Untitled Texas Attorney General Opinion

. . . -- - GROV?IFI SELLERS Hon. B. T. Walters County Auditor Smith County Tyler, Texas Dear Sir: Opinion No. o-5862 Re: Filing suits for the collection of delinatientaersonal or insol- vent tax& under the provisions of Article 7297, R.C.S. You submit for the opini.onof this department certkln Questions contained in your letter of February 10, which reads as follows: “The flllng of suits In the JustIce and’cbunty Courts for the collection of delinquent personal or itinaolvent taxes due to the State and County for the past several ‘years in contqnplatad by this County; I and in this oqnneotion I wlah to submit the following question8 for your opinion: “1. Would the prbvislona of Article 7297 Revised Civil Statutes, 1925, apply in oaae of suits fjled”~for the oolleotion of taxes on personal property regulhrly asaeaeed eaoh year by the Tax Asseaeor end plaoed~.on the tax roll for that year, either on the unrendebed or’ r&n- d&red portion thereof, where the oomblned total of such taxes sued for does not exoeed the sum of $2g.OC; or does that Artiole apply to suits brought to OOlleOt'~taXd#on perlrbnal property diaoovered by the Tax Aeeeesor-Colleqtor to have been unrendered and omitted from the roll for previous yearn ‘end baok assessed for auoh omitted yeare? .* “2 * Does the statutea veet the Tax AasesrrbP with authority to add to R eigned’rendition auoh persohal propert known by him to be owned by the lndlvidu~l ’ making t he rendition subjeot to ta’xati,on in the County, when that individual has omitted bama from his r&ildition. If, in your opinion, the Tax Assessor do&4 not,have’the authority~to add the omitted personal property, ddsa he. have the authority to refuse the algned, but incomplete, rendition? . . Hon. B.T. Walters, page 2 o-5862 Your first question involves the construction of A,rt. 7297, R.C.S., which reads as follows: "The di,strictor county attorney of the respective counties of this State, by order of the commissjoneps court, shall institute suit in the name of the State for recovery of all money due the State and county as taxes due and unpaid on unrendered personal property; and in all suits where judgments are obta,Fnedunder this law, the person owning the property on which there are taxes due the State and county shell be liable for' all cost?. The State and county shall be exempt from liabi,.l.lty for any costs growing out of such action. All suits brought under this article for the recovery of texes due on per- sonal property shall be brought against the person or persons who owned the property at the time such property should have been.listed or assessed for taxation. NO suit shall be brought until after demand is made by the collector for taxes due, and no suit shall be brought for an amount less than twenty-five dollars'*Such suits may be brought for all taxes so due and unpaid for which such delinquent tax payer may be in arrears for and since the year 1886.” Your questlon No. 1 may be subdivided into two ques- tions : (1) Where assessments have been regularly made by the Assessor each year, may suits'be filed as authorized under said article when the combined total of delinquent taxes due and sued for is less than $25.00? (2). ~Does said article apply only to suits brought to collect delinquenttaxes on personal Property discovered by"the tax assessor to have been unrendered a::domItted from the tax rolls for previous years and.by the assessor asses~sedfor such omitted gears?., This article of the statute as observedby Its plain ~- terms does not purport to deal with delinquent taxes on personal property which has been regularly assessed either upon the ren- dered or unrendered rolls by the a8sessor. The statute says "for the recovery of all money due the State and County es taxes due unpaid'on unrendered persona.1property: O . ; all suits brought ulider this Article for the'recoverg of taxes due on per- sonal'property shall be brought against the person or persons who owned the property at the time su,chproperty should have been listed or assessed 'for taxation." Thus it seems clear to us that this article of statute deals only with unrendered, unlisted bnd unassessed personal property, We do not meanto say, however, that suit,for such delinquent taxes on personal property as this . ’ Hon. B. T. Walters, page 3 O-5862 article of the statute authorizes may be brought without an assessment by the assessor; quite to the contrary, as we point out in our answer to the second part of your first question to follow-. In no event can suits be brought under this article of the statute where the combined amount sued for i.sless than 25 .oo. This is expressed in the plain language of the statute. tEmphasis added) The answer to the second part of your questionNo. 1 brings us to a more detailed consideration of the~construction to be given Article 7297, R.C.S., in its~general application as the courts have construed it. It is apparent on the face of it that the article deals with a method of enforcing the collection of "taxes due and unpaid" on unrendered personal property, with the limitation of course that no suit shall be brought for less than'$25.00, as we have said in answer to the first part of your question. Article 7297 here under consideration was formerly ~.' Article 5212a, R.C.S., 1895, and was first construed in the case of Connell v. State, 55 S.W. 980, which was a'suit for delinquent taxes on personal property. In that case the court said: ,I This suit was evidently brought under article j2;2a, which makes it the duty of the district or county attorney, by order of the commissioners court, to institute in the name of the state a suit to recover all money due the state and county as taxes on unrendered personal property. It