Untitled Texas Attorney General Opinion ( 1947 )

R-325
PRICE DANIEL
ATTORNEYGENERA‘
May 1, 1947
Hon. George H. Sheppard
Comptroller of Public Accounts
Austin, Texas Opin,Son No. V-176
Re: The accrual of interest
and penalties on real
estate taxes on property
vested under the Allen
Dear Sir: Property Act.
You have requested the opinion of this Department on
the following situation:
"Under the provisions of Public Law 671, 79th
Congress, approved August 8, 1946, the Alien
Property Custodian now is empowered to pay real
estate taxes and special assessments affecting
vested properties whether the taxes accrued prior
or subsequent to the date of vesting. Provided,
however, that under this statute such payments may
only be made where there are sufficient funds held
in the account of the former owner to cover same.
"This department is informed that it is the de-
sire of the Custodian to pay all taxes which are
due and payable, where the Custodian has on hands
proceeds from the property or other funds of the
same owner in amount sufficient to pay taxes ap-
propriate under the law. It is the contention of
the Custodian that no interest and/or penalties ac-
crue after vesting date of the property.
"This department has been requested to in-
struct Tax Collectors, where property has vested
under the Alien Property Law, to revise their rolls
or statements for delinquent taxes on such property
to conform with the proposals outlined by the Alien
Property Custodian.
"This department will, therefore, thank you to
advise us whether or not we have the authority to
authorize such Tax Collectors to accept the money
as tendered by the Alien Property Custodian In pag-
ment of taxes and clear the rolls of such interest
and penalties as may be shown to be due."
Eon. George H. Sheppard - page 2, v-176
The pertinent parts of Public Law 671, 79th Congress,
approved August 6, 1946, relating to the payment of taxes by
the Alien Property Custodian upon property or Interest therein
which has been transferred to or vested in him, are as follows:
"Sec. 36. (a) The vesting in or transfer to
the Alien Property'Custodian of any property or
interest (other than any property or interest ac‘
quired by the United States prior to December 18,
19&l), or the receipt by him of any earnings, in-
crement, or proceeds therof shall not render in-
applicable any Federal, -9
State Territorial, or
local tax for any p eriod prior or subseauent to
the date of such vesting or transfer, nor render
applicable the exemptions provided in title II of
the Social Security Act with respect to service
performed in the employ of the United States Gov-
ernment or of any instrumentality of the United
States. (Emphasis added)
"'(b) The Alien Property Custodian shall, not-
withstanding the filing of any claim or the insti-
tution of any suit under this Act, pay any tax
Incident to any such property or interest, or the
earnings, Increment, or proceeds thereof, at the
earliest time appearing to him to be not contrary
to the interest of the United States. The former
owner shall not be liable for any such tax accruing
while such property, interest, earnings, increment,
or proceeds are held by the Alien Property Custodian,
unless they are returned pursuant to this Act with-
out aayment of such tax by the Allen Property
Custodian. Every such tax shall be paid by the Alien
Property Custodian to the same extent, as nearly as
may be deemed practicable, as though the property or
interest had not been vested in or transferred to the
Alien Property Custodian, and shall be paid only out
of the property or interest, or earnings, Increment,
or proceeds thereof, to which they are incident or
out of other property or interests acquired from the
same former owner, or earnings, increment, or pro-
ceeds thereof. Non tax liability may be enforced
from any property or interest or the earnings, in-
crement, or proceeds thereof while held by the
Alien Property Custodian except with'his consent.
Where any property or interest is transferred, other-
wise than pursuant to section 9 (a) or 32 hereof,
the Alien Property Custodian may transfer the prop-
erty or interest free and clear of any tax, except
to the extent of any lien for a tax existing and
Hon. George H. Sheppare - Page 3, v-176
perfected at the date of vesting, and the proceeds
of such transfer shall, for tax purposes, replace
the property or interest in the hands of the Alien
Property Custodian.
"(d) The word ‘tax’ as used in this section
shall include, without limitation by reason of
this enumeration, any property income, excess-
profits, war-proflts, excise, Estate and employ-
ment &x, import duty, and special assessment;
and also any interest, penaltg, additional amount,
or addition thereto not arising from any act, omis-
sion neglec,t,fallure, or delay on the oart of
the&stodLan."(Emphasis added)
In view of the emphasized verbiage of subsection (d),
supra, it is clear that the Alien Property Custodian need not
w any interest or penalty arising from any act, omission,
neglect, failure or neglect on his part, But such conduct on
the part of the Alien Property Custodian does not prevent the
statutory accrual of the interest and/or penalty upon the basic
tax in view of the emphasized portion of subsection (a), which
provides that the vesting of the title to the property in the
Alien Property Custodian shall not render Inapplicable any
State tax for any period prior or subsequent to the date of
vesting or transfer.
The contention of the Alien Property Custodian stated
in your request is without merit, subject to the exception in
subsection (d) referred to above, and the Comptroller does not
have the authority to authorize the Tax Collector to accept the
taxes and clear the rolls without the payment of the accrued
penalties and interest.
SUMMARY
The Comptroller of Public Accounts is not
authorized to direet Tax Collectors to receive
payment of taxes from the Alien Property Custodian
under the provisions of Public Law 671, 79th Con-
gress, and clear the rolls without payment of
accrued interest and penalties thereon.
Hon. George H. Sheppard - Page 4, v-176
Yours very truly
ATTORNEY GENERAL OF TEXAS
By s/C.K. Rkhards
Assistant
CKR/lh/wc
APPROVED:~MAY 1, 1947
s/Price Daniel
ATTORNEY GENERAL OF TEXAS