HonorableLowell C. Rolt,

DistrictAttorney UpshurCounty Gilmer,Texas

DearMr. Halt: 1966
Opinion No. C-731

Re: Taxability for ad valorem tax purposes of property owned by Radio Church of God and Ambassador College, part of which is used by Imperial School.
Your letter requests an opinion of this office 'concerning theexempt status of a portion of 1525 acres of land In UpshurCounty,Texas, part of which is owned by Radio Church ofGod,a part ownedby Ambassador College and a part of whichIs u'sed

by Imperial School, by RadioChurch of God." which Is a school operated We quote further from your letter.~ ?l!he,facts

concerning this property, a8 well as we can ascertain them, are as follows:
"RADIO CHURCH OF GOD
"TheRadio Church of God was originally chartered in California as a non profit Radio Church corporation on February 20, 1947 and was granted a Certificate of Authority by the Secretary of State of Texas on the 2nd day of October,'lg63. > ?Phepurpose orpurposes which it pursues In the State of Texas are as follows:
"Thenonprofit vocation ofmanaging the temporalaffairs and promoting the splrltual, educational and other benevolent Interest of the Church, and without limitation upon the generality of the foregoing,proclaiming the Gospel by radio, printing, personal evangelism

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HonorableLowell C. Holt, Page 2 (C-731) .-!

and othermeans of com\iniCatLoZ; establishing Churchesand ordaining ministers; operating schoolsand classes for the spiritual Intellectual, and physlcal development'of itsmembers and affiliates; acquiringproperty, real, personal ormixed, and mortgaging, leasing, selling, exchanging or otherwise disposing of the same, subject to theprovlsions, Vernon'sAnnotated Clv'ilStatutes, Miscellaneous CorporationLaws, Article 1302-4.01and Article 13024.05; receiving inter vivos or testamentarygifts and donations, engaging in such other secular activities, permitted by law, as are necessary or expedient to carry out the foregoing.
"The Church activities are financed solely frommembers and contributions from co-workers. Never in thehistory of the Church have funds been solicitedIn any of the Church literature, its world-wide evangelisticand charitable programs; over Its world-wide radio broadcasts nor have any public fund raising campaigns ever been conducted for the financing of the Church.
"Attendanceat the Big Sandy Church services range from 750 to 800 each week. Services are held weekly formembers.
"The Church and its activities are exempt from Federal Taxation because of its religious, charitable and non-profit nature and it should be pointed out that the Church is strictly a religious, educational and charitable organization. Th c 11 f P blic Accounts m, TexEs ~~%soe~d~udg~d it exempt f;om the Corporate Franchise Tax and Limited Sales Tax of the State of Texas. "Facultymembers are transferred from time to time from one campus to the other in order that each of the colleges willmaintain the same

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HonorableLowell C.Holt, Page 3 (C-731)

degree'of scholastic excellence. At each college, certainmembers of the facultyare required to reside on the campus,viz: Heads of Departments, Dean of Men and Women and other AdmInIstratIve Heads.
"AQQroXimately 16,000 people attend the Church worship services each fall and spring. During the year, therewill be three (3)separatemeeting days of the Church for a one day sessionat which a minimum of 1800 people will attend for these three (3) separatemeetings.

"AMBASSADORCOLLEGE
"AmbassadorCollege Is a co-educational liberal arts college with regular faculty, organized on campus studentbody and maintains curriculumat the collegiate level.
"The College Is exempt from Federal Taxation under Section 510 (c) 3 of the Internal Revenue Code. The Comptroller of Public t Accounts, Austin, Texashas also.adjudged it exempt from the Corporate Franchise Tax and Limited.Sales Tax of the State of Texas.
"Ambassador College at Big Sandy is one of three (3)Ambassador Colleges operated and functioning as a college in the world. The original Ambassador College at Pasadena, California was chartered as a nonprofit organizationby the State of'Callfornla on, April 8, 1951. A Certificate ofAuthority was Issued to Ambassador College to operate as a nonprofit corporation In the State of Texas on the 9th day of September, 1963. The purpose of Ambassador College as certified to conduct its activities in the State of Texas are as follows:
"Thosenecessary for the establishment, maintenance and conduct of an educational

