OFFICE OF THE AlTORNEY GENERAL OF TEXAS
AUSTIN
Eonorabla L. C. Tgooda
State 8uperlnmidsnt of Pub110 fnatruction ,I
Auratin, Texas / \
abetraot bookr,
operty ai abstraot
. T. 84. Trlmbla
letter of Maroh 86, l@a,
tter to you by &?r. A. Pe
Independent &UQ~ Dls-
o tbi.6 Departmtmt the two
e iFret quoation that is, the
taain dssarlt-ed pro ar&o of two re-
iatlons from ad v at 6r8m taxer lev5.64
School Natriot, we are x=mrmd to
866 two aarsooiatiwr, namely, X&at-
mpm6nt and ~ethocliat LEerrvillr hmxr~-
aatual statement oontainsd in the
letter from xl?. A. 0. Al.llson ta your
Alt&ough the faots attmding the tax ux6mptlon alaim
ant aeaot3laticme vary ln 6om3 partlou-
law oomon to both mke it poscsfble to 8mwe~ your fLrat ques-
tion in a sin@3 dl5mwsion. The raots and aoaditiom upon
654 .
whiclithe tax exremgtionclalma of the b'estdnszt~r Preabytsrian
Encac;pctaut ia bated fe quoted fro& its lStt%r as follrawsr
*Phe purpose of the VfSstmlnater Sahool and En-
oampent is for child welfare and train-; relt&ous,
rQcreatiwc stuey, %Ad taaohizq r0r l!aiatara, sunday
LihwoL BGlkelY3, rule Young Izeop1e workers.
"This or@nizatioo operates at a loss; the aost
of the programs trainin&, and m%inten%noc baring aor~
t!xa tha op%mt&g ~xioas abarged. Theee losses are
xade up Ly oootrlbliticma fmn tha f?rasb;rtarinn
ChuroheS of Texas and othsr interestad persons.
*The next group of statement should be empllfisd
thusugr
A. Llan4t;et1s r%aidetwJS and several ootts4y38
used for aaretakere and wrkowe.
B. WS do not operate a cafeteria, but a d5.a-
inse;hall which io open only dur3.r~ the
aonf6aence setmo~.
0. There 8re uffsrat olarrorooma La a&U.tlon
to the tabema01e.
D. mrtng the uuiccwirkhea there are no eon-
Ssrf3noee several ot our oottagee are
availabLe Sor rsnttig to totdata n&a
cm hsrcr without rolicitatior~ v&en they
twe ‘ianable to f-6 Wiaernoiea b&mwher8 ia
3amvllle. DuriAg tha &mfSmnceo them
cottagec ape of acmS% ranted or furnlahed
to th% perecaa leho atteA& 8s~~. During
the F6ll, wintar, &aa spriIl& WaSM a rev3
or OUToottageo, 6 or El are avaUable;
for ranters ti& come here wtthout sollofta-
tloa uimilly af’tsrr they have been unab$e
tt find vewaoiex elsevih.era fn KermiU6.
t;ost of the cotti@%@ 'WLQI@~W to 'uhs 'risst-
ri&wtor Sahaol ani; lib-t are 0rrlg
~kfsiaton franc buildings, suitable for EWE-
aer use and a3 roatad on tkm average of
c wake in the ywar.
il. tie~SVO WVB~Q~ nor88 0r land which i8
for leaso--never sold-40 gxm3om who
uli& to build cottages ftor thWQ8elVOSr
The 2kmampruent has leased lots to abmt
50 indiviaws who have erecteu better
typt 00 tcages * ane on al.1 ootta&3o PO
owned by indivldliale, am paid State and
County, City, and Sob001 Taxer. More
than hall of our aoraslge i5 not r0r 1~686,
but is set asib pmv3mntly ror parks,
playgrounds, ri0tvm49ua, and roadwaye.
"The prOf%tn from B. 0, Ii., ii any, a25 wed by
the Luotuapment offioials to help defray part of the
cost of vortous rell.glaus program3 an8 training sahools,
the o.tild welfar@ and training;, and mainttmanoe of cot-
taglds, b;lFUiinga, and gruunUa+w
The letter of the teethodlst KerrPiUe A8s~bl.y. here-
Lnabove adverted to, statse facts and ciroumtanaes tan&~ whioh
its clala ror tax exe5ijMon 1s preUloatdl, as followilr
%e hwa a oanpu8 oomprfe~g
about 20 a,twes.
