1966
Honorable Lowell C. Rolt, Opinion No. C-731
District Attorney
Upshur County Re: Taxability for ad valorem
Gilmer, Texas tax purposes of property
owned by Radio Church of
God and Ambassador College,
part of which is used by
Dear Mr. Halt: Imperial School.
Your letter requests an opinion of this office 'concern-
ing the exempt status of a portion of 1525 acres of land In
Upshur County, Texas, part of which is owned by Radio Church
of God, a part owned by Ambassador College and a part of
which Is u'sedby Imperial School, which Is a school operated
by Radio Church of God." We quote further from your letter.~
?l!he,factsconcerning this property, a8
well as we can ascertain them, are as
follows:
"RADIO CHURCH OF GOD
"The Radio Church of God was originally
chartered in California as a non profit
Radio Church corporation on February 20,
1947 and was granted a Certificate of
Authority by the Secretary of State of
Texas on the 2nd day of October,'lg63.
>
?Phe purpose or purposes which it pursues
In the State of Texas are as follows:
"The nonprofit vocation of managing the
temporal affairs and promoting the
splrltual, educational and other benevo-
lent Interest of the Church, and without
limitation upon the generality of the
foregoing, proclaiming the Gospel by
radio, printing, personal evangelism
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Honorable Lowell C. Holt, Page 2 (C-731)
and other means of com\iniCatLoZ;
establishing Churches and ordaining
ministers; operating schools and
classes for the spiritual Intellectual,
and physlcal development'of its members
and affiliates; acquiring property,
real, personal or mixed, and mortgaging,
leasing, selling, exchanging or other-
wise disposing of the same, subject to
the provlsions, Vernon's Annotated
Clv'ilStatutes, Miscellaneous Corpora-
tion Laws, Article 1302-4.01 and
Article 13024.05; receiving inter
vivos or testamentary gifts and dona-
tions, engaging in such other secular
activities, permitted by law, as are
necessary or expedient to carry out
the foregoing.
"The Church activities are financed solely
from members and contributions from co-workers.
Never in the history of the Church have funds
been solicited In any of the Church literature,
its world-wide evangelistic and charitable pro-
grams; over Its world-wide radio broadcasts nor
have any public fund raising campaigns ever been
conducted for the financing of the Church.
"Attendance at the Big Sandy Church services
range from 750 to 800 each week. Services are
held weekly for members.
"The Church and its activities are exempt from
Federal Taxation because of its religious,
charitable and non-profit nature and it should
be pointed out that the Church is strictly a
religious, educational and charitable organi-
zation. Th c 11 f P blic Accounts
m, TexEs ~~%soe~d~udg~d it exempt f;om
the Corporate Franchise Tax and Limited Sales
Tax of the State of Texas.
"Faculty members are transferred from time to
time from one campus to the other in order that
each of the colleges will maintain the same
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Honorable Lowell C. Holt, Page 3 (C-731)
degree'of scholastic excellence. At
each college, certain members of the
faculty are required to reside on the
campus, viz: Heads of Departments, Dean
of Men and Women and other AdmInIstratIve
Heads.
"AQQroXimately 16,000 people attend the
Church worship services each fall and
spring. During the year, there will be
three (3) separate meeting days of the
Church for a one day session at which a
minimum of 1800 people will attend for
these three (3) separate meetings.
"AMBASSADOR COLLEGE
"Ambassador College Is a co-educational
liberal arts college with regular faculty,
organized on campus student body and main-
tains curriculum at the collegiate level.
"The College Is exempt from Federal Taxa-
tion under Section 510 (c) 3 of the Internal
Revenue Code. The Comptroller of Public
t Accounts, Austin, Texas has also.adjudged
it exempt from the Corporate Franchise Tax
and Limited.Sales Tax of the State of Texas.
"Ambassador College at Big Sandy is one of
three (3) Ambassador Colleges operated and
functioning as a college in the world. The
original Ambassador College at Pasadena,
California was chartered as a nonprofit
organization by the State of'Callfornla on,
April 8, 1951. A Certificate of Authority
was Issued to Ambassador College to operate
as a nonprofit corporation In the State of
Texas on the 9th day of September, 1963.
