Case Information
*1 R-672 "I‘~EATTORNEYGENERAC OF-TEXAS August 5, 194’7 A. Woods State Superintendent of Public Instruotlon Department of Eduoation
Aimtin, Texas IIon. T. M. Trlmble,
Attention: Opinion Ho. V-328
First Assistant
Rei Interpzretation of tax levy provi- sions of Aots ;E!8C45”;h pia- Art. 1: E&i, 1st paragraph, conoe.rnl.ng t&as eliglbllfty of school districts to State aid.
9~ air;
We acknowledge your letter dated July 17, 1947, wherein you request an opition of thi8 office oonserMn$ the interpretation at Acts 1947, 50th Legislature, Ii. B. Ro. 295, &tiole I, Section 2, relative to equalization ublic scrhools. The epeclfic questdons subritted aid for in said K etter ar4 quoted as follows:
"1. Doer a school dletrict comply with Artlcle~ I, Section 2 of H.B. lo. 2'95, whioh haa not lowered the valuation on its taxable property and has a 504 tax ior lo- cal osintenance purposes?
“2 . Can a school district be eligible for equalization aid, which district haa not lovcsred the valuation on its taxable proper- ty but has reduced Fts local maintenance t&x in order to ee~vice bond l&me, as long a4 the local maintenance tax Is not lovared be- lov the 50+? nlnlmum? “3. Does then following quotation froln I, Section 2 of.& B. Ro. 295, which
Artiole *2 A. Woods - Page 2 (v-328) Foods as follows - sfncome for the current year from local maintenance taxes is equal to or in excess of the highest 0 . .I moan that a rchool disWi4t which has lowemd valuation muat increase Its maintenanoe tu in order to secure a local maintenance ln- 00x49 equal to 03 in excema of the highest per enrum incorn which the school district has oolleated in either of the tvo gears i.m- mediately pr4aeding8”
Sootion 2 of" Article I, H, B. 295, provlden, In paste
“300. 2,. T&x Levy.. No school dis- *Lot dull b4 ollgCfblo to reoeiva any type . of aid .authardmd uzador the p~ovsfslons of it shall be pmvidlng tU8 Act W4rr t&u aumual mpaolet of its sohools by voting, fop the amrent school lovylngmd collecting you? a local maintonanae school tax of not less thin Sift cents (50#) on the One Huu- dred Dollars the entire dlstvict, ( 3 100) of propersty valuation in The ppopepty valuation shall not be less than said property is val- ued for State and County pmposes. !Pheln- cope from such a malatenmce tax in excess of the required fifty eentr (5OCj xaintananoe tax muat firet bs used to ‘~etim indobtod- if any, in the Local and Rqualieatlon nesa, (Rural ALd) Sohool Punds. ASteP the indebt- rUnem in these Funds, if any, has been re- t&red, the Income from thl.s maintenance tax .” in excess of the required fifty cents (50+!) ‘palntenance tar may be used at th4 diacre- tlon of the local school authorities of the distriot SW any lawful school purpose ex- cept increasing OP supplestenting any teachers aaninir*ativs Any OP all main- saladea. tsix above Sifty c4nts (504) may not tanmoe be inaludld in the aalaulation OS need for aid. . . . lfo school di#t@ist ahall be oligl- ble to mmeive any type of aid auth4riaed under the provisions of this Act unless it ia, cumently taxes on the higheat valu- asseaming ation it has used within the p~4vlous ‘two (2) years for levying lte looal school,taxes ex- c4pO i&on Zt canbe shown to the State Depart- ment of Bluaation and Loglrlatfve Aooountant /, ”
mm. L. A, woods - page 3 (v-328)
that a lower velubtion IS siue to actual 1088 of pl>Operty OF whose Income for the ourrent year from loaal maintenance taxes is eqUa1 to or in exoesa of the highest Per amnm ImOme ~FOSQ such source In the two-gesr period immedietelg preceding. n I, . . .
The iirst rbqtiremnt of a school district derirlng to qualify for State aid under the tax levy )rovi.atrioIAs of II. B. 295, is that it provide for the annul rupport of ita schools by a local maintenance tax of not less than 504 on the $X00.00 property valu- ation of the entire district, which property valuation shall not be leas then said property is valued for Jtrte and county purpoees. Section 2, above quoted, apeclfiosllg provides that after retirement of any in- dobtedneae any income from a local meintenence tax which is In excess of the 504 requirement of’ the Act ray be used at the discretion of the school district authorities for any lawful school purpose except ln- creasing or aupplementlng teachers or admInIstrative salaries, end may not be included in the celcujetlon of need for aid.
