THE ATTORNEY GENERAL
OP -XAS
ClL4WFORD C. MARTIiV
AUSTIN,TEXAR 78711
ET:;.
AT-rORNEY GENERAL
August 29, 1967
Honorable Joe Resweber Opinion No. M- 130
County Attorney
Harris County Re: Whether certain realty
Houston, Texas owned and used by Jtiior
Achievement of Houston,
Inc., is exempt from ad
Dear Mr. Remebers valorem taxes.
You ask the opinion of this office as to whether cer-
tain real property in Harris County, Texas, owned by Junior
Achievement of Houston, Inc., is subject to ad valorem taxes.
Our opinion is that this property is exempt’from these
taxes because it is used for school purposes within the contem-
plation of Article VIII, Section 2 of our State Constitution,
and Article 7150, Sections 1 and 21, Vernon’s Civil statutes,
enacted pursuant thereto.
The rele,vant portion of this provision of the Constitu-
tion reads as follows:
“All occupation taxes shall be equal and
uniform upon the same class of subjects wfthin
the Urnits of the authority levying the tax;
but the legislature may, by general law, exempt
other than the properly-abke mentioned shall be
null and void,” (underscoring added),
Article 7150, Section 1, fn its pertinent portion, reads:
- 602 -
Honorable Joe Resweber, page 2 (M: 130) ‘.~
“The following property shall be exempt from
taxation, to-wit:
“1 * Schools and Churches. - e e :A11 public
colleges, public academies, and all endowment
funds of Institutions of learning and religion
not used with a view to profit,, e D Q and all ‘,
such buildings used exclusively and owned by per-
sons or associations of persons for school pur-
poses; (I 0 .‘I 2,
Article 7150, Sectlon21, exempts from ad valorem taxes:
“Property owned ‘tir used exclusively and
reasonably~necessary in conducting.any aesocia-
.tion engaged in the educational development of
boys, girls, young men or young women through
a program designed to demonstrate the operation
of the American Business system of private enter-
prise and operatlng under a State’ or National
of like .character.” (underscoring add-
Section 2 of the Act’ which enacted thls‘Sectlon 21 reads
as follows:
“Sec. 2. The fact that there is now an
Imperative, immediate and contfnuing need for
relieving the tax burden of aesocfatfons en-
gaged In the~educatlonal develo ment of boys,
girls, young men and younbough a
program designed to demonstrate th’e operation
~of the American business sys,tem of private
enterprise, such as junior Achievement, Inc.,
local organizations affiliated therewith, and
organizations of like character, creates an
emergency and an imperative public necessity
that the Constftutional Rule requiring bills’
to be read on three several days in each House
be suspended, and said Rule Is hereby suspended,
and this Act shall take effect and be In force
3J A&s 1959,, 56,th Leg., Ch. 500? ,p* 1098.
- 603 -
Honorable Joe Resweber, page 3 (M-130)
from and after its passage, and it is so en-
acted," (underscoring added).
The By-Laws of Junior Achievement of,Houston, Inc., provide:
II Various kses'of the Junior
Achievement'program s all be developed as
set forth from time to ,time in manuals,
guides, handbooks and other publications
of the National Organization of Junior
Achievement, Inc, of Massachusetts," (ART.
II, SEC. 2).
We assume that this National Organization of Junior Achievement
of Massachusetts named in this By-Law is a State or National
organization of like character as Junior Achievement, Inc. men-
tioned in Section 2 of this Act.
The Charter of Junior Achievement 'of Houston, Inc. makes
the following relevant provisions: ,
!_'
“2 . The purpose for'which it is formed
is to support and carry on a benevolent, chari-
table and educational undertaking by encourag-
ing, promoting and su ervising, especially in
urban communities, ei e her directly or through
affiliated associations and agencies, the or-
ganization of boys and girls, for the purpose
of encouraging them in productive enterprises
in industry, commerce and homemaking, so that
they may get experience in buying raw materials,
producing useful products, selling the products
of their efforts, and saving and investing ,the
funds accruing from their work, so that the
local club or other unit may become the medium
through which knowledge and skill, gained in
the school and elsewhere, may be given practi-
cal application; by interesting the girls in
household arts; br encouragin more and better
home life by teat ?-Iing boys an 8 girls to make
at home things useful to themselves and for the
home, and helping them through a series of work
programs to grow into more skillful and indus-
trious men and women with a clearer vision of
the various branches of industry and commerce
into which they may go and with a spirit loyal
- 604 -
.
Honorable Joe Resweber, page 4 (M-130)
to these organized activities; and gener-
ally, the promotion of interests and activ-
ities among boys and girls that may make
toward happier and more wholesome home sur-
roundings and better preparation for life
work.
“3. This corporation is not organized
for pecuniary profit and no part of the net
earnings of 'this corporation shall inure to
the benefit of any private member or indivi-
dual;;and no part of the activities of this
corporation shall be the carrying on of propa-
ganda or-otherwise attempting to influence
legislation." Lj
.