is further provided in that arti~cle that all suits for the recovery of tflxesdue on personal property shall be brought against the person or persons who owned the property at the time the same should have been listed or assessed for taxation. Our constructi~on of this~artic'le,however, is not that it was intended to create any liability for taxes, but only to,provide an additional method of collecting taxes from the persons already liable. That is to say, the taxes are not 'due'- from the persons sued within the meaningsof this Article, until there has been a valid assessment against him, either as known or unknown owner. . . .'I This article was subsequkntly reenacted and codified as Article 7661, R.C,S., and again ceme up for construction In the case of State v. Cage, 176 S.W. 928. This.was also e suit by the State for delinquent taxes on personal property, not rendered by the owner and assessed as such by the assessor on the unrendered rolls. It must be kept in mind that while the office of tax assessor is a constitutional office, the Consti- tution does not define his powers and duties; but the Legisla- ture, as it may do under the Constitution, has conferred certain Hon. B, T. Walters, page Ir o-5862 duties and powers upon him, beyond which he cannot go. One of these limitations is that he cannot assess personal property which has been unrendered end omitted from the assessment rolls for more than two years prior to the time he discovers such omission. This is clearly the intent of Article 7208, R.C.S. In other words, the tax essessor is wlthout authority to list and assess personal property theretofore unrendered by the owner, except for the two years i~mmedietelyprior to the dis- covery of the omission from the rolls. This is made plain i,n the case of State v. Cage, supra, in the following language: "The provlsion in article 7661 'that no suit shall be brought until after demand is made by the collector for taxes due' necessarily destroys the contention that by that article a right of action exists without en assessment, because the tax collector could not make a lawful demand for taxes due until the amount of such taxes has been first determined by an assessment of the'propertg for taxation. We are of the opinion fur- ther that that article cannot be construed as impliedly authorizing an assessor to assess personal property for any year back to the year 1886, for, if it is so construed, it would repeal by implication, or else render useless, article 7566. . . . We are of the opinion 'furtherthat it would be a stra,inedconstruc- tion of article 7661 to sky that in enecti~ngit the Legislature intended thereby‘to extend the powerof the essessor to assess delinquent personal property ,back to the gear 1886. Our construction of article 7661 is that no more was intended than that suit should be instituted for collection of such delinquent taxes only as had been properly levied and assessed. "We think it clear that by article 7566 it was intended thetat any time after the ena~cbnent of that statute the assessor could assess such personal property which had been omitted for two yeers prior to the time the assessor discovers such omission, and we overrule appellant's contention that by that article two years pri~orto its enactmen.iwas made the period to which all assessments of personel property thereafter made could extend.'! In brief, the duty imposed upon the district or county attorney to file suits u~nderArticle 7297, supra, when ordered to do so by the commissioners court presupposes a pre-existing valid assessment by the essessor of such persons1 property,~in the absence of which no right of action exists, for as said in the'cese of State v. Cage, surpe, said article provides: "That no'sult shell be brought until efter demand is made by the col- lector for taxes due, which necessarily destroys the contention . . Ron. B. T, Walters, page 5 o-5862 that by said article a right of acti~onexists without an a33ess: ment, because the tax collector could not make a lawful demand for texes'due until the amount of such taxes has been first deter- mined by an assessment of the property for taxation. Moreover this same case is an author!~tyfor the 1im:tation placed upon the assescor by the two ycsr period prior to his discovery of the omission of such personal property from the tax rolls in making his assessment of such property. This is found in the following language: 'We are of the opinion further that that article could not be construed a3 impliedlg authorizing the assessor to essess persona1 property for any year back to the year 1886, for, if it 13 30 construed, it would repeal by implication, or else render useless, Article 7566 (now Article 7'08). . . We ere of the opinion fur- ther that it would be a strenge construction of Article 7661 to say that in enacting it the Legislature in- tended thereby to extend the power of the assessor to assess delinquent property beck to the year 1886." In summing up the court said: "Our construction of Article 7661 (now Art. 7297) is that no more was intended then that suit should be instituted for collection of'such delinquent texes only as had been properly levied 'and assessed." This case furtber makes'clear that by Article 7566 (now Art. 729?) it was intended that any time after the enactment of that statute the asses3or could assess such'personal property wh!ch~had been omitted for two years prior to the time the assessor discovered such omission, and not otherwise. Passing nw to the consideration of your.second question,, we have impliedly answered it in our discussion of the firstques- tion submitted by you; but to be more specific we direct your attention to other provisions of the statute dealing with the duties end powers of the assessor in