Case Information
*1 ! OFFICE OFTHEATTORNEY GENERALOFTEXAS I. AUSTIN
Dou sir:
ntg uo8t fo r sa 1ty Bouxlatlon” t1olP wa a o rmtad y-8lsth Laglalsturo Of 989 Toss so o rlon Lsus it wmald bo l ion and e xtouslon of r ollglon.
latlua of hunan 8ofSorlng end pmon- uontrol of dlsomo. *2
&norabls John Atohlsoa, Fnm 2
lzed and operatad exoluslrslp for auah oharl- table purpomm.
0. The nld ot any 8olentIflo andasoor or aauae, dsal~netad and aarrled on solely to co&rIbute to the bstterzeat of rmnklnc!. Is created and The Aat further pmvldes thnt
eekbllsbad far the exalubirs purpose of prornotia~ the well- being OS mankind In r:awrm County, Texna, but, upon un~l- mow rote of lto smnaglng tmstew alaswhere In the state of Texw. 3eatlon 14 themor pror i dea that all OS the grog- wty, whether resl, personal, end/or ml’xed, of whetever the oame map aonslst, and wherever the sam PB be situated, shall be exrnpt from every tax levied and or assessed by P the Otats, end all OS Ita aubdirlslons and mnfaIpelltIss.
Tour retgoet attaolcr the 6xe3ptIon in tm :*ps, t&it is, first, that lEous X1130. 387 la unoonstltutlon- al; and, mwond, that If It la not unoonstitutionel the geneml 8xeagtion statute8 do not permit till Clsauas the qtmstIpn8 ln that order, the exenption. :.;L
Article 1319, Vernon*s Annotated Civil :Xatutes, pmvldes that there shell be either >ublIo or prireta aoT- gmetlone ln this !%ate. It defines 8 pub110 aor?oretIon as one whiah hes ror its objeot the @msnment of a portion or the state. The statute provides that there shall be three IsinCe or private aorporatione, to-tit, reli@ous, for aharltp or benovolenae, and SOr profit.
An sxmlnntlon of fiouse Bill F;o. 987 dlsaloas6 that lt 1s not ra pub110 oorpomtion wlthln themeanl~ of that tern as derlwa the statute; ror it does not, in Of any pCMlOn Of any way, have ta do with the blent the stete. Tb0rd0m, the Rl?arerra camunity Poundatlon* mwt, of neomaslty, be a prlvata oorparatlon.
mile It is trw that I.:oouse Bill Flo. 987 ?rlvSdes that *Batarro Comunlty FoundatIonn ehall be a "publla aharItable* aorperotIon, 106 believe that this tsw 18 only barorlptiva to the objsatlroe 0r the oorporatlon, and was not nn attmpt on tke part of the Legltshturs to anontl by lmplloatlon .irtAole 1319 as to the deSinitIon OS a publio oorparatlon.
That House B1l.l Ko. 987 Is o speoial law there aan be no doubt. Thet term has my time been defined as en aat whlah relate8 to a partiaular psrlron or thIt%g *3 BOn~rabh Joltn itchleon, Page 3
of a olaaa. Clark 7s. Finley, 34 2.z. Z43, Austin Woe. ta. Patton, 288 Sayi. 182, and Bell County va. Hall, 153 5.W. 121. Z&are a 2aU la genarol cud unISow throughout the State, operating elmilarly on all f;yna azd locsli-
Allen Ye. Ken- . ...&. 63, md Xx parta Flake, 14; s..t::. 146. Xouno 3111'So. 987 pertains only to the areatlon end nenagenent of the "Kavarro Coamun1t.y Poundatlong* snd dose not pertain to other corporationa of tbe awe alasa, nor door It grant re z ,'l.&a and privileges to other aorporatlona of
Therefore, in ocr oplnlon, Eououse Bill !;o. QW la a apealrfl law.
Article 231, 3act3on 1, of the ConEtltut;on pm- rides that no private corporation ahsll be arceted axoe;t by g~eral law.
The :.'upreae Court ln tt!:e amc of 9rt.h $168 Tiill- way Company, rt al. vs. Xorthlngton, et al., 30 ::.!Y. 1055, apeakln~ throqh Chief Juatlaa Caine-s, eald:
Vur Constltutlon provides that corLmra- tlons aball be areat’sd only by qmeral lcwa, and it wwt.ld meem that one purpose >f the proirlslon was to yrevsr,t the La~islaturc rrm errantlnp, to on0 aorporatlon apealal porero or s3aaIal privf- legea.*
The above quotation or purposes or Artlola =I, Seotlon 1, ot the Constitution is 110 snore ably damon- atrated that in the Guestion at hand. fnong Other a eolal prIvIlegepi granted to the "Navarro Comunlty Foundat OI;* 3 wan oxaqtlon iron taxation.
