Honorable Brew S. Davis

CountyAttorney

. 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 schooldistricts.
We are in receipt of your letter of recent date requesting the opinion of this department on the above statedmatters. 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 havevoted bonds in previous years and the property values have increasedas well as the indebtednessfor school buildingshas beenpaid off which rate was the constitutionalrate (maximum)of one dollar. If this amount is oontinued to bs collected and the amount of money collectedvould be more than needed,what is the statusofthe surplus funds arising therefrom? We are alsa in receipt of your letter supplementingthe above, wherein you stated that the school distriot involved in the above inquiry was a common school distiict.

With referenceto 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 indebtednessof a road district,we callyour attention to the following statutoryprovisions:

vides: Article 752e,Vernon'sAnnotated Civil Statutes, in part pro-

"m . . The propositionto be submittedat such election shall specify
. . . that ad wlorsm taxes are to be levied annually on all taxable propertywithin 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 subdivisionor road~districtbonds) shallbe put on the market,the County CQnmissioners'Court of the county invhioh suoh electionwas 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 samemanner as is now providedby 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 saidtax as othertaxes are assessed. e e D The tax collector shall collect saidtaxes as other taxes are collected.
. o .* Article 752n,Vernon'sAnnotated Civil Statutes, in part provides: "The tax assessor and tax oolleoter of the county

wherein suohtaxes have been levied, shallassess and collect the same in themanner and at the time as other taxes; . . ."
Inview cf the foregoing provisions, it is out opinion that the annual tax levy for the payment of outstanding indebtednessof a road district shouldbe made and said tax rate set at the same time that other county taxes are levied. As to the time formaking the county tax levy, we referyou to our Opini n No. O-2364, which sets cut and discusses the statutoryrequirementswith referenoeto the time for levying county tares. We are enolosingherewith a copy of this opinion for your ccnvsnience.

With reference to your inquiry as to the manner of setting and regulatingthe tax rate of a common school district,we call your attention to the following statutoryprovisionsr

Rouse Bill No. 800, Acts of the 49th Legislature, Ch. 304, pa 488, which repealsArticle 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 sohooltrustees for the independent school districts incorporatedfor sohoolpurposes only, shall have power to levy and cause to be collectedthe 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 schoolsand the ereotion and equipment of school buildings therein, a special tax; and in independentdistricts for themaintenance of schools therein, en ad valormu tax not to exceed One Dollar and Fifty Cents ($1.50) on the one hundred dollarsvaluation of taxable property of the district.

“2. In commong school and independent districts, for the purchase, construction,repair or equipmentof public free schoolbuildingswithin the limits of such districtsand 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 intereston and provide a sinking fund sufficientto 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, togetherwith therate ofmaintenance tax voted in the distriot shallat any time exceed One %llar and Fifty Cents (t1.50) on the one hundred dollarsvaluation, such bond tax shall operate to reduce the maintenance tax to the difference between the rate of the bondtax 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 suchaction has been authorizedby 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,providesrHon. 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, signedby twenty (20) ormore, 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. aThe petition, election order and notice of election sh&i in all casts either state the specific rate of tax to bevoted 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 qualifiedvoters, or a majority of suchvoters of the district,may have an election held, upon the propert petition tothe county judge, to determinewhether such tax shallbe abrogated, increasedor diminished. Said election shall be held and conductedas 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 propertywithin any common school district the rate of tax sovoted if a specific rate has been voted; otherwise said court shall levy such a rate within the limit sovoted as has been determined by the board of trustees of said district and the county superintendentand certifiedto said court by the county superintendent. o o o (Underscoringours)
We understand, from your letter,that the common schooldistrict has voted a $1.00 tax rate and that taxes havebeen collectedon the basis of such rate; however, it %as not statedwhether the tax voted was a specifjo rate ofwhether said election authorized a levy not exceeding that limit (Jb1.00
. Thus, in view of the provisionsof Article Z'/tlosupra, it will be necessary to determine fromthe statement contained inthg petition, election order and notice of said electionwhether a specific rateof tax was voted, orwhether the rate so votedms not to exceed the limit $1.00) therein specified.

If the rate voted at said electionwas 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 authorizedby an election held in the district as p;*ovided in Article 2794._.. -

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

If the ratevoted at-the election to which you referwas a rate not to exceed the limit specified in the petition, electionz and notice of said election, under the provisions of Article 2785,ihe commissioners1 court is authorizedto levy much rate as determinedby the trustees of saiddistrict and the CoMty superintendentand osrbified to said court by the county superintendent. Thus, when the rate voted was a rate not to exoeed a certainlimit, any adjustmentmade (within said limit)must be made by the trustees of said district and the county superintendent,for the ratewhich the commissioners’court is authorized to levy in such instance is that rate certifiedto it by the county superintendent.

You also inquired as to the disposition oaf the surplus funds of said school districtwhen all of the bonded indebtednesshas been paid. As to the disposition of the surplus funds in the -++ing fundwhen all of the bonded indebtednesshas been paid, this deparhnantheld in OpinionNo. O-2657 that such surplus could be transferredto the localmaintenance fund. pk,

are enclosingherewith a oopy of said opinion. Since, under the facts given, there is no longer aw necessity to levy a bondhxx,+he tax rate formaintenance is automatically increased to one dollar, provided that themaintenancetax heretoforevoted was a specifictax rate of one dollar. Therefore, if suchmaintenanoe tax heretofore voted is more than sufficientfor 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 themaintenance tax heretoforevoted by the district ~8s voted as a maximumtax, then the rate may be reduced ly the board of tnustees olrrt

the county superintendentand such rate certifiedto the commissioners' court and levied by the court in accordancewith the provisions of Article 2795 hereinabove quoted.

We call your attention that the eligibility of a common school district for EqualizationAid from the State is affected in certain instances,when the tax rate for maintenance of said district is reduced. For a discussion of thismatter, we referyou to our Opinion No. O-6768, a copy of which is enclosedherewith.

We trust that the foregoing satisfaotorilyanswersyour inquiries.

JAErrt:LJ:egw APPROVED OCT i3 1945 /s/ CarlosAshley FIRSTASSISTANT AlTORFTEY GENERAL Yours very truly, ATTORNEYGEBERALOFTEXAS By /s/ J. A. Ellis J.A. Ellis, Assistant