Honorable Lowell C. Rolt, 

District Attorney 

Upshur County 

Gilmer, Texas 

Dear Mr. 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 the exempt status of a portion of 1525 acres of land In 

Upshur County, Texas, part of which is owned by Radio Church 

of God, a part owned by Ambassador College and a part of 

which Is u'sed by Imperial School, 

by Radio Church 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 

"The Radio 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. 

> 

?Phe purpose or purposes which it pursues 

In the State of Texas are as follows: 

"The nonprofit vocation of managing the 

temporal affairs 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 

-3512- 
. 

Honorable Lowell C. Holt, Page 2 (C-731) 

.-! 

and other means of com\iniCatLoZ; 

establishing Churches and ordaining 

ministers; operating schools and 

classes for the spiritual Intellectual, 

and physlcal development'of its members 

and affiliates; acquiring property, 

real, personal or mixed, and mortgaging, 

leasing, selling, exchanging or otherwise disposing of the same, subject to 

the provlsions, Vernon's Annotated 

Clv'il Statutes, Miscellaneous Corporation Laws, Article 1302-4.01 and 

Article 13024.05; receiving inter 

vivos or testamentary gifts 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 

from members and contributions from co-workers. 

Never in the history of the Church have funds 

been solicited In any of the Church literature, 

its world-wide evangelistic and charitable programs; over Its world-wide radio broadcasts nor 

have any public fund raising campaigns ever been 

conducted for the financing of the Church. 

"Attendance at the Big Sandy Church services 

range from 750 to 800 each week. Services are 

held weekly for members. 

"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. 

"Faculty members are transferred from time to 

time from one campus to the other in order that 

each of the colleges will maintain the same 

-3513- 
. . 

Honorable Lowell C. Holt, Page 3 (C-731) 

degree' of scholastic excellence. At 

each college, certain members of the 

faculty are 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, there will be 

three (3) separate meeting days of the 

Church for a one day session at which a 

minimum of 1800 people will attend for 

these three (3) separate meetings. 

"AMBASSADOR COLLEGE 

"Ambassador College Is a co-educational 

liberal arts college with regular faculty, 

organized on campus student body and maintains curriculum at 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, Texas has 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 

organization by the State of'Callfornla on, 

April 8, 1951. A Certificate of Authority 

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: 

"Those necessary for the establishment, 

maintenance and conduct of an educational 

-3514- 
Honorable Lowell C. Halt, Page 4 (c-731) 

institution of regular curriculum to 

Instruct and train students for successful 

lives and for active duty in the ministry 

of world-wide evangelism and of organizing 

and conducting local churches by the Radio 

Church of God, which purposes Include, 

but without limitation upon 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 conjunction a graduate school of 

theology; 

"2) to own, lease, rent, purchase, 

receive or acquire such property, both 

real and personal, asis required for 

the conduct of classes, academic and 

business administration, fund raising, 

dormitory and student housing, campus, 

recreational and athletic grounds and 

facilities, laboratories, studies, 

printing, library, gymnasium, farm 

properties, livestock and equipment for 

practical class demonstration and training, and whatsoever property or~facllltles 

Andy equipment are deemed necessary and 

desirable for the purpose of educating 

and training the enrolled students of this 

college; 

"3) to receive and solicit by proper 

means donations, gifts, endowments, 

legacies, special funds for specific 

needs pertaining to the general purposes 

of the college, or to borrow funds and 

to mortgage or pledge property as security 

for same, for the carrying out of the 

educational purposes of this institution. 

"Students enrolled in Ambassador College are 

required to pay tuition, but this is only a 

-3515- 
‘. 

Honorable Lowell C. Holt, Page 5 (c-731) 

small fraction of the operational budget 

requirements. In fact, Ambassador College 

operates at a deficit and is supported by 

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 its purpose Is preparing 

ministers of the Radio Church of God 

through Its school of theology. 

