Untitled Texas Attorney General Opinion

. - Honorable George B. Sheppard Comptroller.'ofPublic Accounts Austin, Texas Dear Sir: Opinion NO. 0-4164 Re: Questions relating to homestead exemption for state taxation purposes. This department has received and considered your re- quest for an opinion from which w'e quote: “Pleake give.@ so& opinion on the following qukstionk pertaining to the exemptibn of hom6steads under the provisions of Arficl.68, Section la, of the Constitution: "1. A Oman owni r&al property which theat one time used for the~purposes of a home, he also towns city property which he Is livingin and he has oc- cupied the city pro erty for a number of years (2, 5, 10 or even 20 yearsP . Can this man claim homestead exemptiOn from State taxes on either property or should the exemption be Tranted only on the property that he is factually using as a home? . "2* A man owns property in A. County which he at one time occupied and used as a home. He has moved to B. County bought other property which he is 1lvIng in and he has occupied the propert in B. County for a number of'years (2, ~5, 10 or 207 . Can this man claim homestead exemption from State taxes in either County or should the exempti'onbe granted only in the County in which he lives? "3. A man owns three or'more separate properties only one of which he has ever used as a home. Can he claim homestead exemptIon from State taxes on the prop- erty that has the greatest value or should the exemp-, tion.be granted only on the property that he is actual- ly using as a home? "4 . On the tax rolls of the several counties we find numerous cases of property assessed in the Honorable George H. Sheppard, page 2 o-4164 name of an estate and a homestead exemption has been granted, the address shown on.,-the rolls Is a non- resident address. Where the parents are both deceased should the homestead exemption be granted when no constituent member of the family remains to occupy and use the property as 8 home?" Article 8, Section la, of the Texas Constitution pro- vides: "Three Thousand Dollars ($3,OOOiOO) of the as- sessed taxable value of all residence homesteads as now defined by law Shall be exempt from all taxation for all State purposes; provided that this exemption shall not be applicable to that poPtion~of the State ad valorem taxes levied for State purposes remitted within those counties or other political subdivisions now receiving any remission of State taxes, until the expiration of such period of remission, unless before the explratlon of such period the board or governing body of any one or more of such counties or political subdivisions shall have certified to the State Comp- troller that the need for such remission of taxes has ceased to exist in such county or p-oliticalSubdlvi- sion; then this Section shall become applicable to. each county or political subdivision as and when It shall become wlthfn the provisions.,hereof." . Article 16, Section 51, defines'a homestead %iscontem- plated within the provisions of Article 8, Section la, supra. In our opinion No. 0-1800 we held: "As will be noted, Section la, Article 8, limits the exemption to residence-homesteads as now defined bg law. Neither the Constitution nor the st&tutory laws differentiate between or define residence or busi- ness homesteads, but our courts have universally held that a-'familymay claim either. But Article 8, Set- tion la, limits the exemption to residence homesteads." The general rules with reference to property becoming impressed with the homestead characteristic will be briefly stated. In 22 Tex. Jur. 51, it is sa,ld: "The constitutional and statutory PrOVisiOns re- qulre that property 'be used~for the',purposeof a home' in order that it may be exempt, and, to support iicnorableGeorge H. Sheppard, page 3 o-4164 the claim of homestead exemption, the claimant must show that the property has been improved or used ln some manner Indicative of an intention to occupy the premises as a home." The same authority at page 53 says: "Proof of intention on the part of the claimant to use the property as a home is essential to a con- clusion that the premises were exempt. 