Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-09-07
MUST PAY THE STAMP TAX.
Decision Regarding the Conveyance
of Property in Trust.

Decision Regarding the Conveyance
of Property in Trust.
Acting Commissioner Williams of the in
ternal revenue bureau has decided that a
deed of conveyance of church property ex-
ecuted by the executors of a Roman Cath
Ole bishop to his successor is taxable under
the war revenue act. The decision is d.
the ninth district Of Pennsylvania, and is
as follows:
"Sir: Under date of the oath ultimo this
office received a letter from Lyman d. Gil
bert of Harrisburg, Pa, asking for a re-
consideration Of the question of taxation on
a deed of conveyance executed by the ex-
ecutors OF the Right Rev. Bishop McGovern
to the Right Rev. J. F. Shanahan, the
present Roman Catholic bishop of the do
cese of Harrisburg.
Under date of August 22 this office ad-
vised E. q. Gross, recorder of Dauphin
county, that this deed of conveyance was
subject to taxation. The recorder asked
the question If the values in the assess
ment books Of the county could be taken as
basis on which to compute the tax. He
was advised that this could be done.
"It seems that he communicated with Mr..
Gilbert and advised him that this deed was
subject to taxation. and Mr.. Gilbert pre-
sents the question to this Office for recon-
sideration.
that this deed must be stamped. The fact
that the bishops Of the diocese Of Harris
burg hold the legal title to certain proper
ties in trust, and that they have in previ-
GUS Instances appointed by last will and
testament executors and directed these ex-
ecutors to convey to their successor all
the property and effects, real and personal
whatsoever, and wheresoever situate, in
trust, to assign and convey the same in fee
simple and forever unto the person who
shall next succeed me (the devisor) by ap-
pointment duly made as bishop OF the Har-
risburg diocese upon all and singular the
same uses and trusts, and with the like
powers upon which the said property and
effects shall have been held by me imme-
diately preceding my DEATH does not af-
feet the question of taxation.
''This is the clause in the will of the
Right Rev. Bishop McGovern under which
| his executors execute deed Of conveyance
| to the present incumbent Of the office. Mr..
! Gilbert protests that this deed of convey
ance is not subject to taxation because the
bishop holds title to the property in trust,
and that he has no personal interest or
estate therein.
"You will inform him that, notwithstand-
ing his contention. the deed is subject to
| taxation because it fully vests title. and by
| this executors deed, and under the law,
| this succeeding bishop Is a purchaser, al
| though he does not pay any consideration
| for the conveyance. A person can, under
| the law, acquire title to real estate only in
| the following ways: BY descent or opera
| ton of law or by purchase. The succeeding
| bishop acquires title to this real estate by
purchase and therefore, under the provi-
sions of the act of June Is, 1893, he is a
purchaser, as set forth in the paragraph in
schedule A relating to conveyances, and
| the deed of conveyance is subject to taxa.
| ton on a basis of the value of the real
estate passing to him under the instrument,
and the same should be stamped accord
ingly.'