Case Information
*1 Gerald C. Mann
Hon. George Ii. Sheppard Public Accounts ‘Opinion 100. O-3834 c0mpt r0im 0r Rer Concerning Austin, Texas assessment of shares taxation
la Federal Savings and Loan Asso- Dear Sir: ciatldns.
We have your letter of July.30, 1941, requesting our opinion in response to the following questlonst
“1. Are Federal Savings & Loan Associations required to pay ad valorem taxes on their outstanding?
“2. Are Federal Savings and Loan Assocla- tions domiciled in this State required to render taxes on the basis set forth their pro arty Section 5 fi of the 1929 Building and Loan Act, known as Article 881(a), Section 53, V.A.C.S.?* 88la-57a, Vernon,‘s Annotked Civil Statutes, reads as followsi
“Every Federal Savings and Loan Association incorporated under the provisions of ~Home Qwners’ Ioan Act ol 1933, as now or hereafter @ended, d?mlclled ~the State of Texas, and’the holders of shares or accounts issued by any suoh associa- tion shall have all the right.%, powers, and privl- leges, and shall be entitled to the same exemptions and lnunuh~tles to whloh bulldiag ‘,a& loan assocla- tions organized under laws of this State holders of the share or share accounts of such assoclat Ions are entitled. n
Subdlvigloq (h) of Section 1464, Title 12, U.S.C.A., reads t
l’(h) Exemptlong from. Such associa- tlons,, includipg their franchises capital; and ~thelr loans i ncome; shall be and surplus,, exempt from all taxation ‘now or here’after Imposed by the United States, and all shares of such associa- shall be exempt both as to their value and the *2 Hon. Georgs H. Sheppard; page 2
income therefrom from all taxation Coxcept sur- taxes, estate inheritance, and gift taxes) now or hereafter 1 mposed by the United ~Statrs; and no State, territorial county, munlclpal, or local’ taxing authority shali any tax one such impose associations or their franchise, capital,
surplus, loans, or Income greater that im- posed by suoh authority on other similar local mu- tual or coo{eratlve thrift and home financing ln- stitutlona.
Artlole 88la-54, Vernon’s Annotated Civil Statutes, reads as followsc
“At the annual meeting or at any meeting called for that purpose, any two or more building and loan associations this organized undar the laws of
stats may, by vote of two-thirds of all share- ‘holders of each of the different re- solve to consolidate into one association upon such terms as shall be mutually agreed.upon by the di- reotors of such associationsi or any such assoola- tion may transfer its engagements, funds and prop- erty to any other such association upon such terms as may be agreed upon by its board of directors, whrn approved by two-thirds of all the shares of all members convened in special meeting
purpose, the notice sent to each member of record speolflcally stating the object of the meeting; If such notlos shall state affirmatively the terms upon whioh such consolidation is contemplated and shall stats that any member not present at the mestlng in pereon or by rrpresentatlvr will be re- ,garded as having voted transfer or consoli- dation, su@h absent member shall be counted as bslng among the required two-thirds affirmatlva vota but suoh transfrr shall not prs judlcr rlgh t of any orsdltor of any such aasoclatlon hevs paymsnt of his debt out of the assets and prop- erty thereof, nor shall any crsdltor thereby ds- prlved of or pre judlcrd any right of action then existing against the offlcsrs or direotors of said aasooiatlon any nrglsot or misconduct providing ths reorganized association shal i be liable for all obligations to stockholders of the assocla- tlons existing prior to such consolidation, further, that no consolldat.ioa or trans- fer provided herein taks rffeot until terms and conditions have been approved the Bank- ing Commissioner of Texas, and until a copy of the *3 Hon. George 8. Sh4ppsrb. pagr ,3
rssolutioa, csrtlfled by a maj.orltp of the board of dlractors .of each association, shaI1’ bo filed ,. with. said Banking Cossslaslonsr of Texas~, and re-
cordsd in the. same mannsr herrlnbrfors provldid for amendments to charters.*
In our ~‘oplnlon, Ho. O-&i6 we held in a .Federal :Savlnga and Loan Assooiatlon are subject to taxation.
. In ~that, opinion WI ware not .oalled upon to advise a4 to whom
the Ians should bs taxab.ls~, thet, ls, as ‘to the Asroolation or these shares being prop4rtg, they to the owmr. Hwever, would clearly be taxable to the owner, not to the Association. 7152, Relrlsed Civil Statutes., provides in part:
!‘AlI~groperty shall be listed or rendered thr namer f ollowingr the owner* Bvery person of .full age
“(l)L.Bp and sound mind,, being a resident of this State., list all of his real estat4, monsys, orsdlta, bonds nor stock of joint stock or other oompa~si4s (when the pro ertp of such company:,18 not.,asse.ss@ . in this State P , moneys loaned or invested., ahhul- ties, franchises, royaltlss, andall other. property.
:: n* + *a
See also, Artlclss 7161 and 7162, Sectlons.3’7, 38 43, Bevlssd Civil Statutes. Pour first question is there- fore answered in ths negative. This, however, la not to ,be as saylag that aonry on hand which has been racelvea oonstrusd issu5r4c4 of any such shares such ah Assoclatloa through doss not hats to bs listed as an assrt uadrr (01 of Article 881a-53. It should be so listed.
We pass now to a consldsratlon of your second ques- tion. On May 12, 1938, Assistant Ottornsy General Ullllford advised you in substance the proprrtlss of these Assocla- should as provldrd la brtlclr .881a-53 far building loan with which opinion we substan- t lally agrss. In view of Artlolr 8, Section 1 of the Statr Conatitutloa, that “all property la &his &ate whether owned by natural persons or corporations, other than nun i clpal, 4hall be taxed proportion to its value, which shall be as- certained as may be provided by law, u such Associations certainly can have no complaint to the application of Article 881a-53 thsm. say this particularly In view of th4 permission given Ye by the statute erties to maks d4duotioAs (o-1) and (o-2). The prop-
of such ah Association should be assessed and consist Item (a) is the value of office three itema, (b) and (cl. *4 Hon. George H. Smppard, page 4
- Item (b) la the value of real estate. furniture fixtures. Items (a) is the value of all its assets, less three deductions, viz: (1) accounta payable end notes payable, and (2) book value of shares outstanding, (3) the assessed value of the fbrnlture and flxturs5 ahd real estate’held by the association and rendered by it The sum of items (b) and (c) will be the total assessed value of the properties of the Association.. If other properties in the county are systemati- cally at a percentage of value less the whole, the properties such 4asoclations, of course, will receive the same treatment.
Yours very truly ATTORNEY GEtWtAL OF TEXAS By /s/ Glenn R. Lewis Glenn B. Lewis, Assistant
APPROVED AUG 18, 1941
/a/ Gerald C. Mann
ATTOFWEY GENIAL OF TBXAB
APPROVRD: CK&HIO~NCK$TEE
BY: J
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