'Intention alone cannot give a homestead right; but it is at the same time equally true that all the things com- bined cannot give It without the intention to dedl- cate it to the uses of a home.' * * * It has been held since the earliest decisions in this state that 'intention in good faith to occupy is the prLme fac- tor ' in impressing property with a homestead character. * * * A determination of the issue as to the existence of intention is ordlnarlly a function of the jury." In Lasseter vs. Blackwell, (Corn.of App.) 227 S.N. 944, the court said: "It is conceded that intention, although express- ed in writing, is not suffisient to give force to the exemption. Something must be done which causes that intention to attach to the property and give to It the character of a home. It must be impressed vlth the incidents of's home." In 22 Tex, Jur. 71, supported by many authorittes, it is said: "The homestead continues the homestead as long as It is owned. occupied and used as such. It ceases to be the homestead only when it is abandoned as such. * * + To constitute an 'abandonment' of the homestead, it must affirmatively appear that there was not only a removal from the home, but a removal coupled with an Intention never to return." In 22 Tex. Jur. 81, it is said: "The issue as to Intention not to use the prem- ises or 'abandonment,' as it is generaliy described, Is one of fact to be determlned by a jury. * * *" The rules which we have just quoted are applicable to the proposltlons submi.ttedby you. The answer to your first and second questions would depend upon the facts In each par- Honorable George R. Sheppard, page 4 o -4164 titular case to which facts the above rules could be applied, and therefore, we cannot pass upon your first and second questions as a matter of law. We are, therefore, unable to answer your first and second questions specifically. In connection with the facts presented in your third question you have advised us orally that each of three or more separate properties referred to therein is In excess of 200 acres of land. In view of the facts thus presented in your third question it .is definitely settled that a family iS not entitled to two homesteads at the same time. Silvers vs. Welch, 127 Tex. 58, 91 S. W. (2d) 686: Only that property which Ls actually used as a homestead and has actually be- come impressed with the homestead characteristic could be properly claimed as exempt for taxation purposes under Article 8;Section la, of the Texas. Constitution. Cocke vs. Conquest, 120 Tex. 43, 35 S. W. (2d) 673;~22 Tex. JLV..53,, supra. Your third question is answered accordingly. . In connection with the facts presented in your fourth question you have advised us orally that'you are interested only‘in the constituent phase of the question and are not in- terested in the non-resident's phase of the_ same. ,. Article 16, Section 50, of the Texas Constitution, pro- vides that: "The homestead of a family shall be,,and is here- by protected from forced sale * * * except * * * for the taxes due there.on.* * *" Neither the Constitution nor the Legislature has at- tempted to define a 'family,"as used In the provisions of the Constitution quoted above. In this connection we desire to quote from the case of Roco vs. Greene, 50 Tex. 483, where it is said: "We deduce from the authorltles the following general rules to determine when the relation of a family, as contemplated by the laws, exists: "(1) It Is one of a social status, not of mere contract. "(2) Legal or moral obligation on the head to ?Dzp-gxx+" +s?f% Q+hfq rocunlyrra.- "(3) Corresponding state of dependence on the part of the other members for thls~support." See also 22 Tex. Jur. pp.~41 to 47, lncluslve. Ronorable George H. Sheppard, page 5 o-4164 One of the latest expressions of our Supreme Court con- cernlng the nature of~~thehomestead exemption is foundsin the yse of Woods ._ vs. Alvarado State Bank, 19 S.W. (2d) 35, where It Is said: ."In view of our Constitutional and statutory provisions concerning homestead rights, we have con- cluded that in this state the homestead is to be re- garded as an estate created not only for the protec- tion of the family as a whole, but for the units of the family, including those who survive, and embrac- ing the head of the family at the time of its dls- solution, whether the dissolution has been brought about by death or by dispersal, as distinguished from a mere privilege accorded the head of thenfamily for the benefit of the family as a whole. Some specific examples of the constituents of a'pamlly" entitled to claim homestead exemption will be given. A widow, with ~no living relatives of hereown; living with and ~carlng for minor grandchildren of her deceased husband, Is the head of her family composed of herself and such minor children ard is entitled.to claim the homestead exemption as suCh.' Wolfe VS. Buckley; 52 Tex. 641. A single man, living with anY‘sup- porting his widowed mother, Is the head of a family andmay cla.lmthe exemptions that were created for the benefit or'the family. Barry vs. Hale ~(Civ. App.) 21 S. W. 783: The father of illegitimate