On tfils camps we have the managsr*e
resl%exaoa, The
DiningEial;L,TheClubXo~,bZ00r~tl01t taborpOc&,
Ch6ps1, ssvsn am38 room, one iourt~5-mom Paaulty
riorsltory, Eleven Eoys Cabins; basidsa thwe bulld-
lnga there are the aomectlng, road8 acd patha, three
tennis oourt0, baes ball ground, Bawl-minton court,
Volley Ball court, Croquet Court, Shuffle-Board Courts
and Childrena playground. Besldee tlxls an out-door
Areann ror stu5t6 ana then a faountaintop ror sunriee
and Vesperservices.
*'Besi%es thla WB have only two cottag%e whhh
are the property of the AssrenxbJ.yand ror the geatar
part of the year tareae RX-S oooupipis8 by laborers OELI
ployed by us. On several oacaeione these lmve been
rant& to tcurlsta when not 60 ocoupied.
ltie have udmproved lots not yet sold OXI whloh
??e pay tar* J.&s sold un%nqroved tmd Improved me
not our propwty and ~tu?lese neglected tax on these
is paid by the owne~e.
The ðoCirt KtMTille Asseably, $8 hoor-
porated aocordlng to the l.fNU of tbia state, under
the inoorgorate mm, tieat Teruti Enaantpant Asso-
Oi.Chi&A, SD z mm-potit sharing corporatim, and
is ow~ab aad oparated by tha Southwest Texae Confer-
enoe of the EiShodist Churah. At thla tlme the
cronferenoa mnually has to suppleaent t&e iaoome to
oover the lmpovmsmts nnd ruaning apenseo. ulst
year ~.ltOO.OO was set noide ror this guqx+sa. The
mouey derived from the 5~1s of lots Is Wedlately
used to t.ake repairs or meat new struoturee. Aside
rror this our property is still enau~~bered with an
in4obte4~sse, which is hope4 might be ocmadJ.ed
evdxally by the lots still for sale."
ft my be additiom~ stated that those amoeletionr,
through their by-lawa, declare their reaacum for axistenc6 to
be the promtion of relifi~iom 8dWRtfOA, physioal health, reorea-
tion, eta.
In order to A&rrow the iosusrr preeented for OUT deter-
&m&ion, it should be statad that the ftermi,Lle Independent
~hOCd DidriOt k3 AOf Seokbg to hwy Uid OOlbCt it6 krU
upon that portion of the described property ueed i?xol~~~v~
by theee two religloua eno@npment aasoolatlona for #wit de-
clared purposes, euoh as ciana&er*s rasl&noe, mreteHa or &.&I-
lng hall, tabernaeZ4 chepel, club room, alees tim., ato.,
Seoaueo suoh prop~erties are admittedly exempted.
port&n or ths emmnpmekt proparties of these two rol&ious ar
soolatioas sou+xt to be KKCS subjeot to the Car of t&m school
diatriot la (1 'p the acrea,@ or uoimpro%ad lota. hoLd far salts or
leaas to preens and her purpose8 wholly unoonnaotdl with the
eeaouiattsm, and (2) oertain hbuaea, aszbina, or aotta~as
rented to and oooupied by persons attan&Sng the enaa~~~~ or
&eetin@ of the oveoalatio5a, and, durl.ng other months or the
yur, re&ed to any aail all FWWAS ap2lylng, to m%.tt se@&
In aonneetion herewith, it agpeare without dispute that
the profit or i~10081e, if tuky, derived from the renti% or the
eottogse emt eabias and the m.3.e or leaso.or the aoroages ia
:twpasU wur to the Treaeurer of the respeative enaomgwint CLMW-
alaticmu to defray !aalntaOe CLnd Ope~ting ~rpsnsss Or the'
a~ooiation, to at&e necassaty r+pakrirB an4 erwt neu Iltim.dilf64,
aad to pay orf existins, lieu indebtednass oa the ~oeaqme~t
propert 16B. Each oi the encn~pmat ssv3ciatio5e coctcbnd that
lnasmah as these .~roceodc ~0 to Wit iair,tana3ae ant: ugkse
or a non-profit or;jaxhatim, the statutory axanption hare t n-
afi6r Gfsa~c;ocd beooteo avafl~bla. On the other hand, the
atturnsy for the Ilesrville lnde,ependent 3ohool District con-
tecds that tha sQrci:lc property is taxable despite these ad-
Biitted ractce.
