Untitled Texas Attorney General Opinion

. Honorable Cecil M. Pruett Opinion No. WW-953 County Attorney Re: (1) satisfectlon of a tax Hutchinson County judgment based upon taxes 526 Weatherly assessed against personal ~Borger, Texas property by execution upon and sale of other personal property belonglrg to same owner-and within the statu- tory exemption from forced sale D (2) Authorlzatlon of tax collector and officers serv- ing Writs OS Exectitionto levy upon, seize and sell certain assessed personal property within statutotiy exemption from forced aale. Dear Mr. Pruett: As yoilrrecent letter request5 our opinion upon two questions as above referenced, we.shall consider them Ln turn. The first part of your letter reads as follows: "The collection of delinquent ad valorem taxes Levied upon automobiles has become an issue of concern both to the citizens of this commnlty and to the taxing units involved. There are certain questions which, when answered, may provide a feasible and.economi.cal basis for the solution to the problem encountered in,connection with this matter. "The taxing unit Involved is an independent school district and the situation w,hichexists is that many of the citizens no lohger own the automobile upon which the tax was levied. Judg- ments are being taken against the persons by .. whom the tax is owed, which juagment lxicludes.‘a f’orsclosure of the tax 1l.m upon the.particular automobile involved. “CAN AN EXECUTION ON A TAX JUDGMENT BASED UPON w ASSBSSXD AQAINST PERSONAIiPROPERTY Honorable Cecil M. Pruett. purge2 Opinion No. WW-953 BE SATISFIED THROUGH THE EXECUTION UPON AND SALE OF PERSONAL PROPERTY NOT ASSESSED AS SUCH. BE- LONOING TO THE SAME OWNER, AND WITHIN THE EKEMP- TION FROM FORCED SALE UNDER THE HOMESTEAD LAWS?" We ansuer this question in the negative. Concerning protection of property from forced sale, the Texas Constlt,utlonby Art. 16, sec. 49, conferred a power and a duty upon the Legislature as foll.ows: "The Legislature shal.1have power and it shal.1be its du~tg,to pro!.e?tby law from forced sa1.ea ce,r?:ain portion of the personal property of all.neads of Samllles,,er#.d also of unmarried adults, ma1.eand femal~e." In partial execution of this ,provislon,the Legislature specified certain personal property es exempt, by Article 3832, R.C.S., which we quote in pert.: "The following property shail be reserved to everg~family, exempt-from attackiect or execu.tionand ever-p other specles,.ofSo;ced sale Sot:the payment of debts, except as here- inafter provided: "1.. The homeskead of the family. * The teijm"carriage" as used in Art. 3832 has been deftied to lEn,ludean crutomoblle. Parkei?v. Sweet.,I.27S.W. 881 (Tex. Civ. App. 1.910); I&inn v. Lenaford Inv:Co.., 36 S.W. 2d 1079 (Tex. Clv-.App, 1931)* In the case of a hx. ?iRIUiz,an apparent conflict exists between tillsexemptlon statute cm>3Art. 7272, R.C.S., the perti- nent part of which is es Soilovs: "All real and personal property held or OUn6d by any person In this Skte shall b6 liable for all State end County Taxes due bg the owner thereoS,~lncludir~~tax on real estate, personal property and poll tax; anilthe Tax Collector shall levy or;spy personal or real proper~kyto be Sound lfihis county ~tosatisfy all del.lnquenttaxes, any law .tothe contrary~ notvlthster:dFng; " ~ " ~ " UN page 3 Honorable Cecil M. Pr,irs?.i., Opinion No. WW-953 rts. 7273 and 7274 provide for sales of personal d property. We have found no authorities either In Texas or'.ln any other jurisdiction discussing the precise question you ask. As pointed out in.an annotation at 159 A,L.R, 461 there is a distlnctFon between exempting property from taxation and exempt- ing It from seizure and sale to satisfy a ju.dgmentfor taxes. The general rule 18 that an exemptlon of property from taxation daes not lmpliedly exempt it from seizure and sale to satisfy taxes validly levied upon otherproperty or upon the person own- lx-&the tax-exempt property. u at p* 464.. This is the rule in Texas, Ring v. Williams, 35 S.W, 733 (Tex. Clv. App. 1896).~ However, statutes exempting property from forced sale, such as Art, 3832, have been accorded uniformly liberal constructions In order to effectuate their purposess as contemplated by the Constitution. See Smlthv. McBrvde, 173 S.W. 234 (Tex. 'Civ. App. 1915); Rodgers v. Feruueon, 32 Ten. 533 (1870). Had the Legislature Intended to remove the protection from seizure and forced sale afforded by Art. 3832 in the case.of a tax debt>- it would certainly have used specific language so indicating. In the absence of s-schlanguage, we see no basis for reading in such an exception.. The second part of your letter reads as follows: "In SRUGART VS. NOCONA INDEPENDENT SCHOOL DISTRICT, 288 S.W. 2d 243 on Page 246, the Fort Worth Court of Xvi1 Appeals states, 'In partiqular, In 1929 the 4lst Legislature, by an act codified ab Art. 7328a, R.C.S., lmpliedlg repealed conflicting parts of Arts, 7272 to 7283 authorleirg summary sales of real property for collection of delinquent taxes o plncan v. ffabler,215 S.W. 26 155 (Tex. Civ. App. 1948); Amaimo v. Carter, 212 S.W. 26 950 (Tex. Clv. App. 1948, err. ref. n.r.e.). Apparently the provisions of these Articles deal- wfth personal property were unaffected. See Shugart v. Nocona IndeDendent School District, 288 S.W. 26 243 vex. Clv. App. 1956)e 2 As further zm~batantlatlonof this opinion, it Is pointed out that the last amendment of Art+ 7272 was by Act of the 42iidLeg. In 1931 (p- (pGl237, 237. ch..141, 1). whereas Article 3832 was 141. sec. lj, amended $0 to Ita-pre8en.t. Its pre8en.t. form In 1.935 1.935by the 44th I.egisla.ture (p. 384, ch. 145, sec. 1’). thereby constltutlng sec. 1'). It the latest leg- islatl.veexpression upon the matter. 