DAN MORALES

ATTORNEY GENERAL 

## @ffice of the !Zfttornep Qheral &ate of PCexas August 141994 Honorable CarlA. Parker OpinionNo. DM-301 Chair Committeeon EconomicDevelopment Re: Whether Tax Code feotion 11.29, which Texas State Senate authorizes a tax exemption fbr land dedicated P.O. Box 12068 byeasunwtasadisposalsitefblmat~ Au&Texas 78711 dredged 6om the Oulf Intrwxd Waterway byorunderthedirectionofthestateorfederal governma& violates Texas Constitution atticle VIU,sectionsland2 (RQ-510) Deal senator Parker: You ask us to consider whether section 11.29 of the Tax Code violates Texas Constitution article VIII, sections 1and 2. Tax Code section 11.29provides as follows:

(a) A person is entitled to an exemption from taxation of land that the person owns and that has been dedicated by recorded donated easement dedicating said land as a disposal site for depos&ing

and dischargingmaterials dredged 6om the main channel 0ftheGulf~~Wat~eybyorunderthe~onofthe state or federalgovernment. (b) An exemption granted under this section termktes when the land ceases to be used as an active dredge material disposal site descrii by Subsection(a) ofthis section and is no longer dedicated for that purpose. Section 1 of article VIII ofthe constitutionprovides,in pert, as follows:

Sec. 1. (a) Taxation shallbe equaland uniform. (b) AU real property endtangiblepersonalproperty in this State, unless exempt es required or permitted by this Consthution, whether owned by natural persons or corporations, other than municipal,shall he taxed in proportion to its value, which shallbe ascuGxd as may be provided by law. Section2 permitsthe legislatureto enact generallaws exempkg various kinds ofproperty from ad valorem taxation end provides fiather that “ell laws exempting property from taxation other than tbe property mentioned in this Section shall be null and void.” Tex.

p. 1607HonorableCarlA Parker - Page 2 (DM-30 1)

Const. art. VIII, 5 2(a). Disposal sites for materisl dredged from the Gulf Intracoastal Waterway are not induded within the petmimiile statutory exemptions provided in section2. Sections 1 and 2 of article VIU require the taxation of private property held by natural persons or private corporations, Cr@of Beaumont v. Fertifta, 415 S.W.2d 902. 909 (Tu. 1967). subjectto exemptionspermitted by section 2 and acmally enacted by the legislatule, id. at 910, or est&&ed in other provision& either se4f-exeaning or

. 1egisMvely implemented of the constittmon, see Sure v. American Le@ort Part No. 58. 611 S.W.2d 720, 723 (Tex. Cii. App.-El Paso 1981. no writ). In other words, ptivate propatyhsldbynatursl~~orpriMtecarporationsthatcomeswithinadaMorycd whem tax exemptioncan be exempt only ifthere is clear constitutional authority for the exemption. Id You cite no constitutionsl authority, nor are we aware of any, for the tax exemption contained in section 11.29of the Tax Code, as it would apply to land held by natural persons or private cotporations. See 21 JAYD. HOWELL, PROPgRTY

TAXES 8 238 (Texas Practice 1988) (constitution does not authorize exemption of disposal sites gem taxation, and section 11.29 “is null and void”). We therefore conclude that section 11.29is void insofar as it woufd apply to property required to be taxed by section l(b) of article VIII ofthe Texas Constitution. 

### SUMMARY Section 11.29 of the Tax Code is void insofar as it would apply to property requiredto be taxed by section l(b) of atticle VRI of the T- Constitution.

g:tiy*mcr DAN MORALES Attorney Generalof Texas

p. 1608HonorableCarl A Parker - Page 3 (DM-301)

JORGEVEGA Pii AssistantAttorney General DREWT. DURHAM Deputy Attorney Generalfor Criminal Justice JAVIERAGUILAR SpecialAfishmt Attorney General RENEAHlcK!s State Solicitor SARAHJ. SHIRLEY Chair, opinion Committee Prepared by JamesB. Pinson AssistantAttorney General

p. 1609