Untitled Texas Attorney General Opinion ( 1955 )

December 30, 1955
Honorable Hubert W. Green, Jr. Opinion No. S-184
Crimins! Didtiict Attoinep
Bexar connty Se: Property subject to taxation
San Antonio., T&as for the be&fit of Bexar County
Hospital District and related
De+ Mr. Green: questious.
You request our opiuion On the following questions:
il. h&e .advtae wbdber .or .nbt.all pro+&ty appsar-
. iag dn 0~ c&rent t& iolls (Form B 7 Rendered; Form D -
UPrendered;, Form E + Raihad~; Form G - St+te and
Nattonal Bahkst F6rm e 2 All Utilities Other Than ?,ailroads)
a:.& .subject to-the Levy of the Bexar County Hospital District
for *‘peat 1955? .’
-2. Please advik ðer or not the Bexar Cdanty Tax
..: . _., ‘.
Assessor-Collector can accept paykent of all tax .items ap-
pearing on the 1955 Stak of Texas aud Bexar. ~ouatytax
notice without collectlug the tax l&ted by the Bexar Copntp
~spital District?
4;
*3. If your answer to our second question is in the
affiim&~V~.
(a) What-form of receipt may be issued
(b) %w will that tax tbat is collected be posted
to oux taxroLLand be reportedon form pre-
scribed f& ie@rting tax collections; .,
(c)‘Will the Ctioatp TaCAssessor-Collector be
required to send the taxpaper a delinquent tax
statement on the unpaid hospital tax as of ?uly
1, 19568 .
(d) Will the unpaid hospital tax &&come a alien
against t$e prdperty?”
Far&er stateme& i.n.$our letter revhal wkh&irtiijeeS~tiOn
is directed speclfically. toward the rolling stock of railroads Fnd the iuh.u-
‘gible assets of cotipaules mentioned in Article 7105, Vernon s Ghil Stat-
utes, and we are auswertng the question as thus limited.
Hon. Hubert W. Green. Jr.. page 2 (S-184)
Article 9, Section 4 of th& Texas Constitution provides iu
part:
‘Sec. 4. The Legislature may by law authorize the
creation of county-wide Hospital Districts in counties hav-
ing a population in excess of 190,000 and in Galveston
County, with power to issue bonds for the purchase, acqui-
sition, construction, maintenance and operation of any
county owned hospital. or where the hospital system is
jointly operated by a county and city within the county, and
to provide for the transfer to the county-wide Hospital Dis-
trict of the title to any land, buildings or equipment, Jointly
or separately owned, and for the assumption by the district
of any outstanding bonded indebtedness heretofore issued by’
any county or city for the establishment of hospitals or hos-
ital facilities: to levy a tax not to exceed seventy-five cents
P$.75) on the One Hundred ($100.00) Dollars valuation of all
taxable property within such district, provide4 however-
such district shall be approved at an election held for that
purpose, and that only qualified, property taxpaying voters
in such county shall vote therein: provided further, that
such Hospital District shall assume full responsibility for
providing medical and hospital care to needy inhabitants of
the county, end thereafter such county and cities therein
shall not levy any other tar for hospital purposes; . . . .*
(Emphasis added)
Section 2 of Article 4494n, Vernon’s Civii Statutes, provides
in part:
Sec. ‘2. The Commissioners Court of any county
which has voted to create a Hospital District shall h&e
the’ power and the authority, and it shall be its’duty. to
levy on all property, subject to hospital ,di.strict taxation
for the benefit of the District at the same time taxes are
levied for county purposes, using the county values and
the county tax roll, a tan not to exceed seventy-five cents
(75$) on the One Hundred Doliers ($100.00) valuation of
all taxable property within the Hospital District; . . . .*
(Emphasis added.)
