Untitled Texas Attorney General Opinion

Honorable James E. Barlow Opinion No. M-328 Criminal District Attorney County of Bexar Re : Who has the administra- County Courthouse tlve responsibility of San Antonio, Texas 78204 deciding the status of property for ad valorem tax exemption under the Constitution and Dear Hr. Barlow: Statutes of Texas? Your request for an opinion from this office inquires as to what official or of'flclals on the county level has the responsibility of deciding which property shall be exempt from taxation beoauae of the various provisions of the Constitution and Statutes, when the tax exempt status ia disputed. In connection with this request, It should be noted that the final authority to decide If property is exempt from taxa- tion rests with a court of competent jurisdiction. Your ques- tion, therefore, has been interpreted to ask what admlnlstra- tive authority is vested with the authority to initially deter- mine if property is exempt from ad valorem taxation by virtue of the Constitution and Statutes, and does any other administrative body have the authority to review such a determination. The Constitution and Statutes of Texas delegate the duties of administering the ad valorem tax laws of the state to three authorities, namely, the county tax assessor and collector, the county commissioners court, sitting as a board of equalization, and the county commissioners, functioning as a commissioners court. An examination of these same laws, however, reveals that none of these bodies is expressly granted the authority to Initially de- termine whether property falls within a class that is tax exempt. -1605- , . Hon. James E. Barlow, Page 2 (M-328 ) Sections 14 of Article VIII of the Texas Constitution establishes the office of assessor and collector of taxes and provides therein that he . . . shall perform all the duties with respect to assessing orooertv for the nur- pose of taxation and boliecting taxes as may be prescribed by the Legislature.” (Emphasis Added.) Among the numerous duties of the tax aaaeasor as pra- scribed by the Legislature is that of obtaining a full, complete, and correct asaeaament of all taxable property slt- uated in his respective county. See Art. 7189, et seq. Vernon’s Civil Statutes. An assessment of property for taxation has been defined as the’listlng of property to be taxed~ ln aome form, and an estimation of the sums which are to be a guide in the apportlon- ment of the tax. See Sullivan v, Bitter, 51 Tex. 604, II3 S.1W. 193, (!fex.Clv.App. 1901B, no writ history). Article 7145,. Vernon’s Civil Statutes, provides -. “All property, real, personal or mixed, except such a% may be hereinafter express- ly exempted, la subdect to taxation. and the same shall be rendered and llstedx herein prescribed. ” (Emphasis Adde d . ) A summation of the above definition and provlalona Indicates that only property subject to taxation Is to be listed, and the duty of listing such property is vested with the assessor and collector of taxes, It follows, therefore, that before the assesaor can perform his duties he must make an initial decision of whether or not property is exempt from taxation. If it Is ex- empt, the assessor has no authority to assess the property. If it 1s not exempt, then it is made his duty under the statutes to assess the same. It is the opinion of this office, therefore, that the tax assessor and collector is granted the authority to lnltlally decide if property is tax exempt under the Constitution and Statutes of, Texas s The next question to answer is whether the county commissioners court, sitting as a board of equallzatlon, has the -1606 . Hon. James E. Barlow, Page 3 (M-328) authority to uasa on auestions relating to the tax exempt status of property. - Section 18 of Article VIII of the Constitution of !Psxaa provides that: ?l?ha Legislature shall provide for equal- izing, as near as may be, the valuation of all property subject to or rendered for The duties of the commissioners court, sitting as a board of equalization, and Its authority as such board is defined by Article 7206, Vernon's Civil Statutes. The other statutes that have been enacted regarding the board simply clarify those duties listed In Article 7206, supra. See Articles 7198, 7211, 7212, 7356, et seq., Vernon's Civil Statutes. Article 7206 provides that the commissioners court shall sit as a board of equalization and Is to receive all the asseaa- ment lists or books of the assessors of their counties for Inspection, correction or equalization and approval, Thereafter, said Article, supra, provides in part as follows: "1 . They shall cause the assessor to bring before them . . . all assessment lists, books, etc., for inspection, and see that every person has rendered his property at a fair market value, and shall have the power to send for persons, books, and papera, swear and qualify persons, to ascertain the value of such property, and to lower or raise the value on same. "2 . They shall have power to correct errors In assessments. “3 . +** "4. After they have Inspected and equalized as nearly as possible, they shaI.1 approve said lists on books and return same to the assessors for making -1607s Hon. James E. Barlow, Page 4 (M-328) up the general rolls, when said board shall meet again and approve thea same if found correct. *** ::g- !l!he assessors of taxes shall furnish said board . . . a certified list of names of all persons who either refuse to swear or to qualify or to have signed the oath required by law, together with the assess- ment of said person's property made by him through other information; and said board shall examine. eclualize and correct assess- ments so made by the assessor, and when so revised, equalized,,and corrected, the same shall be approved. In the case of Harris County v. Bassett, 139 S.W.2d 180, (Tex.Clv.App., 1940, writ of error refused) the Court, dlscusa- ing Art. 7206, suprag as well as other statutes, said: II the authorities are uniform In hildiig that the Board of Equalization is concerned only with the properties on the rolls and with the correction of valuations placed thereon by the Tax Assessor, and that the board may not add to the rolls property not entered, nor eliminate there- from entries appearing thereon. consent, e (citing authorities).-. D (Emphasis Added,) -1608- Ron. James E. Barlow, Page 5 (M-328 ) Furthermore, In the case of Roach v. First Savings & Loan 203 S.Y.2d 1006, 1012 (Tex.Civ.App. 19471, the Court esslng the powers of the county commissioners acting ai the board of equalization, observed that the latter is given the power of reconsideration and revision of the tax assessor-collector's real property valuations. The Court further said: "The jurladlotlon of the Commlasioners Court sitting as a board of equalization la fixed bs Art. VIII. Sec. I8 of the Constitution. Vknon*a AxmISt. It Is conceded by all authorities that ihe Board of Equalization Is without power to add to or take from the assessment rolls property plaoed thereon or round thereon, but its power 1s limited to matters affecting valuationa.” (Emphasis Add,ed.) In the oaae of Bavls v. Burnett, 77 Wx.3, 13 S.W. 613 (1890). the Supreme Court naa conoerned with the queetlon of rihethir the apiellee would be entitled to a writ cif Injunction to prohibit the oolltctlon of an Illegal tax. The taxing authorities had assessed property that uas tax exempt. The appellant (tax authority) had urged the appellee had a remedy by applloatlon to the board of equallution, and that therefore he was ZI& entitled to a writ of In¬ion. That Court declared: The above articles and the court Interpretations placed thereon clearly define the scope of authority of the county commissioners court sitting as a board of equalization with respect to what matters may be brought before them for their oonslderatlon. It la the opinion of this office that such scope of authority does not include the power to decide whether property is exempt from taxation by the Constitution and Statutes. -1609- . I Hon. James E. Barlow, Page 6 (M- 328) If the county commissioners court, sitting as a board of equalization, does not have _ _this authority, do the county commlsslon- ers functioning as a commlssloners court have any control over assessments or exemptions therefrom made by the tax a~ssessor and collector? Art. V, Section 18 of the Texas Constitution provides that the County Commissioners Court shall exercise such powers and jurisdiction over all county business, as Is conferred by the Constitution and laws of the State. Pursuant thereto, the legislature enacted in the year 1905 Articles 7346 and 73479 Vernon’s Civil Statutes, giving the county commissioners court certain author- ity to reconsider and revise the tax rolls, Article 7346 pre- scribes, in part, as follows: “Whenever any commissioners court shall discover through notice from the tax collector or otherwise that any real property has been omitted from the tax rolls for any years since 1884, OP enforce collection of taxes on said properties, they may-, at a meeting of the Court, order a list of SW+ properties to be made i ;, II ) (Emphasis Added s ) Art. 7347, provides, in part, that when the list referred to in Art. 7346 has been compiled, II . the commissioners * 0 court m2J at any meeting, order a caneellatio n of such properties