Honorable Brew S. Davis 

County Attorney 

. San Augustine County 

San Aug:rstine, Texas 

Dear Sir: Opinion No. O-6820 

Re: (1) Proper time to levy taxes 

for payment of bonded indebtedness of road district; 

(2) Basis for adjustment of taxrates for oommon school districts. 

We are in receipt of your letter of recent date requesting the 

opinion of this department on the above stated matters. We quote from your 

letter as follolrsr 

"When is the proper date for Conmrissioners' Court to 

set tax rate for road districts for outstandine indebtedness? Whose duty is it to set the rate or regulate the 

rate on School Districts that have voted bonds in previous years and the property values have increased as well 

as the indebtedness for school buildings has been paid 

off which rate was the constitutional rate (maximum) of 

one dollar. If this amount is oontinued to bs collected 

and the amount of money collected vould be more than needed, what is the statusof the surplus funds arising therefrom? 

We are alsa in receipt of your letter supplementing the above, 

wherein you stated that the school distriot involved in the above inquiry 

was a common school distiict. 

With reference to your question as to the proper time for the 

commissioners court to make the annual taxi levy snd set the tax rate for 

paying the outstanding indebtedness of a road district, we call your attention to the following statutory provisions: 

vides: 

Article 752e, Vernon's Annotated Civil Statutes, in part pro- 

" m . . The proposition to be submitted at such election 

shall specify . . . that ad wlorsm taxes are to be levied 

annually on all taxable property within said (road) district 

. sufficient 'co pay the annual interest and provide a 

i&king fund to pay the bonds at maturity." (parenthetical 

matter ours) 
Hon. Drew S. Davis, Page 2 (o-6820) 

Article 752%, Vernon's Annotated Civil Statutes, provides8 

"Before suah bonds (county, political subdivision or 

road~district bonds) shall be put on the market, the 

County CQnmissioners' Court of the county invhioh suoh election was held, shall levy an ad valorem tax sufficient 

to paythe interest on such bonds and to provide a sinking 

fund to pay the bonds at maturity," 

Article 75&a, Vernon's Annotated Civil Statutes, provides8 

"men suoh bands are issued for and on the faith and 

credit of a political subdivision or road district, such 

taxes shall be assessed and colleoted iinthe same manner 

as is now provided by law for the assessment and collection of common school district taxes." 

&biols 2795, Vernon's Annotated Civil States, in part, providesr 

"The aommissioners' oourt, at the time of levying taxes 

for county purposes, shall also-%'y upon all taxable prcperty within any common school district 0 o e The tax assesscr shall assess said tax as other taxes are assessed. e e D 

The tax collector shall collect said taxes as other taxes 

are collected. . o .* 

Article 752n, Vernon's Annotated Civil Statutes, in part 

provides: 

"The tax assessor and tax oolleoter of the county 

wherein suohtaxes have been levied, shall assess and 

collect the same in the manner and at the time as other 

taxes; . . ." 

In view cf the foregoing provisions, it is out opinion that 

the annual tax levy for the payment of outstanding indebtedness of a road 

district should be made and said tax rate set at the same time that other 

county taxes are levied. As to the time for making the county tax levy, 

we refer you to our Opini n No. O-2364, which sets cut and discusses the 

statutory requirements with referenoe to the time for levying county tares. 

We are enolosing herewith a copy of this opinion for your ccnvsnience. 

With reference to your inquiry as to the manner of setting 

and regulating the tax rate of a common school district, we call your 

attention to the following statutory provisionsr 

Rouse Bill No. 800, Acts of the 49th Legislature, Ch. 304, pa 

488, which repeals Article 2784, Revised Civil Statutes, provides: 
c 

Hon. Drew S. Davis, Page 3 (O-6520) 

"The oceanissioners oourt for the common school distriots in its county, and the district sohool trustees 

for the independent school districts incorporated for 

sohool purposes only, shall have power to levy and cause 

to be collected the annual taxes and to issue the bonds 

hersin authorised, subject to the tillowin~ provisions; 

"1. In common school districts, for the further 

maintsnance of publio free schools and the ereotion and 

equipment of school buildings therein, a special tax; 

and in independent districts for the maintenance of 

schools therein, en ad valormu tax not to exceed One 

Dollar and Fifty Cents ($1.50) on the one hundred dollars valuation of taxable property of the district. 

“2. In commong school and independent districts, 

for the purchase, construction, repair or equipment of 

public free school buildings within the limits of such 

districts and the purchase of the necessary sites therefor, atax not to exceed fifty cents (50#) on the one 

hundred dollars valuation, such tax to be for the payment of the current interest on and provide a sinking 

fund sufficient to pay the principal of bonds which 

said distriots are empowered to issue for such purposes. 

"3. The amount of maintenance tax, together withthe 

amount of bond tax of aqy district, shall never exceed One 

Dollar and Fifty Cents (t1.50) on the one hundred dollars 

valuation of taxable property; and if the rate of bond tax, 

together with the rate of maintenance tax voted in the distriot shall at any time exceed One %llar and Fifty Cents 

(t1.50) on the one hundred dollars valuation, such bond tax 

shall operate to reduce the maintenance tax to the difference between the rate of the bond tax and One Dollar and 

Fifty Cents (11.50). 

