# GENERAL THE 

# AT-TO

OFTEXAS

August 13, 1951

Hon. Robert S. Calvert Opinion No. V-1235 Comptroller ofPublic Accounts Austin, Texas Re: Final date for payment of State advalorem taxes to Texas City and Texas City Independent School District under House Bill 873, Acts Dear Mr. Calvert: 50th Legislature, 1947.

Your request for an opinion ofthis office reads inpart as follows:

“We are enclosing aletter written to this department onApril 11 by Holman Lilienstern, City Attorney; Texas City, Texas in regard to the expiration date of House Bill 873,Acts Regular Session, 50th Legislature, which donated the General Revenue State Taxes to the City of Te,xas City and Texas City Independent School District. Sections 2(a) and (b) and 3read as follows:

” ‘Sec. 2. (a) There shall be and there is hereby donated and granted by the State of Texas to the City of Texas City andto the Texas City Independent School District, in equal portions, the net amount ofmoney collected after the effective date ofthis Act, and on or before January 31, 1950, from all State ad valorem taxes for general revenue purposes, heretofore levied,
or which hereafter may be levied upon all real andpersonal property, subject totaxation in Galveston County, Texas, including the rolling stock of railroads apportioned to said County as provided by law; but excluding delinquent advalorem taxes which heretofore have been donated and set apart to the City of Galveston by Chapter 294, Acts, Regular Session, Forty-eighth Legislature.
” “(b) All of said taxes are hereby granted andHon. Robert S. Calvert, Page 2 (V-1235)

donated to the City of Texas City and Texas City Independent School District, one-half (l/2) thereof to each, for the purpose ofaiding and assisting the said City and said School District in carrying out any and all the powers, duties and functions respectively conferred
or enjoined upon each by law. Itis expressly provided that the City of Texas City andthe Texas City Independent School District be andthey are authorized to expend the funds herein granted and donated for,. butnot limited to, the following oftheir respective purposes: the construction ofpublic buildings which said City and Independent School District are authorized by law to build and erect, andfor the acquisition of sites therefor; for the repair and improvement ofexisting buildings, utilities andpublic improvements ofsaid City and School District; for payment ofprincipal or interest
on outstanding indebtedness; and for maintenance and operating expenses of said City andSchool District.

” ‘Sec. 3. Iffor either oftheyears 1947, 1948
or 1949, the State levies for general revenue purposes an advalorem tax at arate less than thirty cents (30$)
onthe One Hundred Dollars ($100) valuation oftaxable property, or makes nolevy for general revenue purposes for any such year, then in addition to the amounts provided for inSection 2hereof, the advalorem taxes for the next succeeding year or years after 1949, in which alevy for general fund purposes is made, shall be and are hereby granted and donated to said City and said School District in equal portions for the purposes stated inSection 2hereof, and inthe manner provided inthis Act, in such amounts as shall be necessary to aggregate the taxes which would have been obtained from alevy ofthirty cents ‘(3OC)for all ofthe taxable years beginning January 1, 19471 1948 and 1949; provided, however, that at all events ‘this Act shall expire January 31, 1953.’
“Please advise us onwhat date the County Tax Assessor-Collector ofGalveston County should stop making the payments to the City and School District.” (Emphasis added.)Hon. Robert S. Calvert, Page 3(V-1235)

We are ofthe opinion that itwas the intent ofthe Legislature to donate or grant only those taxes actually collected prior to February 1, 1950, ifathirty-cent tax was levied for each of the years 1947, 1948, and 1949. Thus the tax donation would have terminated on January 31, 1950 ifathirty-cent tax for general purposes had been levied by the State for each ofthe years 1947, 1948, and 1949. That this was the intent ofthe Legislature is evidenced inSection 2(a) ofthe Act, which expressly provided that only those taxes collected *on or before January 31, 1950” were donated. Inan opinion by this office addressed toHon. Grady Hazlewood, dated April 26, 1951,it was held that taxes levied during the donation period but not collected until asubsequent date were not included inadonation for atwo-year period of “all ofthe State ad valorem taxes collected for general revenue purposes.” The State tax was not, however, levied for the year 1948,l andunder Section 3ofthe Act the failure ofthe State Tax Board to levy the State tax had the effect of extending the tax donation for an additional year. We have assumed for the purposes ofthis opinion that the city and independent school district received from the State tax levied for 1950 amounts equal to that which they would have received had there been aState levy ofthirty cents in 1948. The grant, therefore, expired on January 31, 1951.

The Act donated only those taxes actually “collected” during the period ofthe grant; therefore, those taxes which were delinquent or due and owing during this period butwhich were not actually collected prior to January 31, 1951, were not included withinthe grant. We may, however, point out that taxes which were delinquent and owing prior to June 3, 1947, and collected during the period ofthe grant (,exclusive ofthose delinquent taxes granted to the City ofGalveston byActs 48th Leg., 1943, ch. 294, p. 435)were included within this donation. Att’y Gen. Op. O-4223 (1941).

Itis our opinion that the Tax Assessor and Collector of Galveston County should not make any payments to the City of Texas City or the Texas City Independent School District under the grant

‘See Acts 51st Leg., R.S., 1949, ch. 309, p. 572, granting additional ad valorem taxes tovarious public agencies in order to provide relief because ofthe failure ofthe State to levy the State ad valorem tax for general purposes in 1948.Hon. Robert S. Calvert, Page 4 (V-1235)

ofState taxes by the Acts 50th Leg., R.S. 1947, ch. 332, p. 620, from any taxes collected after January 31, 1951.

SUMMARY
The grant ofState s@valorem taxes to the City of Texas City andthe Texas City Independent School District under’ Acts 50th Leg., 1947, ch. 332, p. 620. terminated or expired on January 31, 1951, and notaxes collected after that date should be paid tothe city or independent school district under said grant.
APPROVED: Yours very truly,

W. V. Geppert PRICE DANIEL Taxation Division Attorney General

Everett Hutchinson Executive Assistant
Charles D. Mathews First Assistant
FL:mwb:mf Assistant