OFFICE OF THE Al7ORNEY GENERAL OF TEXAS
AUSTIN
~lo:icrable T. X. Trimble
First keairrteat
state Superintendent of Public Xnatruotion
Au&in, Taxas
i&r& oonteineaonsidereble oi;l
yin&d~gr~ or produoti0h wi r08a
tour non-rerident cmisbrm, woe 0r whom
royaltlea. met ita the otatua 0r tan
ot regarding the taxln8 or there roydltir8
o ba ooceidsrable oonSliotlng deolaioaa
a law booke?
uDoas real estate have to be assessed at the sanm
peraentage 0r true market talue aa that~ 0r highlyapemle-
tive oil propemtiea?
-1s a well, brought into produotlon shoe. January 1,
1944, taxable Sor 1944 taxee? It 80, at what date during
1944 f8 it advisable to Oease aiBse8siOg new WdJU? *
677
&morable T. M. Thimble, page 2
Condensed, the qwstlon presented isr
Whet is the status or mineral Interest lnsc&r as
sabjeotlvlty tca ad +alomua taxes la oonctexrmdof property
looatsd within Camon S&o01 Metriot Ho. 25, aaaexsd to
the Urando City Independent School Dlstrlot?*
That the arin4rrl int8PeSta play be severed Ram the
surfaae oS land end siwwtltute taxable property in She hanar or
the owner thtweor has long beul ths settled law of this State.
Shettfold I* Hog&, 60 S. 19. (2d) 74X1 Tens Company~4 Deu&mrby,
;76 5. W. 717: Stevens Qwutty 0. Mld-Kenses 011 k &.a 00.. 254
. %. SOt and State v. Quintaaa Petroleum Co., 133 S. M. (ad) 112.
from the last elted sass S6ats v. QalMaaa Petroloam
d nsxel
co., supxe,werind three oonmon interests oonsldered
and the law ap llsd as ts t&air taxabllitr as sn interes$ in iand.
They are as fo e swa:
(1) The asual one-e1 hth rsgnlty (say be more or less,
rsoordlngto eontxciot) resexve % by ths 1ossor3
(2~) The raea-efghth work1 interest (say bs lore or
less, aseordiq to aontrast) pass&g T 0 the lessm;
(3) 011 payments, lr presided for, paid out of the
worklng lntwwt passing to ths lsssoe.
Under ths express holding in thti rase by Jlrdge Smedby
all of these oonstlt+ta M fnterelt ia land, subje60 to ad
valorem taxes,
I$elther ths OonsUtutlon, ths 8tatuta8,nor judlslal
determinatl~ has atte ted to lay dm any inllsdble rules
6a to t& psrtinent tas9eors in the detemalnatlon of Vrue and
full wmw ror parposes of taxation. Seatlon 1 or Artlole VIII
or the Constitution of Texss 1s 1.n pert as lollow8r
*Taxa$Ion shall. be equal end Unifornh All prwertg in
this State, whethsr owned by natural penons or 6orpoxetlon8,
other then mmi~lpal, shall be taxad in proportion to lta
value whish shall be esoortelned as niay be Provided by law.
. . .s
Aftfcle vm, Ssotlon 20, mds in mt as r0110w88
Honorsble T. 'A.Trlslbla,peg* 3
.
*No property or any kind In thls Stats shall ever be
esseseed for ad valoram taxes at e greeter value than Its
Sair cash market valua nor shall any Boar8 OS Xquallzetlon
of any go~erment Or pa11tisal BUbddf’JiSiOil 05 taxing diS-
trlot within tzilsState i'ixthe value of any propsrty Sor
tax 4)~poses at mora Wea its iair ou& market value8
. .
Art1010 2792a reads as r0u0iwt
qo property &all Im assssaed rer taxss et a valuation
greater then its fair sswket value and if there is no market
value, &hen ns gmaber thea lte &ins%0 ?alUs.W
Artlols 717bt 8. C. a., provldos la part as follsws:
*SEaohseperek mroel of rsal pPoperfiy sball~~ 7aiusd
at Its true and rull value In ‘honey, exoluain(g the vslue of
orop4 growl* 0s ungathered lWrean.
*In datsrniinin& the &us snd r\rll value 0r ma1 and
personal property the assessor shnll sot adopt a lower or
dlsrerent skmdard or value baNus* tks ease 1s to serve
ha ~a~
beds or taxation, nor ahsll k adspt as a arit8rlan
or ralus ths prloe for whloh suab $Popertp would as11 at
auatlw OP a f'aroed sale or in the seyyate 4th all tko
property in th%s aounty~ buf hs shall odlr~ #oh tmmt OT
lot bp Itself, acd et suoh stunaad prlse as he bsllsveathe
s&e to be Fairly worth in maey at the f&as mush assssmsnt
is made. . . .*
Arthle 7l49, RI C. S., 1s as folltvusr
"The term, ‘true aa6 f%U. tsXus,* whemmer smU shall
baghsld to axmn the ralr m&irk& value, in cash, at the pZeoe
where tb property to whloh ths terra1s appyllsd &all be at
the tiae of’ asse8ament,being the prloe whioh could bo
obtained therefor at private 8ale, and net at loTOed or
auction sels.w
It 16 obe0m4d rmi en exenbetion 0r these oon*tiSu-
tloml snd statutory provl~lon~~that the term %mrket vRlu@",
*ON& market value", and *true and SrrLlvalue in aonef', 61'8used,
and the rule is laid dowa in 40 T~I:~@~z. 150, that them tsZ'ms
are held to be synonpm~us~
Lionarable 4. U. Triable, page 4
You are tharefore advised that all roal estate, or
any intereat therein, is to be assease6 against the Owner or
onnex8 a-te valuation n6t greater than its rair Oath aarket
I>.
vslue. It is imaterial whether tha fnterest la in the land,
lnoluding both surfaae and mineral@, or in sithos the aurfaoe
or ninerala. What is the Vair oash mark& valueg” of’ a prtlau-
lar treat OS land or any prtfaulax latersat thsrsin at a &van
time la always a QUs8tfon 6f taot to be diateralned from aL1 the
faotr end airawtalloe8 pwbalalng thore$e.
We trust that the tOregOlns la 8Uiifilent to s&e it
dlmr that a mInera: lnt+rut in land, whether it be in tha
~nature of a royalty, oil payment or the working intersat, la
rubjeot to ad wlorem tame by the owner. Taxer are an*eaaeU
and paid upon the valw&tion aa Ot January 1 of ths year ror whlah
the ea8eeeunent1s nmde if dozm br the Ooaata A8renser-Colleetor,
0,): aa at the date firs4 b the Board ef Trusteea of an la4ependeat
who01 dUtrlO6, 12 the iI IStrict ameBae8 and eolleeta lte own
&X08.