Untitled Texas Attorney General Opinion ( 1942 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
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srty real or permnal be-
belonging 0%010eio*4 to Di8tzllots aa& Au-
thorlties~ orerted or lnoorporatad under law8
emaoted gureuant to seotlon 59, Ae1010 xyx
~of the Oomtitution~ provldwd thut If any
Hr. Rio L. Ladner, Page 2
meh Dl8trlot or AUthOrtty ha8 heretoion a@-
qulred or does hereafter aoqulre property
vhloh at tlm tZme of rooh aoqulsltlon la or
was then rrnbjeot to taxation, and lm at the
tltpe of it8 ao@.8ltlOn being ueod r0r gen-
orating, trsnamlttiog, .and dlstrlbutlng eleo-
tM.o energy or power, nuoh Dietriot or Au-
thority rbmll at the flute8 pre8orlbed by lav
for the payment of ad vaLoren taxen make a
payment in llela of taxes to the stat. of Texan
and to the ootmty, ,olty, and mob taxing dls-
trlots vithln whlob muoh property 18 8ltUated;
8uohpaymerltlnlleUoftaxe8 tobe in the
amount vhlah would be roelimed by&my-~ an
ad vslorem tmx at the ourrent rates for then
aurrent tax year baaed oa the a88e88ed valus
of 8uah property for the last ourrent tax
year before beiae aaqubed by~tiohDi8trlot
or Authority; provided further that no pmy-~
ment shall be made vlth nrpeot to nay prop-
ertp no longor ovned by 8ueh Dlmtrlat or Ati-
thortty r0r generating, tranamlttlug, or dl.8..
trlbutlng eleotrio energy oe paver. Suoh pay-
I mentti~lbu0ftaue88hbllbemadeoutof
the revea~em reaeived by 8uah Dietrlot 0~ Au-
thorlty from thagenerailon, tsanm=l88lon, or
dlstrlbutlon of eleotrL0 paver and energy aad
the liability Sor aama shall aonatltuts a llea
Or OIV3WBb~OO OUIf In thO %WCUUiO8 Of 8UOh
Dirtrlot or AuthorU~ snd 8hall be Oaxl8idered
88 a part of the operating 0xpen864* speolr-
iaally,
-.- no paymelltllehall be made in lleU or
taa aa wtth nepeat to dmmm, dapl eltes, remor-
volr axwa8, mnd water dlatributing or lrrlga-
tion 8nteme. It ia the expresrred leglrlatlve
lntent~ of thla Aot that suoh Dletrlots or Au-
thorlt$O8 plake paykwnts fli llOt3 Of tsXe8 Only
vlth respeot to propertier vhlah at the time
oi their aaqt<lon vere on the ad valollaa
tM X'OllS Of th@ St8t.O Of 'PeXm8 OZ' Of snf
colilltp,city, or mny other taxins Distrlot of
the State of Texas and vhbh at the time of
Nr. Xl0 'Lr Ladner, Page 3
the aOqui8ltloP mre being U8ed iOr. @UAeFat-
iryli:trummltting, or distrllnatlxq eleotrlo
power ad energys pzwlded rudhor that it
%S thO eXpl’O88Od lO&S~tf70 in-t
tht W
w-t8 w k &bb in l$OU Of -08 V&t&
awpeet to dams, dam rlkr, re8er7olr areame
gdwater dlstributlng or'lrrlgatlc8k sfstamw,
.vw to any 8uoh Autho+y ~OtiDiEtriOt.
