OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN



# * r----J’ \

srty real or permnal bebelonging 0%010eio*4 to Di8tzllots aa& Authorlties~orerted or lnoorporatad under law8 emaoted gureuant to seotlon 59, Ae1010 xyx ~of the Oomtitution~ provldwd thut If any 

### i IHr. Rio L. Ladner, Page 2

meh Dl8trlot or **AUthOrtty ha8**  heretoion a@- qulred or does hereafter 

### aoqulre property vhloh at tlm tZme of rooh aoqulsltlon la or was then rrnbjeotto **taxation,** and lm at the tltpeof **it8** ao@.8ltlOn being ueod **r0r** gen

### orating, trsnamlttiog, .anddlstrlbutlng eleotM.o energy or power, nuoh Dietriot or **Au** thority rbmll at the **flute8 pre8orlbed**  by lav 

### for the paymentof ad vaLoren taxen makea payment in llelaof taxes **to** the stat. of **Texan** and to the ootmty, ,olty, and mob taxing dlstrlots vithln whlob muoh property 18 8ltUated; 8uohpaymerltlnlleUoftaxe8 tobe in the amount vhlah would be roelimed by&my-~ an ad vslorem tmx at the ourrent ratesfor then aurrent tax year baaed oa the a88e88ed valus of **8uah** property for the **last ourrent**  tax year before beiae **aaqubed** by~tiohDi8trlot 

### or Authority; provided further that no pmy-~ ment shall be made vlth nrpeot to nay propertp no longor ovned by 8ueh Dlmtrlat 

### or **Ati** thortty **r0r** generating, tranamlttlug, or dl.8.. trlbutlng eleotrio energy oe paver. Suoh pay

### I **mentti~lbu0ftaue88hbllbemadeoutof**

the revea~em reaeived by 8uah Dietrlot 0~ **Au** thorlty from thagenerailon, tsanm=l88lon, 

### or dlstrlbutlon of eleotrL0 

### paver and energy aad the liability 

### Sor aama 

### shall aonatltuts a llea **Or** 

### OIV3WBb~OO **OUIf In**  **thO %WCUUiO8**  **Of** 8UOh Dirtrlot or **AuthorU~ snd**  **8hall be**  **Oaxl8idered 88**  

### a **part of**  **the operating**  **0xpen864*** **speolr** iaally, no paymelltll ehall be made in lleU or -.- taa aa wtth nepeat to dmmm, dapleltes, remorvolr axwa8, mnd water dlatributing or lrrlgation 8nteme. It ia the expresrredleglrlatlve lntent~of thla **Aot** that suoh Dletrlots or **Au** thorlt$O8 plakepaykwnts flillOt3Of tsXe8 Only vlth **respeot to**  **propertier** 

### vhlah **at the**  **time** oi their aaqt<lon vere on the ad valollaa tM X'OllSOf th@ St8t.OOf 'PeXm8OZ'Of snf colilltp,

city, **or** mny other taxins Distrlot of 

### the State of Texas and vhbh **at** 

### the time ofNr. Xl0 'LrLadner, Page 3

the aOqui8ltloP mre being U8ed iOr.@UAeFatiryli:

trummltting, 

### or distrllnatlxqeleotrlo power ad energys pzwlded rudhor 

### that it %S thO eXpl’O88Od 

### lO&S~tf70 

## in-t tht W w-t8 w k &bb in l$OU Of -08 V&t& awpeet to dams, dam rlkr, re8er7olr 

### areame gdwater dlstributlng **or'lrrlgatlc8k** sfstamw,
.vw to any 8uoh **Autho+y** ~Oti DiEtriOt.
-;uSO where aliyolty 

### or town80Qulre8 real and **personal property**  1oeat.d 

### OtItSldO Of it8 OOZPOIV&O imt8 and OUtSid Of thb ~bounty ia wb.lohmtoh .Oityor toWL ir SitU

### ated, **exoept** rural eleotrlfXaatlon llaes .mnedandoperatedbylt,andwhlchisor maybe used ln'the 8eneratlan, 

### mauufaoturlag,?: selling or .dls

tributiag **of** ~eleotrlolty, Stuh'O1~ol? tOWZ$Shldl8SkO~~tinXim ;~0f:bi~OS QD EMUI t0 thw$t&O Of !~OX~S,the oeunty Oity, 'Bahooldlstrlots and muoh other io4ml taxing dl8trlots vithln whlah mo)r ~property A8 looated In.like asnner ai Mmiaebo*s.provided fO~~~8uOhD$&riOtS or that thb SUbrOotbn a~plloable to DUO8 PZ'OIHF~~ :&~Quired by 

