Case Information

*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS pin AUSTIN ; @OVER SELLERS ~~RNCI GENERAL

l&r,. Fred v. %:erldith

uountg Rttemay, Kaurman County

iceurua, tor*r

Opinion so. o-m30

Roi %xup*ion or 800Oml haoaio Lobgo bulldl tuution.

we are In rboelpt or your reque whloh wo que6e:

wo mtb a qu*stioQ

and *ial 8p~roo~atc your

Colleo6er of XaWman Co

Torrell from l tatb 0.0-6~19 la whiah It oi' a building mm.& by l ueii~ *to ry odly that we6 o r lod g e plr pe8U, warn not *2 1py 0180 dlrfore tram th* oaar where the lodga owns only th l eoond 86Ory of a building; Artadb Lodsp own8 the entire btilbing, whloh la e two story bulldln$.

Tha loner rloor or the bulldin& la leesed and rentbd out to Anderson-Clayton Brow . , kiortlalens, for a runrml home, Por whloh uaa u rantal is pmld to the lodgie. T&la rantal, ir rued by lodge to dal'roy ?andor's aa I undor8tand it, llan uul uohaaioa lien notaa agrinat the and materlabub*a building, and for opwational cxpenaea; and tha balance goes In60 oh0 general lodge had8 00 ba aad tor pub110 oharlty end to help nardy fndltldwlr, the l a a a ara tha mrmbar- 111112 an& lnltlatlon haa or tha eumabara.

*The bdldlng in WeStion 18, therarore,, not US@& ror lobgo purposes. b~oluairoiy up quseblon la: Can thr upper floor &r the bullbin@ ba aotera4 rram the lovar iloor, in order to rsndar lowar floor tar ad valoram tax&tlon, and In ordu 60 xurpt the uppar floor from taxation?

“My o#aloa lr that 16 r8m06 b0 80 aitidbd ror rend1 tlon lHn?yu* broauao OS tha toldlng of tha Supretio Court in Fdorr s t. Lone Star Chaptrr -~6, Royal Aroh ?iaaone, 5 :> . + ~:. 519, which hold8 that rontins; a part or a bulldlna ownrd by suoh ^[5] lad@, ubjaata l uoh part, nd city 0r Lorrg*law Y. Uarkham-24 reo %-Wil0:t1 t8xatlon;

Horpltal, S.W. 26 1112, whloh ho&la 6hat the lbttlng and ooou~~anoy of otrlooa to dootora who pay a rental thmrafor, la dominantly 6 oounarol~l and prirato Oranaaotlon by the hospital, end that thararora the hoapital was not exauipt rrom taxea undar our Oona6ltutlon. I find a oaee also that I em unabla to dlrrarantlata olaarly la my alnd, torlt, Sap68 Boas fnllrmary Y. City of San Antonio, 259 3.w. 926, whrroin lt l8 held 6hat t&&a horpltal 18 USapt tX+m tSxStlOn, wan thowh t&e hospital operatad a 4ru8 atom profit.

'i'hb dlatlngulahing tmotora aoem to be wha6h.r tha prepdrty la rented to a tblrb. peraan end therefore not bolng rxelual~aly used tb oharltabla lnetltutlon lodge.

*knother daolalon, with slightly dirrarrnt mt8, hou:d ba oonrl4oPed: Stat@ v. Sottouut, 251 3.X. 1117. In that aaab the propbrty aought to ba axamptsb wes rent houam property on dlrfrrant ana aegregntad propbr6y rrom the hospital lbaalf aA ttls property MS rented to 6hlrd parOleal tha aour held thct the axeixption OMAOt ba extwlded to WQQWty OOOUFi%d and wed by third j;artier under rantal oontraots. *3 pqe 3

Hon. Bnd. V. #srldibh, "rla Qw8tto5 18 MrrafOd 8olely to the propa1tion ofvhether the upper~loor oia b13IldIng used eanlwimly fa@ lodge purPow8, aan be regregated for t8x purpoeer end lmld not rubjevt to tmatlon, v&n tha mm lalge QYOI the vhole bulldlug aad rant8 out tho lover floor au wm- m8r~l8l rental csontraat, vhlah lutrer floor 18 Uo1Clnlkly 8UbjOQt t0 trX8tfOtl.

