September 8, 1966 

Hon. Richard E. Rudeloff 

County Attorney 

Bee County 

Beevllle, Texas 

Opinion No. C-753 

Re : Whether Bee County may 

change its tax rate from 

the precedin 

of $1000 to $ 

year’s rate 

.95 notwlthstanding the failure to 

notify the county tax 

assessor-collector of such 

changed or adopted tax rate, 

where the 54 to be dropped 

represents money formerly 

collected for a countywide road bond issue which 

can now be fully retired 

Dear Sir: by funds on hand. 

By a recent letter you have requested an opinion 

in regard to the above stated matter. We quote from your 

letter as follows: 

“The tax rate adopted a number of years ago 

by Bee County, and in effect during the year 1966, 

Is and has been $1.00, of which amount .05# represented monies collected to retire a road bond 

Issue. Bee County now has on hand in such road 

bond fund sufficient money to fully retire such 

bonds and the .05k portion of said $1.00 tax rate 

Is no longer needed for this purpose. Accordingly, 

the Combsloners Court of Bee County wishes to 

change the tax rate for 1967 to .95$, in compliance 

with Section 9 of Article VIII, Vernon’s Texas 

Constitution. 

“Bee County is subject to the provisions of 

Article 7044a, Texas Revised Civil Statutes. Notice 

of the tax rate adopted was not given to the tax 

assessor-collector prior to July 20.” 

In addition to the above facts we have learned 

from your office that the road bond tax in question was 

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Ron. Richard E. Rudeloff, Page 2 (C-753) 

levied as the result of a county-wide election In 1946 

for the construction and Improvement of the county-wide 

road system. 

In a recent opinion L-No. C-701 (1966) 7 this 

office ruled, in effect, that Article 70&4a, VeriionIs Civil 

Statutes, Is not unconstitutional as violating Section 9 

of Article VIII of our Constitution, nor Is It unconstltutional as violating Section 16 of Article I, Vernon’s 

Texas Constitution. The basis of the opinion being that 

Article 704&a does not attempt to deprive the Commissioners 

Court of the power to levy the county tax, which it must 

do pursuant to Section 9 of Article VIII, nor does it 

impair bond obligations in violation of Section 16 of 

Article I, but merely sets a time limit upon the counties 

and other taxing authorities to determine and notify the 

tax assessor-collector of the tax rate to be used for 

the next year. 

The 5# tax levy Involved in the instant case 

was levied under the provisions of Article 752a, Vernon’s 

Civil Statutes, which was enacted pursuant to Section 52 

of Article III, of the Constitution of Texas. Article 

752a Is quoted in part as follows: 

“Any county. . .is hereby authorized to 

Issue bonds for the purpose of the construction, maintenance and operation of macadamlzed, 

graveled or paved roads. . .in any amount not 

to exceed one-fourth of the assessed valuation 

of the real property of such county. . .and to 

levy and collect ad valorem taxes to pay the 

interest on such bonds and provide a sinking 

fund for the redemption thereof. Such bonds 

shall be issued in the manner hereinafter 

provided, and as contemplated and authorized 

by Seotlon 52, of Article 3, of the Constltution of this State. . . . Provided when the 

principal and all Interest on said bonds are 

fully paid, In the event there is any surplus 

remaining In the sinking fund, said remaining 

surplus not used In the full payment of the 

principal and Interest on said bond or bonds 

may be used by the county. . .for the purpose 

. . . . (Eimphasls added) 

Prior to the enactment of Article 752a, our 

Supreme Court held that funds from a tax levy authorized 

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. . 

1 ~. . 

. 

Hon. Richard E. Rudeloff, Page 3 (C-753) 

by Section 52 of Article III, and Section 9 of Article 

VIII, for construction and maintenance of public roads, 

mav not be diverted to other uurnoses than those for 

which voted. Robblns v. Limestone County, 114 Tex. 345, 

268 S.W. 915 (1925). 

This office has ruled in several previous 

opinions that the Commissioners Court could expend the 

money raised from an authorized bond Issue only In the 

manner and for the purposes prescribed by law. Attorney 

General’s Opinions O-4621 (1942), v-157 (194?), v-684 

(lg48), W-W-1162 (1961). 

Article 752a provides that the sinking fund, 

established to retire the bonded Indebtedness authorized 

by the bond election, should first be used to pay off 

the principal and Interest on the bonds, then if a 

surplus is left It may be used for certain purposes. 

However, the Act does not authorize the counties to 

perpetuate the surplus, by continuing to put money into 

the sinking fund after the bonds have been paid In full. 

In the case at hand, if Bee County Is permitted 

to levy the 5# tax for the sinking fund to retire the 

bonded Indebtedness, It will be enlarging the surplus, 

since the fund Is already large enough to retire the bonds. 

It is our opinion that such 5g? tax can no longer be 

validly levied for such purpose. Section 9 of Article 

VIII, of the Texas Constitution; Section 52 of Article 

III of the Texas Constitution, and Article 752a, Vernon’s 

Civil Statutes. 

Clearly the Commissioners Court could not have 

continued to levy the 5# tax for county-wide road bond 

purposes If It had decided to do so prior to July 20th; 

so, it cannot continue the tax just because It failed to 

notify the tax assessor-collector prior to July 20th. 

SUMMARY ------- 

Bee County must change Its tax rate from 

the preceding year’s rate of $1.00 to 95$! notwithstanding the failure to notify the county 

tax assessor-collector of such changed or adopted 

tax rate, where the 54 being dropped represents 

money formerly collected for a road bond issue 

which can be fully retired by funds on hand. 

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. . . 

Hon. Richard E. Rudeloff, Page 4 (C-753) 

Very truly yours, 

WAGGONER CARR 

Attorney General 

JCMcC:sck 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Wade Anderson 

Malcolm Quick 

Bob Towery 

J. C. Davis 

APPROVED FOR THE ATTORNEY GENERAL 

BY: T. B. Wright 

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