Untitled Texas Attorney General Opinion

June 1, 1966 Honorable James E. Barlow Opinion lo. C-701 Criminal District Attorney Bexar County Re: Conatitutlonalitgof San Antonio, Texas Sections 1-3 of Article 70441, Vernon's Civil Statutes, In view of Section 9 of Article 8 of the Texa?.Constl- Dear Mr. Barlow: tution. By a recent letter to this oiflce you have requested an opinion inregard to the above matter. We quote from your letter a8 follows: .!!Qur contention that art..7044a, 0ec8. l-3 l~"unconatltutlona1IS therefore based strlctlg.uponthe .languageof the constitution .I do not see how a commissionerscourt d& levy an annual tax rate and then have that same 'taxrateffect foran indeterminate number of years simply because it did not Bee fit to levythe annual tax rate before July 20th of eadh year. "Also, . . .there ia the question of lm- 'paikent OS-contract as to the amount of the 'tax rate, in .Vlewof the fact that taxes levied to r&tire bond isauee~mustbe recalculatedeach yeti eVm though the original tax wan levied at the time of the bond sale. . . .* Article 704&a, Vernon's Civil Statutes,which became effective June 9, 1965, ie quoted, in part, as follows: "Section 1. From and after Januaryl, 1966, all taxing authoritieswhich use the servkes of the county tax assessor-collector, either to assew or collect taxes for such taxing authority, shall, on or before July 20 of each year, notify the county tax a8aeaaor- collector whose service8 are to be used by the -3379- Hon. James E. Barlow, page 2 (c-701) taxing authority of the tax rate for the succeedingtaxable year adopted by the taxing authority. "Sec. 2. In the event any taxing au- thority . . .falls to notify the county tax assessor-collectorof the tax rate adopted by the taxing authority,prior to July 20, . . .the tax rate for the succeedingyear shall be the tax rate for the preceding year, .and In no event shall a new tax rate be in'force and effect unless notificationof such tax rate Is furnished the county tax assessor-collectorprior to July 20 of each year. "Sec. 3. In compiling the tax roll for a taxing authority . . .the county tax assessor- collectorshall use the rate furnished him by the taxing authorlty~prior to July 20 of each. year or In the event the county tax assessor- collectorhas not been furnished a new tax rate, the county tax assessor-collectorshall use the tax rate adopted for the preceding taxable year by the taxing authority. "Sec. 4~. The fact that there.18 no dead- line for various taxing authorities .(other~than the State of Texas) to adopt a tax rate, causing unduendelay for the county tax assessor-collector . . . Clearly,.ltwas the ~intentionof the Legislature,In enacting Article 7044a, Vernon's Civil Statutes, to require that all taxing authoritiesusing the office of the county tax assessor- collectorplace their tax rate; to be used for the succeedingyear, in the hands of the assessor-collectorby July 20. The State ComptrollerIs presently required to notify the local assessors of its rate for State taxes by this date (July 20). Article. 7042-7044,Vernon's Civil Statutes: In many of the counties of thls~State, the county tax assessor-collectorserves as assessor and collector for many different taxing authorities in addition to the county. The new statute, Article 7044a, applies to all of these taxing authorities. Attorney General's Opinion No. C-647 (1966). Prior to the enactment of Article 7044a, Vernon's Civil Statutes, the time for setting the tax rate by the com- missioners court was controlledby Article 7045, Vernon's Civil -3380- Hon. James E. Barlow, page 3 (c-701) Statutes, which Is quoted~as follows: "The commlselonerscourts of the several counties, all the members thereof being present, the tax collector of such county shall have begun to make out his receipts, calculate the rate and adjust th t 1 I d In their respective counties for gene& rgosB"i to the taxable values shown by the asseeement rolls.n (Emphasisadded) Under the above quoted article the counties had from the time that the tax roll was certified to the State Comptroller (July 15th) until the tax collector started his collecting (October let) to set the .taxrate. Under the new article (704k) the county must determine its rate and notify the tax assessor-collectorby July 20th or the.tax aeieeeor-collectorshall use the rate set by the coUnty Stir' the year before. Without a doubt the Legislaturemay ahange the time for setting the county tax rate. "Subjectto the llmltatlonas to rate as prescribed In Section 9 of Article VIII, Vernon's Texas Constitution,the Legislature;under Its general law making power:,has the authority to regulate all matters pertaining to the levying and aeseeslng of the annual ad valorem taxes, for general zounty purposes, and to.preecrlbethe time for their payment. Stevenson v. Blake, 131 Tex. 103, 113 S.W.2d 525 (1938). Section 9 of Article VIII, Vernon's Texas Constitution, Is quoted, in part, as follower and no county, city or town shall levy 1*tix*rate ln 8x0886 of Eighty Cents (80#) on the One Hundred Dollars ($iOO) ,valuatlon; . . .provldedfurther that at the time the CommlsslonersCourt meets to levy the annual tax rate for each county It shall lev whatever tax rate may be needed for the four (1 ) constltu- tlonal purposes; . . .Once the court has levied the annual tax rate, the same shall remain In force and effect during that taxable year; . . ." No one would doubt that the above constitutional article does not prevent a commlsslonerscourt from using the same tax rat6 year after year If such rate Is eatlefactoryto pay the county obligations. The Tax Assessor-Collector has no -3381- Hon. James E. Rarlow, page 4 (C-701) authority to make a tax levy. The law requires the Commls- eloners Court to make a levy of the taxes In order for the taxes to be valid. If the Court does not;before July 20, set a tax rate, then the Tax Assessor-Collectoruses the tax rate of the preceding year, and the Court would thereafter have to make a tax levy. Victory v. State, 138 Tex. 285, 158 S.W.2d 760 (1942); 54 Tex.Jur.2d. Sec. 42, oage 169. Therefore. It Is our onlnlon that Article 7044a Is not ~nconstltutlonalas violating S&Ion 9 of Article VIII, Vernon's Texas Constitution,due to the fact that the commleslonerscourt must set Its tax rate by July 20 of each year or use the rate adopted previously by the court. Under the law prior to Article 7O@&a, Vernon's Civil Statutes, a recalculationof the tax rate necessary to retire bond Issues was made within the time limit set down b the terms of Article 7045 (quoted above). All that Article 704ta would require Is that the recalculationbe taken Into consideration prior to July 20 of each year. "Obligationof contracts Is not impaired within meaning of the Constitution(Sec. 16 of Art. I, Vernon's Texas Constitution)unless the value of the contract has been lessened by the law complained of. Preston v. Anderson County Levee ImprovementDlst. No. 2, 261 S.W. 1077 (Tex.Clv.App. 924, error ref.). Therefore, It Is our opinion that Article 7044a does not Impair the obligation of contracts. Section 16 of Article I, Vernon's Texas Constitution. SUMMARY Article 7044a, Vernon's Civil Statutes, 1s not unconstltutlonalas violating Section 9 of Article VIII, Vernon's Texas Constitution,due to the fact that the CommleslonersCourt must set its tax rate by July 20 of each year or use the tax rate previously adopted by the Court. Article 7044a, Vernon's Civil Statutes, Is not unconstitutionalas impairing the obligation of contracts under Section 16 of Article I, Ver- non's Texas Constitution. Very truly yours, WAQOONRR CARR Attorney General JCMcC:mkh ~y&ig?t20y” -3382- Hon. James E. Barlow, pagers (C-701) APPROVED: OPINION COMMITTRR W. V. Qeppert, Chairman John Reeves John Banks Wade Anderson APPROVEDFORTHRATTORNEY OWERAL BY: T. B. Wright -3383-