"If you *haulid hold ttnt tbo upper floor Or the buildlag 18 l xe8pt iMll twatioa, then plwae l lvl8e ha -luS Of tti bulldiq 8hWkl be divided ior 88008MOCit purpa8er. I8 t&OF@ 8tl7 rUh t0 be rOiiOVd - #hotid th8 V8lW k 888088Od l rbItaurlly 8t oae4Ul.f Of valW of the vhole building - othwuIm?"

YOU opInIo#¶ th8t t& buIldlag la QWltlOn U8WOt be regqgated taSblOD. l ab oxemptlon pwpo8er i8~0Mt.

In ttm aall of city or L v. I(rrl&m84bRee 0 trw apln1om ac nnoN$as4$pital# 152s.u. (24) J~'Ot~iora‘,C~Ol~r,rd~~b~tbS~~~Oourt,. tb Court aldr

"'EDIteptf~~ rr08 ?aXBtfoD 8m wwr rIVWI#d~ 8lld lathoa~tnrptloaolzite~trtlonor~ &Iv*xtoldfng e~~tlon~ar~rrtlorrto~rgoLt~13~ ala88 0f prOportyall dwbt88nn8ol~~~lMtbb+oargptlorr. i40XW18 v. b&I-, 68 POX. 703, 5 S. W. 519; 23 R.6.L.S3.

l ** “‘kit, II tb COMtltUtlaC~ S”#QUiPe8 th# @WpOl’tr, 88 pw8ep~l8ik tolt8 rlghtto l xmptlar, tab0 eanlu- 8im1r u8.d br tb otnrlkble Ir&#tltutIen, It 18 8gplnI%t, Of it18 SOtktd OUt#rd t& Z'OhtiOB d lard- ii8w-e iojd Wd ktIOnt Qmbd~ tbrt M r80t VOUM M0088O~fi~ deetroy the eroluelve use rwoerury to be ntrllud ttm arar to bring lt~ property vittdn t&e pl8la temu8 af the 6OWtitUtiOi3, 8llPd it b8 bOOP tbmfolr h8ld, I8 it U88.b tbt 088e, 8rd iti skk (1. 80 8t (!l'Ox. 60m. *pp.) ml1 or y p8rt at a 254 9.X 925, thWtth0 b@810# otap abaritable b8tltUtlUC&‘8 engaged ln 8 wholly ohsrltmblo VOFk, Or eaOupen0y ot pr#pew~ t0 tb80 B& thOmdm8 avona pertoftb propertfe~otlnr8 blndrru9mt8moant8 to at3 equlvrlent 8itWtfOtl 408tmy8tht3 l xefapt oh8noter ~* the praperty, rab lt 18 plain that In thaw there Qould hrrve tHOn other holding. *4 ,.. goa. bred v. Jseriaim, :p8&8 I *‘Thi 000@t%tUtiO!181 2-0~Ufr8~nt ia’ 8V&rOiaf tb ohlalag th8

&WojWrty f4U8t bs Onned br the Qr&Uli~8biOll InU8t be XO1U8iVdy WOd by th. OT~8OiL88iO0, ~Xwi~tfO~; it di8tiaguiehed fl%m e perti WO by it, 8Rd 8 pBrtf81 u8e by other8, whether the othorr pay rant not. On

In vim of forrgofa~ oorUfrm8bloa OF your opinion bf thf8 DOjMlt0Wt~, it b8Oom88 UIIaeOo88U7 to 813W.r y0UV QUO8- (iOn e8 80 'how the V81UO Oi the bulldln@ 8hOtid bO ditidti iOr ~uunme purporu.*

GouUIrrLm c) APPROVED OPlNlON 84%@