Texas Student Housing Authority v. Brazos County Appraisal District and Appraisal Review Board for Brazos County Appraisal District
460 S.W.3d 137
| Tex. | 2015Background
- TSHA is a public housing/education authority created in 1995 by city action in Westlake.
- In 2002 TSHA acquired Cambridge at College Station, a student-residential facility near TAMU and Blinn College.
- From 2005–2008 TSHA provided housing at Cambridge to TAMU-sponsored summer campers, in addition to housing for traditional summer-students.
- BCAD voided TSHA’s tax-exempt status for 2005–2008, arguing hosting non-students breached the exemption’s conditions.
- The exemption at issue is Education Code section 53.46, which exempts property held for educational purposes and devoted exclusively to the use and benefit of university-affiliated individuals.
- The Texas Supreme Court held the exemption is unconditional, not conditioned on exclusive use, and reversed the appellate court’s denial of tax-exempt status for Cambridge.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Education Code 53.46 exemptions are conditional on use | TSHA argues exemption is unconditional | BCAD argues exemption is conditional on exclusive use | Exemption is unconditional; use does not nullify status |
| Whether housing summer campers defeats exemption | Housing campers does not violate exemption language | Housing non-students undermines exclusive-use requirement | TSHA’s exemption stands; housing non-students does not forfeit status |
| Whether the court should impose limits on agency power beyond statutory authorization | If beyond authority, remedy could be injunctive | No need for beyond-authority limits given exemption still applies | Court need not decide ultra vires remedies; exemption controls here |
Key Cases Cited
- City of Sherman v. Pub. Util. Comm’n of Tex., 643 S.W.2d 681 (Tex. 1983) (agencies may act only within statutorily conferred powers)
- N. Alamo Water Supply Corp. v. Willacy Cnty. Appraisal Dist., 804 S.W.2d 894 (Tex. 1991) (statutory interpretation in tax exemptions)
- Bullock v. Nat’l Bancshares Corp., 584 S.W.2d 268 (Tex. 1979) (statutory interpretation; plain language governs unless absurd)
- Tex. Lottery Comm’n v. First State Bank of DeQueen, 325 S.W.3d 628 (Tex. 2010) (courts not to fix statutory mistakes by ignoring clear language)
- Entergy Gulf States, Inc. v. Summers, 282 S.W.3d 433 (Tex. 2009) (interpretation of statutory language in context)