The HonorableRobert S. Calvert

CorDtrollerof Public Accounts Opinion No. M-326 Austin, Texas RO: Construction of Article 12.01, Chap. 12, Title 122A, Taxation-General, V.C.S., au Bmended, a8 to non-profitcorporations organizedto provide homes for people who an sixty-twoyears of age and older, wlthout regard to this classlflcatlon

of purely public charity. Dear Mr. Calvert: You ask our opinion in answer to whether the omission of the paragraph apeclflcallyexemptlngcorporationsolrganlzed for the purpose of providinghomes for elderlypersons from the 1968 amendment to the franchise tax statute effectedan impositionof the “additionalfranchisetax” imposedby that act upon such corporations. The fact6 are that In 1967 the Legislatureamended subsection (l), Article 12.01, Chapter 12, Title 122A, TaxatlonGeneral, Revised Civil Statutes of Texas, 1925, to impose an additional franfhleetax on that portion of taxable debt allocable to Texas. This act containedthe followingexemption:

1. Acts 1967, 60th Legislature,Chapter 359, Page 849, Section 1. This amendmentbecame effectiveMay 1, 1968. the Act.) (Section2 of

- 1599 -The HonorableRobert S. Calvert, Page 2 (~-326)
"The additional franchisetax levied by this Subsection (l)(a)(M) shall not apply to corporationsorganized for the purpose of providing homes for elderlypeople sixty-two (62) years of age and older not for profit without regard to whether such corporations are for purely public charity." The First Called Session of the same Legislature:! amended subsection (l), wholly omitting the exemptionprovision jurt quoted and making other changes not relevant to the questionwe have under consideration, none of which changes altered the basic structureof the statute. This latter Act became effective October 1, 1968. The caption of the 1968 amendment, In its relevantportions, reads a8 follows:

"An Act raising revenue for the operationof State government; ... amending Chapter 12, Title 122A, Taxation-General, Revised Civil Statutes of Texas, 1925, as amented, to Increase the corporate franchisetaxes.

I.... The caption conforms to the body of the Act, and both are clear and unambiguous. It Is the opinion of this office that this complete omission of the paragraph,containingthe exemptionfrom the 1968 enactment, effected Its repeal. The omission of said paragraph la within the purview of the caption of the Aot, that Is, to raise revenue and to Increase the corporatefranchisetax, both of which purposes are effectedby the removal of the exemptionwhich appeared In the 1967 Act. Article III, Section 36 of our State constitution provides the answer to your question. It reads a8 follows:

2. Acts 1968, 60th Legislature,First Called Session, Chapter 2, Page 2, Section 1.

-1600-The HonorableRobert S. Calvert, Page 3 (M- 326)
'NO law shall be revived or amended by reference to Its title; but In such case the Act revived, or the section or sectionsamended, shall be re-enacted and publishedat length." Our courts have Interpretedthis provision literally. Humble Oil & Refining Co. v State, 104 S.W.2d 174 (Tex. Clv. App.

, ref.); State RI

ghway Departmentv fforham, 162 S.W.2d 934

As applied to your question, tion simply means that the Act of Act of 1967 in that the exemption not carried forward by the Act of fore wholly repealed. SUM?JARY that section of our conetltu1968 completelysupersedesthe provision In the 1967 Act was 1968; such paragraphwaa thereBy the omission of the above Acts 1968, 60th Legislature,quoted paragraph from Flrat Called Session,
._. . Chapter 2, Page 2, Section 1, provldlng the exemption, the tax **on** taxable debt Is now applicableto corporation8organized, for the purpose of providing homes for elderly people sixty-two (62) years of age and older not for profit without regard to whether such corporations

are for purely publf> charity. 8 very truly, 7sv= C; MARTIN rney General of Texas Preparedby Arthur Sklbell AssistantAttorney General APPROVED: OPINION COMMITTRR **Kerns** Taylor, Chairman Jack Goodman Ml1 Allen Rnughton Brownlee w. 0. scnu1tz HAWTHORNEPHILLIPS Staff Legal Assistant
-1601-