Artiole 7150, as rimsnded, Vernon'8 Aunotnted CivSl
5tatute5, axazapts rroJn taxation , pmerally, certain ap6slftsd
kind3 and classes of ~xopasty. Section &, added by an aabsnd-
zicnt of the Fort)*-flrth Lagisl~~ture, 1937, apparently to cover
cases idehtlaal to the inetant ons, provides as ~OLLOWIJ~
"20.. Bsl~lous, sbucational and phyaloal. d*
velopncnt as~oalations .--Thnt all property owned ex
used axolitslvsly and raasonably neueaaary, ia ~a-
ducting any association engaged in the joint ii&
thssefold reLLglou5, edacatlonal an% ph.ysiaal iI*
vslopwnt of boya and girls, young ;pgn and young
uokm, operating unhbr a State or hatlonal Orgaairn-
tlon of llks oharaoter, and not leased or otherwise
used with a VFW k, profit other tbn for tha purpoaa
of maintaining t&e buildlcgs and Am30elation an& aI.3,
~Uowment fun&a oi the abov6 atwtio:md reJ&&us i.n-
rtftutlons, not used with a view to profit but far
the puvpqae of ma%ntaMos, the Assoclatloa and buUd-
ws in doing religious work and for the eduaatianal
or phpia+~l developsumt of boys 81~3 girls, yotmg mmi
amI young WCWR, shall be exempt from taxation; pro-
vided that land propert.~ received by s&d lnatltu-
tions In piyfamt and satlsfactlcu of smandororaant fund
losna. 0~ imeatsmts shall be exsazpt for two gears only
after foreolosurc purchase of said land, and no Xongar.v
We think it may be statea; tmn the hota b&ore us,
that ths twc religious associations in question rmct the 8tAtutiWy
requixcmnt of beFog asaoaiatlons *en&aged in the Joint and
thrssfolC religious, eduaatlorial and physical developamt of
boya and &.rls, young men an6 pun& WOP~O,oplDmting under l
Sta te or Hatlonal Organization oi lfke charuratclS*. The BML
or this oplnloh is whsther or not the partloular prOpW#jy In
controversy, Le. cot~a@s MC oabins and other building6 080
cupi~d by persane and ior purpoass r0reig to the aes6olatism,
an% unim~ro~u% aos58ge r0r eels or lease, is 9uaecIeralusivel
and reasonably necessary ----r-&n
for oc?ncnctJng tha eacanapmen 8, w
the manFag and oontenplation of the above guoted em%ptlon,
oonstrueC as It must be, i.ncwnrteotionwith the lltzitatlon
upon lc&Ielative exeqtion f3xUlltaxation enlrtiied in krtiole
8, i3aotic;n 2, ConstlCxtion of T4m36, the pertinent portion
0f hi00 rm.3 as- r0u0wet
*But the L&sletur% my, by &3&3elVL1 &JAWS,
exeqt fro&s taxaticn . . . and pmprty used ax-
oluaively and reaaombly nscreuuaxy In OondiiQtIxlg
aAy aSttOOif&ioA ttA&li;e(lia pZo&¶OtiA& the S6~giOUS,
mhcatlonal a56 phyaloal EeYalopx%nt oi boys, &Irls,
youtgE&ll or yo~wanten op%rRtinqurl6er a state or
1pational02g.aAIeation of lUs8 characteP.