The term “local maintenance school tax” es
used in Section 2 of this Act, means, and was intended to mean, that local sohool tax voted levied end collected local maintenance or local operating pur- poses as distinguished from any local tex voted or levied and collected the myaent of school bond obligations. behind H. B. 295 The prlmwy purpose sooms clearly to be for the aiding of those school die- tricts needing financial assistance in the support anA operation of their school program when and after a dis- trict needing such aid has first attempted to finance its own school program or operation by voting or levJr- ing end collecting a local maintenance tax of et least 50# P8qUiPed under h. B. 295. The Act, we believe, oontemplatas the use of any local school tax in eXOQO(I of the rinimum required 5O+! Local maintenance tax fer $inenoing
the building or repair of the district’s Thus, If a SOhOOl dis- buildings or facilities. s&001 trict hiaa voted end levied 8 speclflo local maintenance tax of 504 or more on its $100.00 valuations to be used in the support or operation of Its school Program, for purposes other than bond payments, the district is eligible for aid, other requirements of the Act having been met. *4 .
Eon. L. A. Uoods - Page 4 Whepe 6 distpiot haa by an election euthorisod
the levy and.oolleotlon of I a~a%imum local t3chool tar for school purposes, a portion of whloh my be ._^ - - _. LeVlea rOP IOwl nrelntenance oa OpeZwtional purposes ad a portion of whioh~tax may be levied for school bond pw- posea, then if the portlon leoiad in~th.61 omrent year fOF 10061 maintenance or operational puPposes is not less thrn the 50# local maintenance ka.x mqulred under the AOt, the dlstpI& is eligible Pop State aid, other re- qU.bOnnts of Section 2 knd of &be Ao,t having been met.
By wry of lllurtretion, suppose o school dis-
tPiot h&a ruthorisod maximum sahool tax of 50 Later it de,velops that the district needs 6 new sohoo building f * OP othor faoilltlea neaessltsting the issuance of school bonds. The dfstrlct vote8 the bonda and provides that service and Petltiement thereof shall be paid by a lovy ngbinst the maxImum 50 school tux prevlourl~ u- thorlsod. Suppose fux%he& ,*he 16.4~~ neoa.ssaaJ to sactioe i
raid bonl irrue is 104, The misximtm 10081 sohool tax bolng 504, the proper Levging mtho:~ltiss would have to levy fop bond puzcposes a lQ# bond T&.X, and consequently a 10~81 rsintenanoe OP opemtlo.ml tax to the mtent of 4Q4 only oould be levied, Under om lnterpretstlon or Section 2 of &ticle 1[ of saiCi Act, this eehool district would mot be eligible for State aid, and rot&l net be eligible thmeundm wiLeas and until It Us voted to im- creeae its maximum school tar to 6O# to take 0-0 of its bond leity of lO#+ whenever, thepefope, by poa8am of bonded indebtedness of 6 sahool distriot, the bend tax levy of the distpiot a sedractioa or levy of Ifs occasions local +ntenenoe tax to a tax rate levy or leas than the 506 miakllur 10061 mintenenoe tax Pcquf~ement of Sootion 2, &tlele I of said Act, the district Is inell- giblo f0~ State aid.
In sddition to the dnfmum 506 loo&l muinto-
zmnco tax requirement of said Seation 2 above di8cusred, thoro is 6 further or eecond tax levy requironent or qualifioiktion which a school dlstpict must mot la order to establish its eligibility for. State aid. The sohool clirb*iaO Ittat be currently ssrossiy taxou on the high- oat vrluatlom it har ured within tho previous tvo fears fov lovylng 1t.r local school tuces, exoopt vhen it can be shown that II lover valuation is due to aatual loss OS property. Asmmlng fop the moment that a eohool dlstrlOt soeking State aid under this Aat hna been In exlrteme es a lawfully oreeted and functioning school district the two Jeers previous to the year SOP vtieh it is Wkillg *5 . ml. L. A. ifoads - page 5 {v-328) ppli6ation aid, (although, indeed, the act does
Pot p.Peolutie or prohibiti any newly oreated coaon, illdependont, conaolldated, or pupal high sohoel dis- trict rP0l applying and showing el5~ibtiity for state aid), and asaWe #tit the highest ~a$ljilon which it has aaed for sob001 tax purposes in t&a&two re#s in question waa $300,000,00, then to be w$Qible under this dot, it plrt be rrreaaing; its curmnt school taxea on that highest valuatlou, $300,000,00, a U&m? valuation occasioned by inmease of property la the district. Certainly there is nothing in the Ast, par may an iatention be aonatrued therefrom, to pPohibit the valsiug of the tax valuations if the true prrkst values of the taxable of the IllatPict
ppopwbty thePeln waPPant8 suoh a P&ise rJ the proper Again, under the kxosption vrluation authorities. valu-
clause above noted, if the arrsuued district's atioa for the current yeaP is showh to be less than $3OC,OOC.O0, it still would'be eligible for State aid, other conditions of the hot having been met, if it can show that the lower valuation is due to actual loss of taxable property in the district,
There is yet ahotheP exception to this set-
ond PsquiPement (that a school district seeking aid must show that it is cumently assessing taxes on the highest valuat$on it has used witbin the previous two years for levying Its local school taxes)* UudeP this exception, if the aahool district can show that it8 income for the cuzmmt year from local maintenance taxes ia equal to or is in excess of the highest per annum income from such source in the two yeaP period imediately preceding the gear fop which it makes ap- .pllcation for State~aid, other provisions of the Act haviag been *et, it is eligible for aid, be iZlt8rpPet the provisions district, of bhis exception to allow a sehool
othel*oise eligible for State aid undoer the
Act, to asses8 aud levy its school taxes for the cig2w4at year oa 8 lowor valuation than the highest vrluation that it ha8 used within the previous two years prior to the yesr it rakes applioatlon for Stat8 aid, *ovided it cau show that its iaco~s fror 10-l 8aintenance taxes the current gerr is 4qti~te OP ia exaess of the highest per aPnI.uu local BaintenaUze tu income in the two-year period immediately preceding the gear for which it makes its application.
