Untitled Texas Attorney General Opinion

--- a UFFICE OF ’ / !,‘~> ‘AUSTIN. TEXAS 3‘. ~. ,, : pffICE DANIEL &LlRNEY GENERAL June 16, 1947 , I i. Ronorable I,.A. Woods ': opinion tie.V-255 State Superintendent Department of Education Re: Exemption of the munic- Austin, Texas .I '. ipal-light and power plant of the City of Jas- per from taxation by the Jasper Independent Dear Sir: .School.District You have requested an opinion from this Depart- ment as to whether or not the power and light plant now being opera,tedby the City of Jasper is subject to taxa- tion by the Jasper IndependentSchool District. The brief which accompanied your request reveals the following facts: The properties here in question were purchased by the City of Jasper in~l946 for a cash considerationof $12O,OQO.OQ. No lien of any character or kind was retained.~ In other words absolute title in.fee simple.ia vested in the City of Jasper. These properties are now being managed and operated,for the City bg~a commission of five resident citi- zens. Apparently no delinquent taxes had accrued prior to the time the City acquired ownership. ,Thereforethis opin- ion is limited to a consideretion of whether or not the Jss- per IndependentSchool District may presently subject these properties to taxation. A similar fact situation was before the Supreme- Court of Texas in A. & M; Consolidated IndependentSchool District v. City o? Bryan, m4, S.W. (2J 914 . The City of Bryan owned and operated a rura,lelectrificationsystem which supplied electrical energyand lights to the lnhabit- ants of the City of Bryan and the surroundingrural.terri- tory. The School District sought to impose a tax on the rural electrificationlines within the District but outside the City of Bryan. 'The Court held that all the property both in and out of the City was "public-propertyused for public purposes" and exempt from taxation either by virtue of Article XI, Section 9 of the Constitution of the State OP Texas or by virtue of Article 7150, R.C.S., enacted in pursuance to the provisions of Article VIII, Section 2 of the Con.stitutFonof the State of Texas. Bonoreble L. A. Woods - Page 2 , This result was reached in denial of the District+, contention that In order to gain the exemption the property must be devoted primarily to serving the inhabitants of the municipslity. The Court said: "In our opinion the particular location of the property withinthe State has nothing to do with the right to the exemption, nor does the right to the exemption depend on the residence of those of the public who en- joy the use thereof. It is the fact that the property Is owned by the public and is used for the welfare of the public of some portion of the State that entitles it to the exemption." You are therefore advised that the municipal light cud power plant of the City of Jasper is exempt from taxation by the Jasper Independent School District. For a detailed enslysis of the controlling constitutionaland statutory pro- visions see the opinion in the City of Bryan case, supra, and the authorities cited therein. SUMMARY The municipel light and power plant of the City'of Jasper is exempt from taxation by the .Jasper1,ndependentSchool District. Article XI, Section 9, and Article'VIII,Section 2 of the Constitution of the State of Texas; Article 7150, R.C.S.; A. & M. Consolidated IndependentSchool De man 184 S .W . (2) 914. Yoursvery truly, APPROVED: ATTORIJTY GENIYZALOF TEXAS Assistant