Untitled Texas Attorney General Opinion

April 23, 1963 Honorable Jules Damiani, Jr. Opinion NO. C- 63 Criminal District Attorney Galveston County Re: Whether the Commissioners Galveston, Texas Court has authorization to establish an industrial oil and gas and public utilities appraisal depart- Dear Mr. Damiani: ment. In your request for an opinion from this office, you submit certain facts which we quote as follows: "The Galveston County Tax Assessor and Collector recently requested the Commissioners Court for the County of Galveston to enter in- to a contract with an appraisal firm to assist him in the appraisal and assessment of oil and gas, public utilities and industrial properties. The Commissioners Court declined to enter into any contract with an appraisal firm and on March 19, 1963, at a regular meeting of the Commissioners Court the Commissioners Court voted to set up an industrial oil and gas and public utilities ap- praisal department under the supervision of the County Commissioners Court to assist the Board of Equalization and to work with the County Tax Assessor and Collector's office. "After the creation of this particular department, the Court voted to hire an engineer to head this particular department at an annual salary of $13,500.00. This engineer is not res- ponsible to the Tax Assessor and Collector and is not a tax office employee or deputy. . . . "It is understood that the hiring of this particular engineer will in no way usurp the authority of the Tax Assessor and Collector who -306- Hon. Jules Damiani, Jr., page 2 (C- 63 ) has the specific duty to assess all properties. . ." With regard to these facts you ask two questions which we list as follows: "Whether the Commissioners Court has authorization to establish an industrial oil and gas and public utilities appraisal depart- ment. "Whether the Commissioners Court is authorized to hire an eigineer for the ap- praisal of industrial oil and gas and public utilities properties as an aid to the Commis- sioners Court sitting as a Board of Equali- zation." Under Section 18 of Article V of the Texas Constitution,' Commissioners' Courts are courts of limited jurisdiction, having no authority except as is expressly or impliedly conferred, Von- - Rosenberg v. Lovett, 173 S.W. 508 (Civ.App. 1915); Miller v. Brown, 2 b S W 4 2 C' App. 1919) and Carroll v. Williams 09 T 2:2 S:W: 524 lGi6). Also the authority to create sick a dz&i!F' ment is not conferred by the terms of Article 2351, Vernon's Civil Statutes, which specifies the general powers and duties of Commis- sioners' Courts. Since the Commissioners' Court has no express authority to establish an industrial oil and gas and public utilities ap- praisal department, it cannot rely on its implied power for author- izing the creation of this department. In Cmalee v. Laughlin, 147 Tex. 169, 214 S.W.2d 451 (1948), the Supreme Court stated: "The Constftution does not confer cn the commissioners courts 'general authority over the county business' and such courts can exercise only such powers as the Constitution itself or the statutes have 'specifically conferred upon them.' . . .While the commissioners courts have a broad discretion in exercising powers ex!:ressly conferred on them, nevertheless the legal ba,?Is for any action by any such court must be ultimately found in the Constitution or the statutes.' For o,thercases denying the use of implied powers in absence of a statute, see Lasater v. Lopez, 110 Tex. 179, 217 S.W. -307- Hon. Jules Damiani, Jr., pa@;e3 (C- 63 ) 373 (1919); Moon v. Alred, 277 S.W. 787 (Civ.App. 1925, error dism. w.0.j.‘); Hill v. Sterrett, 252 S.W.2d 766 (Civ.App. 1952, error ref. n.r.e.). Attorney General's Opinion O-4557 (1942) held that in the absence of express or implied authority, the Commissioners' Court of Tarrant County could not legally employ a Board of Equalization composed of skilled experts to value for taxation purposes property in the county. Consequently, in the absence of express constitutional or statutory authority, we must hold the act of the Commissioners' Court in establishing an industrial oil and gas and public utilities appraisal department, headed by an engineer not responsible to the Tax Assessor and Collector, is ultra vires and void. Section 1.8of Article V of the Texas Constitution pro- vides in part as follows: "Each County shall. . .be divided into four commissionerst precincts in each of which there shall be elected by the qualified voters thereof one county commissioner, who shall hold his office for four years. . .The county commissioners so chosen with the County Judge, as presiding officer, shall compose the County Commissioners Court. . . ." Section 18, Article VIII of the Texas Constitution, provides as follows: "The Legislature shall provide for equal- izing as near as may be, the valuation of all property subject to or rendered for taxation, (the County Commissioner's Court to constitute a board of equalization); and may also provide for the classification of all lands with reference to their value in the several counties.” The Texas Constitution also provides that "Taxation shall be equal and uniform. All property in this State, whether owned by natural persons or corporations, other than municipal, shall be taxed in proportion to Its value, which shall be as- certained as may be provided by law." Section 1, Article VIII. Also the statutory law places upon the Commissioners' Court sitting as the County Equalization Board a heavy respon- sibility. Section 1 of Article 7206 of Vernon's Civil Statutes, provides as follows: -3os- Hon. Jules Damiani, Jr., pas 4 (C- 63 ) "They shall cause the assessor to bring before them at such meeting all said assess- ment lists, books, etc., for inspection, and see that every person has rendered his property at a fair market value, and shall have power to send for persons, books and papers, swear and qualify persons, to ascertain the value of such vw$tY 9 and to lower or raise the value on the Article 7!.Zl2 of Vernon's Civil Statutes, states in part: "The boards of equalization shall have power, and it is made their official duty, to supervise the assessment of their