OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

April 19. 3039 

Donorable John C. iiarburgcr 

County Attorney, Fayette County 

La Orange, Texas 

Dear Sir: 

persons in rural area& or the ~~aaquisitiexi, ‘supply, 
Uon~ John C. Yarburger, April 39, 1936, Page 2 

or bstallation of 

ment therein; 

eleatriaal or plxnubing epuip- 

(3) The furniohing of eleatrla mergy, wiring fa6flitles, electrical or pluabtig equipment, 

or services to suy other corpor8tiens organiced 

uuder this Act or to the members thereoS.w 

Seatlon 30 of the lot providesa 

aCoiporatlons fonuedherewder shallpq snnultll7# on or betore My tint. to the SeorMlary 

OS statq rlieeaBefeeo?~ea~llar8 ($l0)uld 

suah oorpoawaon8 ahall be arrcrrpt frtmrzl ofher 

0xas.M axe8 of mlmtrosror nnd or aaaurqr 

Artiale rirr, seotion a u Qeuded in ls2R 

sAll'ownspat%on taxes shallbe equal sndunlfknm 

eremption~ &a-e aaumeratsd iwluding camrehe~ 

sohoole snd Xi Y. C. A%,) l l .*.and i&l la80 exaupting prepert7 frem tuefion ether thsn the propert7aborementi0Wd 8hd.l bemxll sndvel.d+* 

Art&ale U, SeMiion 9. sTbapropert7oi 

wanties, cities and Uwn& ened -6 held only 

ior pnblio purpose!& Saab ss publie Duildillgs 

and the sites therefor. ltlre angtnes and the 

furniture thereof, and all prope+y us* or 

intended for e%tinguishi~qst%re% publla gounds 

anballotherproperf~dmofedar~uclhaty'fo 

the use and benefit of the publia shsll be exqt 
Bon. John C. Marburger, April lO, 1938, Page 3 

from forced sale and from taxation. * l l * 

In a cunf'aranae opinion of this department, dated 

September 26, 1932, and addressed to the Honorable James V. 

Allred, Attame- General, it WAS held that the club honn 

of the Texas Federation of Wmans*-Clubs'in Austin was mt 

exempt from taxation by the state, city, mmty.anU sabaol 

dietriot, although the building was uoad partl7, though 

not solely, for educational and aharltable purposes. Ue 

quote from that opinion: 

'Be it rsmembered that the Constitution does 

not exanptarqprop4rtyfraa taxatl4n. InSea' 

R of Artule VIU Ln eqlre*s tem~, the oonatltutlon umloriE46 the Leglalafclre, by gon4r8l lue# 

to~~~~8~noertalnpropert78o~t 

wrtbsdlno~so4t~ 

4plJing this reuoning to the QIIerrfioa St h8ud - 

~4 h a ve b een ua a h lte o find a ny l t8tuto *io h SndSest~ mn 

iateutden 0x1 ths part or the logUlrtar4 ~44ifi44ll7 te 

e%Qpt iron fu8tsen the PIPJ. oleotalfa4at¶.4n 44rporatl4ne 

lacoaperated unds~ Artdale 11IwI-b, ualesa it be !loetlen .a 

th4r44t.(t#lmDt4d~b4vo), 4hiahprPVi&m au -'1144444~ 

'toe of QfO.00, aud ~76 that they “Ohsll be’wt fra &l 

other exol8e taxe8 of whatever klud or a8turey lw.6 exproa~ 

4 x a up fio n l .to exoioe tp48 ammat po68ibly b4 ~aon8tmea 80 

u:,w 4ayw.d~valores1 taxes of the stat* oount)i or s43boox 

cUs*iat*r 

d2IAOd. 

Tuoxemptionah8v4alwaynbeem 8ttiatl7 4040 

Vurden ia on fbeper4on 4ldniag 4xempti4n 

from tax8t1on to dew17 pro ve ito l l 0. lhemptl.one tr em taufiea mr e net tsvo r ea , ml& t& ii 

18~ allariry thm, shauldbe glV4n 4triatiMmpretat%ctzP - 34xmalaat and Pmt4atiVe Order of 

the Elks Vm- City of Sausteu, U S+K (ml) &S. 

=Ibemptioaa frm~ tamtirrn~melnderogat&oa 

not onl7 ot atereign anthor*ity, but of aamoa 

rights l l .*. kieaptloar fr o m. taxation mwt b e 

striotl7 oonstlu4dboth aeto th4m4ealu&0f 

the mtstqtes gantiag, and as ta the power of 

the Legislature Wetmat thm*y Jon48 Ve. VIIllane, 44 s*w, (38%) 130. . 