"IMPERIAL SCHOOL 

'In addition to Ambassador College, Imperial 

School, which is at the elementary and high 

school levels;13 conducted on the property 

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 Public Accounts, 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 the hereinabove 

mentioned institutions is shohn by a map 

attached hereto and made a part hereof 

marked Exhibit 'A'. It will be noted that 

the tracts are numbered and are colored in 

various color3 for the purpose 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, Page 6 (C-731) 

College, Radio Church of God or Imperial 

School. School, College, Church and/or 

maintenance buildings along with dormitories, 

school dining halls, faculty houses, recreational grounds and encampment grounds are 

located in this area. Upon an eXaminatlOn 

and Investigation of the grounds, we 

come to the conclusion that this area and 

the facilities, buildings and grounds 

located thereon are necessary to fulfill the 

requirements of the School, College and 

Church. 

"A small portion of tracts numbered 2 and 9 

are outlined in yellow for the purpose of 

showing certain uses being made of that 

particular portion, which 13 explained as 

follows: 

"On this yellow portion, Radio Church of 

God and Ambassador College have constructed 

resident houses. Ten of these houses are 

occupied by heads of departments, dean of 

women and dean of men, and the superintendent of buildings, grounds and maintenance. 

These faculty members and. superintendent of 

buildings, grounds and maintenance are paid 

regular salaries and are required to~live 

in the residences furnished by the School 

and Church. They pay no rent for the 

occupancy of same. The houses used by the 

faculty produce no income or revenue for 

the Church or School. These various 

faculty members are required to live on the 

campus because the School is co-educational 

and the College authorities feel that this 

13 necessary in order to maintain the high 

degree of morality required by its students. 

However, a majority of the faculty members 

and employees of the Church, College Andy 

School live off campus in neighboring towns. 

"Six houses are occupied by ministers of 

the Radio Church of God, who are also faculty 

members. The Church furnishes these houses 

to its ministers as provided under Article 

7150b, V.A.C.S. 

-3517- 
. . . 

Honorable Lowell 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 

owned by the Church and School but they are 

being used for grazing and farming purposes 

and~though a part of the products comings 

from these tract3 are used in connection 

with the Church and 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 educational purposes. 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 to be used a3 experimental farms and 

demonstration In such program, 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 ;40 tax 

exemption under the laws of our State. 

We wish to acknowledge the excellence of the brief 

which you have submitted In connection with your request 

and concur in your conclusion that the tracts being used 

for grazing purposes, to wit, tracts number3 5, 6, 7, 8, 

17, 18, 19, 20, 21, 23, 24 and 25 are not exempt from ad 

valorem taxation. St. Edwards College v. Morris, 82 Tex. 

1, 17 S.W. 512 (18911. 

It Is not the province of this office to pass on 

questions of fact. With regards to tracts 1 2, X-3, 4, 

9, 10, 11, 12, 13, 14, 15, 16 26 27 and 26 you make 

the following statements at pige 4 of'your brief: 

If 

. . . 'Ihe buildings, land, play ground3 

and Improvements are necessary to the threefold operation of the organizations. These 

grounds, buildings, Improvements and other 

facilities are used jointly bx the Church 

and educational institutions. 

Based on the assumption 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?nS In view of the following constitutional and statutory Provisiqns and their construction by our courts. 

-3518- 
. . 

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

Sec"lcn ” o L of Prt!cln , - VIII of the Texas Corstltutlon 

authorizes the Legislature, within the llmltations therein 

prescribed, to grant certain exemptions from ad valorem taxes. 

Secticn 2 provides, in part, as follows: 

1, 

law: * 

the legislature may, by gz;;~i 

exempt from taxation 

placks or fif7 religious worship, also 

any proper'ijrwned 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; provided that such exemption 

shall not extend to more property than 

1s reasonably necessary for a dwelling 

place and in no event more than one 

acre of land; . . . all buildings used 

exclusively and owned by persons or 

associations of persons for school 

purposes and the necessary furniture 

of all schools . . . ." 

Pursuant to these authorizations, the Legislature 

enacted Articles 7150 Andy 7150b, Vernon's Civil Statutes. 

Article 7150 reads, In part, as follows: 

"The following property shall be exempt 

from taxation, to-wit: 

"1. Schools and Churches. Public 

school houses and actual places of 

religious worship, also any property 

owned by 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 the ministers 

shall not extend to more~property than Is 

-3519- 
,., . 