-;uSO where aliy olty or town 80Qulre8
real and personal property 1oeat.d OtItSldO
Of it8 OOZPOIV&O imt8 and OUtSid Of thb
~bounty ia wb.loh mtoh .Oity or toWL ir SitU-
ated, exoept rural eleotrlfXaatlon llaes
.mnedandoperatedbylt,andwhlchisor
maybe used ln'the 8eneratlan, mauufaotur-
selling or .dlstributiag of ~eleotrlolty,
lag, ?:
Stuh'O1~ol? tOWZ$Shldl8SkO``tinXim
; ~0f:bi~OS QD EMUI t0 thw$t&O Of !~OX~S, the
oeunty Oity, 'Bahool dlstrlots and muoh
other io4ml taxing dl8trlots vithln whlah
mo)r ~property A8 looated In. like asnner ai
Mmiaebo*s.provided fO``~8uOh D$&riOtS or
that thb SUbrOotbn
a~plloable to DUO8 PZ'OIHF``
:&~Quired by a Oity or toWI%,Sltt&!StOd OXN a
oounty l.me.
hnd prmlded further, that my .olty
0~<9ovn, slaymake 8UOh .pmtS ,%a - of
:tuer to the oounty Ia vh.toh .sald oZtp or,
``018 lOcUrtOd, ~rO?kbd th. Oiw OC tOl?Jl
ele~t8 to maim mush payment by ordlnume
.0````80lUtiOll p888Od by 'the gOVeming body
,Of.:D*LdCity Or tOU%’ (EZQbl&81lJAdded)
-fouhsw lnqulred about the aonstltutionality
of the -underliaed proviso ~to the seoond parafwaph 0r sub-
dltZslom:Ik; purporting to oreapt olties and tow of a
8~Oif%d0&88 fM th0 'psJnsnt8 inlb3U Of taXUS" 01860
Whwe gene~y:impOeed by this Sub-diVisiOXl. 8iJaW th0
pre7lso``ir ln the nature of an exemption, ve turn our at-
LmtiOa to the Subject 0r the exemptlonL namely, the in-
positian 0r a "payment in lieu of tares upon aities and
Hr. Ala L. Ladnel;, Page 4
tfnfnsaoqulrlng property used In the gensratlan, mama-
raoturing, melUng or distrlbutlng 0s eleotrlelt~, vhen-
ever ruoh property la looatad in a oounty other than
that 0s the olty or t0wn and vhenewr m0h property 18
subject t0 t8Xatioll 8t tbO t-0 Of it8 6OprriSitiaQ bJ
the mxIiOlpality. It will k notlood ~that in omputln8
thy 8MUUt Of the80 "pynent0 in lieu Of ?i8~eS" the aUr-
Wt ad YdON tu l'8tO k8 t0 b@ applied t0 th, 888e88Od
tdur Of SUoh property iOr the l&St year pdOr t0 it8 W+
qui8ltlan W the oity or tovn, ~' ,'
sO0tiQ.Zt1 Of APti mn Pi .the%X&S cOI¶Sti-
tUtfon~&WOVidO8 in pa&:
-oeOtlon 1..- Taxotlon shall ~b’ eq&l and
. All propecty In this State, whether
owd by natural persons or oorpmatlom; other
thau munlolpal, s&all bw Wed in.pmportl~
its value, ~Mlch aball be +aaertaiaed as m
b:provldedb$lav. TheLeglslature.. . *may
lIIeo The
0.”
. p r o p er
ofty
oountles,. 0ltles
. and tow,; owned. arul.hold oaly for publio paw-
pODUS, SU0h 88 ,pUbuO. bulldlnge SrUd thO Sit08
.: thererori Plre en&nom mad the lltrnlture ~there-
or,, aud all. property use& ..or lntended~ for' ox-
tlngulshingfLn8, publlo 8rounda.W all other
: .:~;property dewted eroluslw4~ to the use and bene-
:..'rit:or the public ShaJ. be exempt from famed
I``..oaXesnd'from taxation,, provided, nothIn here-,
I in rhell~prevent the enfoxwement 0s the vendor8
lien,, the~?neohaulo8 or builders lien, or other
Unns nq-exlstlng.~ ,.
In State v* city 0s 81 Paso, 135 'per. 359, 143
S.Y. (26) 366, the SupreamCourt said vlth referenoq to
the8S &N?OV181Oll8~
Mr. Rio L. Ladwr, Page 5
lh mu a mlna tio 0s th n eabow-quoted oo a -
StitUtiOlUl pFOV18ionr diSOlO8e8 that N
CQWtbtO t0 O%tb@t n\miOi~l OO~lF8tiOll8 flWl#
0.d~ thW0 ObSS@S Of tUO8. %&OS0 8W ad
V8b’681;UQS, OOO~&tlOll b.XS8,sndinO~
$a%es."
