Untitled Texas Attorney General Opinion

R-742 HE ATTOKNEY GXNE~L . . 8F~EXAS’ ., September 25, 1947 Ron. Qeo. H. Sheppard Comptroller of Public Accounts Auustin, Texae Opinion No. V-307 Re: Applicability of the reai- dence homestead exemption to residence homesteads rfthin certain Counnlssion- er’s Precincts in Ratagorda county :, Dear Sir: Ye hape requested an op@ioq from this De- partment a8 to whether or not the Tax Asreseor-Collect- or of MtagOrda County *should aharga the general reve- nuq tax OS 35f against reaidenae homestead8 in Mata- gorda County. You enclose a letter from the Tax Aa- seeaor-Collector which is accompanied by a certificate from the County Clerk of Natagorda Countp to the effect that the Conservation and Realam&tion District OS Mata- gorda County, Texae was established in April, .I924 and embraces all of CommieeionerPa Precincts Numbem 1, 2 and 4. The certificate Surther states that the Sea- wall Col~lnlssion of the City of Palaeios, which embraces all of Coinmisslonerse Precinct Bumber 3, was establlsh- ed on September 1, 1933. ,Seation l-a OS Article VIII of the Constltu- tion of the State of’ Texas provides the Sollowing ex- emptlon for residence homesteads: “Three Thousand Dollars ($3,000.00) of the assessed taxable value of all residence holpesteade as now defined by law shall be exempt from all taxation for all State pur- poses; provided that this exemption shall not be applicable to that portion of the State ad valorem taxes levfed for State .purposes remitted within those countfes or other polftfcal subdivisions now receiving any remission of State taxes, until the ex- I>iratfonof unles’s . Hon. Oreo. PI. Sheppard - Page 2 (v-387) before the expiration of such period the board or governing body of any one or more of such counties or polltlcal subdivisions shall have certlfled to the State Comp- troller that the need for such remission of taxes has ceased to exist in such county or political subdivision; then this Section shall become applicable to each county or political subdivision as and when it,,shall become within the provisions hereof. (Em- phasis added throughout this opinion) This amendment was adopted August 26, 1933. Various oplnlons of this Department have held that those counties or other uolltical subdivisions which were not receiving a reksalon or donation of State taxes= the time of the adoption of Section l-a of Article Vm are not deprived of the homestead ex- emption by a later donation of State taxes. Opinions v-i38; o-ii32. The Seawall Commission of the city of Palaclos was not even established until after the adop- tion of Section l-a of Article VIII. Therefore, the residence homestead owner ln this District is entitled to the benefit of the exemption as conferred by Section l-a of Article VIII. The Conservation and Reclamation District which consists of Commiesloner~s Precincts Numbers 1, 2 and 4 was established and lasued bonds pursuant to the provisions of Senate Bill No. 54, Ch. 48, Second Called Session of the Thirty-Eighth Legislature. Sen- ate Bill No. 54 granted a twenty-five year release from the payment of State ad valorem taxes levied for State purposes provided the taxes so released were collected by the District and applied to the payment of the interest due on and the principal of said bonds. In the event the taxes so collected were sufficient to retire the bonds before the expiration of the twenty- five year period the taxes were to revert to the State. In’l$Q5,the Legislature passed H.B. No. 114, Ch. 402, cts, Pfrst CaIled Session, Forty-Fourth Legislature. 3 3. 114 donated and appropriated to the District the net amoun~l State ad vaPorem taxes levied and aollected for State uuruoses within the District for the remainder of the-twenty-five year porlod for i&&h . . 0. 54, referred to above, had provided a release of such taxes. .-- . . Eon. Qeo. H. Sheppard - Page 3 (v-387) Assuming, without deciding, that the act of the Forty-Fourth Legislature was a valid enactment, its obvious intent was to continue a “remission” made prior to the adoption of Section l-a of Article VIII. Therefore there was a continuation in a different form of the same “remission of State taxes” to a political subdivlslon which was receiving such remission at the time of the adoption of Section l-a of Article VIII. By the express ,language of Section l-a the residence homesteads within suoh political subdivisions were not entitled to the benefit of the exemption until the pe- riod of remission terminated. We are Informed that the bonds issued pur- suant to Senate Bill No. 54, Ch. 48, Second Called Session of the Thirty-Eighth Legislature have not been retired. W&need not consider H.B. Ho. 550, Ch. 436, Acts Fiftieth Legislature, which purports to amend the legislation previously described; for since the Legislature may not impair the obligation of contract, It could not alter or terminate to the detriment of the bondholders the original perfod of “remission” as established by prior law. Werefore, since the original period cannot have expired, the residence homesteads within the Conservation and Reclamation District of Matagorda County are not entitled to the benefit of the exemption conferred by Section l-a of Article VIII. SUlMARY The resldenct homesteads within the Conservatlon.and Reclsmatfon District of Matagorda County are not entitled to the benefit of the exemption conferred by Art. VIII, Sec. l-a, Const. of Tex,, since the District was receiving a remission of State taxes at the tInmArt. VIII, Sec. L-a was adopted, which original period OS rCmlsslon has not been terminated. The residence homesteads within the area embraced by the Seawall Commission of the City of Palacios, which is now recelvfng a donation of State ’ Hon. Geo. if. Sheppard - Page 4 (v-387) taxes but which was established after the adoption of Art. VIII, Sec. l-a, are en- titled to the exemption conferred by Art* VIII, Sec. l-a. Yours very truly ATTORNRY GENHRAL OF TRXAS Bym*i%&iLS . Assistant UC/LH/JCP ATTORNEY GENERAL /