The Honorable Robert S. Calvert 

CorDtroller of 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-profit corporations organized to 

provide homes for people 

who an sixty-two years 

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 apeclflcally exemptlng corporations olrganlzed for 

the purpose of providing homes for elderly persons from the 

1968 amendment to the franchise tax statute effected an 

imposition of the “additional franchise tax” imposed by that act 

upon such corporations. 

The fact6 are that In 1967 the Legislature amended subsection (l), Article 12.01, Chapter 12, Title 122A, TaxatlonGeneral, Revised Civil Statutes of Texas, 1925, to impose an 

additional franfhlee tax on that portion of taxable debt allocable to Texas. This act contained the following exemption: 

1. Acts 1967, 60th Legislature, Chapter 359, Page 849, Section 1. 

This amendment became effective May 1, 1968. 

the Act.) 

(Section 2 of 

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The Honorable Robert S. Calvert, Page 2 (~-326) 

"The additional franchise tax levied by 

this Subsection (l)(a)(M) shall not apply to 

corporations organized 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 public charity." 

The First Called Session of the same Legislature:! amended 

subsection (l), wholly omitting the exemption provision jurt 

quoted and making other changes not relevant to the question we 

have under consideration, none of which changes altered the 

basic structure of the statute. This latter Act became effective October 1, 1968. 

The caption of the 1968 amendment, In its relevant portions, 

reads a8 follows: 

"An Act raising revenue for the operation of 

State government; . . . amending Chapter 12, Title 

122A, Taxation-General, Revised Civil Statutes of 

Texas, 1925, as amented, to Increase the corporate 

franchise taxes. 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, containing the exemption from 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 corporate franchise tax, both of 

which purposes are effected by the removal of the exemption which 

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. 

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The Honorable Robert 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 sections amended, shall be re-enacted 

and published at length." 

Our courts have Interpreted this provision literally. 

Humble Oil & Refining Co. v State, 104 S.W.2d 174 (Tex. Clv. App. 

, ref.); State RI ghway Department v 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 completely supersedes the 

provision In the 1967 Act was 

1968; such paragraph waa 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 applicable to 

corporation8 organized, 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 

Prepared by Arthur Sklbell 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTRR 

Kerns Taylor, Chairman 

Jack Goodman 

Ml1 Allen 

Rnughton Brownlee 

w. 0. scnu1tz 

HAWTHORNE PHILLIPS 

Staff Legal Assistant 

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