By way of illustration, where a~school dia-
tPiot:s highest valuation during the two years Prior to *6 AL. Moods - Pago 6 the yeaP it mad8 application for StAta, aid undim P.B. lnuonba fBom looal 2% Pa8 ~3~,~0.00, and its highest xaintrmSne8 taxer toted, 18vied and oolleoted duFihg ally ON9 Of thOfl8.,dWO JWP8 VI8 41,500.00, bbn the distriot desiri e8tabli& lb8 el;i(gibilit~,w&il8P B. B. 295, mar tl#E lovered its property valuation school tax pwpoms in the bumant year for VpLca it scseks aid, for example, to $250,000.00, pmwided it votes OF levies a loaal maintenance tax rate for the OuPPent pm auSflalent to show that the local m&&n- tenance taxes colleatible for the oument year will produce an Incore from that ~01~08 equal oc in exoeaa of $l,~UO.OO, and p~ovlded the cuPrent year prceperty Valuation of the 8'3hOOL di8Orlct shall not be le8e thah said gl?opePby 18 valued for State and aounty pwposer. In ae6artUneo with thb ahove Qi8~u8rioa ma- Ml. latwgmtatiem or sea*i@n 2, Arptiele f, of OQ bt8 1 47, 50eh &Mgi8iabUPe, 9, R. 295, it is ma! ol)1n- ""s iSSk tlut tt# t&Pa8 8peOitio qU#8biMt6 UUb&ttOd 8hOUfd be aneve~ed each 5.13 the affiPx8tlve~ UtiOP hot8 1947, 50th LI .e, A. s., R.B.
295, Art. I, Sec. 2, Pim QRP~~PO#IB b 1. WhePe a school distPiat vhlch has
not Xovered the valuation on its taxable property fop the curzwnt gear in which it IUke8 ibs application foP Stats aid, is cumently as88~seing taxes on the highest it has used within the tvo yeape valuation previoue to the year fop whioh it seeks aid under this Bill, an4 has a 50 tax fer lo- or1 autintenancr OP opassstioaa f 9W&308-, raid sehool di8tPict is eligible for Stabs aid, other provisions of the Act havinC: been net. 2. A school distPiot vhlah ha8 sot
1ovePed bhe valuation onsito Paxable mop- 8pty, Is oumently assersing tax06 on the highest valuation lb ha8 used Vib&in bhe tvo year8 preoedlug the yeaP which it seeks State aid tmds~ this Bill, may reduce looal maintenance tax ix oPdeP to 8eF- 'I%08 bO!Nt 188Ue, a8 loll&$ 88 bhf3 %OCd maintsaanae~taJ. for the owrea,at year :a tb3b *7 EOn. L. A, WOOdl - pa60 7
3. T8 br sliglbxo for Strte al6 WI&P this Bill, school dlatriot which b&s voluntti,ilj lowered the v&lurtlon of it8 tucsble pmgmty for the biawent year, rust ircroase looal safntenanos tax rate 8uf- riolentl~ to show thrt looal ua.?atenanos taxes oollsetible for the rear fer whiob it is seeking State aid will produce an imere equal to OT in exoeas of the highest per e,nmua local maintenanoe tax income in the two year period immediately preceding the year for which it makes its application, all other p~ovialons of the Act having been met. Very tmly your8 ATTORREN 6EmAL OF TEXAS Chester E. Ollison Assistant cwrjtiaj8