Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
GROVER SELLERS ATTORNEY GENERAL
Honorable Joe Earnest County Attorney Mitchell County Colorado City, Texas
Dear Sir:
Opinion No. 0-7275
Re: Whether town lots in Colorado City, conveyed to Southwestern University in 1987, are exempt from taxation.
Your request for opinion on the captioned subject has been given careful consideration by this department. From such request we quote the following:
"Southwestern University of Georgetown, Texas, is the owner of certain lots and blocks in the city of Colorado City which were given to it by Deed of Gift to the Trustees of said university and their successors, in May 1887.
These lots have been assessed for taxes by Mitchell County for State and County taxes for the years 1930 to 1945, inclusive, by the Colorado Independent Sanofi District for the years 1927 to 1945, inclusive, and by the city of Colorado City for the years 1920 to 1945, inclusive. None of these taxes have been paid and all are delinquent. Southwestern University claims that these lots are exempt from taxation under and by virtue of an opinion rendered by the Hon. C. A. Sweeton, Assistant Attorney General, to H. B. Terrell, Comptroller, or June 15, 1916.
'All the buildings, libraries, lands, apparatus, and other property of the Southwestern University owned and held
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by it at the time its charter was granted,
as well as such property thereafter ac-
quired by it, is exempted from any kind
of tax so long as such property is used
for the support and endowment of said
university.'
"Although these lots are and have bein vacant and unimproved every since 1887, they are claimed to be a part of the endowment of Soutiswestern University, and exempt from taxation under the charter granted by the letislature to Southwestern University in 1875. "A few months ago your depertment in an opinion addressed to the County atturney of San Saba Ssunty held that 200 acres of land owned by said college in said county is subject to taxation and that suit could be brought thereon to collect the state and County taxes. "Your last opinion made no reference to the former opinion of June 15, 1916, nor to the charter gronted by the legislature to Southwestern niversity in 1875, wile: exsupted from tization 'the buildings, libraries, land, apparatus and other property shall be excapt from any kind of tax so long as used for the support or endowment of the University'. "It will be observed that your last opinion on the San Saba County question is apparently in direct conflict with the former opinion of June 15, 1916. I therefore submit the following question for your determination:
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Section 4 of the Charter of Joutheastern University granted to it by Aste 1875, 14th Leqlelature, 2nd Gension, p. 27, Ch. 16, provided in part that: " . . . the buildings, libraries, lands, apparatus and other property shall be oxempt from any kind of tax so long as used for the support or endomment of the university."
At that time, the applicable constitutional provision (of the Constitution of 1869) permitted the exe.ption from taxation of "aust property as two-thirds of both houses of the legislaturo any think proper to exsopt from taxation . . . " It appears, therefore, that the exeaption of the property in question was autiorized.
Therefore, we reaffirs the opinions of June 15, 1916, and of Jennery 14, 1905, for the duration of the original charter so granted by the Leqlelature; that is, for the period from February 6, 1875, to February 6, 1925. By its own terms, such charter was to oo.tinue in force for 50 years from the date of its passage.
The original charter of Southwestern Ualvorsity expired on February 6, 1925. In purported con: 11 ance with the teras of Article 1315, R.C...., this oorporation was "revised" by filing a new charter with the Secretary of state, on May 30, 1944. This instrument sought to extend the life of the oorporation for 50 years from February 6, 1925, the expiration date of the original charter. This new charter varied the teras of the original charter somew. at, for Article 5 thereof contains this provision: " . . . And tie builings, libraries, apparatus, and other property shall be oxempt from any kind of tax so long as used for the support and endowment of the University, as provided in 1 eation 2, Article 8 of the Constitution of the atate of Texas." (caphasie ours)
The Constitution referred to in this article of the new Charter is the Constitution of 1876, and therefore the question of exeaption, vel non, of the properties of the
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nanoroble Joe rariest, Fage 4
university sinee rebruary 6, 1925, must be daterainad by the provialens of that Constitution and the atitutes aneated pursuant thereto. The Univeraity through its proper officers, has brought itself within the terma and provisions of the Constitution of 1876, and must abide by it.
Artiele VIL, Section 2, of the Constitution authorises the legislature to exemp from toxation by general law certain named properties. This section reads in part as follows: The legislature may, by general laws, exemp from taxation a a all bulldings used exclusively and owned by persons or associations of persons for soboul purposes and the necessary fur:1ture of all sobools a a a also the endowment funds of such institutions of learaing and rellion not used with a view to profit; and when the same are invested in bonds or mortgages, or in land or other property wileb has been and shall hereafter be bought in by sucu institutions under foreclosure sales made to satisfy or protect sucu bonds or mortgages, that such exemption of such land and property shall continue only for two years after the curcise of the same at suci sale by suci institutions and no longer, a a a and all laws exempting property from taxation other than the property above mentioned shall be null and void." (repriasis ours)
It is soun, therefore, that for an exsaption to exist it must be found in botl the Constitution and the atitute. Artiele 7150 exenpts from taxation, among other properties, the following: All public colleges, public acco. 101, and all endowent funds of institutions of learn:1. and rellion not used with a view to profit, and when the same are invested in bonds or mortgages, and all suen bulldings used exclusively and owned by persons or associations of persons for sobool purposes; provided that when the land or otier property has been, or shall here.fter be, bought in by such institutions under foreclosure sales wave to satisfy or protect bonds or mortgages in
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W.16. said endorment funds are invested, that such oxception of such land and property shall continue for two years after the purchase of the same at such sale by such institutions and no longer " " " ("ppasals added)
"Building" as used in the Constitution and the statute has been held to include the land upon which the same atend as well as such grounds thereabout as are used in the actual operation of the school, such as yards and recreational grounds. St. "dwerts College v. Harris, 17 3x 512, 22 Tex. 1; Cassiano v. Ursulino Academy, 64 Tex. 673; Opinion No. 0-3063; Opinion No. 0-6435. Since the lots in Colorado City are not adjacent to or even near the campus of the University, they cannot come within the above construction, and cannot be except therounder.
Nor can these lots be considered exeept as a part of the "endorment funds" of southwestern University. They are not funds, but real estate. They were acquired in 1887 by deed of gift, and not within the past two years by purchase under forvelooure of "portgage," similar situation was discussed by the supreme Court in Harris v. City of Fort Jortn, 180 5x 2d 131, 135, where the Court said:
"The trust agreement describes the property that constitutes the endorment fund for Texas Christian University, but it is clear that the real property owned by the trust fund is not within the tax exeeption, except for the two-year exeeption on land bought in at forvelosure sales. The fact that the Constitution and the Statutes grant this two-year exeeption is, favor of certain real property negatives an initiation to except real estate generally as part of an endorment fund. Hillelps College v. City of Jackson, 136 1:1s. 775, 101 0.574, affixed 275 C. 129, 48 0. C. 94, 72 L. 10. 190."
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NOTES
"Are the town lots in Colorado City, above mentioned, conveyed to Soutiswestern University in 1887, exsapt from tization by virtue of the exemption provision in the charter of Southwestern University, above quoted?"