Estate of Cirone

In this case we hold that an initiative measure repealing the state inheritance tax, stating it is “operative as of the date of passage” and “shall apply to the estates of those persons dying on or after such date,” precludes the imposition of inheritance taxes against the estate of persons dying on the date of the election at which the initiative measure was enacted by the electorate. This result does not violate the prohibition against a gift of public funds contained in section 6 of article XVI of the California Constitution.

Jesse Cirone died at about 2 p.m. on June 8, 1982. The inheritance tax referee appointed by the probate court reported that Cirone’s estate owed a tax of $70,108. The executors of the estate objected on the ground that the passage of Proposition 6 on June 8, 1982, repealed the state inheritance tax from the beginning of that day. The court sustained the objection, and the state has appealed. We affirm the judgment.

Proposition 6 is an initiative statute which repealed the state inheritance and gift tax and added a new section to the Revenue and Taxation Code banning the state from imposing any inheritance or gift tax. It was passed by the…