Dr. J. W. Edgar Opinion No. (Ci379) 

Commissioner of Education 

Texas Education Agency Re: Whether The Classroom 

Austin, Texas Teachers of Dallas, a 

non-profit corporation, 

is exempt from payment 

of franchise taxes under 

Dear Dr. Edgar: stated facts. 

We quote In Its entirety your letter requesting the opinion 

of this office on the above captioned question. 

"The Classroom Teachers of Dallas is incorporated 

as a non-profit membership organization under the laws 

of Texas for the following purpose as stated in its 

charter: 

'The purpose for which The Classroom 

Teachers of Dallas is formed is strictly 

educational, to-wit: The advancement of 

public school education in Texas.' 

It I am informed that the organization, in pursuit of 

the stated purpose, engage8 in the following activities: 

"1 . It publishes and distributes The Dallas Teacher, 

a periodical including columns designed to provide 

beneficial information and significant news to the 

teaching profession. 

“2 . It distributes to the teachers educational 

pamphlets and materials printed by the National Education 

Association and the Texas State Teachers Association. 

"3. It organizes and assists in organizing Future 

Teachers of America Clubs in each high school and junior 

high school and participates extensively in the programs 

which are designed to provide information to future 

teachers. 

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Dr. J.~W. Edgar, Page 2 Opinion No. (C- 379) 

organize Student Education Associ- -. . . . . . 

“4 . It helps 

ations in colleges, supplies tnem witn eaucatlon 

materials and works with them in their programs which 

look toward teaching as a profession. 

“5 . It supplies speakers at local, district and 

state meetings of both Future Teachers of America and 

Student Education Associations. 

“6. It provides speakers, programs and pamphlets 

encouraging all teachers to better qualify themselves 

professionally through indtvidual study along with 

recommending programs of indtvidual study. 

“7. It cooperates in the programs of Texas State 

Teachers Association (TSTA), Texas Classroom Teachers 

Association (TCTA), National Education Association 

t 

REA) and Teacher Education and Professional Standards 

TEPS), which are designed to educate, inform and 

improve teachers and the teaching profession. 

“8. It sends representatives to meetings of Texas 

State Teachers Association (TSTA), Texas Classroom 

Teachers Association (TCTA), National Education Association (NEA) and Teacher Education and Professional 

Standards (TEPS). 

"9. It sends representatives to the local Chamber 

of Commerce meetings upon request to exchange information. 

"10. It conducts an annual banquet for teachers and 

the public fin general, which is designed to impart information to the public and to provide closer cooperation 

between teachers and the public. At this year's banquet, 

the President of the National Education Association 

spoke on "Education for World Responsibility". 

"11. It encourages teachers to become members in 

professional teacher organizations. 

"12. It provides public information about the teaching profession. 

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Dr. J. W. Edgar, Page 3 Opinion No. (C-379) 

"13. It polls members regarding their feeling as 

to the current status of professional competence, 

standards and ethics. 

"14. It provides a forum for discussion of problems 

involved in teaching. 

1115. It reports on all current programs at each 

meeting. 

"16. It works toward a program whereby teachers 

teach only in their fields of training or qualifications. 

"17. It interprets teacher education and professional 

standards to the teachers. 

"18. It encourages compliance with the Professional 

Code of Ethics. 

"lg. It provides business and professional leaders 

with information regarding the current status of education. 

"20. It provides speakers at meetings in each school 

on each part of the Professional Code of Ethics. 

"21. It provides an atmosphere conducive to the 

improvement of professional standards and mutual 

cooperation in the working out of teaching problems. 

"22. It works closely with local (Dallas) school 

officialsand administrators in determining programs, 

policies and discipline. 

"23. It cooperates extensively with the Assistant 

Superintendent of Schools in charge of In-Service 

Training in devising beneficial in-service training 

programs.for teachers. 

"24. It cooperates with local administration in 

the recruitment of prospective teachers. 

"25. It cooperates with local administration in 

the orientation of new teachers. 

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Dr. J. W. Edgar, Page 4 Opinion No. (C- 379) 

“26. It maintains a small scholarship fund, from 

which it grants small scholarships to worthy, but 

needy, students in and from the Dallas School System. 

“27. It maintains a small benevolent fund, from 

which it occasionally makes grants to any teacher in 

the Dallas system who is in need. 

“28. As a local branch of each organization, it 

receives dues for (and remits such collections to ) its 

parent organizati,on, the Texas Classroom Teachers 

Association; the Texas State Teachers Association; and 

the National Education Association. 

