## 729

**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN**  **-----... --..~** 

Hoxborableceorge B. Sheppard Comptroller ofPublia Aaoounta bubustin, Texas
Deer Sir; 0pinlon Qlo. oRet 

## ixrreat 0

We are in reoelpt 1940, In whloh you request (~6to 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 themIneral ri OS OOPoty, Texfi8, ieOted by the er the laots subland ,prierto conferred upon

. You further ny lea80 oi kny oi

aas 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

exisraisedby 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, 

### andto 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 orwhether suoh property i~,located wlthln or wlthout this State, vJhi.oh shall pa48 abaolutely 

### or in truet by will or by the laws of'

### dssocntor distribution of 

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

### orgift made or intended to tnks effect In poeeesslon or enjoyment %ftsr the daath of the grantor or donor, shall, upon parrring to 

### orror the uee or any 

### p4rson 

### corporation, or eesoclstlon, be,eubje& to a tax ror 

### thebenetlt 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



### WY4** The appreieers, being first aworn, shell rorthwith pita nQtlee to riLL persons knows to h4ve any olatraor interest in the property to be appraised, including ths Comptroller of Pub114 AoQOUnt4, the .executor,administrator, or trustee, oi the .timeand plaoe whsn theywill appraise the sem4. At suoh tim4 and plaoe, said apprai44ra shall apprsilresuih property at ite aatual 

### maricet

value Ii it hns amarket value,~ In oese It hes none, then its real value at the 

### Ume of the death qr the dee4dent, and

# ehtirthsreupon mcke a report thereof LnwrTting t0 eald County Judge end Coip:rglt;er,who shed.1rib3 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

Atithe t&m that the swanllsd "RellnQlishmnt k4tw w~r,'p&maeteC in 1919, u ::uroha88rof 

### mineral clA88liisd school land from the Sate ao~uk6d only 

### th68wfa08 

### rlght8 to the rroysrty. The purpose or the “ll6llnquiahmentAatw;lnto oontur 4~ such a grogerCy 

### ownerth8 authortty Co Aat as a6snt **of** the 3tate 

### in learbig the miMra1 rlf&t8 in such property. One-half 

## atthe bonus and rent&l and ordinui;Lf or t&toroyalty above B otrtaln minimum 

## I8to bs retains4 by 

### the fee awner**br the**  

### 8urf6~ right8 

### a8oon8idwb.on for hi8 eoth~ 48 

### a~sntTorthe State in 18a8i5& th6mbmn% rightrr. The 3uxemeb Court of ToraA in th8 6~ti or or8wm v. xoblson, 8 3. ;;'e 

### (&I Itw!J, iAoon8tmln& 

### ttI1r legl8lativa **e5tlCtbIbAt~** 

### otateda8fo low81

-The landouA8r aaqulm8 (under tho liellnqui8ha8At Aat) A0 88t4t8 in th8 all @iAId gacrr Ha,abply has a ri t t4 raoeiva She 9% 60mputbei00 fr0llr th8 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-haoam,pearrtioaiof 104815& thmminers1 

### rlghtll to ths IAnd. Ths ri*t 

### 10om whiohgoeswith 

### thelacdit88lf aab LB a right w&lah only 

### lnureato 

### thebenatltofthe 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'rGarner, 50 3. -2.[td) 769, no tollowsr

** * ** fn 

### our**OphiOA,** t&r oat, whwi rairly and rearnimbly oo~rt+md, also mean9 

### thatall rlnsralr not 

### dl* wd ofgowith the tltls of th4 Iti, 8u 18ot to the W3- go viriona at ths aot. That ah8A a r<d'amI blndiq ltase or aonreyano8 of theminerals is'm8&8 by ths owner of ths lend, 8% the 

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

### raoelvaothe 

### foregoingammAt* 

### asooM$Qnaatlon for hia 8~91608. 

### Xin 8hars 01 

### tha rsntala, royaltlea, nnd 

### b0auseadsrfvsdffonorablsGeorge 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 themaking 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 

### owneror the land shall be the agent of the state to exeaute 

### mineral leases. Wheaarveramineral 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 rvhoeverinherits 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.



### Youare therefore advi68d **that** the 

### appriiieers la determlning the aotual market **Vahib** or the property 

### inquestfoa 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) ~'ouldthe deoiaion as to ths taxability or these rigbta under the 

### Re&lnqul8+ ment Act be atfeoted by the OOmQr~~se Of. Federal R&ate ?!axeebywhleh avaluation were placed on these rights to lease?*

You are advised that the aotfon taken by the F8derkt 

### Government

haa 

### nobearing uponthe 

### Tern8bash .inhsrltanco tax hpoeed by Chapter S of Title lRE of the Revl~~ed(11~11Btatutes or Texas* Such chapter oontains rOVi6iO58 for the aPpre&Wl and 

### aBiW85fll8n~

of the Texas Inherle tance tax and bears n4 retsrenos whatsoever to any appraleal or aeseteementof the Pederal estate tax*

## 733

You are further adriraed,however, that If an additioml irtierLWno6 

### taxia 

### 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 ttixof Texa8. TDer&ore if en additional 

### lnheritnnae tax lo aallsrmsable 

### aminet thi property the 

### banin tar theTexaeadditional hierltancs .ttixuo 3 

### 6 almply 

### boSO$of th tax arsernd by the 

### ?‘ederalOovernment under theFeederale&ate tax OS1926. Your5very truly 

# &z;

FIRST ASSISTANT

ATTORNEY GENERAL