# The Attorney General of Texas

March 14, 1980
MARK WHITE Attorney General

Mr.Kenneth E.Graeber Executive Director School Tax Assessment Practices Board 3301Northland Drive, Suite 500 Austin, Texas 78731 Opinion No. m-147
Re: Assesment and collection of state ad valorem tax after January 1,198O.

Dear Mr.Graeber: Under the provisions of the new Property Tax Code, your agency will become the State Property Tax Board onJanuary 1,198O. Property Tax Code S8, Acts 1979, 66th Leg., ch. 841,at 2331 In this capacity it will be the state’s agent in the collection of the state ad valorem tax. Property Tax Code S3LO9. Effective January 1,1980,the assessment ratio for calculating taxes for state purposes will be .OOOl percent. Property Tax Code S26.03. Since the tax rate for state advalorem purposes is 10cents per $100of valuation, the state ad valorem tax will yield only one dollar per every one billion dollars in property value on the county tax rolL This will generate less than $200per year statewide, or onthe average, less than one dollar per county. Yet the cost of administering this tax could exceed $l,OOO,OOO per year. You inquire as to the responsibilities county tax assessors will have with regard to this tax starting next year when the .OOOl% assessment ratio becomes effective. All provisions of a code will be read together and harmonized if possible. Parshall v.State-, 138S.W.759(Tex. Crim. App. 1911).Inconstruing legislation, the courts will not adopt a construction that will lead to absurd consequences. Dovalina v. Albert, 409 S.W.2d 616 (Tex. Civ. App. - Amarillo 1966,writ rePd n.r.e.1; City ofNacogdoches v.McLeroy, 371S.W.2d 61(Tex. Civ. App.- Beaumont 1963,no writ). The legislature enacted provisions in the Property Tax Code which contemplate that the county tax assessor-collector will collect the state ad valorem tax. See Property Tax Code SS31.03, 31.07(b). However, the legislature also-&acted the .OOOl%assessment ratio which makes it impossible to raise any revenue by collecting the tax, once the cost of collection istaken into consideration. Moreover, the tax would be virtually impossible to collect. The amount collected from each taxpayer would in

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most cases be a small fraction of one cent. Once exemptions are granted, see Property Tax Code SSll.ll - ll.26, many taxpayers would owenothing. -
Section 31.07 contemplates that separate bills may be sent for the state and local taxes. Section 31.01(f)permits the governing body of a taxing unit to choose not to send a tax bill until the total amount of unpaid taxes is five dollars or more. Weconstrue these provisions to authorize county tax assessors to defer sending separate bills for state ad valorem taxes until the total amount ofunpaid taxes is five dollars or more. Webelieve this construction isnecessary to render the provisions on state ad valorem tax workable. The State Property Tax Board isrequired to adopt rules prescribing methods ofaccounting for and remitting state property taxes. Property Tax Code S31.09. Webelieve it can prescribe a procedure that authorizes the county tax assessol-collector to defer assessing and collecting the state tax until it amounts to five dollars per unit ofproperty. We also believe the board may authorize counties to advance to it each year the amount ofuncollected state ad valorem tax for the county. **Cf.** Nassau County VICity of --g-T. Lon Beach, 9 N.E.2d 50 (N.Y. 1937)(statute made city liable to county for amount of taxes certi led whether collected or not). Webelieve the countv mav reasonablv assume the small burden of paying less than cne dollar to the state in li’euo?annually collecting that minute amount of tax at afar greater expenditure in collection costs. Inthis way the state will receive its ad valorem tax revenue and the counties will not have to collect it until the amount ofrevenue garnered will be more commensurate with collection costs. SUMMARY The State Property Tax Board may adopt a rule authorizing the county tax assessor-collector to defer assessing and collecting the state ad valorem tax until it amounts to five dollars per unit of property. The board may also authorize counties to advance to it annually the amount of uncollected state ad valorem tax for the county.

- MARK WHITE Attorney General ofTexas JOHN W.FAINTER, JR. First Assistant Attorney General
TEDL.HARTLEY Executive Assistant Attorney General Prepared bySusan Garrison Assistant Attorney General

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APPROVED: OPINIONCOMMITTEE C.Robert Heath, Chairman BobGammage Susan Garrison Rick Gilpin Myra McDaniel

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