Untitled Texas Attorney General Opinion ( 1944 )

64.2
OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Honorable Charles A. Tosch
County Auditor
Dallaa County
Dallas 2, Texas
Dear Sir:
Your letter of Ma
of this department on the a
text of the letter as
uthority is aubjeat
ure at its next
dvlse ms whether or not
e County Treasurer to
ure enacts a law allocating
Ion, or can the CommissIonera*
us Countles pass an order allo-
received by them to the Ganeral
ty, or will it be neaessary to make
P all funds of the County?
*In your opinion above referred to, you treat
this money as a gift and not as taxes, SO therefore
it mj,ght not be neoessary for the Housing Authority
to make this payment directly to the Tax Collector's
OffiCe.”
*Our Opinion No. O-5270.
Eon. Charles A. Tosoh, Page 2
Title 40, Chapter 8, U. S. C. A., “Emergenoy Publlo
Works and Construction Frojeots ,* enaoted by Congress in 1933,
an4 Title 42, Chapter 8, U. S. C. A., entitled -LOW Rent Hous-
lnf4.H enacted by Congress In 1937 areated agenoies o$ the United
States COVerMierit to assist the several statee an4 politioal
subdivisions to alleviate present an4 recurring unemployment,
and t0 r4Qedy the unsafe and unsanitary oonditions an4 an acute
ehortage Or deoent, safe and sanitary dwellfng of families of
low ~inoome in rural or urban communltles.
From time to time the various agenoiee, their duties
alld fUnOtiOn4have been transferred or oonsolldated with other
authoritlea by Eseoutlve Order. W4 will not attempt here to
&ire the history OS the numerous changes that have been made
in the adminiatratioa of the various housing Imit4, but for th4
urposea of the question herein submitted, ~4 will rs$er to *The
%deral Housing Authority” only.
Yellowing the program designed for the various agenolaa,
the United States GOveZRutentaoquired real property throughout the
reveral atatea, taking title to tM Psderal Gov4mmnt, ttiu4 remov-
ing from the tax rolla of the state an4 Its political subdivisions
thousands OS aorem of heretofore taxable laand.
We 40 not think it neoesaary here to disouee the tax
exempt naturs of property owned by the United States Covernmant,
By virtue of this program the states and their, sub-
divisions wera deprivsd of the revenue ordinarily assessed and
colleotea on the property, and realizing that suoh exempt pro-
perty would not bear its proportionate share of the expense of
looal government the Congress provided that the various Projeots
Oouia, by agreement with the local authorities, oontract for a
.4~m to b4 pal4 by the unitsa Stat44 to the reapeotlv4 states,
and political eubdiviaions in lieu of taxes.
Section 422, Chaptsr 8, Title 40, U. S. C. A., Pro-
vi1¶44 at3 follows:
*Upon request or any stata or politiaal sub-
diylsi& in which any suoh projeot has been or will
be construoted, the Federal ESnsrgenoy Administrator
644
Eon. Charles A. Tosoh, Page 3
of Public Works Is authorized to enter into an
agreement, and to oonsent to the renewal or
alteration thereof, with such state or subdlvi-
sion for the payment by the United States of sums
in lieu 0s taxes. Such sums shall be fixed in
euoh agreement and shall ti base4 upon the ooet
Of the public or municipal eeprloetl to be supplied
for the benefit of such projeot or the parsons
residing on or oocupylng suoh pretiaea, but
taking into consideration the benefits to be de-
rived by such state or subdivision from such pro-
ject."
A similar provision for the payment to the atate and
its subdivisiona Of sums in lisu of taxes, phrase4 in eubstantial-
i;,tI$ lam; lpguage, is round in se&Ion 14l3, Chapter 8, Tit14
) . . . ., paragraph (0) of suoh reading as follows:
"(0) . . . the amount 80 paid for any year
upon any euch property shall not asceed the taxes
that WoUld be pal4 to the State or subdivision, as
the ease may be, upon this property it It wer4 not
exempt from taxation thereby.*
From.the above w4 find that the United States Govern-
ment, though dsnying any llablllty for taxes, has submitted to
contraot binding Itself to bear the proportlonats share of leoal
governmental erpenss whfoh Its propssty represents in a oounty
or sub4lv5elon, en4 Is to receive theretor the eervloes of ths
loaal government that taxable property woul4 receive.
