Charles C. Haffner III and the Northern Trust Company, as Executors of the Will of Charles C. Haffner, Jr., Deceased v. United States

757 F.2d 920

• Court: Court of Appeals for the Seventh Circuit
• Decided: April 23, 1985
• Docket: 84-1946
• Status: Published

Opinions

PER CURIAM.

The executors of the estate of Charles C. Haffner, Jr., Deceased, brought this action against the United States, asserting a claim for refund of estate taxes paid on public housing agency obligations, known as Project Notes, issued pursuant to the “United States Housing Act of 1937,” as amended by the Housing and Community . Development Act of 1974, 42 U.S.C. § 1437. On cross motions for summary judgment the district court, in a detailed and well reasoned opinion, held that the Project Notes were exempt from federal estate taxes under section 11(b) of the Housing Act of 1937, 42 U.S.C. § 1437i(b). Haffner v. United States, 585 F.Supp. 354 (N.D.Ill. 1984).

We agree with the district court. With the following minor corrections we adopt Judge Will’s opinion and affirm the judgment.

In the fourth full paragraph on page 356, lines 12-13, the citation should read United States v. Manufacturers Nat’l Bank of Detroit.

In the fourth full paragraph on page 357, lines 9-11, the final phrase of the quotation should read: shall be exempt from all taxation now or hereafter imposed by the United States.

In the second full paragraph on page 358, lines 18-19, the citation should read American Bank and Trust Co. v. Dallas County.

The third full paragraph on page 359 should read:

The Jandorf case is practically on all fours with this one. At issue there was the tax treatment of Victory Liberty bonds held by a foreign investor, obligations that were authorized by section 4 of the Victory Liberty Loan Act of March 3, 1919, Pub.L. No. 65-328, 40 Stat. 1309, 1311 (1919). Section 1 of the First Liberty Bond Act of April 24, 1917, Pub.L. No. 65-3, 40 Stat. 35 (1917) describes the tax treatment accorded bonds sold to United States investors and section 4 of the Victory Liberty Loan Act amends a prior act which describes that of bonds sold to foreign investors and purchased with foreign money. The wording of sections 1 and 4 is materially identical to that of sections 20(b) and 5(e), respectively, of the 1937 Act.

In the first full paragraph on page 361, line 8, the citation should read: 88 Stat. 633 (1974). The citation in the final line of that paragraph should read: 88 Stat. 633, 653 (1974).

The second full paragraph on page 361 should read as follows:

In 1949, Congress rewrote section 20 of the 1937 Act deleting any reference to the tax treatment of Authority obligations. See Section 304 of the Housing Act of 1949, Pub.L. No. 81-171, 63 Stat. 413, 427 (1949); 42 U.S.C. § 1420. After the 1949 Act became law, there were two tax exemptions for local housing agency obligations: Section 5(e) of the 1937 Act, 42 U.S.C. § 1437i(b), which applied to obligations issued pursuant to the 1937 Act, and Section 102(g) of the 1949 Act, Pub.L. No. 81-171, 63 Stat. 413, 416 (1949), 42 U.S.C. § 1452(g), which applied to obligations issued pursuant to the 1949 Act.

With the corrections set forth above, we adopt the opinion of the district court as the opinion of this court and affirm the judgment.¹

AFFIRMED.

1 . We note that subsequent to Judge Will’s opinion, Congress enacted the Deficit Reduction Act of 1984. 26 U.S.C. § 1 et seq. This Act provided, inter alia, that "Nothing in any provision of law exempting any property (or interest therein) from taxation shall exempt the transfer of such property (or interest therein) from Federal estate, gift, and generation-skipping transfer taxes.” This provision shall "apply to the estates of decedents dying, gifts made, and transfers made on or after June 19, 1984.” Pub.L. No. 98-369, 98 Stat. 494, 939 (1984).