Untitled Texas Attorney General Opinion

May 15. 1950 Hon. B. .F. McKee Opinion No. V-1057. County Auditor Hidalgo County Re: The authority of counties to Edinburg;Texas use anexcess oft the State tax remission, over the annual bond retirement requirements, to build and maintain farm- Dear Mr. McKee: to-market road6,. You have requested the opiidon 0%this office on the above- captioned matter. Section 51 of Article III of the Texas Constitution pro- vides in part as follows’: “The Legislature shall have no power to make anjr grant or authoriszthe making of any grant of pub- lic moneys to any individual. association of individuals, municipal or other corporations whatsoever;.provided, . . . further; that the,provlsions of this section shall not be construed so as to nrevent the grant of aid in cases ofpublic calamity.i .(Emphasicadded through- out.) Section 10 of Article VIII of the Constitution provides: “The Legislature shall have no power to release the inhabitants of, or .property in, a~ny county, city or town from the payment of taxes levied for State or coun- ty purposes, &less itrcase of great public calamity in any such county, city or town. when such release may be-made by a vote of two-thirds of each House: of the- Legislature.“’ It is clear that these .ronstitutional provisions them- selves would prevent the use of remitted’tax funds for any purpose other than the prevention of.public calamities, under the conditions set forth in the statutory .grant. unless there is some subsequently adopted constltutlonal provision that provides otherwise. In Opinion No. O-1276 this office ruled that: Hon. B. F. McKee, Page 2 (V-1057) ,-The calamity clause fin Article 3. Section 51, of the Constitution was not intended to provide a vehicle for the wholesale transfer of money from one coastitu- tiooal fund to another. It was written into the Constitu- tion to enable the State as a whole to extend relief to those parts of its areas which from time to time might be stricken with such calamitous visitations as fire, flood, tempest or disease. We think the term ‘public calamity’ has the same meaning in Article 3, Section 51, as in Article 8, Section 10 of the Constitution. In the case of Jones P. Williams. 45 S.W. 2d 130, the ques- tiouas to the constitutionality of a tax remission bill of state-wide s,cope was before the Supreme Court. In that Act the Legislature had found as a fact that the ‘pres- ent world-wide economic crisis’ constituted a public ca- lamity. We take the following excerpts from Chief Jus- tice Cureton’s opinion: * ‘As stated, the Legislature was of’ the opinion that .the present industrial depression was .a ‘great pub- lic calamity” within the meaning of Section 10, Article 8, of the Constitution. With that interpretation of the Constitution we cannot agree. The word ‘calamity” in- dicates ,or suppases a somewhat contiguous state; pro- duced .aot usually by the direct agency of man, ybut by aatural causes, such as fire., flood,.teanpes,t, disea6.e:” etc. .Webster’s Revised Uuabridged Dictiouary . . . “We thixk it clear that it was thus co&mplated and intended that levies for State and county.~urpose.s. should be kept separate and distinct; snd that taxes col- lected for county pnrposes should uot be appropriated for State uses, nor taxes collected for State purposes diverted to county uses.” Section .1-a of, Article VIII of the Constitution was a- mended in 1.948 to provide in part as follows: : “Prdvided that in those. counties or political sub-. divisions or areas of the State from which tax donations have heretofore. been granted, the State Automat16 Tax Board shall continue to kvythe full amount of the State ad valorem tax for .the duration of such donation. or. un- til all legal obllgatio~ns heretofore authorized by .the law granting such donation or donations shall have been fully dischar.ged. .whichever shall first o&r; provided-:tbat if suchdomtion toany such county or’political s&di’d- *ion is for less than the~fullamount of State advalorem taxes so levied, the portio~n of such taxes .retiining over Hon. B.. F. McKee, Page 3 (V-1057). , ,and above su.ch donation 6hall.be retained by said coun- ty or. subd{vision.- Sec. 1a. Ar.t,. 8, adopted. electiou Nov. 2. 1948.7. After the .ameudment of .Section.l-a, the 51st Legisla- ture enacted Chapter 464, codified as Article 704ga, V’.C.S. Sec- tion 10(a) provides in part as follows: y(l) :Begianlng in the.year ,195i;atid each year thereafter the State Automatic Tax Board created by Article 7041 of the Revised Civil Statutes of Texasi 1925, shall cause to be levied annually in each county, political subdivision or other defined area, the full thirty cents (30$) State ad.valorem tax for general rev- enue purpose’s, the proceeds of which heretofore were donated and granted by the .Legislat,uye to certain coun- ties, political s.ubdivisionq o,r other. ,defined areas .for the purpose of carrying out pndperforming actious of. preventing calamities, improving., protecting and xc- clamting certain’areas for pnd ,op. betalf of the State as. more fully declared in each applicable law or laws mak- ing .such donation or grant and said Board shall contin- ue to levy such tax at said rate in each such designated area uutil.,the bonds or .other obhgahons of said areas authorized or incurred’in connection with the pertorm- ante of such aC&OD on behalf of the State shall have been fully pald or discharged or until the expiration date of such dohation or grant as Wy be determined from the law or laws rziaking such grant or donation, whichever shall first occur. . . . “(3) The tax assessors and collectors in each of such Counties shall continue to assess and collect ,su.ch, tax and make the proceeds thereof available to the. douees or grantees in the manner provided by the law or laws makiugeachsuch grant or..donation. The moneys.thus collected by said tax assessors and collectors and.re-. ceived by su,ch grantees or donees shall be used~ano ac- counted for annually as prescribed by the law or laws making such grant or donation. “(4)’ In those instances where less than the full State general ad valore’m tax was granted or donated, the oortion of the monev collected in excess ot the a-. mot&t donated or grantkd shall be paid over to the gov- erning body of the county or political subdivision from which such tax is collected and in the discretion of said gpvernlng body shall be us& either for the construction and maintenance of F&-m-to-Market Roads or for’Elood Control only withiu the county,,,. , . ” Hon. R. F. McKee, Page 4 (V-1057) Thus. we see that, under both the Constitution and the statutes, the.doaated taxes can be used only for the prevention of the recurrence of public calamities, under the condition6 set forth in the statutory grants. The donation is to continue until the end of the statutory grant or untilallobligations are paid, whichever shall occur first. Mauitestly. the collbtruction and mainteoauce of farm- to-market roads ‘would not constitute a prevention of recurrence of public calamities within the coqtemplation of the Constitution or statutes. SUMMARY .State ad valorem taxes douated or granted to counties to prevent the recurrence of “great public calamities+” caused by dkmitous overflows, floods, storms, and the like, cannot be diverted to the con- struction and maintenance of farm-to-market roads. Yours very truly, PRICE DANIEL *,:“?rxwGew.i& APPROVED: W. V. Geppert Assistant Taxation Division Joe R. Greenhill First Assistant Price Daniel Attorney Geneial FL/ls/mwb