Pursuant to the numeroue Congressional Aote and
Exeoutlve Orders a~lsouassa above, the Leglelatmre of Texas,
reoognized the need of cooperative steps and enaotsd two measures
deslgnea to effeot the purpose.
Artiole 1269k, Vernon's Annotate4 Civil Statutes,
Amendatory Act of 1941, 47th Legislature, *Housing Authorities
LFIW,” authorize4 the promotion of projeats In cooperation with
the Federal Government an4 providea in Section 22 thereof payment
Eon. Charles A. ToeOh, Fag4 4
In 114u 0s tax48, th4 ag4noy to agrse to Bake papmnte to th4
OitY or th4 county or eny such political eub4lvieiOn for im-
provemsnt 8, 84rvlo48 aad faollities furnished by such city,
oounty or political subalvieion for the ben4rit 0s tb4 h0u8iug
projaot.
Art1014 235lb, -3, V4rl1on*e Aunotatsd Civil Statutes,
pertaining to *R4eettl4emnt or Rural R4shabilltatlon Projeote,"
though r4leting to anothsr *AuthOrlty* Of t&e F4d4ral Gov4rnm4nt,
authorlz48 th4 Oo6&8eion4re* court to enter intO agreemanta with
th4 Unlt4d Stmt48 providing for th4 p6yaPant or funds in lieu or
'3 taxes aab r4quirss ths 84414 a4nioes to b4 psrfornmd by the poll-
, tical eubdlvieioa as is 4nuei4ret44ebove.
The two statutes last ebove olted, thOugh aoknowl44glng
the Oounty or otbar lubdivieion*~ authority to r4oeiv4 th4 pey-
#rants in 114~ of tax48, did not alrsot the oomnlsslon4re* oourt
in the application or auras r4o4ivaa. In other roraa, it did not
4xpr4eely dlreot that tha monise b4 pi404a to the oraait or any
pertloular furid of th4 oowity or att4mptto assert for what pur-
poesa the naon4y should be used. :
W4 h4v4 pr4vic~uely held fn Opinion Ho. O-5270, that
mu6e psi4 wth4 stat4 in lieu or tar46 war4 girt8 to th4 stats.
Such F4d4rel own44 propsrty is eubj4Ot to tha eem4 sx4mptfoae
from oounty t4xee sad as tlm various projeote hats no 14gal obll-
gation to pay funds har4 uad4r ooneld4ratlon, M must oonetru4
thee8 payments in 114~ Of taxes to tiw rsepeotlos oountl48 to be
girts.
Siao4 th4 L4gislatur4 has authorizea the OOunti48 to
raosivcl gifts from tbs United Stetae Qw4rnm4nt, in the nature
0s monies pla In lieu 0s taxas, but ha,4 not air40t8a ths m4thod
in whioh said moniaa shall be allooatad to th4 resP4OtiV4 county
runaa, w4 ar4 of tba opinion that tti ooannissionsre' court by th4
exeroiee or Its dleoretion may m6k4 4teposltlon of th4 funds in
any legal manner for legal purposes. ~ha d4tsrmlnation as to the
fund OX funds of the oounty to which thle monsy shall bs~1OOat4d
16 14ftt0 th4 0oPlmi86ionsr6* aourt. Th4 county Treaeur4r, uPon
receipt of such monies, shall hold thaa in suspense Or In an SO-
count for moniss, tha status of whloh is not kno6fne until BuOh
Eon. Charles A. TOaeh, Fags 5
yap th6 oomm.lsslon6rs * oourt orders the tlnril ait3podtion
.
There c~eemato be no neoeaelty that suoh funds shall
pas8 through the offloe or the County Tax Collsutor alme the
mnlee are not reodted as taxable inoomr.
Youre very truly
ATTOiWEYYENEhAL
OF TEXAS
ETrro