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 

### furniohingof 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 exqtBon. John C. Marburger, April lO, 1938, Page 3

from forced sale and from taxation. * l l*

In a cunf'aranaeopinion 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 have

been ua ahle

to find

any l t8tuto

*i ohSndSest~ 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~ 

### 'toeof QfO.00,aud ~76 that **they “Ohsll**  **be ’** **wt fra**  **&l other**  **exol8e taxe8**  **of whatever**  **klud** or **a8turey lw.6**  **exproa~** 4 x aupfi onl .toexoioe 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 prove ito l l 0. lh

### emptl.one

trem taufiea mre net tsvo rea, 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 om. taxation mwt be 

### striotl7oonstlu4dboth 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 subsequeptilymaended, 

### emauerateeo list ot jwoperty, whlah is exempt from taxation. .It mlgtht pow&B17 be am&end-Bon. JO~IIC. 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 ,TexssBnplo78r8~ I.a&awioe A84so* tlon ~8. city of D8llw (Dsller Coart of C1vl.lApp44l*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- : ~~ pen@ @tion JAW* e+ l @wrl meat sl @ g ell a7* sud 88 al m# - cmf tiaed to 4xmoptl4nfrml tax4tion~the Cit7ofDalla* ti4abal-t .cupresslj overruled this mateaWn. In that aase; lleqwt4 frea fhe 4pe

aaldlaw, the state dldnot 

### thsrebf4lothe 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.88emreig4 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-sssess

### able 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.xwhich 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%onorganiaednnder 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.

..”