Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Hoaomblo charley LoOkhart stat* TreasuTer Aurtla, Texar D*u 81rt reeeat dstm with tha 4 "Dsolaration of the lnstrumat I of Artisle 9049e, f l8 fo llo wsr We0 p r o vided, in the offior of the County gietration Law8 QZ thir at no tax aball bo levied on lnetsments aeourtng an tmount of Two IIundred ($200.00) Dollars, or Isem. biter '- the sffoativo dats of thin AOt, eroept a8 hereinafter provided, QO suoh fnrtrunent shall be filed or rooorded by any County Qlerk in thfs State until there ias6 b,esn atiixod to auuh iastrumants &unps in aoaordanae wfth the pm~lsllons of thlkil 8WttQll~ * * ** 41 Eonoreblo War118 Lookhert, Page 2 The instrument under conaideretlcn is not emong those ttpe0lri0aiip named. Hence, if It la to be taxed, it must be by virtue of the alause levying the tex upon “all euoh inatruaente of a elntilar nflture.R In other words, a lien Intereat must be created by the instrument before it ir subject to the tax. Se are of the oplnicn that the instrument is not eubjeat to the tax. The inetrurnent deoleree that the Houeing: Authority of the City of ‘J8aoo holds oerteln described lend In trust for the benerlt or proepeotlve bondholder8 and the United Sttitee ?iousing Authority. The interest granted is the right to require the +Y’iaoo Koueing Authority to refrain frcm dfspoelng of the property exoept under oertain olroumstanoesand to maintain and operate the hourlug projeotin a oertain menner. Thue, it is 88811 that no lien interest is created. The lnrtrument $6 merelyr, ae lte title indicates, a WDeclarstion of Truet.w our view ie further etrongthened by 8 paragraph fn the lnetrument, which we quote as r0n0w8t “In no event shell thie deolaretlon oi trust be oonetrued a8 oonferring upon the holdsrr or any or the Bond8 issued In pureuanoe or said Reeolutlon, or 0r any of the ooupone appertalnlng thereto, the remedy of foreoloeun or any other remedy pureuant to wfiioh they or any 02 them may oaum the above-deebribed ,property to be eold or the title of the Authority thereto to be divested or iorfelted.n In view or the loregoing you ere r88peOtfully ad- vired that the deeorlbed nBebleration of Truet* fa not subject to the etemp tax Imposed by krtiol.8 90498, Vernon’8 Annotated Civil Statutes. CF Very tNly yours kTTCRW CF,NE~UAL T3XhS