Case Information
*1 TIEE ATTORNBY GENERAL OF TEXAS
Auerrx~ ai, THgAa
This Opinion Modifies Opinions O-5270 & o-5937 Honorable S. K. Long
County Attorney
Jefferson County
Beaumont, Texas
D6ar Sir: Opinion Bumbsr O-6765
Re: Allocation of money reoeived from governmental departments and agencies as "payments in lieu of taxes.'
You request the opinion of this department upon the question pre- sented in your letter of August 14, whiohwe quote as follows: "A question has arisen as to the propsr application snd the breakdown of pay- ments made by the government or departments of the government in lieu of tax- es, both state end county. It is my opinion that this payment is handled the ssme as taxes snd should be broken down and applied to the proper funds as if it were the direct ad wlorau tax.
"The authority for the paymsn t is Seotion 1546 of Title 42 of the United States Code Annotated, there being no court deoision that I have been able to find other than the Moore et al vs. Board of Education of Ruolid City School District, 57 N. E. (2d) 116, dealing with the meaning of 'in lieu.1
Briefly, your question is: How should pymentr made by Federal housing authorities and similar Federal agencies in lieu of taxes be allooa- ted by ths taxing units, recipients of such payments?
The question you present is clarified somewhat by Senate Bill No. 61, pssed by the 49th Legislature, which is as follows: 'Section 1. That all monies, funds, assets, or gifts authorized by Federal statute to be pid to the State of Texas in lieu of taxes or as a gift by the Federal Public Housing Authority or sny other Federal agency. bs and the same is hereby accepted by the Stats of Texas; that this acceptance ap- plies to any such tenders, g ifts, or offers, whether they be mad? in the pest, present, or future.
"S6ction 2. The Comptroller of Public Accounts is hereby dirsated and au- thorized to execute such instruments as may be proper or necessary to ef- fect aocsptanoe of such monies, gifts, or assets, and when so received by the Comptroller, he shstll deposit ssme in the State Treasury to the credit of the General Revenue Fund.
"Sec. 3. The Comptroller may direct that such monies, when so paid by the Federal Housing Authority, be remitted through the County Tax Assessor-Col- lector in the County where lands are located on which the paymmt or tender is made in lieu of taxes by such Federal authority, and require the Tax Assessor-Colleotor of such County to make remittance to the State Treasury in the ssme manner as he is now required to do *en rmitting for ad valor- em taxes: but in no event shall any Tax Assessor-Collector or any other County or State official be entitled to any fee for services in handling these funda."
It is si@ifioant to note that said Senate Bill NJ. 61 treats such payments in effect as ad valorsm taxer. We think the conclusion is obvious that since such payments are made in lieu of ad valoran taxes, the allocation should be to the respective funds to which the ad valorem taxes upon said property would be allocated as provided by law, the sams as the taxes would be if collected instead of a sum in lieu thereof.
If the conclusions we here express appear to be inconsistent with tso prior opinions of this department, DOS. O-5937 snd o-5270, the paasege by the 49th Legislature of Senate Bill No. 61, occurring subse- quent to these tvm opinions, render these inoonsistencies of no consequence. Taxes are not gifts, but a sovereie;n exaction upon citieens or propsrty to support the Goverwent, and is payment exaoted by legislative authority. If payments are made B Congressional consent in lieu of taxes upon property, otherrise immune except for such consent, we see no reason for treating such payments in any other manner than would be accorded the taxes on the proper- ty. If appropriation of public funds or property is for 9 public purpose, and we think the payments in question here fall in thet classification, there is no gift, Almeda Count v. Jannsen, 106 Pac. (2d) 11; Los Angeles 8 an Bernardino County v. Ray, 117 Pac. County v, LaFuente, 129 Pao. (2 576; 3 (26) 354; Housing Authority of Los Angeles 0Nnty v. Dockmailer, 94 Pet. (2d) 794.
Sumnarizing, we hold that payments by Federal housing authorities and other similar Federal agencies, made in lieu of taxes, should bs treated as such smd allocated as other ad~valmem taxes when paid to the collecting officials charged under the law of collecting the same.
Very truly yours, AlTOR?IBYGBt?ERALOFTFXAS By /s/L. P. Lollar L, P. Lollar Assiwtent APPROVED .WP 12, 1945 Approved
/a/ GFtOVEFt SELLERS Opinion Committee ATTORNEY GENERAL OF TEXAS
By F. D. chpirmen LPL/JCPgegw