IA detarialnin~ whether th9 propa'ty in qU3EtiOA u
*used exolusltely and r6monabl.y Aeoeaaary In conducting* thaaa
two a~oarapsm~t assocIatIons, wm mist AsoesaarIly detsx5tm
whether or AOt the additional OOAdItiOA Or the 8x3I@hA 6tAtUtO
upon t&a partioular propctrty by rIrtue of the faot that *al-
though not axoluslwely used for arlwt purposea. tih4~~hOaim
therefmn gob for nsdtttenanoe OS the assooiatIoA rather ~eQur
ror prorit."
We think that undttr llrtiole 8, Sso'tlo~ 8, Qcsst5tucIeA
oSPt!tu~m, an8 the daocriaiono oottaamlng mite, the l axalusirruW
of thitt property fear ooactuottig the a!%ampteetttseaoh 'w i8
who14 tnoon8istttAt oi t&m
and at w6f with t&a lmee or rentltt6
oottagss and’aabinri or the lease or aale'of the aoreage to par-
80~s Aot eanneoted with the e~oampss%A~ eveA though the re~~s~rrrd
~AOOBIS frotn suoh leas and renting Inure ta the dvanownenbaad
benefdt Of the M3OSiftt A pW&X6WM. AAd t.f SeOtiOA Iba, hti,Ob
7150, v'3XtlOA'm ;krutotated Glvll~Statutes, has the purpose and es-
hot hers OS cnatapt~ from taxation 6l.X prol#rtIes, the l~eome
froei whioh goee Ce th6 ttupport an& 5alAtePanoe or r~lI.glour, 8dt+
cational and physical dSTelopgtslpt asaooiatiaan although such,.
property is not 'uses aralud.vsly aad reaaoaabi)r Aeaesaary" to
the proper oonduct of suah asuoolathts, thO&M mast w that
euoh portIonther& ie alearly uAooAatltutIoAa1, as being,aluly
ILn 6xOeaa of the .lImItatioA.s um tax crrerqpttonsraAbodFe6 18 AC'-
tiole B, Seotioal?O, Constitutfasl of Texas, hereInaWe C&U&ad.
Article 8, Section ;I, Cuxfititutiio of Taxas, Uoe3 not
oi'itrekf @aAt ally SreAptIoAs .fToA texnti&n, but mrcly opcrcnkes
to nuthoriae the Legialeturct to do so within the l.lm.tts def5.n~.
Therefore, 80 far as any stat-4ta exoeitds this OoAstItutioAal
grant of 18@31atIm ~wer, It Is null +d void by express d&la-
f&Ion of such 005stItutioAal ;mnisIon that *all law0 excApU~g
property from tsxaticm otbar tiac the ~operrty above nentiticd
shall be null and void". 40 Texas J'urIsprUianoe, p. 108, and
aases cited.
The acxmptad rule for t&a ooAstruotIc;rc of tax exemption
primleIan3 or the Constitution a5e statutes, ie stated at 40 lox.
Jurlspr;lh3r.ce, p. lS.00,~to be that %a$an a~ exer~pt4cm is huad to
exist It afzall AOt be WI&?U@d by OoAstruotioA. 05 the OoAtrely,
.it 0*-t to r%UeIVc a 3trIOt ooAf&ruoti.;in; for the r3aaoAable pre-
ouuiptlon Is that the state has graAted IA express tame all it
intended t.0 grant at all, and that.-iless the p~ivilsge I~3 lkaitsd
to the vary terms ot the statute, the favor would ba 6xtando& ba-
yond what wa3 mmaAt.w
Although Wb have sauna 50 bsoIrIoA3 Of O'U oourt3 eon-.
ltr ming the partioular portion of Utiole 6, Seotlon 8 Oonstltu-
tio~ of Texas, imolved in the lmtanti oaee and alJ.oafag the
Le&alattare tD exempt *property used *x01&ely a~& reatto5abl.y
AtBS983ET~ iA OOAdilOtiQ6 f%Ay aS8OOiatI.a eA&,a@ iA praasOting the
religious, ebrloatiuaal 356 phy35.os.l developtmnt~, etc., 718 havs
found both e&Fly a~6 reoent dsoiSIo~3 iiOA5tRliA~ iMala@Xas ~0.
vision3 of Artiole 8, Section 2, Constitution of Texae,,Aamely,
the yrorision ttqowerItt6thm Legislaturs to exsmpt @all builw
eAd orvned by perso~e or assooiatianu oi pateooa
sm00s, et0 ." and *Institutiona of pure4 publie
oharlty=.