The Conatltution alao provide8 that the Legials- turn eta11 not apeaial law exempt property iron taxa- tion. A&n, that la whet tho La~lalature has attmpted to cl0 by apeclal law.
The Thirty-third Legislature of Texas passed an Aot axmptlw the Young Xsns ChrIetIan Xasooistlon from taxation. Vernon Saylea* Annotated Civil :;tntutea, 1941, Artlola 7507, r;ubdfvldon 1 (6). Thereafter the City of San Antonio brought suit againat the Y.S!.C.A,. for taxes. San kntonlo, & al. vs. Y&.C.A., Zt3!5 5.11. 844. Jwtloe Cobb, In his oplnlon said:
"The Lep~alatura la apeolelly prohlbfted by Artlale III, n6otlon 51, tns paaefng a *4 Bonorable Sahn Atohiaon, ?oga 4 13psoiol or loon1 law authorixias: the exeqtion
or property rmn textatiou. Tbie was what warn attempt& to be donc in oxo:ptln.T the pro?e,-ty Of the -i.LLc.iY>.*
be are, therefore, of the opinion thst the prop- l rty 0r varnr r o c oaznunlty Founcatlon” la not exempt r r o r, taxation for the mason the v.bole OS Rouse 3111 30. that 987 ie unconstitutional, in thet it is violative ot~~rti- 010 XII, ssotion 1, OS the Constitution OS Texas. re arm of the f’urther opinion t!mt the goperty ia cot exempt uu- der Smotion 14 of I3use Bill Bo. 987, bemuse it is an at- taqt to ereqt 3ropert.y Sroa taxation by special law oon- trary to nrtiole III, Section SE, of the Constitution.
The wrltsr has geraoxal knowlebge that Frank N. mtme or xtiva1~0 county, ACXOB, convsysd a larfle uaouat of
mpcrty to the *??ammro Conxnunity Fouuddationn. Ttm Toua- ii ation, at that time, was on essociatlon Ol citizanr of Haram County, Toras, who had essoolated thauaeloea to- gether, ae trustees, to oarry out the purpoesa OS tha oon- voyaaoe. These pxr?osps were the saxe a8 those set forth in House Blll 70. 987. We also know that the inmtnmwnt eatablishinE the truat provided that Founfction should be lnoorparstsd unter laws ot Texan if such oould be do&a, but in the event it oould not be fnoorporsted, theu the trustees #oulU oarry out the trust. For that reason we deem it proper to disaum the question of whether the property or the T'oundation is aseqt under tb.8 general ex- aaptioh statutes.
Xrtiale VIII, Seotion -“., OS the Cocstitution pro- ridea that the Le@lature my, by general lawa empt from taxation all buildings usad exolueirolp ani owned by institutions of purely publla oharity. Xrauant thereto the Le slature paused Article 71!50, seoiion 7, xhloh reads am fol owe; P
*?ubllo oharitlas.- All bulL:inq balonb- ihg to inatltutiona OS purely pub110 aharity, together with the lauds belon:;ihC to and. ooou- pled by auoh iaatitutione not leased or other- wise uoed wlth P view to proiit, unlaes suoh rents and profits aad all noneye and oredita are appropriated suah ihatitutioha solely to sustain auoh luetitutiona nnC for the beuo- rit OS the slok and disabled mmbers and their Saxilios and the burial OS the same, or Sor the naintsnanao or persona when unable to ?ro- *5 iionorable J&n Atchison, Pa'age 5
tidr ror thauelvea, whether srwh prnons ora members ol’ such lnstitutlona w not. An insti-
tution of gorely pub110 oharity under this ax=- tlole is one whloh ditqmnsaa ltn aid to ltr mbere and Others in elckneea or dlatrsas, or at doe&h, nithoat regard to poverty or rieheo of the roofplant, ala0 U&MA t!:.m rum%, property and assets ai nuoh lnstitutlons are plaoed ant!
