Untitled Texas Attorney General Opinion

. - ‘buwmx 3x. 7rexAn 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 JNP:db/aa 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