OFFICEOFIHEAT-I'ORNEY GENERALOFTEXAS
AUSTIN
zonorable Will Mann Rlohardaon
.%asistantSecretary of Stata
.astin, T8xa8
Zaar Sir:
Your letter of Fe
o&lion 0r this dapartssnt
as f0110WS:
t0 the rui
..I
IItha oam OS the
eh 18 admittedly an
) In that it is inrtruat-
the fret that the corporation wan sduoatlcnal
xould reqqtm ths $lO,OO filing fae snd aq,,ar-
emptian irotatraaohias tar, .._ :..: .
‘3fe .-old apprsolata a rt+oonsiaeka~o~
oPtUs piwstlsn a8:tke luger iiUn& foe ,aab
Eonorable Will auIM Iiiohardron,Page 2
franohise tax have been paid by the oorporad
tion and we are undeaided whether to rerpnd
all over $lC.OO'whioh they rcxa%tted.g
1302, Vern~n'a Annotated CivilStatutes,
h?tiCh
sets out varloua purposes for whioh eerporationrsaybe
created in this Stat8. Subdivision 2 of this“arti&ris in
the rOilOWing Uiw~ge:
I
~*a; .!RIssupport of any benevolent, aba
l*table,eduoatiooal or ntsriouary undertakin
The ?urp~e clause of ths charter oft h/bo+e ..
3cntionad corperation is in the followinglangtiea'
"5hs purpose ror whleh it la formed Is@
support of any eduoational
thorized by Subdivision 2 of
&wised Civil statutss'of Texas,
constructton and the maintenattoe
the education o? airplane pilots
both oommsrcial and mllltary,
eatab~iPha8Ilt a&Xii
direot .w
The above named corporation has eaL.stoeh Or
580,000.00 and is organized ror proriti ’ ,.
Artiale 3914, Vernon'8 imnotatef.
provldsl,In part, a
,‘.
”. . . *
11
‘haoh obarter, aslqi,
=uppog riiiiag
sugplmeat thsreto, or a ao~rporatic
support of pub& +mthip, any,bek+,
chsritabli, raacational; iBiS6~On~ Of
or eaientlrie undsrtiking, the PI(I
err
a library, the prom&tion Of a PubE i-
not rot profit ambl%he en6oprasesb~
culture and hortiaulttue, to aid
aonorabh W3J.l Ma- Riohairdaon, Page 3
in produoing and marketing agricultural pro-
dnota, or tor~aoquiring, raising, breeding,
fattoniIylor marketing live stook, a filing
fc6 of Ten @O.OO) Dollars, and for filing
tho aami-annual fln~~noialstatsmeat or such
agrioultural product6 or live stook oorpora-
tion, %n ($10.00) Dollar6, whioh shall in-
Cud0 the annual lioen6a fee.
Vpon riiiw eaoh chartar, amendmant or
supplement thereto, or a private corporation
oraated ror any other purpose intended Sor
nutual rofit or benefit, a filing foe OS
Fifty (% 50.00) DoUar6, provided that If tha
authorized capital atook of said corporation
shall exoeed Tan Thousand ($lO,OOO.OO) Do)-
lars it shall be required to pap an addltion-
al foe of Ton ($10.00) Dollar8 ror oaohaddi-
tional Ten Thousand ($lO,OOO.OO) Dollars of
it6 authoriaed capital stook or fractional
part thsrooi after the fint.
"r .~l*
Artiolo 7094, Vernon'6 Annotated Civil Statutea,
reads a6 rollowa~
YRm franehlasetax imposed by this ohap-
t&r shall not apply to any insuranoe aompany,
surety, guxranty or rldsllty company, or any
tran6portatiollo-paw, or any slaeplng, palaw
car and dining oar oompany whioh is no* reqtir-
ed to par aa annual tax maaaursd by thoLr grOa6
reomfptr, or to oorporationa having no Oapiii81
stook and organized for thm sxol\ui~o purpo60
0r promoting ths publLa intereat Of any city
Or town, Or tD COrpO~tiOm Or&0nhdd iOr the
purpo80 or r8ligiou6 rorrhlp, or for providing
plaoes Of burlal not for private prorit; or
corporations organLzsd ror the purpose of hold-
ing agricultural fairs and saooumglng a&-
cultural pur6tit6, or tar striotly educational
purposes, or for purely pub110 charity."
~tras said In the ease of Coals yr DaUgbtatP Of
the RopubUo, 156 S. B. 1.97 (Sltp.Ct. Tmr,T , that6
. ‘
aom=blo Will Uann Riohmdmri, Page 4
lm
The seoond subdivision 0% Artlole
1121, ieGGed Statutea, roadrr ‘The purpoa*
for wbioh private oerporatione may be formd:
(2) m support or any benerole.snt,
o&u-
igbie, eduoetional or aisslomry undertaking. *
The pkugose of this oorgoratlon is olearl~
educational. #batever sduoataa icrwithin the
meanlag oi edaoational undertaking., Bdnoation
In the muse a8 nssd in the stetnte lnolubesr
‘In its broadest sense, . . . not merely the
instrtmtlm reoslred at sohool or oollege, bat
the whole oourae of training, moral,lntelleo-
tual and physlcalj is sot lImited to the ordioary
iIlStl'UUtiOA of the ohild in the pursuits of
literature. And it is srmeti?zmsused
88 f3~llOB~OUS*Witi lWrAiA&’ . . .”
?le call CJO~T attention to oonferanc~ opinion Bo.
2011, written Uaroh 28, 1919, bp Honorable C. %. Taylor,
.%sssistaatAttorney Gonsral, and addraesed to FionorableGeo. F,
Board, Ssoretary of State, whloh wo think supporta the con-
clusion reaohed in th&$:.03inion. We sre snoloalng a oopy
of said opinion ror your convenience.
In view of the foregoing authorities it is our opin-
ion that the above named corporation ie one organized for
strict17 eauoatioaml purposes and oomea within the exemption
mentioned in Artiole 7094, sqxra, and lr theraiore exempt from
the payment of a franohisir tax. It is our farther O@iOB that
by virtue or Artiole 3914, supn, aald oorporation should.pay
ths ~10.00 iiling fee ae an eduoational inatk$utioa.
,.
:
Yours CeFy trill*