Untitled Texas Attorney General Opinion ( 1956 )

June 11. 1956 Hon. Travis D. Shelton Oplnlon No. S-201 Dlstrlct Attorney Lubbock, Texas Be: Ad valorem tax exemption shhxs of V.FiW. ‘during all or a part of the year 1955, aader Section 20 of Artlcle 7150, V.C.S.. as added by the Dear Mr. Shelton: 54th LegMature. May 20, 1955. The 54th Legislature by Chapter 271 amended Article 7150. Vernon's Clvll Statutes, by adding a new se&on deslgaated as Section 20. This new section provfdes: ‘Heresfter all buildings. together wltb the lands belonging ta and .occupled by such organizations known as l&e American Legion, American Veterans of World War II.. Yeterans of Fonlga Wars of the Unltcd States, Dlsablad American Veterans. Jewish War Veterans and Qtholic War Veterans. or any non-profit organizatfon chartered or incorporated ander the Texas Statutes for the purpose of preserving hlstorfcal buildings, sites and landmarks, not leased or otherw se used with a view to profit, shall be exempt from tax & OP la this State. Pro- vlded. howevdr. that no organization Usted by -the Attorney General of .th United States or the Secretary of State of this State ‘as sabversive shall be eatitled to exemption from taxatloa under the laws of this State.’ This amendment became effective May 20. 1955. You reqaest our oplalon as to whether the Labbock Post of the Veterans of Foreign Wars of the United States 1s liable for I955 ad valorem taxes, and If so, as to what portlon of the year. The Legislature 1s powerless to exempt property from taxation la the abseace of speclflc authority coatalned la our Coastl- tution. Section 2, Article VIII, of our Constitution provides, La part: *The Legislature may; by general laws. exempt from taxation . . . Instltutl~ns of purely public charity. . ..” Hon. Travis D. Shelton, page 2 (S-201) In pursuance to the authority delegated to lt by the above quoted portion of Section 2. Article VIII, the Legislature in 1907 exempted from ad valorem taxation institutions of purely public charity in the following language: -All buildings belonging to institutions of purely public charity, together with the lends belonging to aad occupied by sach institutions not leased or othcr- wise used with a vlcw to profit, unless such rents and profits and all money6 aad credits arc appropriated by such institutions solely to Su6taia such institutions aad for the benefit of * sick and disabied members ‘and their families and the burial of the same, or for the maintaaaace of persons whea unable to provide for tbamselves. whathar such persons arc members of sach ,&6titatioas or not. An iastltutioa of purely pub- lic charity undar this artlek is one wbkh dispeases Lts aid to its members aad others in sickness or dls- tress, or at :dcath.. withoot regsrd to poverty of riches of the recipient. aLs0 wbea the funds, property and assets of such institutions are placed and bound by Lts laws ‘to relieve, aid and admiaLster in any way to tha relkf of Its members when la wsnt, sickness and distress, and providehomes for its halpless and dapeadeat membara and to educate and maintain the orphans of its deceased members or other persons.* This provfsioa is codified as Section 7, ArtMe 7150. Ths Supreme Court of .Tex& tn City of Houston v. Scottish RCte, Benevolent Ass’a. 111 Tax, 191 Zm S . W . 978 ( 1921)s h coastruing th4 above quoted y ctioa 7, h4lh .&at an ktitution qpblifles a6 one .of .?purely pub1 c charfty’--where (1). it m&es no aia or profit.. (2) .It accomplishes ends wholly beaevol4at. and f3) it benaflts~persoas, ~bdcf&Lte ia nuadaer d in per6onaltti46, by preventing them, through absolute gratuity, from becoming bur- dens to society aad to the State. Under our Corutitution the Legislatare cannot exempt the orgaaiaatlon knowa as Veteraas of Forsign Wars of the United States unless .such organiaatlon Is an inatttution of ‘purely pabllc charity” as that term is employed in our Coastltutioa. This being so, the loc6.i post In quc8tion. if in fact it is an m in6tLtutioa of purely public charity’. was exempt from taxation from its inception by virtue of Section 7 of Article 7150. If. in fact, the post does not qualify as an ‘institatloa of purely public charity’ it is not tax exempt by virtue of Section 20, which became effective May 20, 195 Whether an organization Is an Ynstltutton of purely publit charity’ is a fact questlon which this offlce cannot pass on. The . Hon. TravLs D. Shelton, page 3 (S-201) Tax Assessor-Collector should ascertala the facts and .make the ialtial declsioa. Of course, after all the facts are definitely established, the tax exempt status of the orgaaicatioa then becomes a question of law. The above readers unnecessary any consideration of your question of tax proration for the year 1955. SUMMARY If the Labbock POSt of the Veterans of Foreign Wars, of the United States qualifies as an ‘lastitutloa of purely public charity’ as that krm is used in SectIon 2, Article VIII. Texas Constitution. and In Section 7 of Article 7150. V.C.S.. Its building&, together aritE-tlie.‘laads bclongibg tom .;+d dccdpjed. by It,-.ziot leased ok otherwise used wltb a view to ,profit., arc ucmpt from 6.d valoiem taxation fzom its iacCptiox.. :If not .&a ?tititutioa ‘of plPely: pubiic: cklty”; .it X$.ibot’t&x exe’tipt. Years very truly, APPROVED: JOHN BEN SHEPPERD Attorney General Mert Staraes Reviewer J. Arthur Saadlin BY Reviewer L. W. Gray Special Reviewer DavLs Grant First Assistant John Ben Sheppcrd Attorney General WVGxs