"4, No tax shall be levied, collected, abrogated, diminished or increased, and no bonds shall be issued hereunder until such action has been authorized by a majority 

ofthe votes cast at an eleotion held in the district for 

such purposes, at which none but property taxpaying qualified voters of such district shall be entitled to vote, 

" " . . . 

Article 2785, V.A.C.S., in part, providesr 
Hon. Drew S. Davis, Page 4 (o-6820) 

"Before an election is held to detennin the proposition of the levy of such tax or the issuance of such bonds, 

a petition therefor, signed by twenty (20) or more, or a 

majority ofthose entitled to vote at such eleotion, shall 

be presented to the County Judge of the county if for a 

common school district. a The petition, election order 

and notice of election sh&i in all casts either state the 

specific rate of tax to be voted on or that the rate shall 

not exceed the limit herein specified. o 0 e(usderscoring 

ours) 

Article 2794, V.A.C.S.,in part provides8 

"At any time after the expiration oftua, years after 

any common school district has leviedaschool tax on it== 

self, twenty property taxpaying qualified voters, or a 

majority of such voters of the district, may have an election held, upon the propert petition tothe county judge, 

to determine whether such tax shall be abrogated, increased or diminished. Said election shall be held and 

conducted as other elections in said district. o e ." 

Article 2795, V.A.C.S., in port, provides: 

"The commissioners* court, at the time of levying taxes for county purposes, shall also levy upon all taxable 

property within any common school district the rate of tax 

so voted if a specific rate has been voted; otherwise said 

court shall levy such a rate within the limit so voted as 

has been determined by the board of trustees of said district 

and the county superintendent and certified to said court by 

the county superintendent. o o o (Underscoring ours) 

We understand, from your letter, that the common school district 

has voted a $1.00 tax rate and that taxes have been collected on the basis 

of such rate; however, it %as not stated whether the tax voted was a specifjo 

rate o 

f 

whether said election authorized a levy not exceeding that limit 

(Jb1.00 . Thus, in view of the provisions of Article Z'/tlo supra, it will be 

necessary to determine from the statement contained inthg petition, election order and notice of said election whether a specific rate of tax was 

voted, or whether the rate so votedms not to exceed the limit $1.00) 

therein specified. 

If the rate voted at said election was a specific rate, under 

the provisions of Article 2785, the commissioners' court shall levy such 

specific rate, and any change in said rate which the commissioners' court 

would be authorized to levy must be authorized by an election held in the 

district as p;*ovided in Article 2794. 
_.. - 

Hon. Drew S. Davis, Page 5 (o-6820) 

If the rate voted at-the election to which you refer was a 

rate not to exceed the limit specified in the petition, election z 

and notice of said election, under the provisions of Article 2785,ihe 

commissioners1 court is authorized to levy much rate as determined by 

the trustees of said district and the CoMty superintendent and osrbified to said court by the county superintendent. Thus, when the rate 

voted was a rate not to exoeed a certain limit, any adjustment made 

(within said limit) must be made by the trustees of said district and 

the county superintendent, for the rate which the commissioners’ court 

is authorized to levy in such instance is that rate certified to it by 

the county superintendent. 

You also inquired as to the disposition oaf the surplus 

funds of said school district when all of the bonded indebtedness has been 

paid. As to the disposition of the surplus funds in the -++ing fund when 

all of the bonded indebtedness has been paid, this deparhnantheld in Opinion No. O-2657 that such surplus could be transferred to the local maintenance fund. pk, are enclosing herewith a oopy of said opinion. 

Since, under the facts given, there is no longer aw necessity 

to levy a bondhxx,+he tax rate for maintenance is automatically increased 

to one dollar, provided that the maintenance tax heretofore voted was a 

specific tax rate of one dollar. Therefore, if such maintenanoe tax heretofore voted is more than sufficient for the maintenance of the school, 

the maintenance tax rate may be reduced by an election held for that purpose as provided in Section 4 of H. B. No. 800 and Article 2794, both of 

tiich are quoted above. 

If the maintenance tax heretofore voted by the district ~8s 

voted as a maximumtax, then the rate may be reduced ly the board of tnustees olrrt the county superintendent and such rate certified to the commissioners' court and levied by the court in accordance with the provisions 

of Article 2795 hereinabove quoted. 

We call your attention that the eligibility of a common school 

district for Equalization Aid from the State is affected in certain instances, when the tax rate for maintenance of said district is reduced. For a 

discussion of this matter, we refer you to our Opinion No. O-6768, a copy 

of which is enclosed herewith. 

We trust that the foregoing satisfaotorily answers your inquiries. 

JAErrt:LJ:egw 

APPROVED OCT i3 1945 

/s/ Carlos Ashley 

FIRST ASSISTANT AlTORFTEY GENERAL 

Yours very truly, 

ATTORNEYGEBERALOFTEXAS 

By /s/ J. A. Ellis 

J. A. Ellis, 

Assistant