Case Information

*1 OFFICE OF THE ACTORNEY GENERAL OF TEXAS AUSTIN

Honorable T. #. Triable

Dlr6t Aesiatant State Superlr4mdent

Austin, Texas

Dear slrl Opinion lo. o-

Ret

Whether In your letter of War

aplnlon as to whrther the p

raw3 ir for unbartaking, ia- mad YUI~/W h dams In miaml0, or etipul*tea ir to be ored in mat ruoh diuaenta d in defrarlng general tJonaenatory~ to buy sd In eonmotion with Beotlon 8 ot ArtteLe VIII, ConrtLtutton of Tdmr provider that *the may; by general law, exempt irhturr from taxation . . . a~1 bulldingr used exoluriwel~ aad owned by pereona or oosaotatlaae of pertions far teheoL pu~poaer an6 the neaeeserr Sumiturs ct all 8ohoQ16 , . ‘ ." *2 Honorable T. n. Trlmble, Pago

In your letter you a0 not advlmr urn am to the faotm oonoernlng the operation of the Conmervatory, nor for that mattmr dorm the Amarillo Who01 Dlmtrlot give you the faotm other than to mend you a oopy of an affldavlt ma60 by Premldent o? the institution, oopy of an oplnlon o? attorney8 ,?or the Conservatory, and certain literature promulgated by lt, and all of whloh you have handed to us along vith your opinion requemt. In th e l ffldavlt it 18 mald:

* that maid oorporatlon engaged in the m&o~l'bumlnemm teaching the varlour fine artm, -muoh am voloe, mumlo of all kind, elooutl.on and

other fox-me and type8 o? mauoatlonal teaohlngm, and meld school 18 oparatea l trlotly wlthout profit to the mtook holaerr of maid oorporatlont and dorm remuneration whatsoever l avm and l xorpt not reoeive tultlon paid by the varioum tudenta who attend and patronlme maid mohool."

In the attorneya' opinion wo rind the ?ollowlng mtateaent of faotm:

a . . .

*The Conmervatory warn organlrad orlglnally about twelve ymarm ago by a group of olvlo aladad ladiem, who are well tralnea and experlenoed in the profmmmion of mumIo, with the primary thought of ultimately attalnlng for Amarl and vioInIty a munlolpelly owned, malntalnrd and operated flnm artm oonmervatorj for the advanommmnt and teaohlng the finm arts on a bamlm mlmllar ta,the Pfno Artm Conmervatory of Clnolnn&tl. Wlth thlm thought In mind, the institution operated a number o?

years wlthout corporate entity. About June 7, 19s0, thm property in which the Conservatory warn then carrying on itm enterprise warn mold by the owntr the Ammrloan Loglon, thermby neommmItatlng the Conmarvatory finding othmr quarter8 nonm of whloh, mu??lolent to meet their nemam, oouid be rented In Amarillo, whloh ne0e88itdi0a the puroheme of eultable plaoe to oarr;l on the work of the Con- mmrvatory or a dl8oontInuanoe of Its enterprime.

Rather than to pox-milt thm fruits of their effort8 go to wamte, thlm same group o? ladle8 organ- ized the present corporate entity ?or the purpome *3 gonorable T. M. Trlrble, Pagm 3

of buylng a bulld.lng in whloh to continue the program they hsd been oarrylng on. ttelthvr br- fore or alnoe thm incorporation of the oonoern ham it been operatea for profit to the owners or stook-holdore. On thm o ontrery, l ln8e its lt ham adopted a met of by-lava mlth oorporatlon an lrrmvooable provision therein inhibiting the almtrlbutlon or profits among the mtook holdvrm.

All mumm of aconmy rmalirma by the oonoern are used in furthmranoe a? an advanoemmnb program and to oarry on the workings the lnmtltutlon.

*The tmaohmrm in the present lnmtitutlon, mom6 of whom arm the original lnoorporatorm, are paid a pmrosntage 0s the tuition rmem 0hrrgea thm students they lnmtruot, their mervloem rendered in lnetruotlng muoh students, and the balanoe of 6UOh tultlon firm go into t&m general fund to be used defray operating mxpenmem of lnmtltutlon and in iurtherusoe 61 an ex- pansion program. The building the lnmtltatlon nor owns ham never been ana mver will be la the -future used for any uurnoae other than 8trlatU

gchool D rue ee whloh under the statute quem- tlon we Udeem*to’be the fact whloh deter!mlnem The oourmem taught by right tax exemption.

the Conmervatory meet the requlremeatm of the National Ammooiatlon of Sohoolm of Blue18 in Awrloa, mad are aooradlted by the Texas State Department 0s Eduoatlon.a

In this oplnlon we shall ammu1e mtriot oorreot- nemm of eaoh of the Smote stated in aria a??ldavlt and attor- find thm following furthmr statement in neJ8~ opinion.

uld oplniont

a We remally oonoede the Conmerva- tori w&id-not be entitled to tu exemption if the mohool building were ured to house m #took of aer- oh8ndlme dally mubJsotma to retail trade, or were it used to house the members of the SmoultP were rooms in thm building rented to other permonm for auf purpose. This, of oourme, net oame.

a I . . .

