Untitled Texas Attorney General Opinion ( 1974 )

THE ATFORNEY GENERAL
OF TEXAS See
City of Amarillo v.
AUSTIN, T-s 787ll Paramount Terrace
Christian Church of
Amarillo
530 S.W.2d 323
September 16, 1974
Tex. Civ. App. Amarillo
1975
The Honorable Don S. Caldwell, Jr. Opinion No. H- 399
Limestone County Attorney
P. 0. Box 146 Re: Whether residence owned
Groesbeck, Texas 76642 by church and occupied by the
Minister of Music is exempt
from ad valorem tax.
Dear Mr. Caldwell:
You have asked our opinion on the following question:
Is a residence owned by a duly organized church
eligible to be exempted from State and County Ad
Valorem Taxes, said residence being used exclusively
by the minister of music of said church,
You have advised us that the church in question owns one residence
occupied by its minister. According to your letter:
It has purchased land and built additional residence
which is being used by the minister of music of said
church. The total property used by both residences
is less than one acre of land. The minister of music
is a full time hired employee of the church who is
completely in charge of all religious music and other
religious activities. The property yields no revenue
whatever to the church. The property consists of
only what is reasonably necessary for a dwelling place
for the minister of music.
Section 2 of Article 8 of the Texas Constitution provides in part:
p. 1865
The Honorable Don S. Caldwell, Jr. page 2 (H-399)
(a) All occupation taxes shall be equal and
uniform upon the same class of subjects within
the limits of the authority levying the tax; but the
legislature may, by general laws, exempt from
taxation public property used for public purposes:
actual places of religious worship, also any
property owned by a church or by a strictly religious
society for the exclusive use as a dwelling place for
the ministry of such church or religious society, and
which yields no revenue whatever to such church or
religious society; provided that such exemption shall
not extend to more property than is reasonably
necessary for a dwelling place and in no event more
than one acre of land;
. . .
The Legislature has enacted two general laws exempting certain
church property from ad valorem taxation.
The most inclusive statute is Article 7150, V. T. C. S., which in
its Section 1 provides in part:
The following property shall be exempt from
taxation, to-wit:
1. Schools and Churches. --Public school houses
and actual places of religious worship, also any
property owned by a church or by a strictly religious
society, for the exclusive use as a dwelling place for
the ministers of such church or religious society, the
books and furniture therein and the grounds attached
to such buildings necessary for the proper occupancy,
use and enjoyment of the same, and which yields no
revenue whatever to such church or religious society;
provided that such exemption as to the dwelling place
for the ministers shall not extend to more property
than ,is reasonably necessary for a dwelling place and in
no event more than one acre of land . . . .
p. 1866
The Honorable Don S.’ Caldwell, Jr. ‘page 3 (H-399)
More recently the Legislature has enacted Article 7150b, V. T. C. S.,
which, in its entirety, reads:
There is hereby exempted from taxation any
property owned exclusively and in fee by a church
for the exclusive use as a dwelling place for the
ministry of such church and which property yields
no revenue whatever to such church: provided that
such exemption shall not extend to more property
than is reasonably necessary for a dwelling place
and in no event more than one acre of land: and
provided further that the fact that the ministry uses
a portion of the dwelling as their study, library or
office shall not prevent the property from being
considered as being used exclusively as a dwelling
place. For purposes of this Act, “church” includes
a strictly religious society: and “ministry of such
church” means these persons whose principal
occupation is that of serving in the clergy, ministry,
priesthood or presbytery of an organized church or
religion, whether they are assigned to a local church
parish, synagogue, cathedral or temple or to some
larger unit of the church organization and whether
they perform administrative functions or not.
In City of Houston v. South Park Baptist Church, 393 S.W.2d
354 (Tex. Civ. App., Houston 1965, err. ref’d.) the question was whether
a home used by the church’s Education Minister was exempt. The court
never decided that question because it first held that both Article 7150
and Article 7150b (which the court said provided nothing substantially
different from the Constitution and Article 7150) had reference to only
one dwelling.
In 1970 the Texas Supreme Court, in McCreless v. City of San
Antonio, 454 S.W.2d 393 (Tex. 1970), although faced with a somewhat
different question, found it necessary to re-examine and overrule its
pi 1867
The Honorable Don S. Caldwell, Jr. page 4 (H-399)
decision in the South Park Baptist case. It concluded that Article 7150b
was broader than Article 7150, and was within the authority extended to
the Legislature by the Constitution.
The general power given the Legislature to
exempt any property owned by a church for ex-
clusive use as a residence for its ministry carries
the particular and esaential power of determining
who, and what activities, shall constitute the ministry
of the church. (454 S. W. 2d at 395)
The court indicated that a church could be entitled to tax exempt status
for more than one residence. And see Attorney General Opinion M-217
(1968).
Since it appears from the facts you present that the minister of
music is part of the ministry of this church, it is our opinion that under
the McCreless ruling of the Supreme Court a dwelling place furnished
for his use may qualify for tax exempt status provided the other require-
ments of the statutes are met.
SUMMARY
A dwelling furnished by a church for its
minister of music, in addition to one furnished
its minister, may qualify for tax exempt status
under Article 7150 and Article 7150b, V. T,. C. S.
Very truly yours,
JOHN L. HILL
Attorney General of Texas
p. 1868
The Honorable Don S. Caldwell, Jr. (H-399)
page 5
APPROYED:
Opinion Committee
p. 1869