The purpose of Ambassador College as certi-
fied to conduct its activities in the State
of Texas are as follows:
"Those necessary for the establishment,
maintenance and conduct of an educational
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Honorable Lowell C. Halt, Page 4 (c-731)
institution of regular curriculum to
Instruct and train students for successful
lives and for active duty in the ministry
of world-wide evangelism and of organizing
and conducting local churches by the Radio
Church of God, which purposes Include,
but without limitation upon the generality
of the foregoing, are:
"1) to establish, maintain and conduct
an educational institution, co-educa-
tional, on the undergraduate levei, in
the field of liberal arts and theology,
and in conjunction a graduate school of
theology;
"2) to own, lease, rent, purchase,
receive or acquire such property, both
real and personal, asis required for
the conduct of classes, academic and
business administration, fund raising,
dormitory and student housing, campus,
recreational and athletic grounds and
facilities, laboratories, studies,
printing, library, gymnasium, farm
properties, livestock and equipment for
practical class demonstration and train-
ing, and whatsoever property or~facllltles
Andyequipment are deemed necessary and
desirable for the purpose of educating
and training the enrolled students of this
college;
"3) to receive and solicit by proper
means donations, gifts, endowments,
legacies, special funds for specific
needs pertaining to the general purposes
of the college, or to borrow funds and
to mortgage or pledge property as security
for same, for the carrying out of the
educational purposes of this institution.
"Students enrolled in Ambassador College are
required to pay tuition, but this is only a
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Honorable Lowell C. Holt, Page 5 (c-731)
small fraction of the operational budget
requirements. In fact, Ambassador College
operates at a deficit and is supported by
Radio Church of God. In fact, Ambassador
College is a creature of the Radio Church
of Godand its charter specifically states
that a part of its purpose Is preparing
ministers of the Radio Church of God
through Its school of theology.
"IMPERIAL SCHOOL
'In addition to Ambassador College, Imperial
School, which is at the elementary and high
school levels;13 conducted on the property
In the name of Ambassador College and Radio
Church of God referred to herein. All of
Its activities have also been exempt from
Federal Taxation under Section 510 (c) 3 of
the Internal Revenue Code. The Comptroller
of Public Accounts, Austin, Texas, has also
adjudged It exempt from the Corporate
Franchise Tax and Limited Sale3 Tax of the
State of Texas. Imperial School Is financed
by the Radio Church of God.
"USES OF ACREAGE
"The entire acreage owned by the hereinabove
mentioned institutions is shohn by a map
attached hereto and made a part hereof
marked Exhibit 'A'. It will be noted that
the tracts are numbered and are colored in
various color3 for the purpose of showing
more clearly the different use8 being made
of the various tract3 owned by the instltu-
tlon named.
"Those tracts of land colored red, viz:
numbers 1, 2, X-3, 4, 9, 10, 11, 12, 13,
14, 15; 1.6, 26, 27 and 28 are used exclusively
for religious, charitable and educational pur-
poses. This use Includes the buildings,
grounds and Improvements, none of which
Produce any Income or revenue to Ambassador
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Honorable Lowell C. Holt, Page 6 (C-731)
College, Radio Church of God or Imperial
School. School, College, Church and/or
maintenance buildings along with dormitories,
school dining halls, faculty houses, recrea-
tional grounds and encampment grounds are
located in this area. Upon an eXaminatlOn
and Investigation of the grounds, we
come to the conclusion that this area and
the facilities, buildings and grounds
located thereon are necessary to fulfill the
requirements of the School, College and
Church.
"A small portion of tracts numbered 2 and 9
are outlined in yellow for the purpose of
showing certain uses being made of that
particular portion, which 13 explained as
follows:
"On this yellow portion, Radio Church of
God and Ambassador College have constructed
resident houses. Ten of these houses are
occupied by heads of departments, dean of
women and dean of men, and the superinten-
dent of buildings, grounds and maintenance.
These faculty members and. superintendent of
buildings, grounds and maintenance are paid
regular salaries and are required to~live
in the residences furnished by the School
and Church. They pay no rent for the
occupancy of same. The houses used by the
faculty produce no income or revenue for
the Church or School. These various
faculty members are required to live on the
campus because the School is co-educational
and the College authorities feel that this
13 necessary in order to maintain the high
degree of morality required by its students.
However, a majority of the faculty members
and employees of the Church, College Andy
School live off campus in neighboring towns.
"Six houses are occupied by ministers of
the Radio Church of God, who are also faculty
members. The Church furnishes these houses
to its ministers as provided under Article
7150b, V.A.C.S.
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Honorable Lowell C. Holt, Page 7 (c-731)
'Those tracts colored blue, viz: number3 5, 6,
7, ,8, l?, 13, 13, 20, 21, 23, 24 and 25 are
owned by the Church and School but they are
being used for grazing and farming purposes
and~though a part of the products comings
from these tract3 are used in connection
with the Church and School, a major portion
of such products are sold commercially and
are not a part of those tracts enumerated
above which are used for religious and edu-
cational purposes. These tracts In the
future, or a portion of them, will probably
be used In connection with an agricultural
program to be offered by the College, said
tracts to be used a3 experimental farms and
demonstration In such program, but at the
present time they are not being used a3 such
and In our ,opinlon,based on the brief sub-
mitted herewith, they are not subject ;40tax
exemption under the laws of our State.
