. . . 

: I. 

October 20, 1972 

Honorable Spencer Brown Opinion No. M- 1241 

Kerr County Attorney 

Schrelner Bank Bulldln 

% 

Re: 

7802 

Whether exemption from 

Kerrvllle, Texas ad valorem taxes may be 

,accorded 'property carried on the tax rolls 

aa owned by The Church 

In the Hills, Inc., a 

defun.c,t, non-profit 

Dear Mr. .Brown: corporation. 

You have requested an opinion of this Office,on the above 

captioned question, and in so doing, have supplied us with the 

following pertinent facts. 

The Churc,h in the Hills, Inc. was ,chartered October 15, 

1945. The purpose for which the corporation was organized was 

the "support of any benevolent, charitable, educational or 

religious undertaking as authorized by Subdivlslon 2 of,,Article 

1302 of the Revised Civil Statutes of Texas of 1925 . . . , The 

charter further stated that "no part of the earnings or assets 

of this corporation shall ever be &se 

% 

to carry on any ac-' 

tlvitles other than those stated in Su division 2 of Article 

1302." On September 1, 1956, the chart,er of said corporation 

was forfeited because It had failed to file the refiort required 

by Article 9.01 of the Texas Non-Roflt Corporation Act. 

The following excerpt Is from a letter by the, Honorable 

John P. Hill submitted in support of the clalm‘for exemption. 

"This tract containing approximately 82 acres 

was given to the fk urch In The Hills by E. J. Nick 7 es 

about 1946 or 1948,. My father, Dr. P. B. Hill, who 

was former Captaln & Chaplain of the Texas Rangers, 

Missionary to Korea and Pastor of the First Presbyterlan'church of San Antonio for 20 years. Durlng 

that 20 years he broadcast his Sunday morning Service 

-6076- 
Honorable Spencer Brown, page 2 (M-1241) 

over W.0:A.I. in San Antonio. When he retired and 

moved to Hunt, Texas, he continued his broadcasts 

over W.O.A.I. under the nsme of The Church In The 

Hills. At his death, the broadcasts continued from 

his recordings for two more years. 

"I was made Treasurer and later, President of 

the organization and secured donations to It. 

'"In some cases, where someone would make a 

substantial donation, I would allow them to hunt 

deer and turkey on the 82 acre tract. 

"I leased the 16 ac. adjoining the 82 acres In 

question from the Hill Country Cowboy Camp Meeting 

Assoclatlon,~ which my father also organized some 33 

years ago and which 16 acres Dad helped pick out, 

and purchas'ed. The Camp Meeting 1,s still golng on 

starting the first Sunday In August through the 

second Sunday In August and during those eight days 

the ranchmen's and visitors kids run all over the 

82 acres having fun and recreation. 

"There are no salaries or expenses of any kind 

taken from the revenue or donations to the Church In 

The Hills. The proceeds go to worthy students who are 

unable to pay the high college tuition of first class 

schools,, Missionaries in various countries, struggling 

churches" and the like. 

"InMarch or April, 1965, . . . the charter was 

allowed to lapse or expire and The Church In The 

Hills continued to operate as an Association of the 

surviving members of the P. B. Hill family and 

several well qualified advisers (at no salary or 

expenses to anyone). A11 proceeds going to the 

Scholarships, Missionaries, Seminaries. 

"It 1s my belief that the property In question 

should come under Art. 7150, Section 1, Schools & 

Churches as well as Section 2, Christian Associations, 

and 2a, Religious, Educational and physical development associations." 

-607-t- 
Honorable Spencer Brown, page 3’ (M-1241) 

We quote the following excerpt from a letter written to 

you by the Tax Assessor-Collector of Kerr County, Texas: 

“The pertinent facts that were presented to 

this office concerning the . . . &opertg.are as 

follows :, 

(1) Commisloners Court Order #11413 directed 

that a request for tax exemption be filed 

on each property requesting ad valorem 

tax, exemptions., 

Request filed on property in question by 

John P. Hill, President of The Church of 

The’ Hills Inc. 

Exemption denied by Kerr County Tax Office. 

Ex!n~~~;;t~n;ed .because : 

apsed tid original not preaented to substantiate ownership or 

(2) 

(3) 

(4) 

‘, 11 56 

The Tax Assessor-Collector has also advised us that the 

tax records show’ The’ Church In The Hlllsl Inc. as owner of the 

property in question. The reference to ‘owner” in the above 

quoted excerpt therefore refers to “John P. Hill, president of 

The Church In The Hills, Znc.“, a position which he obviously 

cannot hold In what is now a defunct corporation. 

I 1 

puFpo8a of creation. 

b Land being ‘leased for deer hu.nting. 

C Revenue received distributed to 

church grbups according to owner* 

but no evidence presented. 

(d) Owner’s reply to Application Question #12 was 81nvestmentt. 

Applicant ap$ealed to Ctiissionera Court 

under authority granted by Attorney General’s 

Oljln+on &6g M-328. 

Exemption denied by Commissioners Court .~ 

Owner claims that Buthority to grant tax 

exemption lies in the power granted in 

the Texas Constitution, Article VIII, 

Section 2, Article 7150 (1, 2, & 2A VACS).” 

We agree with the concluaion’of the Tax Assessor-Collector 

and the Commissioners’ Court that exemption should be denied 

In this case, 

-6078- 
Honorable Spencer Brown, page 4 (M-1241) 

Article VIII, Section 2 of the Texas Constitution1 provides 

the’constitutional authorlzatlon for legislative exemption from 

taxation. The pertinent portion of that Article reads as follows: 

“Sec. 2. . ..the legislature may, by general 

laws, exempt from taxation .,. actual places or fifJ 

religious worship . . . .’ 

Pursua 

!I 

t to the above Constitutional authorization, the 60th 

Legislature amended Section 1 of Article 7150 by adding the following thereto: 

t * l + l * l * 

“l(a) .The term ‘actual places of religious 

worship’, shall include property owned by a church 

or by a strictly religious Institution or organization; Including the personal property therein 

and the grounds attached to such buildings necessary for the proper use and enjoyment of same, 

used exclusively to support and serve the spread 

1 Other Gonstltutional authorizations contained In this 

Article, such as that provided for the exemption of “property 

used exclusively and reasonably necessary In conducting any 

association engaged In promoting the religious, educational and 

physical development of boys, girls, young men or younn; women 

operating under a State or National organization of like character; also the endowment funds of such Institutions of learning 

and religion not used with a vlew,to profit; and when the asme 

are Invested In bonds or mortgages, or in land or other property 

which has been,and shall hereafter be bought In by such lnstitutlons under forecloeure sales made to satisfy or protect such 

bonds or mortgages, that such exemption of such land and property 

shall continue only for two years after the purchase of the same 

at such sale by such institutions and no longer, . ..' are clearly 

Inapplicable to the facts of the case under consideration, as are 

Sections 2 and 2a of Article 7150; enacted in pursuance thereto 

and equally relied upon by the taxpayer In the lnatant case. 

2 Acts .Lg67, ch. 336, p. 802, 81. 

-6079- 
Honorable Spencer Brown, page 5 (M-1241) 

of a religious faith, and to effect accompanying 

filq religious, charitable, benevolent and educat onal purposes by the dissemination of lnformatlon on,a religious faith through radio, television and similar media of communication. Such 

church,~rellglous'lnstltutlon ,or organization 

shall be, or shall be sponsored by, a faith group, 

denotilnation or association of churches, which 

ordains ministers or. ele.cts Christian Science 

Readers and establl,shes houses of worship completely dedicated to the propagation of the religlous faith of such faith groups, denominations 

or association of-churches." 

This seotlon~la valid Insofar as It Is within the Constltu lonal 

authorizations and llmltatlons of Article VIII, Sectdon 2. 3 

It ia evident that the property described In your request 

la not within the plain terms of the statute In that the property Is not owned by a church or a strictly rellglous lnstltutlon 

or organization. Furthermore, the exemption Eccorded real prope.rty belonging to such Institutions Includes . . . personal property therein and the grounds attached to such buildlnR8 necessary 

for t-proper use and enjoyment of same . ..". (hphasls ours.) 

Stated differently, the authorized 

of religious worship" extends only 

exemption for I'actual places' 

to the real property owned by 

a zhurch or reli+ous institution, 

a building" or house of worship' 

and, further, requires that 

of some kind be erected thereon. 

We thln~k that this conclusion is'necessitated by a long line 

of decisions either approved or written by our Supreme Court. It 

was held in Trinity Methodist Episcopal Church v. City of San 

Antonio, 201 S W b6 (T C 

~parsonad;e'was9note$e~~; 

A 1916 f ) t 

%er ei;h:~~~~~fo~s~~~~~lo~a~ 

authorlzatlon or the then statutory exemption . . . houses 

3 City of Wichita Falls v. Cooper, 170 S.W.2d 777 (Tex.Clv. 

App. 1943 error ref )* Dlcklaon v. Woodmen of the World Life 

Insurance'Soc., 280 i.i.sd 315 (Tex.Clv.App. 1955, error ref.); 

4 Tex.Jur.2d 200, 201, ~64, and authorltlea cited therein. 

(1914;. 

Article 7507, 4 Vernon's Saylea' Texas Civil Statutes 

-6080- 
Honorable Spencer Brown, page 6 (M-1241) 

used exclusively for public worship, the books and furniture 

therein and the grounds attached to such buildings necessary 

for the proper occupancy, use and enjoyment of the same, and 

not leased or otherwise used with a view to profit.” We quote 

the following excerpt from pages 669, 670: 

“The Constitution provides that all ‘t.axatlon 

shall be equal and uniform,’ and that ‘all property 

In this states, whether owned by natural persons or 

corporations, other than municipal, shall be taxed 

In proportion to its value, which shall be ascertained as may be provided by law. I Const . art. 8, 

Bl. To this provision general exceptions are made, 

under which the Legislature may exempt certain property specifically described. Section 2. In conslderlng eXemptlone It is the rule that the law must be 

strictly construed and not enlarged, but confined to 

the very terms of the provision as to the exemption. 

Cooley, Taxation, p, 357. Following this rule the 

burden devolves upon any one seeking an exemption 

to bring himself clearly within the terms of the 

statute ‘or constitutional provision, and further, 

should any reasonable doubt as to the property being 

exempt arise, the doubt must be resolved In favor 

of the government levying the tax. Morris v. Masons, 

68 Tex. 698, 5 S.W. 519. 

* + l + + 

II 

. . . The Constitution undoubtedly Intended in 

granting permission to the Legislature to exempt 

houses used exclusively for rellglous worship from 

taxation to grant permission to exempt the land on 

which the house Is built and other ground on which 

to enter and leave the church and ground Immediately 

surrounding the house which would be ‘grounds attached 

to such buildings necessary for the proper occupancy, 

use and,enjoyment of the same.” What would be necessary grounds would be a question of fact, but this 

would not render the statute unconstitutional. The 

Constitution will not be so construed as to defeat 

its own purposes, which would be the case If only 

the ground actually covered by the house used for 

-6081- 
Honorable Spencer, Brown, page 7’ (M-1241) 

religious worship was exempt. The construction 

must be reasonable and not such as to defeat the 

very end deslred."5 

Although Section 2 of Article VIII was subsequently amended 

in 1928 so ai to authorize legislative exemption of "any property 

owned by a church or by a strictly religious society for,the exclusive use as a dwelling place for the ministry of such church 

or religious society, and which yields no revenue whatever to 

such church or religious society ...",6 the above quoted lnterpretatlon of the authorization for exemption of "actual places 

of rellglous~ worship" remains unchanged.7 

SUMMARY 

Property carried on the ad valorem tax rolls as 

owned by The Church In the Hills, Inc., a defunct, 

non-profit corporation, and having no actual place 

of religious worship thereon, Is not exempt from 

taxa~tioh under Article 7150(l)(a), V.A.T.S. 

5 Later cases enunciating the general principles stated In 

the first quoted paragraph may be found In 54 Tex.Jur.2d 200-206, 

Tsxatlon, 8864-65. 

6 Implemented by the enactment of Article 7150b, V.A.T.S. 

The 1928 amendment has been construed ;y the Supreme Court as empowering the Legislature to determine . . . who, and what activities 

shall constitute the ministry of a church", rather than limiting 

the exemntlon to a dwelling olace for Its mlnlstrv owned and used 

by an lnblvldual church. McCreless v. City of Sak'Antonio, 454 

S.W.2d 393 (Tex.Sup. 1970). 

7 54 Tex.Jur.2d 214-216, Taxation, 869. 

-6082- 
Honorable Spencer Brown, page 8 (M-1241) 

Prepared by Marietta McGregor Payne 

Assistant Attorney General 

APPROVED: 

OPINION COmMITTEE 

Kerns Taylor, .Chalrman 

W. E. Allen, Co-Chairman 

James H. Broadhurst 

Bill Campbell 

Gerald Ivey 

Bob Davis 

SAMTJEL D. MCDANIEL 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

-6083-