Article 710$, V. C. S., provides in part:
-Each incorporated railroad company, ferry company,
bridge company, tnrnpihe. or toll company, oil pipe line
company, and ail common carrier pipe line companies of
Hon. Hubert W. Green, Jr., page 5 (S-184)
every character whatsoever, engaged in thentiansporta-
tion of oil. and in addition each motor bus company,’ as
defined in Chapter 270, Acts, Regular Session of the
Fortieth Legislature, as amended by the Acts of 1929,
First Called Session of the Forty-first Legislature,
Chapter 78, and each ‘common carrier motor carrier’
operating under certificates of convenience and necessity
issued by the Railroad Commission of Texas, doing busi-
ness wholly or in part within this State, whether incor-
porated under the laws of this State, or of any other State,
territory, or foreign country, and every other individuai,
company, corporation, or association doing business of
the same character In this State, In addltion to the ad
valorem taxes on tangible properties which are or may be
~. imposed upon them respectively; by law, shall pay an an-
:::
nual tax to the State, beginning with the~first day of
January of each year, on their intangible assets and pro-
perty, and local taxes thereon to the~cbmtles in which its
business is carried on’,... a (Emphasis ad& P.)
We call your attention to the underscored portion of Section 4
of Article IX of our Constitution which provides “of all taxable property
within such district.‘ Also to Section 2 of .Article 4494x4 supra, which
states ‘on all property, subject to hospital district taxation*. Article
7105. supra; provides for a.tax only upon intangible properties in favor
of the State and counties, and does not include taxes levied for the bene-
fit of~.districts or subdivisions of a county.
In State v. Houston & T. C; Ry. Co., 209 S.W. 820 (Tex. Civ.
App. 1919). the Harris County Ship Charm 1 N‘avigation District, a taxing
district which was coterminous with Iierr~s County. sought to tax the in-
tangible essets and rolling stock of the railroad. The act creating-the
district authorined the taxation of all property ~within the district’ The
Court interpreted the phrase *within the ~district” to mean property
‘I
actually physically within. such district. The Court dented the naviga-
tion, district the right to tax the rolling stock and intaugible assets on the
$-ouiu3 that such’ properties did not have a tsxabie situs fin such district,
in that the Legislature determined that such~properties may be taxed only
“for the use of the state and the counties.’ We id50 refer you to the foi-
lowing Texas cases: Bell Colrnt~ V. Hines, 219 S.W. 556 (Tex. Civ. A p.
1920)and Texas 81 Pacific Railway Company v. State, 43 S.W.2d 628 PTax.
Civ. App.-I%l,.
You are, therefore. advised that all property within the Bexar
County Hospital District is subject to ad valorem taxation for the huefit
of the district. The rolling stock of railroads and the intangible assets
‘. .
1 ,.I’
~., ..
Hon. Hubert W. Green, Jr.. page 4 (S-184)
of the cor@%atfons mentioned in Article 7iO5 e.re not within said district
and therefore are not subject to taxation by said district. This holding is
in accord with Attorney General Opinions O-1777 and O-7469, copies of
which’are enclosed.
It is our further opinion that the Bexar County Tax Assessor-
Collector cannot accept payment of taxes due tbe S.tate, coax&y and other
political subdivisions appearing on the tax roll without collecting the
taxes lawfully levied for the benefit of the Bexer County Hospitai District.
You will note that Section 2 of Article 4494n, supra. speclficaily requires
that the county tex roll be used. We are enclosing Attorney General Opin-
ion O-1262 which holds’that ail texes properly appearing upon the general
tax rolls must be paid in their entirety.
Your third question was predicated upon an affirmative answer
to your second question.
SUMMARY
Ail property within the Bexar County Hospital District
is subject to ad valorem taxation for the benefit of the Dis-
trict. The roliing stock of railroads and the intangible as-
sets of the companies mentioned inArtiCle 7105, V. C. S..
are not within said~district and are not subject to taxation
for the benefit of the district.
. . ..+
The Bexar County ~Tex Assessor-Colletitor camtot accept
payment of other taxes appearing upon the tax rolls withoht
also collecting the Bexar County‘Hospitai District taxes.
Yours very truly.
APPROVED:
JOHN BEN SHEPPERD
J. A Amls, Jr. Attorney General
Reviewer,
Mary K. Wail
Reviewer
W. V. Geppert
L. W; Gray Assistant
Special Reviewer
Davis Grant
First Assistant
John Ben Shepperd
Attorney General