Case Information

*1 @ffice of the !Zfttornep Qheral &ate of PCexas August 141994 ATTORNEY GENERAL

Honorable Carl A. Parker Opinion No. DM-301 Chair

Committee on Economic Development Re: Whether Tax Code feotion 11.29, which Texas State Senate authorizes a tax exemption fbr land dedicated P.O. Box 12068 byeasunwtasadisposalsitefblmat~ Au&Texas 78711 dredged 6om the Oulf Intrwxd Waterway

byorunderthedirectionofthestateorfederal governma& violates Texas Constitution atticle VIU,sectionsland2 (RQ-510) Deal senator Parker:

You ask us to consider whether section 11.29 of the Tax Code violates Texas Constitution article VIII, sections 1 and 2. Tax Code section 11.29 provides as follows:

(a) A person is entitled to an exemption from taxation of land that the person owns and that has been dedicated by recorded donated easement dedicating said land as a disposal site for depos&ing and discharging materials dredged 6om the main channel 0ftheGulf~~Wat~eybyorunderthe~onofthe state or federal government.

(b) An exemption granted under this section termktes when the land ceases to be used as an active dredge material disposal site descrii by Subsection (a) of this section and is no longer dedicated for that purpose.

Section 1 of article VIII of the constitution provides, in pert, as follows:

Sec. 1. (a) Taxation shall be equal and uniform. (b) AU real property end tangible personal property in this State, unless exempt es required or permitted by this Consthution, whether owned by natural persons or corporations, other than municipal, shall he taxed in proportion to its value, which shall be ascuGxd as may be provided by law.

Section 2 permits the legislature to enact general laws exempkg various kinds of property from ad valorem taxation end provides fiather that “ell laws exempting property from taxation other than tbe property mentioned in this Section shall be null and void.” Tex. *2 (DM-30 1) Const. art. VIII, 5 2(a). Disposal sites for materisl dredged from the Gulf Intracoastal Waterway are not induded within the petmimiile statutory exemptions provided in section 2.

Sections 1 and 2 of article VIU require the taxation of private property held by natural persons or private corporations, Cr@ of Beaumont v. Fertifta, 415 S.W.2d 902. 909 (Tu. 1967). subject to exemptions permitted by section 2 and acmally enacted by the legislatule, id. at 910, or est&&ed in other provision& either se4f-exeaning or . 1egisMvely implemented of the constittmon, see Sure v. American Le@ort Part No. 58. 611 S.W.2d 720, 723 (Tex. Cii. App.-El Paso 1981. no writ). In other words, ptivate propatyhsldbynatursl~~orpriMtecarporationsthatcomeswithinadaMorycd whem tax exemption can be exempt only ifthere is clear constitutional authority for the exemption. Id

You cite no constitutionsl authority, nor are we aware of any, for the tax exemption contained in section 11.29 of the Tax Code, as it would apply to land held by natural persons or private cotporations. See 21 JAY D. HOWELL, PROPgRTY TAXES 8 238 (Texas Practice 1988) (constitution does not authorize exemption of disposal sites gem taxation, and section 11.29 “is null and void”). We therefore conclude that section 11.29 is void insofar as it woufd apply to property required to be taxed by section l(b) of article VIII of the Texas Constitution.

SUMMARY Section 11.29 of the Tax Code is void insofar as it would apply to property required to be taxed by section l(b) of atticle VRI of the T- Constitution.

g:tiy*mcr Attorney General of Texas *3 (DM-301) JORGE VEGA

Pii Assistant Attorney General

DREW T. DURHAM

Deputy Attorney General for Criminal Justice

JAVIER AGUILAR

Special Afishmt Attorney General

RENEAHlcK!s

State Solicitor

SARAH J. SHIRLEY

Chair, opinion Committee

Prepared by JamesB. Pinson

Assistant Attorney General