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institutionof regular curriculum to Instructand train students for successful lives and for active duty in theministry ofworld-wide evangelism and of organizing and conducting local churches by the Radio Church of God, which purposes Include, but without limitationupon the generality of the foregoing,are: "1) to establish,maintain and conduct an educational institution, co-educational, on the undergraduate levei, in the field of liberal arts and theology, and in conjunctiona graduate school of theology; "2) to own, lease, rent,purchase, receive or acquire suchproperty, both real and personal, asis required for the conduct of classes, academic and business administration, fund raising, dormitory and studenthousing, campus, recreationaland athletic grounds and facilities, laboratories, studies, printing, library, gymnasium, farm properties, livestock and equipment for practical class demonstration and training, and whatsoeverproperty or~facllltles Andyequipment are deemed necessary and desirable for thepurpose of educating and training the enrolled students of this college; "3) to receive and solicitby proper means donations, gifts, endowments, legacies, special funds for specific needs pertaining to the general purposes of the college, or to borrow funds and tomortgage orpledge property as security for same, for the carrying out of the educational purposes of this institution.
"Studentsenrolled in Ambassador Collegeare required topay tuition,but this is only a

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HonorableLowell C. Holt, Page 5 (c-731)

small fraction of the operationalbudget requirements. In fact,Ambassador College operatesat a deficit and is supportedby Radio Church of God. In fact, Ambassador College is a creature of the Radio Church of Godand its charter specifically states 

### that a part of itspurpose Is preparing ministers of the Radio Church of God through Its school of theology.

"IMPERIAL SCHOOL
'Inaddition to Ambassador College, Imperial School, which is at the elementary and high school levels;13 conducted on theproperty In the name of Ambassador College and Radio Church of God referred to herein. All of Its activities have also been exempt from Federal Taxation under Section 510 

### (c) 3 of the Internal Revenue Code. The Comptroller of PublicAccounts, Austin, Texas, has also adjudged It exempt from the Corporate Franchise Tax and Limited Sale3 Tax of the State of Texas. Imperial School Is financed by the Radio Church of God.

"USES OF ACREAGE
"The entire acreage owned by thehereinabove mentioned institutions is shohnby a map attached hereto and made a part hereof marked Exhibit 'A'. It will be noted that the tractsare numbered and are colored in various color3 for thepurpose of showing more clearly the different use8 being made of the various tract3 owned by the instltutlon named.
"Those tracts of land colored red, viz: numbers 1, 2, X-3, 4, 9, 10, 11, 12, 13, 14, 15; 1.6, 26, 27 and 28 are used exclusively for religious, charitable and educational purposes. This use Includes the buildings, grounds and Improvements, none of which Produce any Income or revenue to Ambassador

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Honorable Lowell C.Holt, Page6 (C-731)

College,Radio Church of God or Imperial School. School,College, Church and/or maintenance buildings along with dormitories, school dininghalls, facultyhouses, recreational grounds and encampment grounds are located

### in this area. Upon an eXaminatlOn and Investigationof the grounds, we come to the conclusion that this area and the facilities,buildings and grounds located thereonare necessary to fulfill the requirements of the School, College and Church.
"A smallportion of tractsnumbered 2 and 9 are outlined in yellow for the purpose of showing certainuses being made of that particularportion, which 13 explained as follows:
"On thisyellow portion, Radio Church of God and Ambassador Collegehave constructed residenthouses. Ten of thesehouses are occupiedby heads of departments, dean of women and dean ofmen, and the superintendent of buildings, grounds and maintenance. These facultymembers and.superintendent of buildings, grounds and maintenance are paid regular salariesand are required to~live in the residences furnished by the School and Church. Theypay no rent for the occupancy of same. The houses used by the facultyproduce no income or revenue for the Church or School. These various facultymembers are required to live on the campusbecause the School is co-educational and the College authorities feel that this 13 necessary in order tomaintain the high degree ofmorality required by its students. However, amajority of the facultymembers and employees of the Church, College Andy School live off campus in neighboring towns. "Sixhouses are occupiedby ministers of the Radio Church of God, who are also faculty members. The Church furnishes thesehouses to itsministers as provided under Article 7150b,V.A.C.S.-3517-.. .

HonorableLowell C. Holt, Page 7 (c-731)

'Those tracts colored blue, viz: number3 5, 6, 7, ,8, l?, 13, 13, 20, 21, 23, 24 and 25 are ownedby the Church and School but they are being used for grazing and farming purposes and~though a part of theproducts comings from these tract3are used in connection with the Churchand School, a major portion of such products are sold commercially and are not a part of those tracts enumerated above which are used for religious and educationalpurposes. These tracts In the future, or a portion of them, will probably be used In connection with an agricultural program to be offered by the College, said tracts tobe used a3 experimental farms and demonstration In suchprogram, but at the present time they are not being used a3 such and In our ,opinlon, based on the brief submitted herewith, they are not subject ;40tax exemption under the laws of our State.
We wish to acknowledge the excellence of the brief whichyouhave submitted In connection with your request and concur in your conclusion that the tracts being used for grazingpurposes, to wit, tractsnumber3 5, 6, 7, 8, 17,18, 19, 20, 21, 23, 24 and 25 are not exempt from ad valoremtaxation. St. Edwards College v. Morris, 82 Tex. 1, 17S.W. 512 (18911.
It Is not theprovince of this office topass on questionsof fact. With regards to tracts 1 2, X-3, 4, 9, 10, 11, 12, 13, 14, 15, 16 26 27 and 26 you make thefollowing statementsat pige 4 of'your brief:

