Case Information

*1 THEATTORNEY GENERAL

Honorable T.H. Trlmble

First hesat State Superintendent

Departmemt of Education Oplnlon No. O-7042

Au&in, Texas

Ret Under the provisions or Senate Bill 167 Sea. 2, Aeto 1945, 49th Legislature, Reguler Seselon, would a uorimton eohool district be eligible for aid ii the valua- tion ot the property located therein for the school year 19&j- 46 was set at a flgure leswthan that of the previous ysar?

Pour letter of reoent date requestIn& an opinion on the above eubJeaC has been received and given care?Cul conelderation. we are Quoting below the body of the letter you received fWun Hr. H.C, Hinton, ae well as the seaond paragraph al' your letter.

"Article 1, Se&ion 2, Paragraph 2 of the Eguallzatlon Aid Law reads ‘no. sahool dlatrlat will be eligible fop aid under ihe provi&ma of this Act

which hats reduced its tax valuation in order icad& budgetary need."

%dgetary need 1s defined in Artlale 1, Se+ tlon 5, Paragr- 1, as 'the diirerenee between the total of all revenue6 or the dfstrlet and the tot81 of EU operating expense if such expenses me greater than tha revenucs.t

"Please ask the Attornay ffenerelto give us an opinion on the following question.

"Would a saho@Z dietrict that show8 budgetary need using 1944-45 amessed valuation ineligible for ald If the valuation of the dlstrlat Xor the school yeer 195-46 ia lesa than that of the pretious yew?"

The second paragraph of sour letter Is as follows: t, . . . . . .

"Thio que&lon ia brought about because the Cm- mlsslonors~ Court of El Paso County requested the Counts Assessor to lower county valuatluna ln view of the f ct B that it wa* nnt necessary to maintain last year e va ua- *2 Honorable T.W..Trlmble, O-7042

tlons la order to 8eauns enough aounty to operate taxes tti.county governmant, When the aouhty valuations were raduoed, of oourse the valuations for sohool purposea la cumon S&a01 dstriots were likewise reduced.

" " . . . . . Seation 2 of Senate Bill No. 167, a6 passed by the 49th Legialatur$, Regular Seasion, 1945, read8 in part a8 follower

"sec. 2. Tax levy. No eohool district shall be eligible to receive any type of sZd authorleed under the provisiona of this Aot unless it shall be providing for the annual rmpport of its achoola by voting, levying, axul aolleatlng for the CuITent school year a loaal ten&me sohool tax of no less t an Fifty Cents (50# oh T”- One lhmdred Dollars ~lOO.O# of property valuation r t in the entire dlgtrlat. The property valuations mhalf

not be less than said property is valued state and county puqwnea. The lnuome from such a malntenaaae tax la exuem of the requ%red Fifty Centa ($50#) maintenance tax mw6t first be used to retire ii any, la lndebtedmes, tha k&al and l@ualiaatioh (Rural Aid) sohoolfunds. After th6 indebtedness In these funds, if any, haa been retired the inaome frcm this malntenanaetax in exaeas of the (504) malntenaace tar may be used requlmd Fifty Cantn at ~the dlsoretlon of the local sahool authorities of the dlrtricrt any lawful sciwol purpoee exaept increastng or supplementing any tcaahcr’s or admlnlstratlve salaries.

Any ur all malntenancetax above Fifty Cents (504) racy not be lmluded in the calculation of need for aM but shall be reported in the budget with an ltemleed stabstent of If t e lntwm Prom the tnslntenenae its etxpenditure. tax above %i+ty Cents (!5C$ f ls not spent amprescribed hereln, it shall be lnoluded a8 reae~pta in the budget. In order to oomply with the terms of this aectlon, it shall be neeeamry far suoh aahool diutriota apply%ng ?or any type of ald authortaed under the temaa of thle Aat, all valuations w;fth%n suoh dlstriata, to report Smluding al.1 aon-

solidated distrIcta and aunexed dirtricta, and failura to report all. muh valuations &all prevent sucPh dZatx?lat from retmlving 6ny type of aid authoricaa under this Act.

"No sahool dUtrict will be eligible for aid under the prevloio~ of this Act whlah has reduced its tax rate within the tw6 years innecdiately preceding the year for which aid I.8 applied for hereunder or whlah haa reduued It8 tar valuation in order to show budgetary med."

Article 2795, Vernon'6 Annotated Civil Stntuten; reads a8 followai

+e Caavniselonera court, at the time of levydng taxe6 for munty purpo6es, shall also levy upon all taxable property within shy mamen aahool BiatrlGt the *3 . Ekonorable T.#. ‘&&able, o-?o&

rate of tax 80 voted ii a apealfie rate has been voted; otherul~ said aourt &all levy uueh a z-ate wIthIn the limit I)O voted ae has been detemined by the board OS truateee 02 raid dlstrlat and the county supeHntendent and aertlfled to ae.Id aouzt by th4 county supQrIntendent.

If auab tax has been voted after levy of aounty taxes, It &all be lt%vIed at any meeting of eaid court prior to the delivery of the a8serement rolls by the aemeecr. !l%he tax anaemor shall aweas Bald tax as&her taxer are aaseraaud and meke an abetreat 6howlng tha amount of spealal texes stseeeed e&%Inst e&ah school ditatriat In his aounty end f’uamioh the came to the aounty ruperintendent on or before the first day of Se- of the yeku.fOr which euch taxes am roeeseed. The Wxe6 levied upon the real In seld dletrdata ahell be a lien thereon end property the sem shall be sold Sor wpald taxes in the lsapner and at the time of sale8 State an4 oounfy t3xm3. The tar collaotor shall colleat maM taxes a6 other taxee we collected. The tax aasetms thall receive a aomlsslon of one-~half of one per oent for assessing Q.&J tax and the tax collector a aommIasion 0r~,otwial9 oi one per tent r0r aolleeting the efkme. The tax collecrtor ahall pay all such tams to the county treasurer, en4 said tree&urer i&all credit eaab echool dirtrlet with the emount belong- lztg to it, and pa?; out the came In acoordance with law.

Aats 1321, p. 56.

Ye fM no etatutory authority whloh would pezmkt a common eahool dirrtrlct to piece a different value on its property, that LB,, property located within It,6 erea from thet nkiich uould be Ipaced on It by the county-tex aeeessor or the Ca1~lse1cmerrs ( Court for Stale enU oounty tax pnpomaa. Tbecefore, when the murky aomnleelonerr elected to lower thevaluatlonofproperty In the aountyfor aountytexpurpoeeothere w an automatln reduotIon of the value school purpoees. The common e&o01 di8trIat or the ccemwn aahool district: trustees had no volaa Ln the matter w?mtsoever and we oennet say that they %educed the tnx valu- ation In order to show budgetaxy needs.’

It 3.e our opinion, therefare, that a ccewon echo01 diatriat that shows a budgetary need, using either the 194445 or the assessed veluatlon under the fact situation you presented would en- tltlod to ald under the provisions ar Senete Bill Ho, 167, provId&d, of course, It meets the requIsItea OS other provlslons In the bill.

Trueting the above satlefactorlly anewer your inquiry, weare

Yours veqr truly QEKKRAL OF TEXAS ATJ!ORNSY *4 o-7042 ildnorable 2.H' Trimble, Page 4 APPRoVED Fm 20 lg46

e/ Cerlos C.ASl:iey

FZRSASS- C?-

ASTORKEY