bound-by its lawm to relieve, aid and a&lnlater in any way to the rello? o? its mnbers tien in waut, olckneua and Cistrern, td ~prov?~0e homen for its holpletrs and tlependont membe,ni ant to sduoate and mlntain the orph,hans of its deceased manberm or other geraon6.w
To Cetsrmine the puation, we muet arrive at the cornet rule of cOn8t***~+?v. *..I..__. The Constitution pr.:?idee that all tares shall be aqua1 ant3 unlfom. Artlole VIII, Sootlon 1. 21 order r0r thw Eovemmcnt to exist, It arut have the power to tax and the property of those aooeptlng the bsneiit5 , :mtedon, crnd privilegbn o? the ,qvemment must bear their share ot this burden. Tax&ion is, there- fore, the rule. old ers?lptlOc trm taxat t% axc6ptios~ Oooloy on Taxatlm, %U Ed., p. 204; :%thnns v.?. !&qcr, et al.. 74 53. ‘LL,
E;xtv@ion being the oxoe~flon to the p,enernl rule, It is not fnvorod, and, when founti to exlrt , the sn- aotment by wNch is &+ivsn will ‘not be anlar@ by aon- will be strletly aonstru- stmc.tlon but, on oontmry, d. Uorr~s VE. zcison, 3 S.W. 519; Santa P.oaa Inrlmar;l vsi San Antonio. 253 S.3. 931. and Coolay on Tnxation, 3nR TX.,
In the cslse,o? B.F.0.X. Lodp V3. city or Iiou8- ton (car. rpp.1 44 Se#. (adI 4a8, in oonstruinc: the exprea- sio~ *purely public oharitp, the court salllr
“The word *purely* is intended to aodi?y the word *oherity*, and not the ~3rd *publie9, no as to require the institution to have a wholly eltruletlo quality and exolade fmn it every private or s*l?lrrh intereet for profit
This hoHi% uc%8 ausrtainad in ease of City o? Palestine ~6. Ml~~ouri Baeirlo Llnee Slospitel k~~~ia- *6 momblm John ACohlmn, i'a40 6
.a~, 99 38. (St!) Zll, and upon ~hloh tr.6 i:uprecm aonrt mloa nl t at l r r o r*
Juatloe Creemrsod, lo the cm0 oi City 0r Rowton :. Seottiah Rite 3anevo1ent Asroelutlon, et al., 2250 3.R.
'8 (sup. at.), aaln that an lastitution ~113 one or "purely iblle oharlty” uiherer
vlrst, it made rm aI0 or piit; ssoond, aoumpliahed enda who f ly ban-lent; an4, third, It baielltteil porson8, lndoflaito la
numb811 and personalittu#,by prsrentl~them, through absolute gratuity, Zron becodq bur- doas or aoolety and the State."
Tha aaaa of 3abobal va. Aoklln, 27 Tex. 199, holdr mt in a lsl;al se3sc oharlty 16 doSIne es 8x"glft to ppn- xl publlo won, and In the O(LII o? State '10. Texas Uutucrl ia Xnsuranoe Cozjjny, 51 S.Y. (24) 410, hoMa that oharity
ltr legal Benno lnplica giving without aonsldamtlon or *otatloB or return.
But tke Leqlnlature him rastrIote4 the senaral snlnc: of the -.vwds *;urely gubllo charities", Art1010 30, Seotlon 7, v:5:oh reads a8 roli0w:
” An institution or purely pub110 oharlt,.'&;r tIi1a artlale IB one which dls- pansee Its ell t3 ltn mmberr and otksre 10 slakness or ~Idraas, or at doat&, without re- pard te pwmtp or riohem of the rsolplent, 8100 WhuB tke iunds, p r o perty and l sseta of
such lnetltctloas am 9laao4 an4 bwm4 by its
l.an to rel.leve, aid an4 adainlster 4i finy wag to the mm8 0r Ita mmbers viEen ln risnt,
slokne8a ati Clstre8Br nau proride homes ror
ltr helplescl end deprndmt mabars end to 841~ oat0 ma malntaln orplmu or Its 4ooeamd mu- hen or other ~crsona."
It 1s readily #aon that objaotites and pur- .a or the Pouadatlon are ~1ore oamprsheaelre than the lrlatire definftion.
l%ut,rsqardles8 of tbia, the ContdltutIOB pm+Ida@ t the bullOIqa suet bo tam4 l .alu~lrely, an4 omm4 by
inat1tut1on.
The word *buIldicxgs* also Includes the land upon ah they ara sltueted, a8 has many times been d@tcsnalnUI.
norable Joh.~ Xtohlson, Pago 7
B lwt?in~~ aaam OP, that question ia ti-ie cam of Caselen . urlmllxle Aoodeay, 64 lox. 673.
Jwtiae ~reemoo4, In the awe of City or ?oas- 1 VS. 3oottish Xte Benevolent :~rswcletIon, eupra, -14:
"It Coon Dot eatldy the o~tltutlonal re- qolremncr;t thet use by others wne 9etitted by
the owwr to obteln rmenuee to be devoted ez~- tlmly to tha ouner*s work of purely pub110 ohar- lfy. L!orrie vu. Bason, 5 ~3.6. 619. !:ar In the rrq~lrement s~tlerleu by tbo feat tt.at those
pAy no rsat. Rod vs. Johnson, The abort holdins haa bean auatslnetl lmumemble IW, that any property not used ~xeluslve~ by the In&i- .ioB Is Bet exalpt.
It in: t?iererors, our opinion that tXe property mw8m Comunlty ~ounQatlona lo nnt axtuwt rrora taxn- *II*
Truetlng that the fore&q fully enewer8 your la- 17r we -0