The,By-Laws make the further relevant provisions in
Article II:
"SECTION 1. The purposes for which this
corporation is formed are those set forth in
its charter, hit is not organized for pecuniary
profit and'no part of the net earnings of the
corporation shall inure to the benefit of any
private member or individual, and no part of:'its
activities shall be or include the carrying on
of propaganda or otiaarrise attempting to influence
legislature -fi1~7*
"SECTION 2, The program of this corpora-
tion is intended to provide an opportunity for
Yom2 people, in cooperation with adult ad-
visers, to form and operate miniature busi-
_. nesses for the purpose of developing an under-
:,standing of the relationship and function of
tN~e~ssent.is.1~ parts of America's private enter-
prise system, involving private capital, wise
,management and responsible, labor. 'Learn by
Doingl shall be the @in&ipal method of carry-
ing out the' program, 'Various phases of the
Junior Achievement program shall be developed
as set forth from time to time in manuals,
guides, handbooks and other publications of the
National Organization of Junior Achievement,
Inc. of Massachusetts."
- 605-
,“c Honorable Joe Resweber, Page $ (M-130)
,
:+
Article VI of the’ By-Laws provide(s;,i$n part:
“SECTION 2. The officers
‘! of,the corpora-
tion shall receive no salary or other compen-
~sation from the corporation. Employees of the
corporation shall receive such compcnaatlon as
the Board of,,Directors may from time to time
determine; and all officers and employees shall :._ ”
hold office at the pleasure of the Boardk”
The activities of the corporation
(. are sus,talned by volun-
tary contributions.
The Legielature’cla.a~ly deylgnated the activit&esW;f~.
Junior Achievemen,t , Inc., as, educational development.
equate the term “educatilonal development” used in Article 7150,
Section-~21 with the term “school p,urpoaea” used in Article VIII,
Section 2 of our Constitution and Article 7150, .Section I of the
statutes. All doubts must ‘bb resolved in favor of’ the conetftu-
tionality of the s,tatute. Duncan v, Uabler, 147 Tax, 229, 215
S,.W.2Q 155 (1948); 12 TexcJur,2d mm onstitutional Law, Set,
43. A declaration of the Legtslature up& a subject is entitled
. .I’, ,., .,I 4
We are well aware that:a.:mere,;f‘iat ,$rono$ncemant of’ the
Legislature, not supported by; f$cta&a ,no,t mf$lcle: nt to create
a Eax exemption. %, 268 sow.
271 SaW.$‘d
surance Soc-
(T ex.Civ.App;.’ ‘,l>y>$$,aerror :jTe,f6”
1’. We assume
of the corporationdo, conform!% the pro’& ‘s
visions of ita charter and by-laws hereinabove quoted. WC beJ,ie
these activities constitute school purporeo within contemplatipn
of Article VIII, Section 2 of the Constitution and Article 7150,
‘, Section 1 of the etatutee,,
, ,;,, ,,.
‘I
I
,.
g/ Acts 1959,‘56th Leg,,‘.Ch, 500, p. 1098,
,.
-606~,
Honorable Joe Resweber, page 6 (h- 130)
Our State Constitution neither defines nor limits the
meaning of the term "school" or "school purposes." These
terms appear to be ones of very broad import. Webster's Third
New International Dictionary defines a "school" as:
"An organized body of scholars and
teachers associated for the pursuit and
dissemination of knowledge."
In 51 Texas Jurisprudence,,Second, page 318, Schools, Section 1,
entitled "In General; Definitions," is the statement:
i
"'
"A school is commonly regarded as a
place where instruc~tion is imparted to the
young d "
The few cases we fir&which consider whether a particular insti-
Q&son is a school, for purposes of being'exempt from ad valorem
taxes, seem to consider the question as one to be resolved u on
the facts o,f each particular situation. Smith v. Feather, 1 E9
Tex. 402, 234 S.W.2d 418 (1950 ; Little Theatre of Dallas, Inc.
v. City of Dallas, 124 S.W.2d A63 (Tex.Civ.App. 19X9)*
The buildings must be use.d exclusively and owned by the
owner ,,&$&~,stion as required by ,the constitutional provision
under consideration, and the facts submitted to us appear to
conform to this requirement.
SUMMARY
The realty and permanent improvements
thereon in Harris County owned and used
exclusively by Junior Achievement of Houston,
Inc,, for school purposes or educational
development are exempt from ad valorem taxes
pursuant to Article VIII, Section 2 of our
State C,cn&&tution and Article 71509 Sections
1 and 21, Vernon#s Civil Statutes.
Prepared ,by W. E. Allen
Assistant Attorney General
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”
Honorable Joe Resweber, Page 7 (M-130)
APPROVED:
OPINION COMMITTEE'
Hawthorne Phillips, Chairman
Kerns B. Taylor, Co-Chairman
Brandon Bickett
James Q.uick
Brock Jones, Jr.
Jo Betsy Lewallen
STAFF LEGAL ASSISTANT
A, J, Carubbi, Jr.
Untitled Texas Attorney General Opinion
Combined Opinion