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June 18, 1958
Ron. 3. R. Owen Opinion No. WW-453
County Attorney
Wllllamsim County Re: Whether the S.P.J.S;T.
Georgetown, Texas Rest Home in Taylor,
Texas, a non-profit
private corporation,
Dear Sir: 1s exempt from taxation.
We quote from your request for an,oplnlon as follows:
[Question:7
“The S.P.J.S.T. Rest Home, a non-profit private
corporation has constructed and Is presently oper-
ating a rest home In Taylor, Williamson County,
Texas. This home takes the position that its
property 1s exempt from taxation, and Mr. Jack
Gillum, Tax Assessor-Collector of Williamson
County, Texas, has requested this office to obtain
an opinion from you as to whether the property 1s
exempt.
flelevant Fact@
At this time, all of the residents in the
r&i home pay room, board and care’, and the amount
charged per person living in the ‘rest home varies
with the ability to pay. The organization is too far
in debt at this time, which 1s at the very beginning
of its operation, to maintain residents without pay.
This latter Information was furnished In reply to A
question as to whether or not the home permits purely
charitable residents who are not required to pay
anything. No resident has made a lump sum payment
uponentering the home, and the residents do not
give any money or property to the home upon entering,
other than the regular payment,for room,and board.
No resident has devised any property or bequeathed
any money to the rest home, The charter discloses
eligibility for admittance to the rest home which Is
not limited to S.P.J.S.T. Lodge members. No part of
the buildings or premises Is used by anyone other than
resl,dents of the home, and there are no types of con-
ces,slon stands or stores which might be selling one
I
. .
Hon. J. R. Owen, page 2, Opinion No. WW-453,
or more Items to the residents of the home or to the
public. In,the’ event the home does make any profit
In Its operations, any such profits will probably be
used, fof.~addltlonal‘~aonatructlonr~.in connection with
the home, or if this 1s not doneA the cost per resl-
dent will ,be materially lowered.
Our answer to the above-mentioned questlpn Is In the
negative.
The Legislature, acting under the authority granted
It by Section 2 of Article VIII 6f the Constitution, enacted
Section 7 OS Article 7150 V.C.S. exempting “all buildings
belonging to institutions of purely public charity together
with the ‘lands belonging to and occupied by suCh,lnstitu-
tlons ,not,,leased or otherwise used with a view to ,prof-
it., . . .
The Supreme Court of Texas 1
Scottish Rite Benev. Assn. 230 S.
is, exempt from taxation ,if It Is
cltislvely.by an Institution of public charity. The Court
further stated’ that- an Institution was orie of “purely. pub-
lic charity” where, first, It made no gain oFprofIt,
second, It accomplished ends wholly benevolent, and, third,
it bene,flted peEsons, Indefinite in numbers and personal-
ities, by preventing them, through absolute gratuity, from
becoming burdens to the state.
From the Information that you have presented, it Is
apparent that the property in question Is owned and used
exclusively by the S.P.J.S.T. Rest Rome. The Rests Rome
conforms to the first two requirements of a “purely public
charity” as set forth in the foregoing case but falls to
meet the third requirement. Since the Rest kome does not
accept any resldent,on a atrlctly charity baais, It does
not benefit persons, Indefinite in numbers and personal-
ities, by preventing them, through absolute gratuity, from
becoming burdens to the state.
TM real-,prpperty owned-by tRe S.P.J.S.T.
Rest Rome Is not tax exempt fop the reason that
the Rest Home Is not presently funotlo~lng as a
“purely public oharlty.”
, ^
Hon. J. R. Owen, page 3, Opinion No. WW-453
Very truly yours,
WILL WILSON
Attorney General of Texas
BY
Jack N. Price
Assistant
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APPROVED:
OPINIONCOMMITTEE
Geo. P. Blackburn, Chairman
Marietta McGregor Payne
Leonard Passmore
Wayland C. Rivers, Jr.
Henry G. Braswell
REVIEWEDFORTHE ATTORNEY
GENERAL
By: W. V. Geppert