respective counties, and, if satisfied that the valuation of any property is not in accordance with the laws of the State, to increase or diminish the same and to affix a proper valuation thereto, as provided for in the preceding article; and, when any assessor in this State shall have fur- nished said court with the rendition as provided for in the preceding article, it shall be the duty of such court to call before it such per- sons as in its judgment may know the market value or true value of such property, as the case may be, by proper process, who shall tes- tify under oath the character, quality and quan- tity of such property, as well as the value there- of. Said court, after hearing~the evidence shall fix the value of such property in accordance with the evidence so introduced and as provided for in the preceding article; and their action in such case or cases shall be final; . . .' It has been definitely decided by our courts, however, that the Commissioners1 Court has the implied power to employ independent assistants to assist in arriving at the value to be fixed by the Commissioners1 Court as a Board of Equalization where technical or special knowledge is necessary and which know- ledge the Commissioners' Court would not be presumed to possess, such for example as oil property or any other type of property in which skilled or technical knowledge is necessary in order to attain a fair valuation. One of the first cases to consider the authority of the Commissioners1 Court to employ outside help in valuating property is Roper v. Hall, 280 S.W. 289 (Tex.Civ.App. 1926), in which the court held that the Commissioners' Court of -309- , Hon. Jules Damiani, Jr., page 5 (C- 63 ) Freestone County had authority to make a contract with a private individual to list owners of all producing oil and gas properties within the county and make a valuation of all pipelines, refineries, tank farms, tankage, etc., used in connection with oil and gas development including transportation facilities. The court based its decision upon the premise that the value of the particular kind of property involved could not have been determined by one who possessed only ordinary know- ledge as to such property and hence the court had the implied authority to secure the services of an expert as to the value of such property. The court was careful to point out, however, that the contract precluded the possibility that the expert would perform any of the duties imposed by law on the Tax Assessor- Collector or the Board of Equalization, stating that the purpose of the contract was merely to aid such officers in the perform- ance of their duties. The next case in which the court had occasion to consider the power vested in a taxing authority to employ assistants in arriving at fair appraisals is Simkins v. City of Corsicana, 86 S.W.2d 792 (Tex.Civ.App. 1935). In this case the court said: "We know of no valid reason why a tax board cannot employ an expert to assist it in arriving at the true value of taxable property, and when such expert has been employed the board should have a right to take into consideration the information so furnished by him in ascertaining the true value of property for tax purposes. . . But it must be remembered that such experts so employed bear no official relationship to the property owner and have no statutory authority to fix the value at which the property is to be as- sessed. . .' The same problem was later presented and ruled upon in the case of Marquart v. Harris County 117 S.W.2d 4914 (Tex.Civ. App. 1938, error dism.), and the cont;act considered in that case was condemned by the court because of its broad application to all of the taxable property in the county and, in effect, super- seded the statutory powers of the Tax Assessor-Collector. The case followed, however, the previous decisions that contracts of employment of experts to aid in valuing certain types of property were legal and constituted an appropriate expenditure of public funds. Another case to consider this problem is Crosby v. P. L. Marquess and Co., 226 S.W.2d 461 (Tex.Civ.App. 1950, error -310- Hon. Jules Damiani, Jr., page 6 (C- 63 ) ref. n.r.e.), which case upholds the validity of an appraisal and valuation contract which had been entered into by the trustees of the Kuntz Independent School District and P. L. Marquess and Company. This case went further than any prior case in uphold- ing the validity of a contract to appraise property in behalf of a taxing district. The most recent case concerned with this problem is Pritchard and Abbott, et al. v. McKenna, 162 Tex. 617, 350 S.k.2d 333 (lgol). In this case the Supreme Court reversed the First Court of Civil Appeals, and followin the reasoning of Roper v. Hall, 280 S.W. 289 (Civ.Apn. Federal, Royalty Co. v. St t 4 SW.2d 670 Civ.Ap 1931) and Whelan V. t a T& z82.S W 2d 37Q (19557' held ihat "while 155 Tex. the Czmt%ssioners* Co:rt is ;oE expressly c&hed with constitu- tional or statutory authority to contract with a private firm for the appraisal of in the county, that authority is implied from the been expressly granted to and the duties imposed upon that body by law." (Emphasis added),. On the basis of the foregoing authorities, you are advised that the Commissioners1 Court is authorized to hire an engineer for the appraisal of industrial oil and gas and public utilities properties as an aid to the Commissioners' Court sitting as a Board of Equalization. SUMMARY The Commissioners' Court does not have the express or implied authority to establish an independent industrial oil and gas and public utilities appraisal department. How- ever, the Commissionersf Court is authorized to hire an en- gineer for the appraisal of industrial oil and gas and pub1-l.c utilities properties as an aid to the Commissioners' Court sitting as a Board of Equalization. Sincerely, WAGGONER CARR Attorney General By:.+&&-%,. I.,Raymond Williams, Jr. P Assistant IRW:mkh -311- Hon. Jules Damiani, Jr., page 7 (C- 63 ) APPZG?JED: OPINION CCMMITTEE W. V. Geppert, Cha'rrnan J. C. Davis J?hn Reeves H. Grady Chandler Albert Pruitt APPROVED FOR THE ATTCRNEY GENERAL BY: Stanton Stone -312-