children owes to them the moral obligation of caring for and supporting them-and that such fatherland such children, when living together, constitute a famlly, and the father as the head of such family is entitled to.claim the.ex- emption pertaining thereto. Lane vs. Phillips, 69 Tex. 240; 6~s. W. 610; Rutherford vs. Mothershed (NV. App.) 92 S.W. 1021. A brother and sister living together under conditions wherein it .isthe moral duty of the brother to support he-r, she being in a ,correspondingstate of dependence upon him for such support, creates a family, of which he is the head and as such is entitled to claim the exemption. Drought & Co. vs. Stallworth, (Civ. App.) 100 S. W. 188. A grandmother and her grandchild living together, she caring for and supporting the child - the child's parents being unable to do so- creates a family relation, with her as the head. Bank vs. Sokolski; (Civ. App.) 131 S.W. 818; Smith vs. Wright, (Civ. App.) 36 S.W. 324. A dependent father living with and being supported by h~isunmarried daughters~constitutes a family; and such daughters may claim the homestead exemption to property, to which they hold the legal title, though there may be trust therein for the benefit of the father. Hutehenrider vs. Smith, (Corn.App.) 242 S. W. 204. One living with a child, that he hasp in good faith adopted, is the head of the family composed of himself and such child, and as such may claim the exemptions that per- Honorable George Ii. Sheppard, page 6 O-4164 tain to a family. Chesnut VS. Specht, (Clv. App.) 272 S.W. 830. A divorced husband, living with and caring for his minor step-children, the children of his divorced wife, 'is the head of a family and may claim the exemptions that were created for the benefit of the family. Smlth,Bros. vs. Lucas, (Corn.App) 26 S.W. 1055. In our opinion No. O-4176 this de- partment held that when an unmarrlea daughter who owned 'her house In which she and her dependent mother lived was entitled to the homestead exemption, withln.the provlslons of Article 8, Section la, of the Constltutlon, upon the death of her mother. We quote from said opinion: "It seems to be the settled law of this state that when a homestead is once established tbe rights belonging thereto do not cease to exist by-reason of the death or dispersal of the constituent members of the family, but such rights continue.for the protection of the surviving units of the family, Including the head of the family. In the instant case the unmarried adult daughter and her mother, while living together, constitute a family, with the daughter as its head,. Therefore, we see no good reason to hold that the death *' of the mother would have the effect of dissolvingthe homestead rights of the daughter that had'been acquired while the mother was l.iving. The fact that 'thedaughter is the sole survivor of the family is unimportant and insufficient to warrant a contrary conclusion." We are enclosing a copy of Opinion No. O-4176 which contains a detailed discussion of the authorities in support of the above conclusion. In view of the ever-changing nature of the homestead. law, each case as it comes before the court is considered sep- arately and sui generis. Therefore',the examples of a con- stituent of a "family: that we have set out herein, are not to be taken nor considered by you as exclusive, because, from- the history of the court decisions deallrigwith homestead law, the court is continually enlarging the scope of the word "fam- ily" for homestead exemption purposes. It is fundamental, of course, that there must be some legal constituent of the family in existence before the claim of homestead exemption can be lawfully asserted and obtained. Likewise, the homestead exemption must necessarily terminate when the person's right to assert the same, under the Consti- tution and laws of this State, ceases to exist. Thompson v. Kay, (Sup. Ct.) 77 S. W. (2d).201, and cases therein cited; 22 Tex. Jur. Sec. 226, pp. 326, 327. Honorable George H. Sheppard, page 7 o-4164 Since you are only interested In the constituency of a family, in your fourth question, It is answered in accordance with our expressions hereinabove stated. In other words, if there Is no surviving constituent of the "family" remaining, then there would be no one who could lawfully claim and be en- titled to the homestead exemption. We trust that in this manner we have answered your Inquiry. Yours very truly ATTORNRYGRNERAL OF TEXAS By s/Rarold McCracken Harold McCracken Assistant HM:ej:wc Encl. APPROVED FEE 18, 1942 s/Grover Sellers FIRST ASSISTAWT ATTORElEYGENERAL Approved Oplnlon Committee By s/BwB Chairman