Untitled Texas Attorney General Opinion ( 1947 )

R,-782
EAITORNEYGENEISIL
QF TEXAS
PRICE DANIEL
ATTORNEYGENERAL
September.17, 1947
Hon. George H. Sheppard
Comptroller of Public Accounts
Austin, Texas Opinion 190. V-377
Re: Collection of delinquent
St&e and County ad va-
lorem taxes on lands ac-
quired by Water Improve-
ment District under fore-
closure proceedings under
Art. 7752, R.C.S.
Dear Sir:
You have requested the opinion and advice of
this Department as to what position the State and county
authorities occupy with reference to the collection of
delinquent State and county taxes based on the following
factual situation:
"The Wichita County Water Improvement Dis-
trict 100. 2 makes an annual assessment of
``s~;i;;r acre on all lands covered by the
. Some three gears ago the District
foreclosed on several hundred acres of land;
there being no bidders the District took
title to all the land put up for sale. The
State and County taxes are paid on this land
for all years except 1945 and 1946, these
years accruing after title peased to them.
The District does not have 8 redemption per-
iod, they take immediate title. We are pro-
hibited by law to implead them, neither can
we intervene in their suits. The District is
now selling some of the land they foreclosed
and have requested us to cancel the State and
County taxes for the years 1945, 1946 and
1947.'
For the purposes of this opinion it is assumed
that the Wichita County Water Improvement District was
organized under the provisions of Chapter 2, Title 128,
Revised Civil Statutes, 1925, end that the assessments
Ron, George He Sheppard - Page 2 (No. v-377 1
for non-payment of which the lands in question were sold
to the District were made under the provisions of Article
7752, R.C.S, 1925,
In the case of Bexar-Redina-Atascosa Counties
Water Improvement District Bo. Iv. State, 21 S,W. (2d)
747, (error refuaed) the Court in passing upon the legal
status of the appellant, created as is the Wichita County
Wa,ter Improvement District under the authority of Article
XVI, Section 59 of the Constitution of Texas, held as fol-
lows:
“Those’ provisions of the amendment standing
alone Would create ~politlcal divisions t of
the state and extend to all districts creat-
ed thereunder, such as sppellent, exemption
from taxation, under other provisions of
the Constitution. It is 8 ~governtnentsl agen-
cy and body politic and corporate, 1 which is
s clear definition of a apolitical division’
of the state, cl’othed with governmental powers
and functions and exempt from taxation. l + lv
The Supreme Court of Texas in Lower Colorado
River Authority v. Chemical Bank and Trust Co., 190 S.W.
(2d) 48, hes announced the rule as follows:
“The vital public purpose served by districts
organized under Art XVI, Sec. 59, supra, is
admirably ateted in Bexer-Wedine -Atsscosa
Counties Water kprovement Dist. v. State
Tex. Clv. App., 21 S.W.2d 747, error refused,
and Brazos River Conservation and Reclamation
Dist. v. McGraw, 126 Tex. 506, 91 S.W.2d 665.
In the former case it is said that any doubt
as to the taxability of their properties,
should be resolved in favor of reclamation
and preservation of the, state’s waters rather
than taxation.”
In the case of City of Austin v. Sheppard,Tex. Sup.)
190 S.W.(2d)487,the Supreme Court held as follows:
“That the propertv involved here is public
property, is held for public purposes, and
is exempt from taxation by virtue of the
provision of the Constitution, is amply
supported by the decisions of this State.”
(Citing cases)
Hon. George H. Sheppard - Page 3 (No. w-377)
It is here immaterial that the Water Improve-
ment District acquired the lands In question for the
non-payment of "assessments" instead of "taxes" (see 44
Tex. Jur. par. 19'1, p. 295) since the title to such lands
after the foreclosure of the assessment lien, vested in
the Water Improvement District as a "political division"
of the State. It will be noted that at the time the Water
Improvement District acquired the title, all State and
county' taxes on the lands were fully paid.
It is the opinion of this Department that the
lands acquired by Wichita County Water Improvement District
are not subject to State and County taxes for the years
1945, 1946 and 1947, and that as long as the title thereto
is held by the District for public purposes, the lands are
not subject to the payment of State and County taxes.
SlJMMAFfY
Lands acquired by Water Improvement
District through foreclosure for non-payment
of assessments made under the provisions of
Art. 7752, R.C.S. and held for public pur-
poses are not subject to the payment of State
and County taxes. Bexar-Medine-Atascosa Coun-
ties Water Improvement. District No. 1 v.
Stbte, 21 S.W. (2d) 747, (error refused);
Lower Colorado River Authority v. Chemical B.
& T. Co., 190 S.W. 48; City of Austin v.
Sheppard, 190 S.W.
Yours very truly
~ORRRYY&=~k
C. K. Richards
Assistant
CRR/lh
APPROVED:
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ATTORNEY GRh%RAL