& Lccwria Y. hA@ Star mapfer, 68 T5& 698, m3, 8
s . ri. 5lE, the supxsme court, in an opfnion by Judge Oalnea,
held that the provialan IA Const. Tsx. Art. 8, % 2, that the
&gIarlature say exxbBLpt fron taxation, amtmg others, the buIlUiA@
of institutions of purely public aharity, means sue& buIUiAg3
5~1~ as or3 ured oxolusi~~ly and omad by 3wh Faatitutio~.
H&toe a hsll owed by a Chapter of RoyalWch &miori5, Oertaln
~port&GASof wtiohorcre rs5t86 to &MXWBUJ kU%d for pUrp0S.M U5-
oonnected with the objscts of the aooiety, an6 the pmos4de used
by the ~&c&&y IA turtberanc3 of Its ahrrrItab1.e Qbjeota, WRS not
a builiricg used ssoluoively by It, and was wbjtwt to $axatIoAr
EMuSable L. a. Joot.s, Fage 8
The smm dootrine was announaad by tho'Suim%u~ Gourt
in city offiowton v. Scottish Rite n8nsv. AbS'ri., lu Tar, 191,
230 s. ii. 978, 979, 980. The ayeed otatamnt of Wet@ ahowN
that ths hssoaiation dlrrpenssd oharitt~r among ita other aatlvi-
tie5, but that this propsty was not axacqt framtaratloa.
SpaIcing tim,uyh Judge Jr8enwood, the aourt said: "Swh aaan-
j.ng is that the Legixlatuse may, by genera& lows, mwspt tram
taxation 'all bui1diry.s used excluslvsly and owned by psmona
or afmoo1Ltltiris of peza~s for sahool purpses,~ and 'all build-
i.Q&S wed lSO1*U1V81y and oWn8d by lnetltutfons at &~U%ly pub116
Qhacity' . so no E~ilCiq OOWB witsin the axtmption authoriged
by the CMStitdiOSl to '~stitutione of ~we4 pubUo charity‘
dLk?b it is botk GPvn8dru;d used 6~0lutri~6ly by ml%h 6~ inbtltu-
DUG t&a ~wutlon resaiaa whethur tie property was
owne&&*usad eXC1WiY81y by PB institution oi pUrsly pnbliia
uharitp. It 80.35 not 8tmsry the 00netituti0td rqdafib~t
that the us% by otharo was permitt by the ovi'ner to obt6iJI
sb~6lluex to Lo dsvotsd sntimly to the own8S'b work or pure4
public uharit . Merrlrr vi U~xons, 68 Tex. (898) 905, 5 S. X.
519. Xos is the rcqulwnt s&ia;fied by the fast t#mt thoosm
bhIkSing t!l0 IA68 Qt%y DA &Wit. Red v. Johnson, 63 Tu. (8%) 858.
The aotwl, direct we must be aroluairs on.tte part oi aueh an
lnatftution a6 fe ievor:d by ths oonatitutioxml prarfsi~n.~
In ths muse stwent oaxb of Little Theatre.oi Dallas
vb. Oity of Dallas, 124 8. is. (Ea) 863, Judge Tnoaey, ia hold-
in& that propest+ oww8 by ncn-profit,*Little TheatmP wan not
exempt fsou.taxatlon beeBus Zt *s not used txoliml*e~ for
Who01 plrpo8es, rpokb ae f0llow4:
?AUk% '&a more libsral rules, a&-Qlied la other
bttftS8, in COWtSUb& tU 8XCUllptiOIl~SOVieiOW Of aOn-
atitutione and,istatutes, OUT aourta subjcat them to a
btXiat 0onStraation, hOlct%D& that, ill Ord8l' t0 bW
~ithia th0 8x%&tption, it must b3 ShoWn that [is the
wie of th8, Conxtituticn and 8tatirte) tb ~%TO&Wty
xonorable L. A. kk~Ls, Page 9
aa a residenae. :It is %ot enough that the main use
of the bu:ldinh; wag as a scLao1, nor that the owner
and iti1.y wem all eaguged Fn the sohool a8 teaOh8rs
or pupils. A building wed by tie owner as a fmily
resiCenC8 is not one used erolualvely far sohool pur-
~~38, a.116thosefore is not one emmptsd by th8 eon-
atltution**
Uxader t&e foregoing authorities, we are oonstralned
to hold that all property of the Viertmlnster Presbyterian En-
aampai8nt and the Liethodlst Karrville ksaembly, hereinabove
Sp80:?10011y &0nticined,whioh is not OWn8d by these respeot%ve
enaampnrent absooiations, and used exolueivs4 by them in aom-
duotirr$ their annUa1 enOaapapeIiran‘a rUrth m their dSo&md
poami, woulti tie subject to all ad valoz taratlon ina1ud.
