THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, July 11, 1995 TAG: 9507110261
SECTION: LOCAL PAGE: B4 EDITION: NORTH CAROLINA
SOURCE: ASSOCIATED PRESS
DATELINE: ASHEVILLE LENGTH: Medium: 64 lines
Granting a tax waiver on inheritance of historic properties such as the Biltmore Estate would benefit the federal government over the long term, according to a North Carolina congressman.
Providing an exemption for historic properties means they will stay private and keep paying taxes, rather than being taken over by nonprofit organizations or the government, said Charles Taylor, R-N.C.
Under the law, inheriting the Biltmore Estate could be an expensive proposition for owner William Cecil's heirs.
Inheritance taxes alone could cost more than $25 million.
Taylor, whose district includes the estate, has co-sponsored a bill introduced by Rep. Herb Bateman, R-Va., that would exempt estate taxes for certain historic properties open to the public. Bateman's district includes historic sites such as Colonial Williamsburg.
``It's early in the process, but we're confident we can get something done,'' said Pete Kirkham, legislative director for Bateman.
Changing the inheritance laws has been a personal campaign for Cecil, whose grandfather, George Vanderbilt, built the 250-room house in Asheville.
Cecil, 66, has testified before Congress on reforming estate taxes so that privately run historic properties could be passed along without a massive tax bill confounding heirs.
If heirs couldn't pay the tax, a property might have to be turned over to the government or a nonprofit group.
``What it will allow private preservationists to do is face the future with a little more confidence that you don't have this unknown dangling over your head,'' said Cecil, president of the Biltmore Co., which owns and operates the estate.
Bateman's bill includes guidelines to prevent abuses.
In addition to meeting historic preservation qualifications, a property must be open to public visits for at least eight hours a day, six days a week and 32 weeks a year, the bill stipulates.
Taylor said the measure could be brought up for a vote this year.
A tax waiver for estate inheritance would put more money in federal coffers than a one-time windfall estate tax, which might take the property off the tax rolls by compelling owners to turn over the property to the government, Taylor said.
The Biltmore Estate's holdings and a downtown building that houses estate offices are evaluated at $47.5 million, according to the company.
At the maximum Internal Revenue Service estate tax rate of 55 percent, the heirs would owe $26.1 million.
The tax bill could go up as the estate is renovated and expanded.
The Biltmore Co. is investing $11 million in improvements to mark the estate's 100th anniversary this year.
Even with an estate tax waiver, the Biltmore Co. would continue to pay other taxes.
Property tax paid in 1994 for the estate, an associated winery and the Biltmore Building totaled $403,500, the company reports.
Between 1984 and 1993, the Biltmore Co. paid $7.2 million in federal and state taxes. by CNB