assessing unrendered prop-- erty? which of course,comprehends property intentionally or inadvertently omitted by the owner from his rendition. Articles 7192-7193, R.C.S., cover3 such situations. They read as follows: "In every causewhere eny person whose duty it 13 to list eny property for taxation has refused or neglected to list the same when called on for that purpose by the assessor of'taxes, or has refused to subscribe to the oath in regard to the truth of his statement of property, or any pert thereof, when required by the tax assessor, the assessor shall not.2 in a book the name of such person Hon. B. T. Walters, page 6 o-5862 who refused to list or to swear; and in every case where any person required to iist property for taxation has been absent or unable fr:omsickness to list the same, the tax assessor shall note in a hook such fact, together with the name of such person. "In all cases of failure to obtain a statement of real and personal property from any cause, the assessor of taxes shall ascertain the amount and value of such property and assess the same as he beli,evesto be the true an3 full val~uethereof; and such assessment shall be as valid and binding RS if such property had been rendered by the proper owner thereof." In construing the above Article 7193, Judge Speer of the Fort Worth Court of Civil Appeals, in the case of Texas Public Utilities Corporaticn v. Holland, 123 S.W. (2d) 1028, said: "However, as seen by Art. 7193, quoted above, If for any cause the owner does not take advantage of the priviiege given to ;;husrender his pro;?ertyand have the benefits pointed out, it becomes the duty of the assessor to ascertain the amount and value of the property and assess it according to his own ideas of values, under which condition the assessment so made hisas binding upon the ownerand ,theproperty assessed as if 5-t. found Its way to the tax rolls by means of the first provision discussed. . e .I' To the same effect is the holding in Town of Pleasanton v. Vance, 4 S.W. (2d) 247, (San Antonio Court of Civil Appeele) from which we quote as fol;ous: ?i . . . Whjle it is true that the law mekes i~t the duty of the owner to.render his property f~or taxation (article 7152, Revise&Statutes 1925) it Is also the duty of the assessor io render it Iancases where the owner fails from any cause +;odo so. Article 7193, Revised Statutes 1925." The case -ofFerguson, et ux, v. Steen. Tax Assessor, et al.; 253 S.W. 313, (El P:'roCourt of ;:1~ilAp&;:ls) affirmed the right ,ofthe assessor, by virtue of Articles 7190, 7192 and 7193, R.C.S., to assess property omi,tteUfrom the owner's rendl- tion. The property owners in this case rendered their interest in the surface of the land ;nvolved, but refused to render the mi,neralor royalty interest. The court said: We think, u~nder tne authority of articles 7190, j1.92:and 7193; Revised Statutes of 1925,'the tax . - . Hon. B. T. Walters, page 7 o -5862 assessor had the right to assess appellants' royalty interest in said land, as the court found he did do, at $30,870. . . . ." True, the royalty or mi~neralinterest here involved constituted an interest in land; the court held in effect that if treated as personal pro;:erty,in which e:lentit would have been listed and valued seoarately, no harm resulted to the tax- payer for the amount of his taxes would not be diminished or decreased thereby, for in any Event he would pay on the same assessed value. The matter of increasj~ngthe value of property listed and assessed by the assessor, or the rendition voluntar- ily made by the owner, is altogether a different matter. This cannot be done in any event without notice to the owner and consequent right to be heard; Hoffling v. City of San Antonio, 3g S.W. 919, by the Supreme Court of Texas. Summarizing, your second question is answered as follows: Articles 7190, 7192 and 7193, R.C.S., are sufficient authority for the tax assessor to assess personal property omitted by the property owner from hits rendi~tion. We are of the oilinionthat the assessor would not have the authority to refuse the renditicn by the property owner of such property as he, in the exercise of his statutory rights, personally renders; but such property owner cannot circumvent, by rendering only 8 part of h's property, the statutory duties imposed upon the tax assessor to list, value, and assess such personal property as he may intentionally or otherwise omit from his rendition. It would appear, however, from the language of the court in the case of W.T. Waggoner Estate v. Electra Inde- pendent'Schoo1 District, 1.57S.W. (2d) 721. that the assessor should assess property omitted by the owner from his rendition, whether intentional or otherwise, on the unrendered rolls; rather than by adding it to the voluntary rendi~tionof the owner. In this case the court said: "In its petition the school dlstrj.ctseems to allege that the Estate did not render its mineral interests, and that the board of equalization added the mineral interests to the rendition. If it did do this, i.thad no legal right to do so. The board of equalization may, under prooer procedure, change the valuations, but it may not add, to the rendition, proper- ties not included in the rendition. Such unrendered prooerties could only be nlaied on the unrendered rolls by the assessor. Cracker v. Santa Consol. Independent School District, Tex. Civ. App., 1.16S.W. 2d 750, and cases therein cited." (Emphasis added) We trust we have made sufficiently clear our snswers to your questions. .. - Hon. B. T. Walters, page 2 O-5862 Yours very truly ATTORNEY GENERAL OF TEXAS By: s/L.P. Lollar L. P. Lollar Assistant LPL:AMM:wc APPROVED MAR 17, 1944 s/Gee. P. Blackburn (Acting) ATTORNEY GENERAL OF TEXAS Approved Opinion Committee By s/A.W. Chairman