Ultrasound Technical Services, Inc. v. Dallas Central Appraisal District
357 S.W.3d 174
Tex. App.2011Background
- UTSI, a for-profit school, applied for a 2008 tax exemption for its school personal property under Tex. Tax Code § 11.21.
- Section 11.21 grants exemptions only to qualifying schools that operate to avoid distributable profits, among other criteria.
- Dallas Central Appraisal District denied the exemption, finding UTSI did not meet § 11.21 requirements.
- UTSI appealed to the Dallas County Appraisal Review Board, which also denied the exemption, and then challenged constitutionality in district court.
- The trial court entered a take-nothing judgment in favor of the District; the case proceeded on an agreed statement of facts.
- The court addressed whether subsections (d)(3) and (d)(5) of § 11.21 constitutionally restrict exemptions to non-profit schools.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Constitutionality of § 11.21(d)(3), (5). | UTSI argues the provisions unlawfully limit exemptions to non-profits. | District contends the Legislature may restrict exemptions to implement constitutional aims. | Not meritorious; statute valid and within constitutional bounds. |
Key Cases Cited
- Alexander Ranch, Inc. v. Cent. Appraisal Dist. of Erath Cnty., 733 S.W.2d 303 (Tex.App.-Eastland 1987) (jurisdictional considerations under Tax Code Chapter 42)
- HL Farm Corp. v. Self, 877 S.W.2d 288 (Tex.1994) (statutory validity under constitutional constraints)
- Dickison v. Woodmen of the World Life Ins. Soc’y, 280 S.W.2d 315 (Tex.Civ.App.-San Antonio 1955) (legislature may restrict but not enlarge exemptions)
- City of McAllen v. Evangelical Lutheran Good Samaritan Soc’y, 580 S.W.2d 806 (Tex.1975) (principles for qualifying for tax exemptions)
- Hilltop Village, Inc. v. Kerrville Indep. Sch. Dist., 426 S.W.2d 943 (Tex.1968) (necessity of meeting statutory qualifications alongside constitutional framework)
- Smith v. Feather, 234 S.W.2d 418 (Tex.1950) (for-profit school exemption under prior statutes)
- State v. City of Austin, 331 S.W.2d 737 (Tex.1960) (presumption of statute validity and review standards)