State v. Hogg, 1677-6416.

Decision Date02 May 1934
Docket NumberNo. 1677-6416.,1677-6416.
PartiesSTATE v. HOGG et al.
CourtTexas Supreme Court

This is a suit under the inheritance tax laws of this state. It appears that the state of Texas, by its Attorney General and by the criminal district attorney of Harris county, Tex., there being no county attorney in such county, sued Mike Hogg as executor of the will and estate of W. C. Hogg, deceased, who died September 30, 1930, and 23 other individuals to whom bequests of property passed under the will of W. C. Hogg, deceased, to recover inheritance taxes and penalties claimed to be due the state of Texas by virtue of the inheritance statutes of this state, and by reason of the bequests so made to such 23 individuals.

It appears that the above 23 individuals, who are defendants herein, are all named as beneficiaries and legatees in the will of W. C. Hogg, deceased; that none of them were related to deceased in any degree; that all such legatees are residents of this state; and that all such devises are to be used in this state. In this connection, it does not appear from the record that there is any stipulation in the will as to where such devises are to be used.

As we understand this record, the sole and only questions presented to us for decision are whether the statutes of this state in force at the time of the death of W. C. Hogg provided for a tax on these bequests, and, if so, should the penalty interest of 2 per cent. per month beginning with the date of notice of the assessment thereof to the executor be charged against such bequests. The county judge failed to certify such claimed amounts to the respective appellees themselves, but did certify same to the executor.

As to the liability for taxes on the property bequeathed to them, these individual legatees submitted this case in the two lower courts on one contention, which is that, because they were not related to the testator in any degree, will use the bequests in the state, and were all residents of the state at the time of testator's death, the bequests to them were not taxed under our inheritance tax statutes as they existed at the time of the death of the testator. The district court and Court of Civil Appeals both sustained the appellees' contention. In this condition of the record, the two lower courts did not reach the penalty interest question.

The statutes directly and indirectly involved in the decision of this case are as follows:

Article 7117 (as amended by Acts 1929, 1st Called Sess., c. 50, § 1 [Vernon's Ann. Civ. St. art. 7117). "All property within the jurisdiction of this State, real or personal, corporate or incorporate, and any interest therein whether belonging to inhabitants of this State or to persons who are not inhabitants, regardless of whether property is located within or without this State, which shall pass absolutely or in trust by will or by the laws of descent or distribution of this or any other State, or by deed, grant, sale or gift made or intended to take effect in possession or enjoyment after the death of the grantor or donor, shall upon passing to or for the use of any person, corporation or association, be subject to a tax for the benefit of the State's general revenue fund in accordance with the following classifications; provided, however, that the tax imposed by this Article in respect to personal property of nonresidents (other than tangible property having an actual situs in this State) shall not be payable: (1) if the grantor or donor at the time of his death was a resident of a State or territory of the United States or of a foreign country, which, at the time of his death, did not impose a transfer or inheritance tax of any character in respect of personal property of residents of this State (other than tangible personal property having an actual situs in said State); or, (2), if the laws of the State or territory or foreign country of the residence of the grantor or donor at the time of his death, contained a reciprocal provision under which non-residents were exempted from transfer or inheritance taxes of every character in respect to personal property (other than tangible personal property having an actual situs therein) provided the State or territory or foreign country of residence of such non-residents allowed a similar exemption to residents of the State or territory or foreign country of residence of such a grantor or donor. For the purpose of this Article the District of Columbia and possessions of the United States shall be considered territories of the United States, and Provinces of the Dominion of Canada shall be considered foreign countries. Provided further that the provisions of this Act shall not apply to residents of those states which have no inheritance tax law."

Article 7118. "If passing to or for the use of husband or wife, or any direct lineal descendant or ascendant of the decedent, or to legally adopted child or children, or to the husband of a daughter or the wife of a son, the tax shall be one per cent on any value in excess of twenty-five thousand dollars, and not exceeding fifty thousand dollars; two per cent on any value in excess of fifty thousand dollars, and not exceeding one hundred thousand dollars; three per cent on any value in excess of one hundred thousand dollars, and not exceeding two hundred thousand dollars; four per cent on any value in excess of two hundred thousand dollars and not exceeding five hundred thousand dollars; five per cent on any value in excess of five hundred thousand dollars, and not exceeding one million dollars; and six per cent on any value in excess of one million dollars."

Article 7119....

To continue reading

Request your trial
17 cases
  • Trapp v. Shell Oil Co.
    • United States
    • Supreme Court of Texas
    • May 15, 1946
    ...535, 537, Ann.Cas.1913A, 699: "This court must sustain it unless its invalidity be apparent beyond a reasonable doubt." State v. Hogg, 123 Tex. 568, 70 S.W.2d 699; on rehearing 123 Tex. 578, 72 S.W.2d 593: "* * * the rule is that every possible presumption is in favor of the constitutionali......
  • Community Public Service Co. v. James
    • United States
    • Court of Appeals of Texas
    • November 18, 1942
    ...the owner of property and which are assessed upon a valuation basis, are practically universally held to be excise taxes. State v. Hogg, 123 Tex. 568, 70 S.W.2d 699, 72 S.W.2d 593. Use taxes are also generally so classified, as for example our automobile license tax. For all practical purpo......
  • Hill v. Gibson Discount Center
    • United States
    • Court of Appeals of Texas. Court of Civil Appeals of Texas
    • December 23, 1968
    ...an interpretation which renders it void, when it is susceptible of another interpretation that renders it valid. State v. Hogg, 123 Tex. 568, 70 S.W.2d 699 (1934); State of Texas v. Shoppers World, Inc., 380 S.W.2d 107 (Tex.Sup.1964); and the statute must be sustained if it can be done by f......
  • Salonen v. Farley, 343.
    • United States
    • U.S. District Court — Eastern District of Kentucky
    • January 18, 1949
    ...intended to do an unfair, unjust, or unreasonable thing.' 39 Tex.Jur. 225; Crim. v. Austin, Tex.Com.App., 6 S.W.2d 348; State v. Hogg, 123 Tex. 568, 70 S.W. 2d 699, 72 S.W.2d It would seem to me that the legislature had a right to create a cause of action and designate what person or person......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT