### TIEE 

## ATTORNBY GENERAL OF TEXAS

**Auerrx~** 

## ai,

THgAa This Opinion

ModifiesOpinionsO-5270 &

o-5937

Honorable

S. K. Long CountyAttorney Jefferson

County Beaumont,

Texas D6ar Sir: OpinionBumbsrO-6765 Re: Allocation

of money reoeived from governmental

departments

and agencies

as "paymentsin lieu of taxes.'
You requestthe opinionof this department upon the questionpresented in your letter of August 14, whiohwe quote as follows:

"A question

has arisen as to the propsr application snd the breakdown

of payments made by the government or departments

of the government

in lieu of taxes, both state end county. It is my opinion that this payment is handledthe ssme as taxes snd should be broken down and appliedto the proper funds as if it were the direct ad wlorau tax. "The authority

for the paymsn t is Seotion 1546 of Title 42 of the United States Code Annotated, there being no court deoision that I have been able to find other than the Moore et al vs. Board of Education of Ruolid City School District,

57 N. E. (2d) 116, dealing with the meaning of 'in lieu.1 Briefly,

your questionis: How shouldpymentr made by Federal housingauthorities and similarFederalagenciesin lieu of taxes be allooated by ths taxing units, recipients of such payments?
The question

you present is clarified somewhat

by Senate Bill No. 61, pssed by the 49th Legislature, which is as follows: 'Section1. That all monies, funds, assets,or gifts authorized by Federal statute

to be pid to the State of Texas in lieu of taxes or as a gift by the FederalPublic HousingAuthorityor sny other Federalagency. bs and the same is hereby accepted by the Stats of Texas; that this acceptanceapplies to any such tenders, g ifts, or offers,

whether they be mad? in the pest, present,or future. "S6ction2. The Comptroller of PublicAccounts is hereby dirsated and authorizedto execute such instruments as may be proper or necessary to effect aocsptanoe

of suchmonies, gifts, or assets,and when so receivedby the Comptroller,

he shstll

deposit ssme in the State Treasuryto the credit of the General RevenueFund."Sec. 3. The Comptroller may directthat suchmonies, when so paid by the Federal

HousingAuthority, be remitted

through the County Tax Assessor-Collector in the County where lands are located on which the paymmt or tender is made in lieu of taxes by such Federalauthority, and require the Tax Assessor-Colleotor of such Countyto make remittance to the State Treasury in the ssmemanner as he is now required to do *en rmitting for ad valorem taxes: but in no event shall any Tax Assessor-Collector or any other County or State officialbe entitled to any fee for servicesin handling these funda."

It is si@ifioant to note that said Senate Bill NJ. 61 treats such paymentsin effect as ad valorsmtaxer. We think the conclusion is obviousthat since such payments are made in lieu of ad valoran taxes, the allocation

shouldbe to the respective funds to which the ad valorem taxes upon said property

would be allocated as providedby law, the sams as the taxes would be if collected instead of a sum in lieu thereof.
If the conclusions

we here express appear to be inconsistent with tso prior opinions of this department, DOS. O-5937 snd o-5270, the paasege by the 49th Legislature of Senate Bill No. 61, occurringsubsequent to these tvm opinions, render these inoonsistencies of no consequence. Taxes are not gifts, but a sovereie;n exaction

upon citieens

or propsrtyto supportthe Goverwent, and is paymentexaotedby legislative authority. If paymentsare made B Congressional consent in lieu of taxes upon property, otherrise

immune except for such consent, we see no reason for treating such paymentsin any other manner than would be accorded the taxes on the property. If appropriation of public funds or propertyis for 9 public purpose, and we think the paymentsin question here fall in thet classification, there is no gift, Almeda Count Countyv, LaFuente, 129 Pao. (2 576; 3 v. Jannsen,106 Pac. (2d) 11; Los Angeles 8 an Bernardino

Countyv. Ray, 117 Pac. (26) 354; Housing

Authorityof Los Angeles 0Nnty v. Dockmailer, 94 Pet. (2d) 794. Sumnarizing, we hold that payments by Federalhousing authorities and other similarFederalagencies, made in lieu of taxes, should bs treated as such smd allocated as other ad~valmem taxes when paid to the collecting officialscharged

under the law of collecting the same. Very truly yours,
AlTOR?IBYGBt?ERALOFTFXAS By /s/L. P. Lollar

APPROVED .WP 12, 1945 /a/ GFtOVEFt

SELLERS ATTORNEYGENERAL OF TEXAS LPL/JCPgegw L, P. Lollar Assiwtent Approved Opinion Committee By F. D. chpirmen