OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

64.2 

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 alloreceived 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 Houslnf4.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 fUnOtiOn4 have 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 GOveZRutent aoquired 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 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, subdivisions wera deprivsd of the revenue ordinarily assessed and 

colleotea on the 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 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., Provi1¶44 at3 follows: 

*Upon request or any stata or politiaal subdiylsi& 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 subdlvision 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 derived by such state or subdivision from such project." 

A similar provision for the payment to the atate and 

its subdivisiona Of sums in 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 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 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 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 improvemsnt 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 4nuei4ret44 ebove. 

The two statutes last ebove olted, thOugh aoknowl44glng 

the Oounty or otbar l ubdivieion*~ 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 purpoesa 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 obllgation 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 SOcount 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~eema to 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