Artiale ViM af the R4VMetI U*VU Statutes of Texas, 

mg5, as subsequeptily maended, emaueratee o list ot jwoperty, 

whlah is exempt from taxation. .It mlgtht pow&B17 be am&end- 
Bon. JO~II C. garburger, April 181. l938~ Page 4 

ed that the Fayette Electric Co-operative, Ina. comes vlthiu the cx&ption contained ln Section 4 thereof, which reads 

in part: 

*Public Property--AI1 property, Whether real 

or personal, belonglug exaluslYelp to this State, - 

OF any political subdivision thereof l c cr.. 

It 1s our opinion that wrporatlons foneed uuder 

the hIeotrla cooperative Corporation Act cauuot quaIlfy as 

l political subdlvl8lons* of the State, nor do the purposes 

for which such aorporatlons may be orgaulzed, as ezmnerated 

In Section 3 of the Act (quoted above) come rlthlu the deflultlunof*pubIio purposes~, rhiob ArtiolevII4 t34atlont 

of the Tex44 Constitation. 1878 dam 44 opre~quldt4?4r 

elAglbi.llt~ ior tax exemptioatr 

In the 4444 of ,Texss Bnplo78r8~ I.a&awioe A84so* 

tlon ~8. city of D8llw (Dsller Coart of C1vl.l App44l*mp1~1 

rrit Of error r4f~84d)'S &Se O&l) 614r if 488 o@ateaded thrf 

ml4 Texas mp&o7eFs* lmaurume Assooiatl6~ ehbh was 4reatea 

b7theLe&$8l~txweum int4grl.paFtortb4w4m#4.tea- : ~~ 

p en@ @ tio n JAW* e+ l @ wr lmea tsl @ g ella 7* sud 88 a lm# -c mftia ed 

to 4xmoptl4nfrml tax4tion~the Cit7ofDalla* ti4abal-t 

.cupresslj overruled this mateaWn. 

In that aase; 

lle qwt4 frea fhe 4pe 

aaldlaw, the state dldnot thsrebf 4lothe aueb 

agenoy with governmeatql furmtioas. If.8 operabing 

'SunUs are~deriredfromthepurel7~laat4r7 8atof 

the mplo7er8 of labor, sad aot from the ublia 

bevsnues levied aud eolleated by the %ap ef ling _'.. 

power OS C;otem+snt. 

~Tsxee are leried b7 the state'rtnber ii.8 8emreig4 power on'the property-of the oitl8eu for govsrumental purposes oal7, aadao pprt of tlaemoim7 ,<rollected b7 defeadqt ever beoomes public remmae* It 

Is used to disahsrge the obligations lzmarred aud4r 

the'lnsumuae pollqieii issaed by It, to pay the o*ersting expensea, and ii, at t&e eadof auy calendar 

year, there Is a surplus bsyond that required by the 

law to be maintained in order to vrlte 8'mn-sssessable policy, such surplus Is dietrlbuted luthe fom 

of dIvIdenda to the subsariberq, U&J correspond to 

the stochholders of a private wrporatlos* 
The wurt then referred to the above-quoted provision of dpticlc Tl,SC, Seation 4, H.C.S., and said: 

"This statute must be construed ln the light 

of the constitutional grant of power, and 1s and 

wasso construed by our Supreme Court in the aase 

of St. Edwards' College Y. horrls, R2 Tex. 1, 17 

6.1. 512, 3.x which it Is declared that, to bring 

property uithin this exemption - ** * l it Is bellevcd that the omershlp should be in the state 

or some of its nunlolpal subdivisions, and it may 

be that Its use would have to be'not only under 

their control but for a purpose for uhlch the 

state or 8ucIl muufalpal subdivisiOns are authorlwd to use property held by them for the banafit of the public *~'* 

We bqliave that the,~poeltion of da el4otrla woperative oorporot%on organiaed nnder bt+tie i52e-b RGfh; 

18 &Ud8&34US to that Of the Dmuranoe A4*04ipt~0a l.a fihe 

above aase, with reSerence to t~8b~it~~ We 8444Fd$S4&7 

r4ap4atfully 4dd84 that we aonaur l.4 Joau- eplaioa that 

t&e Fayette Ioe&rSo 0o-Operative, Inam is embjeat fo -tax8tiOIl b$ the St&g .oOUUtJt SohOOl aStti4t8, 4t4yI -%a 

WhidA it 4VZkS prOp4Ft7. 

..”