g.;: 

0 :: ‘...:,: j..’ 

OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

GROVERSELLERS 

*TTOIINLI GLNLRAL 

m, Rd6u Hutohlnr 

countf AtmnV 

muIt county 

~rronrlllr, Tuar 

oportlor wlthln thhs oounty 

op ohutrrod ando? tho pro1528b BCS o? ~taar? 

anawor quostian No. 1 in tho 

thr Dirtriot Court of tho County 

talaa~ tax hare jurl6dlotlai la 

a dollnqwnt tax suit againet thr rleotrlo oo-op? 

*I M unable to ilad any oasrr hIpzopattEah 

will anmor tho above two quoatloa8, 

oontentlon of thhr l!lootrlo Co-op that uador rootion 

25(r) of Art1010 1528b tha oorporatlon belay a nonprofit pub110 utility ir not 8UbjoOt t0 8n ad taloroa 

taz la+), and it la tholr rurttlar oontantlcm that 

broauss tho 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 brlonglag to othar oorpaeatlanr. 

to PrOpOr1 will l pproo iaytoo ul r 881 8ta la n00 thlr 

matter.. 

Rll OxengtlOn8 frm ad Taloram taxor mU8t bo bared 

upon the prorlr10118 of Sootion 2 oi Artlolo lIII of the Con- 

#titution Of Texas. That 8OOtim authorloor tho Lc~lrlaturo 

to exup t oertaln property fraa taxation, rod prolidar furthor 

tbst *a 

p tp 

1 law8 oxom 

proprty aboro aan 

tlnu propsrtg from taxation othsr than tho 

onod 8hall be null and rold," wo aro uaable to Ulnd in raid Sootlon any prorlrlm whloh would author1x8 the l xunptlm of poporty boloa@lry to 8n l leotrloal oooprratlvo lnoorporated tiar tha prorl8l~ar of Artlalo 1526b 

from ad ralorom taxoa. 

. 

The oorporatlom l uthorlaod by tho prorl8loa8 of 

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, SOOtiUl 59, 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(lr8 for l l#OtriO onorg a136 an) OthOr 

iaollltlor, 8llpp11r8, l qulplpent, Or 8artloo8 furnl8hd by the OOrpO?OtlOn 8ball 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 intsrart on tho obligation8 irrwd Or l 88UfArsd by th 

oorporatlw in tho porformanoo of tha purpo80 for 

whloh it war organlxd, and 
go% Cedar Butohlnn, P8gO 8 

“(2) Poor the 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 latorrrt On Out8 UkdLng obllgat =I) and thOr0aft.r 

t0 8UOh rO8OmO8 fO? ilU~Ot~eJlt, nOW OCfi8trUOtiOIA, 

dopraolatlm, and oontlngoaolrr an 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 

r a ta basir l ooordlag 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 roturn 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 propertlrr of 8uoh 000oporatlrer from taxation, 

Attention 18 oallod to Seotlon 30 of tho dlootrio 

Cooper at lrr Corpora tlan Aot t 

%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 tax sremptlon oontalned in the ontire aot, 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. hold8 no aore than tho nabd 1~~81 tit10 to tho propa ty, while thr l qultabk tltla, tha u8e, r,amdar in the aooporatlto. It 18 rottiod that 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, and 7345b) rrqulrr thlt r uo h 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 S8i8tUlOO WO 

urolcslag herowlth a oopr of our Oplalon No. O-2600. 

wo 

Tour8 row truly, 

Arthur L. Molhr 

A8Bi8taUt