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Honorable Norman C. Davis Opinion No. M-17
County Attorney
Presidio County Re: Whether the Presidio County
Marfa, Texas Hospital District has the
authority to levy a tax for
the purpose of Initiating
the operation of the Hospital
District even though the entire
year In which the district was.
Dear Mr. Davis: created has expired.
You asked whether the Presidio County Hospital District
has the authority to levy a tax for, the purpose of lnltiating
the operation of the Hospital District even though the entire
year in which the district was created has expired.
0th~ Information derived from your correspondence and
from the Session Laws reveals that the enabling act of the
district was effective August 30, 1965, and that an election
to create the district was conducted on December 4, 1965.
In arriving at an answer to the question you pose, It
Is necessary to consider the provisions of the enabling Act
authorizing the creation of the district, in regard to levy-
ing of taxes, assessment, and collection.
The applicable section of the Act reads as follows:
“Taxes : Levy, assessment and collection
“Sec. 9. (a) After a majority of those persons
voting at the election vote for the levy of a tax,
the Board of Directors shall levy a tax not to ex-
ceed seventy-five cents (759!)on the One Hundred
Dollar valuation on all property subject to taxation
within the District.
“(b) The Board shall use the same valuation used
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Honorable Norman C. Davis, Page 2 (M-17)
by the commissioners court In taxing the property
for county purposes which appears on the county tax
rolls.
“(c) The Board may use the proceeds of this tax
for the following purposes only:
“(1) paying the interest on and creating a
sinking fund for bonds Issued under the pro-
visions of this Act;
“(2) provldlng for the operation and maln-
tenance of the hospital district and the
hospital system;
“(3) making Improvements and additions to
the hospital system;
“(4) acquiring sites for additions to the
hospital system.
“(d) On or before October 1 of each year, the
Board shall levy the tax and immediately certify
the tax rate to the tax assessor and collector of
the county In which the District Is located. The
tax assessor and collector of that county shall
collect the taxes for the District. The taxes of
the District are subject to the same conditions as
the taxes of the County.
“(e) The assessor and collector of taxes is
entitled to a fee as compensation for his services
of not more than one per cent of the. total tax col-
lected, but not to exceed $5,000 in any one fiscal
year. The Board shall fix the exact amount of com-
pensation. The tax assessor and collector shall
deduct this fee from the payments made to the Dis-
trict of the taxes collected, and deposit that
amount In the general fund of the county as a fee
of office of the tax assessor and collector.
“(f) The Board may levy this tax for the entire
year In which the District Is established to secure
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Honorable Norman C. Davis, Page 3 (M-17)
funds necessary to Initiate the operation of the
hospital district. ” Acts 1965, 59th Leg., p. 1455,
ch. 643.
Subsection (f) of the statute might seem to pose a
problem In this particular situation, In that the entire
year In which the district was established has expired.
However, due to the broader powers provided In the prior
subsections of the statute, It would not seem that this
subsection can be read to place llmltatlons upon the
broader powers so as to frustrate completely the intent
of the statute. It 1s our Interpretation that subsection
(f) was Included only to enable districts such as this,
which were created In the middle or near the end of the
year, to tax for the whole year In which they were estab-
lished.
Subsection (f), in permitting the levy of the tax
for the entire year In which the district Is established,
neither Increases nor decreases the purposes for which the
tax may be used, since Initiation of the operation of the
district is clearly a part of the “operation . . . of the
hospital district and the hospital system”, an authorized
purpose as set out In subsection (c) (2).
The Board has the authority to levy the tax for 1967
on or before October 1, 1967, and the fact that part or all
of the proceeds may be used to Initiate the operation of
the hospital district Is immaterial.
The requirement of subsection (d) that the tax be
levied on or before October 1 of each year does, however,
operate to prohibit retrospective levy of the tax for the
years 1965 and 1966.
Therefore, In answer to your question, It Is the
opinion of this office that the Presldlo County Hospital
District has the authority to levy a tax for the purpose
of initiating the operation of the Hospital Dlstrlct even
though the entire year in which the District was established
has expired. The tax, however, must be levied on or before
October 1 of the year for which It Is levied and may not be
levied for any prior year.
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Honorable Norman C. Davis, Page 4 (M-17)
SUMMARY
--e-e--
The Presidio County Hospital District
has the authority to levy a tax for the
purpose of lnltlatlng the operation of the
Hospital District even though the entire
year In which the district was established
has expired, but the tax must be levied on
or before October 1 of the year for which
it Is levied and may not be levied for any
prior year.
Ver@Zly yours,
cL2&&k=
Attorn,@ General of Texas
Prepared~ By- John F. Pettlt'
Assistant Attorney General
APPROVED:
OPINION COMMITTRE
Hawthorne Phillips, Chairman
W. V. Geppert, Co-Chairman
Gordan Cass
Kerns Taylor
Arthur Sandlln
Malcolm ,;uick
STAFF LEGAL ASSISTANT
A. J. Carubbi, Jr.
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