Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS -c.yull AUSTIN -- Xonorablo Tor t. Hnrtler ‘., Crlklnrl Qirtrlot Attoqcy mlalgo county Ed1nburg, wxar .’ ‘. ‘~‘, otter vhioh Dirtrlot LB at presant uelng a eat da0 ior imer~0ir x0. t is the contentionor the Water DiatrSot-Wd beoauso this lnnd haa to be PUr- eharoa at tnr inctanoe or the lztati Porra ot Yater Znglnoers, for vatrr stora t, that lt ia a gooermiontal runotion of that 9,irtriot ana that they. &oulA not bwe to pw tame upon the mm*.* T0m.L. Partler,‘Page e Uorrcrable Saotlan 2, o? Article VIII, of the Constltutson of Texas, QrOVlaSS In p6rt am ?ollowct aAil aooupation taxes @hall be equal end uniform upon the sane olaea o? aubJaote tithla the limite 0r the authority lavyiniq the tax; but the Leaialaturamay'.by aencrnl lave. ex- smot from taxrtion Dub110 orooertr.ueadiar public oarooeee; . . .* Artlole 71%0, R. C. 8. lW6, oontmiae the follov- In,-provleton: I 'The rollovkng property rhall 58 oxrelpt fmm tuetlon, twit I a. . . '4. Fubllo property, - All propert;l, vhetner reel or psrsonll, balon@ng exolutl~el;tto thle state, or any politloal aubdlrlelonthereoi, or tat unitf3a Statre, . . .* As we underetnnd the Saote in thla oaso thr land ln oueetlonVIW pure&add, and Is ovned exoluelvelyby the. Nllr?oy County Water Contra1 XmproveEentDietrlct No. 1. It wee htiia in Bexar-Ktdlna-ltaeooeaCowtier Water ImproVe- Rent 3letrlot so. 1 v. State (T.O.A. 1929, yrlt refuosd), 21 5. W. (!?a) 747, thnt vater laiprorrmeatdletrlota orghnitet under the authorizntloncontained ln Artlole 16, Sootloa 69, oi the Conctltutlonof Tcxam, are polltloal 8ubdlVlelOneof thle sitate, within the meaning of the above atatute,an4 the PopertJr in thst oeec vithln thr aoope or the conetltut~onal provlalona. T&e language of Chief Jurtfoe Plly,ln Bexar-Eedlna Ataecosa Counties U. I. Diat. Ho. 1 t. State, suprs, vould r be ooaol~~lv~ lP P h a to upon thlr phase OS the qUsstlOa. W? quote In part iron the oplnloa or lineoourt. *The only iaeue In thla cauee la: Hoe Mdlnh county the power and authority to aaaeam and ool- lsot taxes, state and oounty, on the dama, retmr- vo1ra, canals, altohes, and other property neoee- eary for the conrerrattonand aletrlbutloaof vatsre In the aietrlotr Bonorablm Tom L. H*rtloj, FAga 3 *It la prorl8atl by art1018 8, i Z, OS the Conrtltutloaof Texas, t&t the Iaglrlaturemay by genrral liva exempt from taxation publio property uml Zor pub110 pwpoee~, and la pus auanoe oi that authority lnaotsd Kiev.St. 1926, art. 71b0, in 8eotloa 4, 0r Vhloh lt Ir.prorld- rdr *All pro~wt~, vhethrr nal or p6rroaal, belonglag 8xoluaivalxto thlr dtatlr, or claypol- itloal divlrloa tbelvoi,’ #hall be execiptfro8 tuatloa. The very rtatutory rqulrmsatr for the areatloa and fommtloa of vater lmprovemsat dlttrlotr vould a0010to atamp them ar polltloal dltlalonr of the atate. All the mao?llnery ursd to iorplthen ir through ageaol8o 02 the stat8, thr oouati judge, the oommiemlonerr~ oourt, the eltotloa ~nrtrumsntalltlec,the dirtrlot oourt to eatablleh the rallaitJ of the lesuanoo of bonds,-thepowers of tuat%oa, nrttiotlng the we of mu& tucatloa to dlsohbrge the prlaolpal and interert of the bonda, the lleotioa of di- rector*; all thee8 are goveramsatalpovbr8 pro- vided ior la detail by law. The dirtrid i8 not an ordinary oorporatloaorg~nltod for.pur- pores of gain to it6 8embh8, but 16 a pub110 ageaop, using the 5oney raise6 by taratloa to adranoa the ~ntexwtr of the lavdovmrr vithln ita juriedlotion. 3t i8 a polltioal eorporatloa ‘or dltlslon of the etate vhloh ho principally for lts objeot the admfnlrtratlonof the go~sra- nent, OF to vhloh the power8 of govOrmw!nt, or a part or ruoh povers, have besa delegated.’ . . ,aThs next rubdlvfalonot thm seotloa (Art. 16, Seo. 69b, Constitution)PrOViab6 for the foraatlon of dietrim rssential to the pumo6er or the arnsndnsnt‘vhloh blrtrlots shall be gov- ernumtal agtnctee aad bodies polltlo anb oor- poratkvlth ruoh power8 of government and vlth the authority to exerolte ruoh rlgbtr, pr%tll- sgcs rendfunotlon6 oonoerningtha 6ubJeot matter of thle~amenamentao map be oonferr6cI by lav.' I . It 18 a’gotsrnmentalagenoy an& boa7 polltlA La ooxvorate ( vblob le a clear deflnl- tlon of a tpolltloel~lvlsloat of the state, 93 Ronarable TORIL Rartley, P&e 4 clothed with go*ernmantalpowara,and funotlone and exempt fmm tuatIon.* The property to vNoh you refer I8 therefore ex- empt undar..th.e term0 of Seotlon 4, HIole 7150, R. C. 8. 1920, unleaa tli* ‘exemptIonof th e ltatute, aa lppllad in this oeae la broader--than--tie-.euthorIaatIon grated to the Leglaiatun Ia &-Mole $, Se&Ion 2 of th,,ConatItutIon quoted above..~. .~. .~’ :m-.-; In order to fall within the &ovkiona of ArtIole 3, Seotion 2, the property must not o,nlyba publio property, but aleo l m fop publio purpoaea”. ~ReaervolrNo. 3 has not yet bean constructedon the aaqulred rsaeno:r rite and the land Ia not now being used for resenolr purpoaaa but is ussd es a pasture. whether by the dlatrlct or by leaea to third partIe doer not appear from the letter of reqisst. A thorough rerlev of rarlous conat.itutlonal pro- visions, and e constructionof the phrase *USE& Sor public pur-osea*, aa employed In SaotLon 2, of hrtlcle 8, uaa given by the Zaatland Court of 0~~11 Appeal8 In City of AbIlfze v. Stete (1937, vrlt dlaalaaad),113 8. W. (26) 631. that case the City of Abllene had aoqulred land In Jones County ror the purpose of e resenolr alte for Impounding water for the uae of the olty. The oity had procured from the proper authority the aeoeaaary epproprlatIonof uater, done englneerlngwork, and euthorlzed the laouence of bonda, but hed been unable to aoqulre all the lana neoeaaary and bad net done a4 constructionwork.or actually used any of the land Sor reservoirpurpoeea. e:or iiV6 years prior to the cult the olty had been leaalng the land for agrioultural purpoaee for aggregate annual rentala or approximatelyb2SOO. The land was un3cr lease at the time of the suit. All leaaea had been aubjeot to the rIght6f: the city to bu,ulldth@ dnm ana reservoir at any time, the olty not having abandoned its Intentionto aooompllsh the purpose for whioh the landa were @oqulred.The oourt dlecuaaed the qu6atlon at length and ex- Pressed Itr oonolueionIn,the following languager *It is, thebefore, our vlew thk when the iaats of a given case establish the ownerehip of pooperty by a mu~loipal corporation,vhloh &a baen acquired for an authorlzedpub110 PUT- poee, and the purpoee for whioh It la owned ‘ . Bonoreole Tom L. Hartley, Page 6 nnd held haa not hewn abandoned,suah groparty 1stto b* rctgardedau used Sor pub116 purposes, and the LagIalaturehas the pover to provide by peneml l@u for iti6exeaptlon froa t8XBtiOA. The court &ther held that elthough *rtIole 7100 la more oompr6heaaI+ethan the power whloh the &glalature possessed It WV be oporatlvo a6 a n lxerolme of all the pover the L6gIalaturehad, and thereforeralld to the extent of deolarlng an exemption or publIo property used for pub110 purporea . Be6 also City of Dallea ir’: State, (T.O.A.,1950 &It refused), %?98. V. fS?dl 937, epplylng the exemption 40 e reaenolr rite, cad furthsr holding that the exemption lo applloable,although the reaerrolr rite to ba uaod ior pub- 110 purpoaea I6 rltueted In another oounty. It la our opinion th&t rour Interprotatlonend ep- plloetlon of the law la oorr86t, 6Aa that Under the feet8 pre- sented, the land aaqulred end held for the purpoee of oon- struotlng Raaervolr No. 3, by the Wlllaoy County Ueter Coa- trol and fmprotsaentDlstrlot No. 1, la exempt Srom taxation. We enoloae her&with a oopy of ~~IA~oA Ho. O-2037 passing upon a rslnted quartlon with referanos to the Lower Colorado River Authority. Yourd tart truly ATTORKEY GENERAL OF TZXAS I AlTROi’ED~ 12, 1981