729 

OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

-----... 

--..~ 

Hoxborable ceorge B. Sheppard 

Comptroller of Publia Aaoounta 

bubustin, Texas 

Deer Sir; 0pinlon Qlo. oRet ixrreat 0 

We are in reoelpt 

1940, In whloh you request 

(~6 to the applfoatlon of t 

property 4r a non-resident 

which lands ware sohool 1 

"Relfnquisbment Aet" paae 

fdtteil, the deceased 

16tS and h4 reo 

hin by the Aot 

state that the 

the mIneral ri 

OS OOPoty, Texfi8, 

ieOted by the 

er the laots subland ,prier to 

conferred upon 

. You further 

ny lea80 oi kny oi 

a as r0ii0w4r 

perty withln the jurlsuiotion or 

incorporate, 

real or personal, oorporate or 

and any interest therein, ii~42udin@; property passing under a general power oi 

appoil!traent exisraised by the deoedent by wi.l.1, 

InoluUing the proaesde of life insuranos to 

the extent of the amount reoeivable by tha 

4xeoutor or a&nhistrrator as ineuranoe under 

policies taken out by the decedent upen hi8 
730 

Honorable George R. Sheppard, Page 8 

own life, and to the extent of the 4~~4~4 

over Forty Thousand 3011~1~~ ($40,000) of 

the amount reoeivablc by all other beneficiariee es ineurenoe under polloiee taken 

out.hy the deoedent upon his own life, whether belonglnc to Inhabitant4 of thle State or 

to persons who are not Inhabitants, regardleas or whether suoh property i~,located 

wlthln or wlthout this State, vJhi.oh shall 

pa48 abaolutely or in truet by will or by 

the laws of' dssocnt or distribution of thla 

or any other State, or by deed, grant, sale, 

or gift made or intended to tnks effect In 

poeeesslon or enjoyment %ftsr the daath of 

the grantor or donor, shall, upon parrring 

to or ror the uee or any p4rson corporation, or eesoclstlon, be,eubje& to a tax 

ror the benetlt or the Stete*r General Roveme Fund, in aooordanoe with the iU.owlng 

olasaifioation. + * *.a 

AFtiole ,7X30 or the Revfeed Civil Statute8 t3r 

Texae provides, In part, an r0iiewf4t 

WY 4 ** The appreieers, being first 

aworn, shell rorthwith pita nQtlee to riLL 

persons knows to h4ve any olatra or interest 

in the property to be appraised, including 

ths Comptroller of Pub114 AoQOUnt4, the 

.executor, administrator, or trustee, oi the 

.time and plaoe whsn they will appraise the 

sem4. At suoh tim4 and plaoe, said apprai44ra 

shall apprsilre suih property at ite aatual 

maricet value Ii it hns a market value,~ In 

oese It hes none, then its real value at the 

Ume of the death qr the dee4dent, and ehtir thsreupon mcke a report thereof Ln wrTting t0 eald 

County Judge end Coip:rglt;er, who shed.1 rib3 and 

keep such report. . (Und4Fscorirg ourll). I 

you. am adurlsed, therefore, that the property dtuated in Texas la subjeot to the Texas lnheritence tax and that 

the 4ame ie to he v~l.s~ed at its aotuel market value a4 of the 

time of the death of the deasdent. 
,. 

73s 

Ati the t&m that the swanllsd "RellnQlishmnt 

k4tw w~r,'p&maeteC in 1919, u ::uroha88r of mineral clA88liisd 

school land from the Sate ao~uk6d only th6 8wfa08 rlght8 

to the rroysrty. The purpose or the “ll6llnquiahment Aatw;ln to oontur 4~ such a grogerCy owner th8 authortty Co Aat 

as a6snt of the 3tate in learbig the miMra1 rlf&t8 in such 

property. One-half at the bonus and rent&l and ordinui;Lf 

or t&to royalty above B otrtaln minimum I8 to bs retains4 by 

the fee awner br the 8urf6~ right8 a8 oon8idwb.on for 

hi8 eoth~ 48 a~snt Tor the State in 18a8i5& th6 mbmn% 

rightrr. The 3uxemeb Court of ToraA in th8 6~ti or or8wm 

v. xoblson, 8 3. ;;'e (&I 

I 

tw!J, iA oon8tmln& ttI1r legl8lativa 

e5tlCtbIbAt~ otated a8 fo low81 

-The landouA8r aaqulm8 (under tho liellnqui8ha8At Aat) A0 88t4t8 in th8 all @iAId 

gacrr Ha, abply has a ri t t4 raoeiva She 

60mputbei00 fr0llr th8 9% 08 0 out 0r th0 

leewa*r soduotton aa tha 8kk prwlder.* 

(nularsaorl5g our? aa4 pareathmtioal 6atter 

own). 

