Honk. Robert S. Calvert Opinion No. WW-350 

Comptroller of Public Accounts 

Capitol Station Re: Whether value of property 

Austin, 'Texas previously subjected to 

death taxes In another 

State on death of prior 

decedent may be deducted 

in computing inheritance 

Dear Mr. Calvert: taxes 

'. Your letter requesting our opinion on the above 

captioned question reads, in part, as follows: 

"Robert Glenn Rapp died testate on October 

10, 1948, a resident of Oklahoma owning 22059 

shares of Denver Producing and Reflnl Company 

stock valued at approximately $2,766,9 2 8.00. 

Under the last will and testament of Robert 

Glenn Rapp, the testator devised this stock 

to his surviving wife, Florence Bunn Rapp, who 

later remarried a man by the name of Anson L. 

Clark. Mrs. Florence Bunn Clark is now deceased, having died on August 1, 1952. 

"Between the date of.death of Robert Glenn 

Rapp and Mrs. Florence Bunn Clark, the Denver 

Producing and Refining Company was liquidated 

and the assets of the company were distributed 

to the stockholders of said company. Among the 

assets of the company distributed to Mrs. Clark 

were various mineral Interests and surface 

rights In Texas valued at $3,140,782.00 

"An inheritance tax report was made to the 

Oklahoma Tax Commission for the estate of Robert 

Glenn Rapp and the 22059 shares of Denver Producing 

and Refining Company stock were Included as a 

part of the decedent's estate and a tax paid 

thereon. 

"Anson L. Clark, the executor of the estate 

of Florence Bunn Clark, has filed with this department a Texas Inheritance Tax Report which 
* 

Hon. Robert S. Calvert, Page 2 (m-350) 

1nc;ludes the assets distributed to Mrs. Clark 

In the liquidation of the Denver Producing and 

Refining Company, also claiming as a deduction 

forpro ert previously taxed a sum of approxlmately k 2,7 % 3,176.00 as being taxed within five 

years by the State of Oklahoma. 

"Please advise whether or not this claim 

of .$2,743,176.00 as property previously taxed 

within five years Is an allowable deduction." 

Article 7125, Vernon's Civil Statutes, provides, in 

part, as follows: 

"The only deductions permissible under this 

Law are the debts due by the estate, . e Q all 

Federal, State, County and Municipal taxes due 

at the time of the death of the decedent, 9 D e 

and an amount equal to the value of any property 

forming a part of the gross estate situated in 

the United States received from any person who 

dies within five (5) years prior to the death of 

the decedent, this reduction, however, would be 

only In the amount of the value of the property 

upon which an inheritance tax was actually paid 

and shall not Include any legal exemptions claimed by and allowed the heirs or legatees of the 

estate of the prior decedent. . . a' 

Prior to the 1939 amendment of Article 7125, the 

pertinent provisions of the statute read as follows: 

"The only deductions permissible under this 

law are the debts due by the estate, o s D all 

Federal, State and County and Municipal Taxes 

due at the time of the death of decedent and an 

amount equal to the value of any property forming 

a part of the gross estate situated in the United~ 

States of any person who died within five years 

prior to the death of the decedent; this deduction, 

however, shall only be allowed where an inheritance 

tax Imposed under this or any prior act of the 

Legislature was paid by the estate of the prior 

decedent and only In the amount of the value 

placed by the Comptroller on such property in 

determining the value of the gross estate of such 

prior decedent. . e .I' 
Hon. Robert S. Calvert, page 3 (WW-350 

Attorney General's Opinion O-5997, In passing upon 

the Identical question here Involved, after quoting the 1929 

and 1939 amendments of Article 7125 stated: ! 

"The conclusion Is Inescapable, from this 

amendment deliberately omitting the clause, 

'Where an Inheritance tax imposed under this or 

any prior act of the Legislature was paid', that 

the Legislature intended thereby to exempt an 

estate of a prior decedent received within five 

years, and upon which an Inheritance tax was paid, 

even where the tax was paid to some other state," 

Opinion O-5997 was later affirmed by Opinion R-1425 

and for the reasons stated in Opinion O-5997 we re-affirm same. 

SUMMARY 

The deduction allowed under Article 7125, 

V.C.S., for property comprising a part of 

a decedent's estate which was received from 

a prior decedent less than five years before decedent's death and upon which inheritance taxes were actually paid may be claimed 

even though the tax was paid to some other 

State. 

WVG:gs 

APPROVED: 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

OPINION COMMITTEE 

Geo. P. Blackburn, Chairman 

J. C. Davis 

Milton Richardson 

By $-Tz!icF 

Assistant 

John Reeves 

Leonard Passmore 

REVIEWEDFOR THEATTORNEYGENERAL 

BY 

James N. Ludlum