Honorable Lowell C. Holt, Page 9 (C-731) 

reasonably necessary for a dwelling 

place and in no event to more than 

.one acre of'land. . . . a~nd all such 

buildings used exclusively and owned 

by persons or assoclatlons,,of persons 

for school purposes; . . , 

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 the ministry of 

such church and which property yields n3 

revenue whatever to such church; provided 

that such exemption shall not 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 the ministry uses a portion of the dwelling as their study, library 

or office shall not 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 'ministry of 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 organization and 

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 "actual places of religious worship" on the tracts 

are within the plain and unambiguous language of both the 

statute and the Constitution and are exempt. Furtherm'ore, 

the statutory provision exempting "the grounds attached to 

such buildings necessary for the proper occupancy, use and 

enjoyment of the same, and which yields no rexenue whatever to such church or religious society. Is not 

limited to the church building proper, and'g;ounds necessary 

-3520- 
., . 

Honorable Lowell 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.2d 671 (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 tract3 numbered 2 and 

9, you state that "Six houses are occupied by ministers of 

the Radio Church of God, who are also faculty members". You 

suggest that these houses are furnished to the ministers In 

accordance with the provisions of Article 7150b. ExemDtion 

cannot be accorded under the provisions 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 

Article VIII authorizes the Legislature to exemptonly one 

dwelling place for the ministry of the church. If these 

dwellings are to be exempt, It would be by virtue of the fact 

that the ministers are also faculty members. We pass, therefore, to a consideration of whether this use of these bulldlngs by ministers as faculty members brings this property 

within the exemption provided in Article 7150 for "all such 

buildings used exclusively and owned by persons or assoclatlons of persons for school purposes;' . . .I' 

We quote and‘reafflrm the following excerpt from 

Attorney General'3 Opinion No. C-l (1963). 

"A house owned by a school 13 exempt from 

taxation, even though a 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 that particular 

locality with 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 themselves and Is In fact used exclusively for 

school purposes. Cassiano v. Ursullne 

Academy (supra); Red v. Morris (supral; 

-3521- 
.., . 

Honorable Lowell C. Holt, Page 11 (C-731) 

Smith v. Feather, 229 S.W.2d 417 (Clv.App. 

Tl 01 ludgment reformed snd affirmed 

Tez5 462* 234 S W 2d 418 (1950); 

Universliy v. !&orne, 

Cornell 

149 

57 N.Y.S.2d.TN.Y. 

s C 194 ). Opinion No. V-09 of Attorney 

G~~era~'of ?'zx& (1947)." 

Ever since the decision of the Supreme Court in Cassiano 

v. Ursullne Academy, 64 Tex. 673 (18851, the policy of this 

State has conslatently been 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 2 

overnment. . . . The constitution of 

so far from modifying this policy, 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 

against private schools. 

"The education of the masses is now recognized 

as a function of state government. Those who, 

from charitable considerations, to forward 

sectarian views, 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 state has never assumed 

that It had either the means or the machinery of 

doing sufficiently well without private asslstante. !Phe.Ursuline Academy 1s performing Its 

part in this branch of the public service, and 

it should rather be encouraged by aids, than 

impaired In its usefulness by a tax upon its 

pitiful revenues. 

0 

. . . . 

"All the buildings and all the land sought to 

be sold by appellant were necessary and used 

for the proper and economical conduct of the 

-3522- 
.‘ . . 

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 Club v. City of Houston, 370 S:W.2d 

193). 

school. . . The grounds were used for 

the recreation of the pupils, and to'supply 

the school with vegetables. Authority Is 

not wanting to extend the exemption to land 

much less directly employed to forward the 

interests of the school. . . ,'I 

Assuming that you are correct in your determination as 

a fact that all 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 

-for educational purposes, we reiterate thatwe concur In your conclusion that the above numbered tracts are 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 such places 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 which belongs to Ambassador 

College and which is used for grazing and 

farming purposes is not exempt from ad valorem 

taxation. 

MMP/fb 

Yours very truly, 

WAGGONER CARR 

Attorney General 

-3523- 
,* . 

. . 

Honorable Lowell C. Holt, Page 13 (C-731) 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Marion Obledo 

W. E Allen 

Pat Bailey 

Kerns Taylor 

APPROVED FOR THE ATTORNJS GENERAL 

BY: T. B. Wright 

-3524-