If

. . . 'Ihe

buildings, land, play ground3 and Improvementsare necessary to the threefold operation of the organizations. These grounds, buildings, Improvements and other facilities are used jointly bx the Church and educational institutions.
Basedon theassumption that these statement3 are factually correct,we also concur in your conclusion that these tracts are exempt from ad valorem taxation. We have reached our cOnClUSl?nSIn view of the following constitutional and statutoryProvisiqnsand their construction by our courts.

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Honorable Lowell C. Halt, Page 8 (C-731)

Sec"lcn o of Prt!cln ” L , - VIII of the Texas Corstltutlon authorizes the Legislature, within the llmltations therein prescribed, to grant certain exemptions from ad valorem taxes. Secticn2 provides, in part, as follows:

1, law: * the legislaturemay, by gz;;~i exempt from taxation placks or fif7 religious worship, also any proper'ijrwnedby a church or by a strictly religious society for the exclusive use as a dwelling place for theministry of such church or religious society, and which yields no revenue whatever to such church or religious society;provided that such exemption shallnot extend tomore property than 1s reasonablynecessary for a dwelling place and in no eventmore than one acre of land;

. . .all buildings used exclusively and ownedby persons or associations of persons for school purposes and the necessary furniture of all schools

. . . ."
Pursuant to these authorizations, the Legislature enactedArticles 7150 Andy7150b,Vernon's Civil Statutes. Article 7150 reads, In part, as follows:

"The followingproperty shall be exempt from taxation,to-wit:
"1. Schools and Churches. Public school houses and actual places of religious worship, also any property ownedby a church or by a strictly religious society, for the exclusive use as a dwelling place for the mtnlsters of such church or religious society, the books and furniture therein and the grounds attached to such buildings necessary for the proyg ;;;~euPancy,

use and enjoyment of and which yields no revenue whatever'to such church or religious society;provided that such exemption as to the dwelling place for theministers shall not extend tomore~property than Is

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HonorableLowell C. Holt, Page 9 (C-731)

reasonably necessary for a dwelling place and inno event tomore than .one acre of'land.

. . .a~nd all such buildings used exclusively and owned by persons orassoclatlons,,of persons for schoolpurposes;
. . , Article 7150b reads a8 follows: "There.1~hereby exempted from taxation any property owned exclusively and In fee by a church for the exclusive u3e as a dwelling place for theministry of such church and which property yields **n3** revenue whatever to such church;provided that such exemption shallnot extend to 'more property than is reasonably necessary for a dwelling place and ln no event more than one acre of land; and provided further, that the fact that theministry uses a portion of the dwelling as their study, library or office shallnot prevent the property from being considered as being used exclusively as a dwelling place. For purposes of this Act, 'church'Includes a strictly religious. society; and 'ministryof such church'means these persons whose principal occupation is that of serving In the clergy, ministry, priesthood or presbytery of an.organized church or religion, whether they are assigned to a local church parish, synagogue, cathedral or temple or to Some larger unit of the church organizationand whether they {erform administrative functions or not.
We are here faced with the appllcablllty and, as we view It.,the overlapping of several exemption provisions. The "actualplaces of religious worship" on the tracts arewithin theplain and unambiguous language of both the statute and the Constitution and are exempt. Furtherm'ore, thestatutoryprovision exempting "thegrounds attached to suchbuildingsnecessary for theproper occupancy, use and enjoymentof the same, and which yields no rexenue whatever to such church or religious society. Is not limitedto the church building proper, and'g;ounds necessary