in said list that al:e known to have been previously assessed, but which assessments are found to be fnvalia have not been canoelled by any for ?i&r order of the commissioners court, or by decree of any district court; and shall then refer such list of properties to be assessed OP re-assessed -1610- . . Hon. James E. Barlow, Page 7 (M-328 ) to the tax assessor who shall proceed at once to make an assessment of all said properties, from the data given by said list . . . and when com- pleted shall submit the same to the commlssion- ers court, who shall pass upon the valuations fixed by him; and, when approved as to the values, shall cause the taxes to be compc!ted and extended at the tax rate in effect for each separate year mentioned in said list;. . . (Emphasis Added. ) These statutes speak of those situations where the commissioners court "shall discover" or "shall find" that real property has been omitted from the tax rolls or a previous assessment thereon is Invalid. In such Instances, it becomes the duty of the commissioners court to make a list of said properties and refer said list to the tax assessor to be properly assessed or reassessed. In Couch v Earnest, 62 S.W.2d 988, 992 (Tex.Civ.App. 1933, error dism.) the San Antonio Court 01' civil Appeals declalseu bnat I,. . . The t:x roll of a county is not like the law of the Medes and Persians, irrevocable and unchangeable. When property is found to have been omitted from the rolls, it is the right and the bounden duty of the commissioners court to have a corrected roll prepared. . . ." (Emphasis Adde d . ) It is our view that Articles 7346 and 7347 expressly authorize the commissioners court, in its discretion, to inquire Into real property assessments and any and all exemptions there- from made by the tax assessor and to declare the same to be invalid for any reason (including the matter of exemptions); and should the commissioners court decide an assessment is invalid, they have the authority to strike said assessment from the tax rolls. This position is supported by prior opinions from this office. See Attly. Cen. Opinion Nos. O-7251 (lg46), V-973 (19&q), and M-321 (1968). If the real property Is not assessed because found to be exempt by the assessor, who omits the property from the tax rolls, the commissioners court may, at any meeting of the court, determine that the property is not exempt and order that such property be listed on the tax rolls and asaeased. If that real property is assessed because found not to be exempt by the assessor, who lists the property on the tax rolls, the commissioners court may, at any -1611- Ron. James’E. Barlow, Page 8 (M- 328) meeting of the court, declare the assessment invalid and order the same to be cancelled from the tax rolls. ThUS, the county commissioners court functions here as the general governing body of the county, and exercising administrative and quasi-judicial functions, as contem- plated and authorized by Article V, Section 18, Constitution of Texas, and the cited statutes enacted pursuant thereto. This opinion should not be interpreted as saying or implying that the county commissioners court is nec- essarily required to review all tax assessments or exemp- tions therefrom, or that action by that authority is a condition precedent to the maintenance of an action in Court concerning invalid assessments or tax exempt properties. The commissioners 1 court Is jurisdiction and- duty Is Invoked only when it shall discover through notice that real vrooertv has been omitted from the tax rolls, or shall find-any-previous assessments to be invalid, or to have been declared invalid for any reason by any district court, as expressly set out in Article 7346. SUMMARY It Is the opinion of this office that the administrative responsibility of deciding whether property Is exempt from taxation by the Constitution and Statutes of Texas is vested with the county tax assessor and collector, and the county commissioners, functlon- ing as a county commissioners court, has the authority to reconsider and revise his decisions with reference to all real property; the county commissioners court, sitting as a board of equalization, has no authority, expressly or impliedly, to consider questions relating to tax exemptions, but its authority is limited to matters affecting valuations. s very truly, ‘2. MARTIN orney Qeneral of Texas . . Hon. James E. Barlow, Page 9 (M-328 ) Prepared by Edward H. Esqulvel Assistant Attorney General APPROVED: OPINION COMMITTgE Kerns !lkylor, Chairman Bill Allen John Reeves James McCoy Alfred Walker Gabriel QutSmrez HAWTRORNEPHILLIPS EICECUTIVE ASSISTANT .,.,, ., . ~(. ..a.. ,.. I -,1613- ..