630 Honorable T. II. Trlmble, Page 4 shall assume from ths above language am well am

other mtatemente made in thm oplnlon that the property 1s not only owned by the oorporatlon but that it la devoted exolu- to the purpomea of thm lnmtltutlon ae met out in the #lvmly quoted part of the affidavit csrde by it's preeldent.

I? thare la any varlanom of the aotual raotm from the above, we do not tender thlm oplnlon am neoemmarll~ oon- trolling thm question.

That the Conmarvatory is a mohaol,meeam mo olear to us AI to need no dleouemlon. I? the property quemtlon is owned and used exoluslvely for suoh mohool purpomem, oonetltutlonal provision quoted lmi maple broad to authorlrr Legislature to extend the exnptlon to both thm bulldlngm and neoemmar~ furniture of thm Conservatory, whether publloly or privately ownea. Bee Casslano ve. Ursullne Aoadew, Tu. 675. Buoh emotion of the Constitution ~18 not mel? enaot- lng, however, but by its terms only grants pover to the to allow exemption. Worrlm vs. Lo lelature lfamonm 2 ",.;. City of Xouston vs. t%attlsh Rltm Benev. Amm*n., fi %* 51 , 278; Santa Rosa InflrEmry vm. 9an Antonio, 258 S.W. 951. ' l Honor we must look the ststutm. Art. 7150, Revlmed Civil Natutem, provldem In part:

"The following property ohm11 be exempt fro8 taxation, to-wit:

"1. Schools an& Churohem.--Pub118 mohool houses and aotual plaomm rellgloum worship, also any property owned by a ohurah or by a mtrlot- ly rellgloum roolety, for ths exoluslvm use ae a -dwelllug plaoe for the ~lnlmtera of much ohuroh rellgloum mooletf, the books and furniture

.thereln and grounds attaohesd to muoh bulld- lngm nmoessary the proper oooupanoy, use and enjoyment of the same, and whloh yields no reve- nue whatever to much ohuroh or rellgloum eoolety; provided that muah exemption am the dwelling plaoe for the mlnlmtmrm shall not extmnd to more property than rtaeonably nmoeammr~ for dwell- ing place and in no event more thnn one aorm 0s land, All pub118 oollmges, pub110 aoadmrlmm, and all endowaent runds o? lnmtltutlonm a? learning

.

Ponorabla T. II. Trimble, Page 6

8nd religion not used with a view to profit, and when the same aCe invested in bonds or mortgages, and all euoh bulldings usrd rxolualvely and owns& by persons or aarociatinnr a? persons for school purposes; provided that rhrn land or other pro- ertf has bean, or shall hereafter bs, bought %a g y such lnstitutlons und.sr ?oreolosure sales mad0 to satisfy o'r proteot bonds or mortgages in uhioh said endowment funds ars Invested, that suoh ex- emption of suoh lam3 ma propsrty shall oontinur for two years after the purohase of seme at suoh sale by such lnstltutlono and no longer. ThrLs provision shall not l xtsnd to leasehold es- of real property held undrr authorlty of aw tate oollege or unlverslty of 1earnlng.s Heaalng the above lt IS seen vhile all build- SXOlUSivOly ma ovned~:by per o ona 88oolatlon8 lag&%s& of persons for sohool purposes*:.are given exemption, it 18 not l xt8ndeQ to the furaltoro or other personal proper%F of any exoept apubllos sohools. meet ths gtudents must w su?floleab tuition

operating expanses of the lnstltution, lnoludlng teaohers' While the tltle properties 1s thr : 8omjwnutlon. oorporatlon, the stoak o? that entity belongs to prbvrte in- 4ivi4ua.l~ who would obtain sooh assets la Qase o? a 4issolU- tion of the eorporatloa. 40 not believe this is a publie Poefret Sohool vs. Towu a? Pomfret, 136 Atl. 88, sohool. 0upreme Court of Errars; crt14, our Opfaloa lo. Coanrotlout Q-1641.

‘In our opinion the porromal. property of the instl- It is our iruther totion not rxempt tram tax&tios. opinion, however, that the tillding or bulldings omr4 by and uss4 OX- oluslvsly by it for its oorporate purpones are exempt. This ~0~14 lnalutle the neOOs8ary grounds. 8t. Ed*rrde' (lollege ve. Yorris, 17 8.3. 6112, W?. Tex. 1.