A8 above 8tAted, th8 R8liAQUlbhlMAt Aat 

aae 

*ye to 

the wopwliy awaemaa intereat or ri6htinthal ltmlf, 

but 05 the other hand, glvsr t&s f8e owner ot tha rurlrreo 

eatat a right to roo8lvo a ~o&lon 01 t-ha oam,pearrtioa iof 

104815& thm miners1 rlghtll to ths IAnd. Ths ri*t 10 om 

whioh goes with the lacd it88lf aab LB a right w&lah only 

lnurea to the benatlt of the petif who ia the f@a ovmer Of 

the surfam right8 at the t&as tha llmd fr leamd. The 8upromo Court of T6xa8 84 rtntad in th6 base of Lamar v'r Garner, 

50 3. -2. [td) 769, no tollowsr 

** * ** fn our OphiOA, t&r oat, whwi 

rairly and rearnimbly oo~rt+md, also mean9 

that all rlnsralr not dl* wd of go with 

the tltls of th4 Iti, 8u go 18ot to the W3- 

viriona at ths aot. That ah8A a r<d'amI 

blndiq ltase or aonreyano8 of the minerals 

is'm8&8 by ths owner of ths lend, 8% the 

agent of the #tab?, th6A iA that eVeAt fu 

raoelvao the foregoing ammAt* as ooM$Qnaatlon for hia 8~91608. Xin 8hars 01 tha 

rsntala, royaltlea, nnd b0ausea dsrfvsd 
ffonorabls George H. Sheppard, Page 4 

from the leases executed by him becram property rights durlw the period of t&m for 

whioh the lease runs. Prior to the making 

of the mineral lease, the owner of the laad 

has no right to aaaign or convey any mineral 

rights in the property. It ia the iAte5tlOA 

or the law that the owner or the land shall 

be the agent of the state to exeaute mineral 

leases. Wheaarver a mineral leas0 exeouted 

by a prior owner terminatea, the then owner 

of the land beoonee the agent of the state 

with authorlty to sell or lease the 011 and' 

gas mineral rights, a8 provided for IA the 

Relinquishment Aat.* 

It ie the oplaion or this department that.lnisofar 

as you &ate in a partfoular aaee the mineral intOreSt havd 

not been leased, that the right gfven to the Zoo owaw in 

thie oass, the decedent, by the Relinqulahment Aot, A4w pawns 

along with the property to rvhoever inherits said property 

from the deasaaed. AS suoh right 18 one which goam with th8 

land, lt Is a factor which muet be taken into oon8iiIeration 

IA determlnlng the actual market value of the property a8 prr 

eoribed by Article 7130, supra. 

You are therefore advi68d that the appriiieers la determlning the aotual market Vahib or the property in questfoa 

should consider the additional value to the property plaood 

OA the same by the ReliaquiPhment hot of 14196 

Your seoond question ia am tollowsm 

"(3) ~'ould the deoiaion as to ths taxability or these rigbta under the Re&lnqul8+ 

ment Act be atfeoted by the OOmQr~~se Of. 

Federal R&ate ?!axee by whleh a valuation 

were placed on these rights to lease?* 

You are advised that the aotfon taken by the F8derkt 

Government haa no bearing upon the Tern8 bash .inhsrltanco tax 

hpoeed by Chapter S of Title lRE of the Revl~~ed (11~11 Btatutes 

or Texas* Such chapter oontains rOVi6iO58 for the aPpre&Wl 

and aBiW85fll8n~ of the Texas Inher le tance tax and bears n4 retsrenos 

whatsoever to any appraleal or aeseteement of the Pederal estate 

tax* 
733 

You are further adriraed, however, that If an additioml irtierLWno6 tax ia Inpoaed ucdor the outhorlty oi 

Chapter Sa of Title l.EEI, all vzluatlom pleoed on property 

tr the Federul Govsrnmnt forat the busia ior thl8 addltion01 ichritance ttix of Texa8. TDer&ore if en additional 

lnheritnnae tax lo aallsrmsable aminet thi property the 

banin tar the Texae additional hierltancs .ttix uo 3 6 almply 

bo SO$ of th tax arsernd by the ?‘ederal Oovernment under 

the Feederal e&ate tax OS 1926. 

Your5 very truly 

&z; 

FIRST ASSISTANT 

ATTORNEY GENERAL