The Attorney General of Texas 

March 14, 1980 

MARK WHITE 

Attorney General 

Mr. Kenneth E. Graeber 

Executive Director 

School Tax Assessment Practices 

Board 

3301 Northland 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 on January 1,198O. Property Tax Code 

S 8, 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 S 3LO9. Effective January 1, 1980, the assessment ratio for calculating 

taxes for state purposes will be .OOOl percent. Property Tax Code S 26.03. 

Since the tax rate for state ad valorem purposes is 10 cents per $100 of 

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 $200 per year statewide, or on the 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-, 138 S.W. 759 (Tex. Crim. App. 1911). In construing 

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 of Nacogdoches v. McLeroy, 371 S.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 SS 31.03, 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 is taken into consideration. Moreover, the tax would be virtually 

impossible to collect. The amount collected from each taxpayer would in 

P. 470 
Mr. Kenneth E. Graeber - Page Two @9+‘-147) 

most cases be a small fraction of one cent. Once exemptions are granted, see Property 

Tax Code SS ll.ll - ll.26, many taxpayers would owe nothing. 

- 

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. We construe these 

provisions to authorize county tax assessors to defer sending separate bills for state ad 

valorem taxes until the total amount of unpaid taxes is five dollars or more. We believe 

this construction is necessary to render the provisions on state ad valorem tax workable. 

The State Property Tax Board is required to adopt rules prescribing methods of accounting 

for and remitting state property taxes. Property Tax Code S 31.09. We believe 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 of property. 

We also believe the board may authorize counties to advance to it each year the 

amount of uncollected state ad valorem tax for the county. Cf. Nassau County VI City 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). We believe the countv mav reasonablv assume 

the small burden of paying less than cne dollar to the state in li’eu o? annually collecting 

that minute amount of tax at a far greater expenditure in collection costs. In this way the 

state will receive its ad valorem tax revenue and the counties will not have to collect it 

until the amount of revenue 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 of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

TED L. HARTLEY 

Executive Assistant Attorney General 

Prepared by Susan Garrison 

Assistant Attorney General 

p. 471 
Mr. Kenneth E. Graeber - Page Three (MW-147) 

APPROVED: 

OPINION COMMITTEE 

C. Robert Heath, Chairman 

Bob Gammage 

Susan Garrison 

Rick Gilpin 

Myra McDaniel 

p. 472