39 Tex. Jur, Statutes, SbC. 74. Honorable Cecil M. P,rue.tt, page 4 Opinion No. WW-953 the tax collector can levy upon and seize and sell any personal property of the tax debtor, applying the proceeds of the sale upon the debtor's tax indebtedness, secured or not by a tax lien.' "Uy second question relates to this state- ment. "ARE BOlR TRE TAXCOLkTOR AND OFFICERS SERVING WRITS AUTHORIZED TO LEVY UPON AND SEIZE AND SELL SUCH PBRSONAL PROPERTY WREN SUCR PER- SONAL PROPERTY IS WITHIN TRE EXCEPTIONS FROM FORCED SALE ALLOWED BY HOMESTEAD LAWS?" We also answer this quesklon in the negative. The ShuRart c.aseinvolved no question of exemption of property under homessead laws. There, non-exempt personal prop- erty of the plalritlffwas seized by the school district, which was ~the taxing authority, and its tax assessor-collector to satisfy a tax which had been levied upon plaintiff's 011 and gas lease, while a foreclosure suit was pending. As pointed out above, personal property within the ex- emption from forced sale provided by Art. 3832 Is not subject to seizure and sale for a tax debt. Therefore, a speclflc, enforceable lien against the property assessed vould be required to subject it to seizure and sale. In the case of real property, a lien Is specifically given for taxes due thereon. Art. 8, sec. 15, Constitution of Texas. Art. 7172, R~.C.S. Under these provisions the homestead -a of a family may be sold for taxes due thereon, not.wlthstan.dlng its exemption from forced sale provided by Art. 16, sec. 50 of the Texas ConstFtu.tlon..Clt of S Antonio v. TosDDemein 104 Tex. 43 133 S.W. 416 (lgw%er there is no general'lien upon pehonal property‘for taxes due ttbreon. See In re Bra-on, 62 F. 26 959 (C.C.A..Tex..1.9333.3 Except for specific situations, a taxing authority has only the right to sell after judgment on an ordinary wrft of execution, the levy of which will create a lien. Mar0 Co., Inc. v. State, 168,S.W..2d 510 Tex. Clv. App. 1943, em; 40 Taxation,,sec. 1 e 3 There are tax liens created on personalty in specific sltua- tlons. See Arts. 7048 and 7269; In re Br'annon,supra. . . Honorable Cec:il14.Pr:.l::t i,,page 5 Opinion No, WW-953 Art ICY?, R .C,S_1 provider that tares Levied by a citg "shall be h lien upon the property upon which they are assessed' and glves the assessor and collector'power "to l.evyupon any personal property to satisfy" such taxes. Tflereis, therefore, a lien UpOn specific personal property Which has been assessed for city taxes, See City of Lubbock v, South_Plalns Hardware co., 111 S.W. 2d 343 (Tex. Civ, App. 1937). It was determined in Mission Independent School District v. Armstrong 222 3,W. 201 (Tex...Com.App.. 1920) that ~theprovlslons of this article were adopted by,reference and made avalIable to independent 3 hool districts by Ar-t:.2853, R,C;S,, 19X (now A?t:.~2.758,R.c.s.),~ which then read as follows: "The t;-~3:scees el.ectedIn accorda::ce~l'.h the preceding arrlcle shall be yessed ~10l ,p1d3.1 management and control,of the free sch<>ois of such lnco,rporacedt;owo~ oc village, and shall in general be vested with Ellathe powers. r.lghts end duties lr?regard to t.heestablishment and maintaining of free schools, inCl?JdingT!xepowers end manner of t&x:a~l.lw for free school,pur-poses that are corlfewej by tne lavs of thlv state upon thenCo~Jx:~'i~ m Ward of aldermen of irwor~- poreted cltlas end tonnes"' carried forward frem.%he o:d Art+ 2853 IR.C.,S.1911), wr.lch adopted by reference the p.rovlalor:.s of A; '5.1. .i%if; , and upon which. isc.lslonwas based, rt tnerafore appears that the MiSSiOn I.3=.D~. the cr.;y1161;up~3~1speclfl::personal property assessed by aschool d,lstrrcf- was le.glsIaiedout.of existence. Unti' the Legislature sees fit to provlde a method for flxlng a t.axlien upon person.el property nhlch 13 erempt:from forced saie. r;i: method exists for enforcing the 'taxaglirimt3uc.Q pr0pert.y.. . . Honorable Cecil M. Pruett, page 6 Opinion No. WW-953 SUMMARY An Independent school district's personal property tax a*sessment upon property which 13 exempt from forced sale under Art. 3832, R.C.S., even when reduced to judgment, carries.wlth It no enforceable lien upon the specific property assessed end may not be enforced by seizure and sale of that property or exempt property which replaces It. Yours very truly, WILL WILSON Attorney General of Texas By s/James R. Irlon James R. Irion Assistant JRI:cm:wc APPROVED: OPINION COMMITTEB: W.V. Geppert, Chairman Robert Walls Bob Eric Shannon W.E. Allen REVIEWJZDFOR THE ATTORNEY GENERAL .By: Leonard Pessmore