We wish to acknowledge the excellence of the brief
which you have submitted In connection with your request
and concur in your conclusion that the tracts being used
for grazing purposes, to wit, tracts number3 5, 6, 7, 8,
17, 18, 19, 20, 21, 23, 24 and 25 are not exempt from ad
valorem taxation. St. Edwards College v. Morris, 82 Tex.
1, 17 S.W. 512 (18911.
It Is not the province of this office to pass on
questions of fact. With regards to tracts 1 2, X-3, 4,
9, 10, 11, 12, 13, 14, 15, 16 26 27 and 26 you make
the following statements at pige 4 of'your brief:
If
. . . 'Ihebuildings, land, play ground3
and Improvements are necessary to the three-
fold operation of the organizations. These
grounds, buildings, Improvements and other
facilities are used jointly bx the Church
and educational institutions.
Based on the assumption that these statement3 are factually
correct, we also concur in your conclusion that these tracts
are exempt from ad valorem taxation. We have reached our
cOnClUSl?nS In view of the following constitutional and statu-
tory Provisiqns and their construction by our courts.
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Honorable Lowell C. Halt, Page 8 (C-731)
Sec"lcn
” o
L of Prt!cln
, - VIII of the Texas Corstltutlon
authorizes the Legislature, within the llmltations therein
prescribed, to grant certain exemptions from ad valorem taxes.
Secticn 2 provides, in part, as follows:
1,
the legislature may, by gz;;~i
law: *exempt from taxation
placks or fif7 religious worship, also
any proper'ijrwned by a church or by a
strictly religious society for the
exclusive use as a dwelling place for
the ministry of such church or religious
society, and which yields no revenue
whatever to such church or religious
society; provided that such exemption
shall not extend to more property than
1s reasonably necessary for a dwelling
place and in no event more than one
acre of land; . . . all buildings used
exclusively and owned by persons or
associations of persons for school
purposes and the necessary furniture
of all schools . . . ."
Pursuant to these authorizations, the Legislature
enacted Articles 7150 Andy7150b, Vernon's Civil Statutes.
Article 7150 reads, In part, as follows:
"The following property shall be exempt
from taxation, to-wit:
"1. Schools and Churches. Public
school houses and actual places of
religious worship, also any property
owned by a church or by a strictly
religious society, for the exclusive
use as a dwelling place for the
mtnlsters of such church or religious
society, the books and furniture
therein and the grounds attached to
such buildings necessary for the pro-
yg ;;;~euPancy,use and enjoyment of
and which yields no revenue
whatever'to such church or religious
society; provided that such exemption
as to the dwelling place for the ministers
shall not extend to more~property than Is
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,., .
Honorable Lowell C. Holt, Page 9 (C-731)
reasonably necessary for a dwelling
place and in no event to more than
.one acre of'land. . . . a~ndall such
buildings used exclusively and owned
by persons or assoclatlons,,ofpersons
for school purposes; . . ,
Article 7150b reads a8 follows:
"There.1~ hereby exempted from taxation
any property owned exclusively and In
fee by a church for the exclusive u3e
as a dwelling place for the ministry of
such church and which property yields n3
revenue whatever to such church; provided
that such exemption shall not extend to
'more property than is reasonably necessary
for a dwelling place and ln no event more
than one acre of land; and provided further,
that the fact that the ministry uses a por-
tion of the dwelling as their study, library
or office shall not prevent the property
from being considered as being used exclu-
sively as a dwelling place. For purposes
of this Act, 'church' Includes a strictly
religious. society; and 'ministry of such
church' means these persons whose prin-
cipal occupation is that of serving In the
clergy, ministry, priesthood or presbytery
of an.organized church or religion, whether
they are assigned to a local church parish,
synagogue, cathedral or temple or to Some
larger unit of the church organization and
whether they {erform administrative func-
tions or not.
We are here faced with the appllcablllty and, as we
view It.,the overlapping of several exemption provisions.
The "actual places of religious worship" on the tracts
are within the plain and unambiguous language of both the
statute and the Constitution and are exempt. Furtherm'ore,
the statutory provision exempting "the grounds attached to
such buildings necessary for the proper occupancy, use and
enjoyment of the same, and which yields no rexenue what-
ever to such church or religious society. Is not
limited to the church building proper, and'g;ounds necessary
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., .
Honorable Lowell C. Holt, Page IO (C-371)
to give access to the church or from o;?epart of the church
to another. but Includes land3 around such buildings reason-
ably necessary for convenient ingress and egress, ilght;alr,
or appropriate ornamentation. City of Houston v. Cohen, 204
S.W.2d 671 (Tex.Clv.App. 1947, error ref., n.r.e.). As pointed
2Cl
E% 2s be
"necessary ground3 would be a question of fact.
