MARK WHITE Attorney General

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An Equal opportunity/ Affirmative Action Employer 

# The Attorney General of Texas

December 22, 1982

HonorableHenryWade DistrictAttorney Dallas CountyGovernmentCenter Dallas, Texas 75202 opinionNo.MW-543
Re: Whether property ownedby Offender Preparation and Employment Network is exempt fromad valorem taxation
DearMr. Wade:
You ask three questions concerning whether the Offender Preparation and Employment Network, Inc., a non-profit corporation whose purpose it is to provide ex-offenderswith employment training and assistance, is exempt from ad valorem taxation. The corporation is claimingexempt statusunder section 11.18(c)(l)(C)of the Property Tax Code which exempts from ad valorem taxation the real and tangible personalproperty of charitableorganizations "providingsupport to... the handicapped without regard to the beneficiaries' ability to pay...." (Emphasisadded). You first ask:

Does the word 'handicapped'as used in section 11.18(c)(l)(C) of the Texas Property Tax Code include individuals whose 'handicap' is one of status, or is 'handicapped' restricted to the physically ormentally impaired? This office has already construed section 11.18, Property Tax Code, as establishing new criteria for determiningwhether property owners are eligible for ad valorem tax exemption as charitable institutions. AttorneyGeneralOpinionMW-288 (1980). Property owned by an organizatiqn can qualify for an exemption only if the organizationmeets these criteria. Prop. Tax Code 611,18(a). If the claimant non-profit corporation is to be accorded a charitable tax exemption, it must first be exempt under section 11.18. See City of Waco v. Texas Retired Teacher Residence Corporation, 464yW.2d 346 (Tex. 1971); Hilltop Village, Inc. V. Kerrville Independent School District, 426 S.W.2d 943 (Tex. 1968);Attorney General OpinionMW-288 (1980). If it fails to qualify under section 11.18, we need not consider whether it is a "purely public charity" under the constitution.

p. 1969HonorableHenryWade - Page 2 (MW-543)

The Property Tax Code does not define "handicapped" for purposes of section 11.18 (c)(l)(C). Nor has any courtyet construed the term. However, the Code Construction Act, article 542913-2,V.T.C.S., at section 2.01 provides that:

[Wlords and phrases shall be read in context and construed according to the rules of grammar and common usage. Words and phrases that have acquired a technical or particular meaning, whether by legislative definition or otherwise, shallbe construedaccordingly. "Handicapped"has been defined as "those at a disadvantage in economic competition because of physical or mental defects." Webster's New International Dictionary, 1133 (2nd Ed. Unabridged 1957). An examination of the Texas Constitution and Texas statutes indicates that our lawmakershave consistently employed the term "handicap" or "handicapped" to refer to those persons with physical or mental impairments rather than to those persons who experience social or economic disadvantage by reason of their status. See, e.g., Tex. Const. arts. III, 551-a; VIII, §l-b; XVI, §6; V.T.C.S. arts. 601b, $3.20; 4442a-1; 4442~; 5159d, §4(10); 6823a, 98. We believe that the rules of commonusage compelus to conclude that,when the legislature employed the term "handicapped" in section 11.18, Property Tax Code, it was referring only to those persons with physical or mental impairmentsand not to thosepersonswho experiencesocial or economic disadvantageby reason of their status.
We therefore conclude that the term "handicapped" in section 11.18, Property Tax Code, refers to persons with physical or mental impairmentswhich place those persons at a disadvantage in economic competition. The term does not include ex-offenders who are not otherwise physically or mentally handicapped. Hence, a non-profit corporation which provides employment training and assistance to ex-offenders does not as a matter of law fall within the ambit of section 11.18(c)(l)(C),Property Tax Code, which includes "providing support to.,. the handicapped without regard to the beneficiaries' ability to pay" among the organizational purposes which may receive designation as a charitable institution. Becausewe so conclude,we need not answeryour second and third questions.
SUMMARY
A non-profit corporation which provides employment trainingand assistance to m-offenders does not as a matter of law fallwithin the ambit of section 11.18(c)(l)(C),Property Tax Code, and therefore,cannotbe deemed exempt from ad valorem taxation as an institution "providing support

p. 1970Honorable HenryWade - Page 3 (MW-543)

to... the handicapped without regard to the beneficiaries'ability to pay."

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MARK WHITE Attorney General of Texas
JOHNW. FAINTER,JR. FirstAssistantAttorney General
RICHARD E. GRAY III ExecutiveAssistantAttorney General Preparedby JimMoellinger AssistantAttorney General
APPROVED: OPINION COMMITTEE
SusanL. Garrison,Chairman Jon Bible Rick Gilpin PatriciaHinojosa BillKimbrough Jim Moellinger BruceYoungblood

P. 1971