Case Information

*1 May 12, 1947 Comptroller of Public Accounts

Austin, Ttxaa Rt: Proper procedure to be

followed in making a supplemental asstss- ment on any land for years prior to time such land passes into ownership of a ptr- son who is a bona fide for value with- out notice of such fact. Dear Sir:

You request opinion of this Department upon to you by Honorable James C. Martin, County question presented Attorney of Nuects County, in hir lttttr of March 18, 1947. We quote below Mr. Martin’s letter covering factual basis upon which our opinion This letter is requested. to me letter “Mr. Dub Allen has referred

dated March 12, 1947, concerning right of assess and collect taxes on land Tax Collector for years prior to the time at which the present owner acquired title to such land. (There has been a salt land in question to a bona fide pur- chaser for value without notice of fact that the land had not been asstsaed for prior years.) The discovery was made recently that land had not been asses&d and was not on the tax rolls. The property owntr is willing to pay for the years dur- ing which he has owned the land but refuses to pay taxeo for those years prior to the time he purchased land, not then having any notice of the fact that there had been no taxes theretofore paid on such land.

“The basis of his contention is last stn- tence of Article 7346, which reads as follows:

“‘No rt-assessment of any property shall be held against any innocent purchaser of the same if the tax records of any county fail to show any as- sessment (for any year so re-assessed) by which *2 .., . . .

8aid property can be identified and that taxes art unpaid.’

‘If this article is given effect how can we make a supplemental l sstssmtnt on land for years to the time at which such land passes into prior ownership of a person who is a bona fide purchaser for value without notice of such fact? ”

The above quoted atnttnct from Article 7346, V.C.S., must be read together with Article 7347, V.C.S., in arriving at an anmwtr question. The pertinent portion of Article 7347 is am

*a certificate of any tax . . . provided, collector given during his term of office that all taxes have been paid to date of such certificate on any certain piece of property, which is fully dt- l cribtd in such certificate, or if the tax rolls of any county fail to show any assessments against such property sufficient to identify it, and that munt was unpaid at the dates such rolls may have been examined to ascertain condition of any property as to taxes unpaid, this shall be a bar to any rt-assessment of such proRerty under this law for any years prior to date of .such certificate, rt- or such examination; provided, that the property ferred to. when re-assessed, shall be held by an in- nocent purchaser, who has relied upon corrtct- ness of such certificate, or the tax rolls heretofore referred to.” reading of the full text of above Articles

Careful veals that they were passed in a single bill (Chapter 130, 29th Leg- islature) to provide a method for two things, as follows:

1. Assessment and collection of taxes on real property omitted from the tax rolls.

2. Rt-assessing and collecting the tax on real properties on which former assessments are In- valid.

Careful reading of the above quoted provisions relating to innocent purchasers reveals that they do not relate to property omitted from the rolls, but relate solely to property on which as- sessment was attempted and which is being re-assessed because the original assessment was invalid.

If the property was omitted from the rolls and never as- sessed, naturally a search of the records would reveal no payments *3 . c Opinion No. V-i80

and no facta that could lead a Tax Assessor-Collector or pur- chaser to balieve payments had been made. The search itself would put a purchaser on notice that property had been omit- ted from the rolls and that taxes had not been paid. An As- stsaor-Collector’s ctrtificata to the contrary would not bind the it was for these reasons State against the true facts. Obviously, gave no “innocent purchaser’ protection in Legislature cast of property entirely omitted from the tax rolls. case of re-assessment of property once on the rolls (but under invalid assessment) the Assessor-Collector or purchaser may have been misled and caused to believe from existing invalid assessment that no unpaid asstssmtnt was outstanding. It is in this cast that “innocent purchaser” protec- tion is afforded. Even in such cast, a person cannot be an inno- cent purchaser and thereby prevent re-assessment unless the facts show that on or before date of purchase he had a proper tax certificate showing payment, or (1) that upon examination by himself or his agent or legal representative the tax rolls of the county failed to show any assessment against such property suf- ficient to identify it; and (2) the tax rolls failed to show that taxes were unpaid at the date such rolls were examined to as- ~‘ctrtain condition of property as to unpaid taxes. It must

further appear that one claiming to be an innocent purchaser lied upon the correctness of the tax roll which failed to show as- sessments against such property sufficient to identify it, and which failed to show that the taxes were unpaid at the date such rolls were examined.

Except in this limited scope one cannot be an innocent as to ad valortm taxes accruing prior to the purchase. Whether or not such a purchaser is entitled to rely upon this stat- utory provision involves, in any event, factual determinations; and unless he is able to show all of factual conditions prescribed by the statute. he cannot be an innocent purchaser.

The Commissioners’ Court may proceed with rt-assess- mtnt of such property in accordance with the statutes relating thtre- to until such time as it finds from the facts that before purchase of the property the purchaser examined (or had examined) the tax rolls against and that such rolls failed to show unpaid assessments property sufficient to identify it and that he innocently relied upon the correctness of such tax rolls as to no unpaid taxes being due.

In no event are you prohibited from making a supple- mental assessment roll on property entirely omitted from the rolls.

SUMMARY Articles 7346 and 7347, V.C.S., providing for as- sessment of property omitted from the rolls and re- asstssment of property mvafidly assessed, gives *4 .!I::,

“innocent purchaser* protection under certain con- but not in casts of ditions in casta of rt-asstssmtnt supplemental assessment of property entirely omit- ted from tax rolls. casts of re-aasessme, conditiona must be shown to exist &fort Com- nfact missioners’ Court is justified in not rt-assessing property.

Attorney General Texas EL,lh/.l