DAN MORALES 

ATTORNEY GENERAL 

@ffice of the !Zfttornep Qheral 

&ate of PCexas 

August 141994 

Honorable Carl A. Parker Opinion No. DM-301 

Chair 

Committee on Economic Development 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 1 and 2. Tax Code section 11.29 provides 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 discharging materials dredged 6om the main channel 

0ftheGulf~~Wat~eybyorunderthe~onofthe 

state or federal government. 

(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) of this section and is no longer dedicated 

for that purpose. 

Section 1 of article VIII of the constitution provides, in pert, as follows: 

Sec. 1. (a) Taxation shall be equal and uniform. 

(b) AU real property end tangible personal property 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 shall be ascuGxd as may 

be provided by law. 

Section 2 permits the legislature to enact general laws exempkg various kinds of property 

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. 1607 
Honorable Carl A 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 

section 2. 

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). subject to exemptions permitted 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 exemption can 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 11.29 of the Tax Code, as it would apply to land held by 

natural persons or private cotporations. See 21 JAY D. 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 

11.29 is void insofar as it woufd apply to property required to be taxed by section l(b) of 

article VIII of the Texas Constitution. 

SUMMARY 

Section 11.29 of the Tax Code is void insofar as it would apply 

to property required to be taxed by section l(b) of atticle VRI of the 

T- Constitution. 

g:tiy*mcr 

DAN MORALES 

Attorney General of Texas 

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

JORGE VEGA 

Pii Assistant Attorney General 

DREW T. DURHAM 

Deputy Attorney General for Criminal Justice 

JAVIER AGUILAR 

Special Afishmt Attorney General 

RENEAHlcK!s 

State Solicitor 

SARAH J. SHIRLEY 

Chair, opinion Committee 

Prepared by JamesB. Pinson 

Assistant Attorney General 

p. 1609