The Attorney General of Texas
December 22, 1982
MARK WHITE
Attorney General
Honorable Henry Wade opinion No. MW-543
Supreme Court Building
P. 0. BOX 12546
District Attorney
Austin. TX. 76711-2546 Dallas County Government Center Re: Whether property owned by
512,475.2501 Dallas, Texas 75202 Offender Preparation and
T&Y 910/674-,367 Employment Network is exempt
Telecopier 5121475.0266
from ad valorem taxation
1607 Main St., Suite 1400 Dear Mr. Wade:
Dallas, TX. 75201-4709
2141742-6944 You ask three questions concerning whether the Offender
Preparation and Employment Network, Inc., a non-profit corporation
4624 Alberta Ave., Suite 160
whose purpose it is to provide ex-offenders with employment training
El Paso, TX. 79905.2793 and assistance, is exempt from ad valorem taxation. The corporation
9151533.3464 is claiming exempt status under section 11.18(c)(l)(C) of the Property
Tax Code which exempts from ad valorem taxation the real and tangible
personal property of charitable organizations "providing support to...
1220 Dallas Ave., Suite 202
Houston, TX. 770026966
the handicapped without regard to the beneficiaries' ability to
7131650-0666 pay...." (Emphasis added). You first ask:
Does the word 'handicapped' as used in section
606 Broadway, Suite 312
11.18(c)(l)(C) of the Texas Property Tax Code
Lubbock, TX. 79401-3479
6061747.5236
include individuals whose 'handicap' is one of
status, or is 'handicapped' restricted to the
physically or mentally impaired?
4309 N. Tenth. Suite S
McAlten, TX. 78501-1665
This office has already construed section 11.18, Property Tax
5121662-4547
Code, as establishing new criteria for determining whether property
owners are eligible for ad valorem tax exemption as charitable
200 Main Plaza, Suite 400 institutions. Attorney General Opinion MW-288 (1980). Property owned
San Antonio, TX. 76205.2797 by an organizatiqn can qualify for an exemption only if the
512/225-4191
organization meets these criteria. Prop. Tax Code 611,18(a). If the
claimant non-profit corporation is to be accorded a charitable tax
An Equal opportunity/ exemption, it must first be exempt under section 11.18. See City of
Affirmative Action Employer Waco v. Texas Retired Teacher Residence Corporation, 464yW.2d 346
(Tex. 1971); Hilltop Village, Inc. V. Kerrville Independent School
District, 426 S.W.2d 943 (Tex. 1968); Attorney General Opinion MW-288
(1980). If it fails to qualify under section 11.18, we need not
consider whether it is a "purely public charity" under the
constitution.
p. 1969
Honorable Henry Wade - Page 2 (MW-543)
The Property Tax Code does not define "handicapped" for purposes
of section 11.18 (c)(l)(C). Nor has any court yet construed the term.
However, the Code Construction Act, article 542913-2, V.T.C.S., at
section 2.01 provides that:
[Wlords and phrases shall be read in context and
construed according to the rules of grammar and
common usage. Words and phrases that have
acquired a technical or particular meaning,
whether by legislative definition or otherwise,
shall be construed accordingly.
"Handicapped" has been defined as "those at a disadvantage in economic
competition because of physical or mental defects." Webster's New
International Dictionary, 1133 (2nd Ed. Unabridged 1957). An
examination of the Texas Constitution and Texas statutes indicates
that our lawmakers have consistently employed the term "handicap" or
"handicapped" to refer to those persons with physical or mental
impairments rather than to those persons who experience social or
economic disadvantage by reason of their status. See, e.g., Tex.
Const. arts. III, 551-a; VIII, §l-b; XVI, §6; V.T.C.S. arts. 601b,
$3.20; 4442a-1; 4442~; 5159d, §4(10); 6823a, 98. We believe that the
rules of common usage compel us to conclude that, when the legislature
employed the term "handicapped" in section 11.18, Property Tax Code,
it was referring only to those persons with physical or mental
impairments and not to those persons who experience social or economic
disadvantage by reason of their status.
We therefore conclude that the term "handicapped" in section
11.18, Property Tax Code, refers to persons with physical or mental
impairments which place those persons at a disadvantage in economic
competition. The term does not include ex-offenders who are not
otherwise physically or mentally handicapped. Hence, a non-profit
corporation which provides employment training and assistance to
ex-offenders does not as a matter of law fall within the ambit of
section 11.18(c)(l)(C), Property Tax Code, which includes "providing
support to.,. the handicapped without regard to the beneficiaries'
ability to pay" among the organizational purposes which may receive
designation as a charitable institution. Because we so conclude, we
need not answer your second and third questions.
SUMMARY
A non-profit corporation which provides
employment training and assistance to m-offenders
does not as a matter of law fall within the ambit
of section 11.18(c)(l)(C), Property Tax Code, and
therefore, cannot be deemed exempt from ad valorem
taxation as an institution "providing support
p. 1970
Honorable Henry Wade - Page 3 (MW-543)
to... the handicapped without regard to the
beneficiaries' ability to pay."
xs
MARK WHITE
Attorney General of Texas
JOHN W. FAINTER, JR.
First Assistant Attorney General
RICHARD E. GRAY III
Executive Assistant Attorney General
Prepared by Jim Moellinger
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Susan L. Garrison, Chairman
Jon Bible
Rick Gilpin
Patricia Hinojosa
Bill Kimbrough
Jim Moellinger
Bruce Youngblood
P. 1971