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**OFFICE OF**  **THE ATTORNEY**  **GENERAL** OF **TEXAS AUSTIN**  **GROVERSELLERS** ***TTOIINLI**

**GLNLRAL**

m, Rd6u Hutohlnr countf AtmnV muItcounty ~rronrlllr, Tuar

oportlorwlthln thhs oounty **op** ohutrrod **ando?** tho **pro** 1528b BCSo? ~taar?

anawor quostian No. 1 in tho thr Dirtriot Courtof tho County talaa~ tax hare jurl6dlotlai la a dollnqwnt tax suitagainet thr rleotrlo oo-op? *I M unable to ilad any oasrr hIpzopattEah will anmor tho above two quoatloa8, oontentlon of thhrl!lootrlo **Co-op that**  **uador rootion**  25(r) ofArt1010 1528btha oorporatlon**belay a**  **non** profitpub110 utilityir **not 8UbjoOt**  **t0 8n**  **ad** taloroa taz la+), and it la tholr rurttlar oontantlcm that broausstho R#al ~1rOtrliiOatlm Addnirtratiai a8 an agonoy of the Fedora1 Gotsrnwmt h88 a **Dood of** **s:oo. UU**  HUtOhh8, P-0 2

Trurt 0 rooord oworl~ all tho **roportior of**  **tbr** oo-op loortod rlthln the **oollntl t**  **L t**  **they would**  **bo** 8UbjOOt a11y **to** (token)**pqB@ilt8 rat&r**  than regularI **1 a88088Od**  **8d ValOra**  **hX.8 a8**  **11110 apply**  t 08 brlonglagto otharoorpaeatlanr. **to PrOpOr**  

### 1 will l pprooiato

your l 8818tan00

la thlr **matter..** Rll OxengtlOn8 **frm** ad Taloram **taxor mU8t**  **bo bared**  upon the prorlr10118 of Sootion 2 oi ArtlololIII of the Con- **#titution** Of **Texas.** That 8OOtim authorloortho Lc~lrlaturo to exup t oertaln property fraa taxation, **rod** prolidar furthor tbst *ap tp

1 law8 oxom proprty aboro aan tlnu propsrtg from taxation othsr than tho **onod** 8hallbe null **and** rold," wo aro uaable to Ulnd in raid Sootlonanyprorlrlm whloh **would** author1x8 the 

### l

xunptlm of poporty boloa@lryto 8n l leotrloaloooprratlvo lnoorporated tiar tha prorl8l~ar of Artlalo 1526b **from ad**  ralorom taxoa. .

The oorporatlom l uthorlaod **by** tho prorl8loa8of artlolo 1528b are prlrato oorporatlonr, and tho more faot that tho# a?0 **noa refit**  oorpcratlonr door not maho thr tu l xompt. Thor aro lp a no 80~80 8tatO agonoler, 

### a8 aro tha rariour Dirtriot and AuthOritior **oro8tod** dirootly**by** Aot8 Of **the** L@8htU?O **pUr8Ufh** t0 **tit1010 m,**  SOOtiUl59, Of th0 COLl8titUtlOli.

**srotlon** 25 of **Art1010** 1526b **road8** 

### a8 roii0~I *(a) Eaoh oorpcaatloa da11 **bo** oporatod without profit **to** its

### momborr but **the rator,**  fro8

**, ront8,**  **or** othor ohar(lr8for l l#OtriO onorg a136an) OthOr iaollltlor,8llpp11r8, 

### l qulplpent, Or 8artloo8 furnl8hd by the OOrpO?OtlOn8ball **be** 8UfflOiOnt at all tin.8 "(1) To pay all o? rating **and** malntraawo ox- **~I¶808 neOO88ary**  **or do8**  rable iOr th0 prudent OOIIduot Of it8 bU8lnWS ald the prinOIps1 Of **and in**  tsrart on tho obligation8 **irrwd Or**  l **88UfArsd**

by **th** oorporatlw in tho porformanoo of tha purpo80for whloh itwar organlxd, andgo% Cedar Butohlnn, **P8gO 8** 