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HonorableLowell C. Holt, Page IO (C-371)

to give access to the church or from o;?e part of the church to another.but Includes land3 around such buildings reasonably necessary for convenient ingress and egress, ilght;alr, or appropriate ornamentation. City of Houston v. Cohen, 204 S.W.2d671 (Tex.Clv.App.1947, error ref., n.r.e.). As pointed
E% 2s 2Cl
"necessary be

ground3 would be a question of fact. Adverting to your description of tract3numbered 2 and 9, you state that "Sixhouses are occupied by ministers of the Radio Church of God, who are also facultymembers". You suggest that thesehouses are furnished to theministers In accordancewith theprovisions of Article 7150b. ExemDtion cannotbe accorded under theprovisions of'7i50b In view of City of Houston v. South Park Baptist Church, 393 S.W.2d 354 lTex.Clv.App. 1965. error ref.) which~held that Section 2 of ArticleVIII authorizes the Legislature to exemptonly one dwellingplace for theministry of the church. If these dwellings are to be exempt, It would be by virtue of the fact that theministers are also facultymembers. We pass, therefore, to a consideration of whether this use of thesebulldlngsby ministers as facultymembers brings thisproperty within the exemptionprovided in Article 7150 for "all such buildingsused exclusively and owned by persons or assoclatlons ofpersons for schoolpurposes;'

. . .I'
We quote and‘reafflrm the following excerpt from Attorney General'3 OpinionNo. C-l (1963).

"Ahouse owned by a school 13 exempt from taxation, even thougha faculty member or student thereof reside therein, If such residence Is to afford protection, guldante and training to students outside of the classroom, or if such residence 1s for the convenience of the college by reason of their residing at thatparticular localitywith reference to their obligations to the school, or for some reason with reference to the.

property Itself which Is the concern of the college rather than of themselvesand Is In fact used exclusively for schoolpurposes. Cassiano v. Ursullne Academy (supra);Red v. Morris (supral;

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Smithv. Feather, 229 S.W.2d 417 (Clv.App. Tl 01 ludgmentreformed snd affirmed Tez5 462* 234 S W 2d 418 (1950); Universliyv. !&orne, Cornell149
57 N.Y.S.2d.TN.Y. s C 194 ). OpinionNo. V-09 ofAttorney G~~era~'of ?'zx& (1947)."

Ever since the decision of the Supreme Court in Cassiano v.UrsullneAcademy, 64 Tex. 673 (18851, the policy of this Statehas conslatentlybeen proclaimed to be as stated at page 675 of that opinion.

"It has been the policy of the state since 1849 to encourage educational enterprise3 by exempting them from any share of the burdens
108f7 2overnment.

. . . The constitution of so far frommodifying thispolicy, makes munltlcent provisions for the maintenance of free schools. There has been no antagonism between the public and private schools to warrant the Inference that the framers of the constitution, !n the use of the word building, Intended a spiteful dlscrlmlnatlon againstprivate schools.
"Theeducation of themasses is now recognized as a function of state government. Those who, from charitable considerations, to forward sectarianviews, or for private profit, have organized or conducted schools, have assisted the state in the performance of a duty It owes to Its citizens, which cannot be too thoroughly performed,and which the statehas never assumed that Ithad either themeans or themachinery of doing sufficiently well without private asslstante. !Phe.Ursuline Academy 1s performing Its part in this branch of the public service, and it shouldrather be encouraged by aids, than impaired In its usefulness by a tax upon its pitiful revenues.

0

. . . . "All thebuildings and all the land sought to be sold by appellant were necessary and used for theproper and economical conduct of the

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Honorable Lowell C. Halt, Page 12 (C-731)

The moot resent aoknowledgment of this ease by our Supreme Court is 851, 856 River Oaks Garden Clubv. City ofHouston, 370 S:W.2d

193). school.

. . The grounds were used for the recreation of thepupils, and to'supply the schoolwith vegetables. Authority Is not wanting to extend the exemption to land much less directly employed to forward the interests of the school.

. . ,'I

Assuming thatyou are correct in your determination as a fact thatall of the buildings, land, play grounds and improvements comprised In tracts 1, 2, x-3, 4, 9, 10, 11, 12, 13, 14, 15, 16, 26, 27, and 28 are presently used solely and exclusively -foreducationalpurposes, we reiterate thatwe concur In your conclusion that the above numbered tractsare efempt from ad valorem taxation.

SUMMARY

Actual places of religious worship on land which belongs to the Radio Church of God are exempt from ad valorem taxes as is the land,around suchplaces reasonably necessary for convenient ingress and egress, light, air or appropriate ornamentation. All of the buildings and all of the land which are necessary and properly used to forward the interest of Ambassador College and Imperial School are exempt from taxation. The land whichbelongs to Ambassador College and which is used for grazing and farmingpurposes is not exempt from ad valorem taxation.

MMP/fb Yours very truly,
WAGGONER CARR Attorney General

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HonorableLowell C. Holt, Page 13 (C-731)

APPROVED:
OPINIONCOMMITTEE
W.V. Geppert,Chairman Marion Obledo W. E Allen PatBailey KernsTaylor
APPROVEDFOR THE ATTORNJS GENERAL BY: T. B. Wright

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