Adverting to your description of tract3 numbered 2 and
9, you state that "Six houses are occupied by ministers of
the Radio Church of God, who are also faculty members". You
suggest that these houses are furnished to the ministers In
accordance with the provisions of Article 7150b. ExemDtion
cannot be accorded under the provisions of'7i50b In view of
City of Houston v. South Park Baptist Church, 393 S.W.2d 354
lTex.Clv.App. 1965. error ref.) which~held that Section 2 of
Article VIII authorizes the Legislature to exemptonly one
dwelling place for the ministry of the church. If these
dwellings are to be exempt, It would be by virtue of the fact
that the ministers are also faculty members. We pass, there-
fore, to a consideration of whether this use of these bulld-
lngs by ministers as faculty members brings this property
within the exemption provided in Article 7150 for "all such
buildings used exclusively and owned by persons or assocla-
tlons of persons for school purposes;' . . .I'
We quote and‘reafflrm the following excerpt from
Attorney General'3 Opinion No. C-l (1963).
"A house owned by a school 13 exempt from
taxation, even though a faculty member or
student thereof reside therein, If such
residence Is to afford protection, guld-
ante and training to students outside of
the classroom, or if such residence 1s
for the convenience of the college by
reason of their residing at that particular
locality with reference to their obligations
to the school, or for some reason with ref-
erence to the.property Itself which Is the
concern of the college rather than of them-
selves and Is In fact used exclusively for
school purposes. Cassiano v. Ursullne
Academy (supra); Red v. Morris (supral;
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Honorable Lowell C. Holt, Page 11 (C-731)
Smith v. Feather, 229 S.W.2d 417 (Clv.App.
Tl 01 ludgment reformed snd affirmed 149
Tez5 462* 234 S W 2d 418 (1950); Cornell
Universliy v. !&orne, 57 N.Y.S.2d.TN.Y.
s C 194 ). Opinion No. V-09 of Attorney
G~~era~'of ?'zx& (1947)."
Ever since the decision of the Supreme Court in Cassiano
v. Ursullne Academy, 64 Tex. 673 (18851, the policy of this
State has conslatently been proclaimed to be as stated at page
675 of that opinion.
"It has been the policy of the state since
1849 to encourage educational enterprise3
by exempting them from any share of the burdens
overnment. . . . The constitution of
2 so far from modifying this policy, makes
108f7
munltlcent provisions for the maintenance of
free schools. There has been no antagonism
between the public and private schools to
warrant the Inference that the framers of
the constitution, !n the use of the word
building, Intended a spiteful dlscrlmlnatlon
against private schools.
"The education of the masses is now recognized
as a function of state government. Those who,
from charitable considerations, to forward
sectarian views, or for private profit, have
organized or conducted schools, have assisted
the state in the performance of a duty It owes
to Its citizens, which cannot be too thoroughly
performed, and which the state has never assumed
that It had either the means or the machinery of
doing sufficiently well without private asslst-
ante. !Phe.UrsulineAcademy 1s performing Its
part in this branch of the public service, and
it should rather be encouraged by aids, than
impaired In its usefulness by a tax upon its
pitiful revenues.
0
. . . .
"All the buildings and all the land sought to
be sold by appellant were necessary and used
for the proper and economical conduct of the
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Honorable Lowell C. Halt, Page 12 (C-731)
school. . . The grounds were used for
the recreation of the pupils, and to'supply
the school with vegetables. Authority Is
not wanting to extend the exemption to land
much less directly employed to forward the
interests of the school. . . ,'I
The moot resent aoknowledgment of this ease by our Supreme
Court is River Oaks Garden Club v. City of Houston, 370 S:W.2d
851, 856 193).
Assuming that you are correct in your determination as
a fact that all of the buildings, land, play grounds and improve-
ments comprised In tracts 1, 2, x-3, 4, 9, 10, 11, 12, 13, 14,
15, 16, 26, 27, and 28 are presently used solely and exclusively
-for educational purposes, we reiterate thatwe concur In your con-
clusion that the above numbered tracts are efempt from ad valorem
taxation.
SUMMARY
Actual places of religious worship on
land which belongs to the Radio Church of
God are exempt from ad valorem taxes as is
the land,around such places reasonably
necessary for convenient ingress and egress,
light, air or appropriate ornamentation.
All of the buildings and all of the land
which are necessary and properly used to
forward the interest of Ambassador College
and Imperial School are exempt from taxa-
tion. The land which belongs to Ambassador
College and which is used for grazing and
farming purposes is not exempt from ad valorem
taxation.
Yours very truly,
WAGGONER CARR
Attorney General
MMP/fb
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Honorable Lowell C. Holt, Page 13 (C-731)
APPROVED:
OPINION COMMITTEE
W. V. Geppert, Chairman
MarionObledo
W. E Allen
Pat Bailey
Kerns Taylor
APPROVED FOR THE ATTORNJS GENERAL
BY: T. B. Wright
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