“(2) 

### Poorthe oroatloo Of 208WVO8r

‘(b) The rwonuoa of the oorpaatlc+ ahall **bo dorotod**  flrrt to tho paymat or oporatrry ana malntmanoa u **r a808**  and tho **P**rlnolpal **md la**  **torrrt** On **Out8** UkdLngobllgat **=I) and**  **thOr0aft.r t0**  **8UOh rO8OmO8**  fO? **ilU~Ot~eJlt,** nOW **OCfi8trUOtiOIA,** dopraolatlm, **and** oontlngoaolrran tho **Board ray**  fran tlmo to tin0 prororlbr, '(0) Rev0n~O8 not 

### ro ulrod for tho purpo8ar rot facth in Sub-rsotion **(b ‘** **f** of thl8 Saotion **rhall bo**  roturnsd from tlmo to tlmo to thr moaborr OQ a ro rata **basir** looordlag **to tho**  amount of **buriarrr i**  **on0** with l aoh **during** tho porlod, l lthrr la oaoh, La abatoaont of **ourrant** aharger foe olootrlo morgy, **or** otherwlro a8 **tbr Board**  **dOtOrlDina8l but**  8UOh **ro** turn may be mado **by** wy of grnrral rata roduotlon **to mabarr,**  **if th0**  Board **80 OlOOt8,** **”** Certainly therr 18 nothing in thl8 8OOtiM to Indloatr d l~gl8latlro lntontiao to **aompt** any part of tho **pro** pertlrr of 8uoh 000oporatlrer from taxation,

Attention18 oallod 

### to Seotlon 30 of tho 

### dlootrio Cooper atlrrCorpora tlanAott %orporatlom formed 

### hsroundrr &all jn~ annually 

### on **or boforo**  May fkrt to the **Soorotary** of State, a lloo~o fro of Ten bollarr ($10) **and** ruoh oorporatloM shall be asnpt from all othor **OX0180** tax08 Of rhst8ootOr **kind** Or oharaotar,. fEmphasl8 addod)

**Thl8** 1s the on4 rsfusnor to a taxsremptlon oontalned in the ontireaot, and rinol it **18** limltod to l **xoi8o hXe8**  it **EiU8t** bs **OOll8tNlOd** l**S 8**  **t8Oit** ?~OO&UlitiOll that 8UOh corporations ar8 **8ubjeot to**  au other **typI8** of **taxo8,**

‘fhe faot that tho I?. Yb A,, an l ganoy of **thbr** Padrral Corerment, 18 the holder of a deed of trurt on thr propsrtla8 of the oorporatlon oamot ohangr the l bwo oonolwlon. Tho**Rdu-** Hutohiar, Pa@ 4

R. V. A. hold8no aore than tho nabd 1~~81 tit10 to tho propa ty, while thr 

### l qultabk tltla, tha u8e, **r,amdar** in the ao**oporatlto.** It 18 rottiodthat tho **property** l **urt** bo **rurdorod** & **888888Od** ti the Il=O Of tha **trU8tO?, and**  **th0 trU8tOO**  18 not llablo for any **part** of the tuo8 

### l ooruin8 **thoroon. Harvo)**  T. ROvldmt **Inrohmant** Co., 156 S, **19,** ll27) Buttr8m v. **Oray** county, 62 red. (2) 47.

**h aU8WOr**  **t0** JOW **8eOand** qUO8tial **ThO 8btUtO8**  **pertaining to**  ruit8 **to ?Or401080**  **tax lion8**  **(Art8. 7326**  7326, 7326.1, and7345b) rrqulrr thlt ruoh l **ltr bo**  brought h the bhtrlot **oourt** of tha OountY la uhloh thr rM1 **rrtatr $8**  **--~** 81tUa **tOd.** Far JoUr goner81 infora8tion and l S8i8tUlOOWO urolcslag herowlth a oopr of our Oplalon No. O-2600. wo

**Tour8 row**  truly,

**Arthur** L. Molhr

A8Bi8taUt