RegudleSS Of I&O``OP t-h0 wonts in 1iOU. Of
tU08' imposed UpoP OitiOS aad~tWIi0 w 8. B. 520 be eQ)sI
Sidsrrd M ad YjON tUO8 Ob U OO~tiorr t&WE, the
mOti= Of SUOh WStOIhtS ObV%0~84 18 IMOOWti~tid.
If ths PEyWI¶tS b0 ``~mnd U ad vdOm ~uOS# whvr
01~a~40rrend theaboveproylnion8eitherbybelngba8ed
upon au utlffofal rather than aa aatual value 0s the,
propertyor by be-- Zlltpo8edupon the property of a:En+
nlolpal aorporatlcax. Llkevlu, if thements be ooa-
aldered u oOoUp&lOA tUtUS ,theytmUmn~r~p~b~
tlCULagskut tbs bp3Sfti~ Of this m Of tU Upon the
aotlvltle8 of a muafofpalaorporatfoa.
If it bs OOIitOndOd tht the80 pWIItCULt8 ~0
neitherad valolur nor oooupatlon taxes, that Thor am
some speoler or tertlu qald vhiah oanoponte u do
Ol’dflW7 t&WE, OaO aCrOaOgl%Sh thO ~808 t.hOWOf, but \.
aane8mpe the Umftatlons thereoni the uuvsr.to suah
0ontentioB fs plaia. What cannot be don0 dlreotly oaa-
not be aeoapll8hed by lndlreotlon~ aotloa 1s udged by
~ltr efreot rathar~than by Its label. To ooao a e thatmu-
alofpal property owl0 for generating end aiStF;buting ~:
eleotrlolt~ uamot be c ~wub eat 0s au o&~alorsm tar’of
‘this typwand that a mudo& PA lty oaunot be subjeoted to
an oooupation tm ?3y visitor it8 aotlvltle8 in generat-
%ng aud dlstrfbutlng eleatrlolty, yet at the 88xte tftne to
aver that a legal exaot$on oslled a *payment ln lieu 0s ~'
torus* maf bo had lrom naiol 8lit~es beaauaa 0s their
ovaersaLp or 8wh property Ku3 theirelIfJagiagkr.SUdl
aotlvitles uoulcl be to elevate form ovep rubetanoc and to
point .the~980,to an e&Sy evaalan 0r the llmltatlonr *
pored by our Carutltutlca upon the paves to t8x.
Cotiequent~, you are rerpeoti\lllp advised 'that
the pr6vlslon8 oontalned la theaeoond paragraph 0s Sub-
dlYi8iOn k Of Sectlorr 1 Of H. B. 520 relating to the
, 1
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Hr. Rfo L. Ladnor, Page 6
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1 exaation of *payment8 in lieu of tu08* fn?u altA@s 8ml
tows under the alrowstanoes and la thememnertherela
1 Set forth U@ tiObt%ve Of the 8bOw QAOtti pOPtlCUI8 Of
our Con8tftutloa. As a matit of tbi8 oonolusion theM
is noneedto enter into8 8e~uakdi8ou88laa10r the
oonrt.ltutlanJit~of theprovz8oto thbpar&gmphab~ut
vhbh you IaqvlMd.
ThlseplnfoafslnaoltaytobeooMtruedu
p&SSing UpOX& thO OOZl8titUtZbXMl%t~ Of th0 f%Mt m
graphofsubalvlslon4arelatfq to theexaotlonorpay~
SWtS irru.OU Of tUO8 frco thO diEtriOt a& 8UthOPitieS
tbarelndesarlbed~ aeltherdeue espress may opinlozlhere-
in 88 to the valldlty 0s the last prnsrsphorsub-dlvi81oa
48 Mb&t&g t0 VOlUilkl7 OsyPleatS b OitfeS 8tld tOlfM~
‘Pnutlna that the r0mg0ing ratfefaotorlly en-
avers your lnqulry, vu are
.