh, & UOUlt, bMl’8 tb SU Nt%O t0 th. Va-
ti.W tU fW VhbhthS bMSfiSlSP~‘8 htW.St
Vopld k lhbh if t& WItin WtStO WWP8 SitU8t-
ed In Texu, 88 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&eatdaudMt 8huewr SitWfeb, be-
fora allowable benafiaiaq doduat1ow era maQe.a
%6tfon 15. I8 th OVUlt 8 FVS~d~#lt Of
this StSte &bS, kSVitO6 w 88t8tO Subj8Ot t0
mlnhrultuL88tu,8ltu8ted tlyvIthInMd
~t~'vIthmt thi8 Ytao, tr Inhsr1tMoe tax
SlSpSOdUQOSithS~Of~b@iWflCl~Of
8ti 88tit8 8itWt.din %X88 & Uli k l t8X
rhi~8hl1bO~thO~MNtiOtOt~88OUt
SWh tu VOUld k if hiX WitiFS S- and inkn@t
'I vUe SitUtd in Tam, b8SOn dlOVam bSW?i-
aiuy&dwtIoLLa besrstott.uJtotalvalw of
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
lav, uider the dostrine ataouwd by First B8tsbAl Bank vs.
lldne, @up@, that no pmputy, vhsthsr tallglbl.0 011 i.ntMgs-
blm, Oould b8 SUbjWt to UL InbritM tU in 1DofO thM QDI
State.. AtthttlmmlnUn&bleawul4ktumdoaly~tha
Et&e “Or the &Wbllt t 8 dUbtie. Toxu ~1114 not have ool-
leot4d-MlnhsrltMae t.uupon i!Un&ibb@ or8ny nature cmaed
b y 8 non-nrldont, lltha undo2 Chapter !i a~ Chsptm,5-A. It
i8 Mt t0 bV piu@uwd thX’.fOn, wt tbb h~@~t~U~intUldVd
Ectaorsbla Ileo. Ii. ;rhepp-rd,p-e 6
.
th#WdO.
voll-reoognlaedr u ls of It 18 l
ue to bs eorrrtrwd In the
u g a otfoondZtlonr a n6
Wa s
lu lx.lrtLng u of th e 6a te of
the* wuotatmt. Ui~O86 bd.88iO~i V. T. & li. 0. Rfiib086
co., 42 8. Y. (2d) lO9.
ths above quotsd 9r0virian8 of Chapter 5-A ale8rly
h&Awta that tbleg9alatare aouldnothwe intsndrd the tu
thereby l8poae6 to lpoly 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&XXIUhi8h t.h@St8tS Of t&W dOo6&8nt'8 dO#llaileWI
llro lo- a taxeqaulilto~ oftha 1926 Pedisl-altsx, thla
88mepjqwrtyVOUhlbe -St &%I$ oft&8 Fedwaltu~ are-
rultrhiuh18 aPaUe8tl~rLdlauloua, all6wuobwouldbe in
owflbt ulth tha lx p r eodireotlon
r OS aeotloa 8 of Chapter
+A Vhid l’8G4ldF88 thSt t;he chS9tOZ' “Ihdl 81V*a8 b OOM~Wd
80 U rrot to &are&!e the totti -butt O? t-8 payable to the
stat8 M& tb ?kbral OOV@RW~~ aomblw6.g
Uo
eonalutle, thweforo. thet Chapter 5-A surf be
OQWlZWd in
the li&tt Of th pr@WiliPg bV OB the UFiSdiO-
tibU Of ShtSS t0 -88 ilbritUC8 t8XO8 88 Of 193 i f rhiti
wan8 that the tax ic1$088aby Chaptm 5-Aornbe l pplledonly
to Suoh property u Texu ha6 jurl86iFotIon to tax unflarthe
doatrizu Of F%P@t Ilatie Bnr& V. ti, SV9PL It fOl.bVS
that no tu aan be lqwsed uular ChOpter 5-A on the p@rtnU-
#hi9 lntomt ln Tuu rod estate owiod bywllbur L. Sell,
dwsued.
uo uo r o tur zd.lq
y o ur
fUe 00this l4t8te h u M vit.h.
YOUFS very truly