OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN 

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Honorable Charles A. Tosch County Auditor Dallaa County Dallas 2, Texas Dear Sir:

Your letter of Ma of this department onthe a text of the letter as

uthority is aubjeat ure at its next

dvlse mswhether or not e County Treasurer to
ure enacts a law allocating Ion, or can the CommissIonera* us Countles pass an order alloreceived by themto the Ganeral ty, or will it be neaessary to make Pall funds of the County? *In your opinion above referred to, you treat this moneyas a gift and not as taxes, SO therefore it mj,ghtnot be neoessary for the Housing Authority to makethis payment directly to the TaxCollector's OffiCe.”

*OurOpinion No. O-5270.Eon. Charles A. Tosoh, Page 2

Title 40, Chapter 8, U. S. C. A., “Emergenoy Publlo Worksand Construction Frojeots ,* enaoted by Congress in 1933, an4Title 42, Chapter 8, U. S. C. A., entitled -LOWRent Houslnf4.Henacted by Congress In 1937 areated agenoies o$ the United States COVerMieritto assist the several statee an4 politioal subdivisions to alleviate present an4 recurring unemployment, andt0 r4Qedy the unsafe and unsanitary oonditions an4an acute ehortage Ordeoent, safe and sanitary dwellfng of families of low~inoomein rural or urban communltles.

Fromtime to time the various agenoiee, their duties alld fUnOtiOn4 have been transferred or oonsolldated with other authoritlea by Eseoutlve Order. W4 will not attempt here to &ire the history OSthe 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 

### forthe various agenolaa, the United States GOveZRutentaoquired real property throughout the reveral atatea, taking title to tM Psderal Gov4mmnt, ttiu4 removing from the tax rolla of the state an4 Its political subdivisions thousands OSaorem of heretofore taxable laand.

We 40 not think it neoesaary here to disouee the tax exempt naturs of property ownedby the United States Covernmant,

Byvirtue of this program the states and their, subdivisions wera deprivsd of the revenue ordinarily assessed and colleotea onthe property, and realizing that suoh exempt property 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 bythe unitsa Stat44 to the reapeotlv4 states, andpolitical eubdiviaions in lieu of taxes.

Section 422, Chaptsr 8, Title 40, U. S. C. A., Provi1¶44at3follows:

*Uponrequest or any stata or politiaal subdiylsi& in which any suoh projeot has been or will be construoted, the Federal ESnsrgenoyAdministrator

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Eon. Charles A. Tosoh, Page 3

of Public Works Isauthorized to enter into an agreement, and to oonsent to the renewal or alteration thereof, with such state or subdlvision for the payment by the United States of sums in lieu 0s taxes. Such sumsshall be fixed in euoh agreement and shall ti base4 uponthe ooet Ofthe 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 derived by such state or subdivision from such project."Asimilar provision for the paymentto the atate and its subdivisiona Ofsumsin lisu of taxes, phrase4 in eubstantiali;,tI$ lam; lpguage, is round in se&Ion 14l3, Chapter 8, Tit14 )

. . . ., paragraph (0) of suoh reading as follows:

"(0)

. . . the amount 80paid for any year uponany euch property shall not asceed the taxes that WoUld be pal4 to the State or subdivision, as the ease maybe, upon this property it It wer4 not exempt from taxation thereby.* From.the above w4find that the United States Government, 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 numeroueCongressional Aote and Exeoutlve Orders a~lsouassa above, the Leglelatmre of Texas, reoognized the need of cooperative steps and enaotsd twomeasures 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 22thereof paymentEon. Charles A. ToeOh, Fag44

In 114u 0s tax48, th4 ag4noy to agrse to Bake papmnte to th4 OitY or th4 county or eny such political eub4lvieiOn for improvemsnt 8, 84rvlo48 aad faollities furnished by such city, oountyorpoliticalsubalvieion for the ben4rit 0s tb4h0u8iug projaot.
Art1014 235lb, -3, V4rl1on*e AunotatsdCivil Statutes, pertainingto *R4eettl4emntor RuralR4shabilltatlon Projeote," though r4leting to anothsr *AuthOrlty* Oft&e F4d4ral Gov4rnm4nt, authorlz48 th4 Oo6&8eion4re* court to enter intO agreemanta with th4Unlt4d Stmt48 providing for th4 p6yaPantor funds in lieu or '3 taxes aab r4quirss ths 84414 a4nioes tob4 psrfornmd by thepoll-

, ticaleubdlvieioaas is 4nuei4ret44 ebove. The twostatutes last ebove olted, thOughaoknowl44glng the Oounty or otbar l ubdivieion*~ authority tor4oeiv4 th4 pey- #rantsin 114~ of tax48, did not alrsot the oomnlsslon4re* oourt in the application or aurasr4o4ivaa. In other roraa, it did not 4xpr4eelydlreot that thamonise b4 pi404atothe oraait orany pertloularfuridof th4 oowity or att4mptto assert for what purpoesa the naon4y shouldbe used. :

W4h4v4 pr4vic~uely held fn Opinion Ho. O-5270, that mu6epsi4 wth4 stat4 in lieu or tar46 war4girt8 to th4 stats. SuchF4d4rel own44propsrty is eubj4Ot to tha eem4 sx4mptfoae 

### fromoounty t4xee sad as tlm various projeote hatsno 14gal obllgation to pay funds har4 uad4r ooneld4ratlon, M must oonetru4 thee8 payments in 114~ Of taxes to tiw rsepeotlos oountl48 to be girts. Siao4 th4L4gislatur4 has authorizea the OOunti48to raosivcl gifts from tbs United Stetae Qw4rnm4nt, in the nature 0smonies pla In lieu 0s taxas, but ha,4not air40t8a ths m4thod in whioh said moniaa shall be allooatad to th4 resP4OtiV4 county runaa, w4ar4 of tba opinion that tti ooannissionsre' court by th4 exeroiee or Its dleoretion maym6k44teposltlonofth4 funds in
any legal manner for legal purposes. ~had4tsrmlnation as to the fund OX funds of the oounty to which thle monsy shall bs~1OOat4d 16 14ftt0 th4 0oPlmi86ionsr6* aourt. Th4countyTreaeur4r,uPon receipt of such monies, shall hold thaa in suspense OrIn anSOcount for moniss, tha status of whloh is not kno6fneuntil BuOhEon. Charles A. TOaeh, Fags 5

yap th6 oomm.lsslon6rs * oourt orders the tlnril ait3podtion

. There c~eemato be noneoeaelty 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

OFTEXAS

ETrro