r $ tame levied by Kdrrville bde$8rldeM School DistiioO.
The property not reoelvfng the buneflt of the tas axemptioa
8froSdfSd by k%iOi8 7150, S3Otiibn &, vOSI!iOII'b AWOtWSd CiYii
Statutes,woulC b8 the aoraaga or xm5.taprcw84 lots held cdtbar
for sale or karle to the public for building a&tee, and till
oottaged, oeblne or btlildiaga ranted to the publio gqaemlly
during such portion of the pear as they were not derotsd to en.-
oahyrlnent purpose5. Al.1 other psopsrty owned by these two au-
~oofations and dtcscribed ia attached aortespondenoe woul4 bs
entitled to such tax exaraptlon.
Ab pointed out in the 84988 cltO& end dbbwb8d abov8,
ths fast that the Sat8 end SOV6ilU68 trOm the 8a18 OS leW8Wf
thib unfniprcv&d propertp alId E8Iltah from these cottagee, oabins,
and bulldings, eoes to the support ar&d maintenanos of th8S8
robpwtive aatooiatfona and their bene?ioent work,dcm rmt en-
title t&m to tax exemption, beoause aaid property is not owned
.Sd llIS84 4!~Oh3i~3 by these associatlona for the purposes named
ln ttac8mption. ie 18 the ra~uiramaat o? Arti $;seotion
2 Cowtltution or TOXW, F3 regard to thew epsaifio aeeoula-
tLlla* an.3 tr thfa tax sren~ticei statute wdas cormid8rstlon here
wpOr"*S to exsmpt this particular property ?rws taratfon M not
be- *lamed or othorWib8 used with a view to profit other than
for the u ose of mintalnin the bulldin s and Am~oi~~-
~-?-ddf%i~q.de=dM- be wholly b-
Op,-etiV8 PINi IlUOOlB3titUtiO~SLl.
The seoond qu%otim presented ?oor our d8tsmiiIaat~oa is
stated, In attaoheil oorrespondenae, as ?ol.lowet
I;o!lamble L. A. i?oods, PagEa 10
-8, There are two title aoinpanies within ths
territorial lialte or the Kerrville Inde~endsnt
sohool nistriot who state that they are not subject
to taxation upon the value ot their $lant but they
are will&g to asseee the physfaal. property nuah as
typewriters, decks, eto. Iti ill my G~iniOSi that as-
seabled infcirmtion upon the aards of these title
oompanles is property and lu lubjeot to hratlon Sor
the ri3a5cu1 that they plaosa ~8213 value upon the in-
r0r8iei0n recoraed on their mm¶s.*
SO diSOUSSiGn Of wi.S QUSStiGiYi iS IW@rSd here b+
aaum sam is apecifioally answered by our opinion No. 0403,
gl&~t~nh.abstract books and ab&&raot plant to lo subjeat
.
~Traitin~ the lore&oin$ fully an&Wsre JGIU’ illQUiriSS,
we are
Yours very truly
mToRBia csruBAL OP TzEhs
Fwt?rew
alOl8.
AFFRO~APR 15, 1940
/&-Lu-d*u
ATTORNEY GENERAL OF TEXA::
0
APPROVED
OPlNlON
COMMlrrFc
.4iks