"The activities above listed are those in which the 

organization customarily participates. It has on 

occasion sponsored a social activity for members; and it 

may on some occasions have paid expenses of some member 

or officer to attend some meeting not listed above, for 

discussion of matters of concern to the schools of Texas. 

For your Information, there is attached hereto copy of 

an audit of all receipts, 

ization for the year 1961, 

and expenditures of the organwhich further illustrates its 

activities. 

"you are requested to advise whether a corporation which 

is organized for the purpose above stated and engages in 

the activities above enumerated is required to pay a 

franchise tax under the laws of Texas, and particularly 

Arts. 12.01 and 12.03 'Taxation-General', Vernon's Civil 

Statutes as amended. 

"In connection with this request, I would add that in 

my opinion the activities enumerated above are designed 

to further and do further the program of public education 

in this State. So far as I can see, it has no other 

purpose. If any individual or class of individuals 

benefits from the activities of the organization, other 

than as the general public benefits, it is in an indirect 

way. That is, the encouragement of teachers to improve 

themselves in their teaching abilities and citizenship 

responsibilities, and assisting with local school programs 

of in-service training may result ultimately in higher 

salaries for the teachers who are improved by such programs. 

But that is an incidental result (assuming it occurs) of 

acitivities designed to give better teaching in the public 

schools. 

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Dr. J. W. Edgar, Page 5 Opinion No. (C- 379) 

'At all events, the cooperative endeavors of 

teacher-organizations such as The Classroom Teachers 

of Dallas have been an integral, if not indispensible, 

part of the progress made in furnishing better 

training of our youth in the schools of Texas. 

"In a sense, the question is whether such organizations are to be charged for the,privilege of 

making this important contribution to the public 

good. 

Article 12.03, Taxation-General, Vernon's Civil Statutes, 

enumerates the allowable exemptions from franchise taxes. Among 

those exempt are corporations organized for 'strictly educational 

purposes. . . ." 

In Attorney General Opinion No. WW-1517 (1962), this office 

held that under the submitted facts a corporation chartered by an 

association of teachers was required to pay franchise taxes. The 

purpose clause of the charter of the corporation contained detailed authorizations or stated purposes which in most respects, 

would embrace the activities carried on by The Classroom Teachers 

of Dallas. However, one of the charter purposes was ". . .to 

improve the social and economic status of teachers; and to form 

a representative body able to speak with authority for them." 

We agree with the holding of Opinion No. WW-1517 that this part 

of the purpose,,clause is inconsistent with being a coqoration 

organized for . . 

it for this reason. 

.strictly educational purposes. . . , and affirm 

We are not'in accord with that portion of the Opinion which concludes that the following purposes are not "strictly educational": 

(1) cooperation with the Texas State Teachers Association and the 

National Education Association in the promotion within the teaching 

group of the highest type of professional practices; (2) the encouragement of active participation of all teachers in the solution 

of school problems (3) the encoura ement of members to be progressive students of education; (47 the arousing of allegiance to a 

genuine code of professional ethics; (5) the encouragement of higher 

qualifications for entrance into the teaching profession; (6) the 

guidance of well endowed young people to select teaching as a life 

work; (7) the promotion, encouragement and assistance of other local 

teacher organizations; and (8) the promotion of cooperation among 

such organizations and their members. 

The charter of The Classxoom Teachers of Dallas states that It 

is formed for a strictly educational purpose, to wit: "The advancement of public school education in Texas." We agree with your ,vlew 

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.I . 

_- 

Dr. J. W. Edgar, Page 6 Opinion No. (C-379) 

that the activities in which the corporation engages are 

consistent with its stated purpose and are designed for the 

furtherance thereof. Any salary benefits which may accrue 

to teachers as a result of the conduct of these activities 

is purely incidental thereto and in no way affects or negates 

the strictly educational purpose for which the corporation was 

organized. You are, therefore, advised that under the submitted facts The Classroom Teachers of Dallas is exempt from 

franchise taxes. 

------- SUMMARY 

Under submitted facts, The Classroom Teachers 

of Dallas, a non-profit corporation organized for 

a strictly educational purpose and limited by its 

charter to the advancement of public school education 

in Texas, is exempt from payment of franchise taxes. 

Yours very truly, 

WAGGONER CARR 

Attorney General of Texas 

MMcGP:sjl 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Gordon C. Cass 

Cecil C. Rotsch 

Arthur Sandlin 

W. 0. Shultz 

APPROVED FOR THE ATTORNEY GENERAL 

BY: Stanton Stone 

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