# NEYGENERAL TEXAS

Hon. Gee. Ii. Sheppard ComptreLler ofPublic Accounts Austin, Texas Opinion **No. V-543** 


### Re: Basis ofallocation to sr$ool and road 

### districts of funds paid to the State by the United Stntas from moaies re**Ic;eiwd**by the United States from the leasinS of lands required by the United States far floodcontrol 

### purposes.
Dear Mr. Sheppard,:

You request our opinion as to the pmoprr method to be used inallocatinp the funds ondeposit inthe “‘Flood Ara5 School and Road JFu&’ to

### the sclw@ and road dQtri&s located Within, ti p*rkiy within, b

### flood control district *Isfiord c@rMat ~d& 

### Thee fun&
were paid u1the SPrte ofTexas hy the Se#retery sf ihe Treasury of the UnIt,& Sates in 

### ursuance of the provisfons ofthe Act of Congress, Augus%M, 19 B1, Chapter 377. Sec. 7, 55 Stat. 650, as amended 33 U.S.C.A. Sec. 701ce3 which 

### reads as follows:

“75 per centum ofau moneys received and deposited inthe Treasury of the 

### United States during: atryfiscal year onaccount of the leasing of lands acquired by the United States for flood-control purposes shall be paid at the end of such year by 

### theSecretary of the Treasury to the State inwhich such property ir:situated, tobe expended as the State kgislature may prescribe for the benefit ofpublic schools and public roads of the county, or counties, inwhich such property is situated: Provided, That when such property is situated inmore than -diieState or county, the distributive 

### share to each fram the 

### proceeds ofsuch p~~p@rty shall be proportional to its axea there in,.”

5. B. No. 343, 49th Legislature, Chap. 250, reads, ‘inpart, a6 f+llows:

“Section 1. The Comptroller ofPublic Accounts of this state is hereby authorized to receive and receipt, Geo. H. Sheppard, Page 2 (V-543)

for all funds due or payable, or hereafter to become due or payable, by virtue of the Act of Congress of August 18, 1941, Chapter 377, Section 7, 55Stat. 650, 33 U.S.C.A., Section 7Olc-3. All of such funds shall be placed ina separate account entitled “Flood Area School and Road Fund’ to the credit ofthe Comptroller ofPublic Accounts and shall never become a part ofthe general funds ofthe state. The Comptroller shall annually pay over such funds to the school district or districts, county, OPother political subdivision, as hereinafter provided, to be expended for school purposes, or on the roads, as contemplated by the Act of Congress.

“Sec. 2. Itshall be the duty of each school district tax collector, county tax collectoF, or other person charged with the duty of collecting school taxes or road taxes, the territory ofwhich district, county or other political subdivision is within, or partly within, any flood control district, or flood control area, created
or designated under authority of law, to prepare and file with the Comptroller of Public Accounts of this state a report under oath showing the total number of
acres ofland acquired by the United States for flood control purposes within the boundaries of such school district, county, or other political subdivision; and the tax rate per one hundred dollars ofvaluation for school purposes and for road purposes levied by such district, county, or other political subdivision for theyear in which such report is made,

*Sec. 3. On 01 before the 15thday ofSeptember of the year 1945 and each year thereafter, the Comptroller ofPublic Accounts shall pay to the school district or districts and to the county or other political subdivision colle‘cting road taxes, their proportionate share offunds on deposit iaasuch ‘Flood Area School and Road Fund’ which were produced by leases upon lands acquired by the United States for flood control purposes located within such school district, county or other political subdivision, the pro rata to be allotted to the school districts and **to** the road taxing entity tobe based upon the proportion which their respective tax rates bears to the sum ofthe two rates. The Comptroller shall Zdd the school district tax rate and the road tax rate together and the school district shall be entitled to receive such apercentage ofthe

‘Flood Area School and Road Fund” as their tax rate bears to the sum ofthe s:chool tax rate and the road tax rate; and the county, or other road taxing entity, ..- -

Hon, Gca. H. Sheppard, Page 3 (V-543)

shall be entitled to receive its proportionate part of such fund 

### based upon the proportion which its tax rate bears to the sum ofthe two tax rates,.

. .”

The emergency clause ofS. B. 343 reads, inpart, as follows:
Y

. . . and the further fact that the acquisition of properties bythe United States in areas in this state has worked ahardship upon the school districts of Texas inwhich such public works are located, 

### andthat their tax funds have been depleted by the acquisition ofproperties by the United States; II a

. *
Ifthe Legislature had intended that the basis ofalIocation
was tobe the amount ofrental received from lands within the school
or road districts, it doubtless would have indicated that intent by making some provision for you to obtain that information.

Your office has informed us that the Federal Government, when it pays this money to the State, allocates it as between the counties entitled to receive same.

You will note that Section 2 ofS.B. 343 provides that the tax collectors charged with the duty of collecting school and road district taxes shall file a report with you, showing the total number ofacres acquired by the United States for flood control purposes within the boundaries of the school and road districts, and the tax rate for school and road purposes. Section 3of theAct provides that the funds are to be prorated on the basis ofthe tax rate, and does not mention acreage. However, if the amount ofacreage ownedby the United States located within the various districts was not to be considered inthe allocation ofthe funds to the districts, the provision directing the tax collectors to report the number ofacres would be auseless requirement. Itis evident that the school and road districts are deprived of taxable property when lands within such districts are acquired by the United States. This is SO,whether such property is leased by the United States or not. The purpose disclosed by both the Federal Act and S.B. 343 (see portion ofEmergency Clause quoted above) is to reimburse the school districts and road districts for the loss oftaxes on lands acquired by the United States whose property is tax exempt.

Itis therefore our opinion that the funds allotted to each county should be distributed tothe school and road districts according to the following formula:Hen. Gee. H. Sheppard, Page 4 (V-543)

A =Amount offunds tobe allocated R =Tax rate of school or road district N =Number of acres acquired by United States within the school or road district R x N =School or Road District numerator S =Sum of the numerators ofall School and Road Districts inFlood Control District RxN -s- xA ~=Amount to be distributed to each School

and Road District Only the land located within the particular county should be considered inthe above formula, although the School or Road District. may e.xtensLinta an_a&** cm@ _I

SUMMARY

The funds allotted to each county and so paid to this State by the United States from monies received from the leasing of lands acquired by the United States for flood-contrel purposes should be allocated tothe various school and road districts according to the following formula:

A =Amount offunds tobe allocated OR: Tax rate of school or road district N =Number ofacres acquired by United States within the school er road district R XN =School or Road District numerator S =Sum of the numerators ofall School and Road Districts in Flood Control District RxN --S-- xA =Amount to be distributed to each School

and Road District

Yours very truly

ATTORNEY GENERAL OF TkXAS

ATTORNEYGENERAL BY W. V. Geppert Assistant WVG/JCP