Untitled Texas Attorney General Opinion ( 1939 )

Honorable Thomas A. Wheat County Attorney Liberty County, Liberty, Texas Dear Sir: Opinion NO. o-1536 Re: Is the property of Meroy Hoapital exempt from taxatlon? 'We are in receipt of your letter of September 30, 1939, together with the excellent brief contained therein, in whiqh.you request an opinion of thla Departmentas to whether or not Mercy Hospital Is exempt from the payment of taxes. Article 8, Section 2, of the Constitution,reads in part as follows: "The Legislaturemay, by general laws, exempt from taxation public prop- erty used for public purposes;* * *n Article 7150, Section 7 of the Revised Civil Stat- utes of Texas, provides as follows: "Public charities.- All bulld- ings belonging to Institutionsof purely public oharity, together with the lands belonging to Andyoccupied by such institutionsnot leased or~other- wise used with a view to profit, unless such rents and profits and all moneys and credits are appropriatedby suoh institutionssolely to sustain ~suohin- stitutions and for the benefit of the sick and disabled members and their families and the burlal of the same, or for the maintenance of persons when unable to provide for themselves, whether such persons are members of such institutionsor not. An institu- Honorable Thomas A. ‘heat, Page 2, (0-1536) tion of purely public charity under this article is one which dispenses its aid to its members and others In sickness or distress, or at death, without regard to poverty or riches..of the recipitent, also when the funds, property and assets of such institutionsare placed and bound by its laws to relieve, aid and administer in any way to the relief of its members when in want, sickness and distress, and provide homes for its helpless and de- pendent members or other persons." In your letter you state that Mercy Hospital la operated by the Sisters of St. Frances and that the property of the hospital is owned by them and is devoted exolusively to the purpose for which the hospital is operated. The hospital provides hospitalizationto all who may come to It. The profits of the hospital are used solely for the purpose of operating the institution. The leadlng case which construedArticle 7150 was the case of Santa Rosa Infirmary v. City of San Antonio, 2% s. w. 926. In your letter you disCussed this case and correctly analyzed the holding therein. As you state the test of whether or not a hospital is exempt from taxation depends upon whether or not the property is owned by the particular institutionand used exclusivelyfor the work of said institution. The hospital may make a profit and be exempt from taxation if this profit is used for the mainte- nance of said institution. From the facts set out in your letter, it Is evident that the Mercy Hospital would come within the definition of a hospital exempt from taxes as set'out by the Commission of Appeals in the above discussed case. In your letter you comment upon the fact that the County Is billed for services rendered to patients placed in the hospital by the County Health Officer. In the San Antonio Case, the Court recognized that even a charity hospital had pay patients and that a profit was made from said patients. The only requirement is that this proFit be used for the operation of the institutionwhich requirementseems to be complied with in your case. It is the opinion of this Department, then that from Honorable Thomas A. Wheat, Page 3, (o-1536) the facts received, Mercy Hospital should be exempt from taxation. Yours very truly ATTORNEY GENERAL OF TEXAS /s/ Billy Goldberg BY Billy Goldberg Assistant BG:RS:EB APPROVED APPROVED OCTOBER 20, 1939 OPINION COMMITTEE /8/ Gerald C. Mann By B.W.B. ATTORNEY GENERAL OF TEXAS Chairman