### a Oity or toWI%,Sltt&!StOd OXNa oounty l.me.

hnd prmlded further, that my .olty 0~<9ovn,slaymake 8UOh .pmtS ,%a- of
: tuer to the oounty Ia vh.toh .sald oZtp or, ~~018 lOcUrtOd,~rO?kbd th. Oiw OC tOl?Jl ele~t8 to maim mush payment by ordlnume **.0~~~~80lUtiOll** p888Od by 'thegOVeming body ,Of.:D*Ld

**City Or**  **tOU% ’**  (EZQbl&81lJ Added)
**-fouhsw** lnqulred **about the**  aonstltutionality of the 

### -underliaed proviso 

### ~to the seoond parafwaph 

## 0r subdltZslom:Ik; purporting to oreapt olties and tow of a 8~Oif%d0&88 fM th0 'psJnsnt8 inlb3U Of taXUS" 01860 Whwe gene~y:impOeed by this Sub-diVisiOXl. 8iJaW th0 pre7lso~~ir ln the nature of an exemption, ve turn our atLmtiOa to the Subject 0r the exemptlonL namely, the inpositian 0r a "payment in lieu of **tares upon**  **aities and** Hr. 

### Ala L. Ladnel;,Page 4



## tfnfns aoqulrlng property used In the gensratlan, mamaraoturing, melUng or distrlbutlng 0s eleotrlelt~, vhen

### ever ruoh property 

### la looatad in a 

### oounty other than 

### that0s the olty or t0wn and 

### vhenewrm0h property 18 **subject** t0 **t8Xatioll** 8t tbO **t-0 Of**  **it8** 6OprriSitiaQ bJ the mxIiOlpality. It will k notlood **~that** in omputln8 thy 8MUUt Of the80 "pynent0 in lieu **Of** ?i8~eS"the aUrWt ad YdON tu l'8tOk8 t0 b@ applied t0 th, 888e88Od tdur Of SUoh property iOr the l&St year pdOr t0 it8 W+ qui8ltlan W the oity 

### or tovn, ~' ,'



### sO0tiQ.Zt

1 Of APti mn 

### Pi .the %X&S cOI¶StitUtfon~&WOVidO8 in pa&:

-oeOtlon 1.. - 

### Taxotlonshall ~b’ eq&l and

. **All** propecty In this State, whether **owd** by natural persons or oorpmatlom; other thau munlolpal, s&all bw Wed in.pmportl~ its value, ~Mlch aball be +aaertaiaed as m b:provldedb$lav. TheLeglslature.. . *may



## l IIeo 0.î The property

of oountles,.0ltles

. and tow,; owned.arul.holdoaly 

### forpublio pawpODUS, SU0h 88 ,pUbuO. bulldlnge SrUdthO Sit08
.:**thererori** Plre en&nom mad the lltrnlture~there

## or,,aud all. property use& . or lntended~for'oxtlngulshingfLn8, publlo 8rounda.W all 

### other
**: .:** **~;** property 

### dewted **eroluslw4~ to**  **the** use and bene- :..' rit:or the public ShaJ. be exempt from famed I~ ~..oaXe snd'from taxation,,provided, nothIn here-, I in rhell~prevent the enfoxwement 0s the vendor8 lien,,the~?neohaulo8or builders lien, 

### or other Unns nq-exlstlng.~ ,.
In State v* city 0s 81 Paso, 135 'per.359, 143 S.Y. (26) 366, the SupreamCourt said vlth referenoq to the8S &N?OV181Oll8~

### Mr.RioL. Ladwr, Page5

l hm uamlnation



## 0sthe

abow-quoted 

### o oa- StitUtiOlUl pFOV18ionr diSOlO8e8 that N CQWtbtO t0 O%tb@t n\miOi~l OO~lF8tiOll8 flWl# 

### 0.d~thW0 ObSS@S 

### Of tUO8. %&OS0 8W ad V8b’681;UQS, OOO~&tlOll b.XS8,sndinO~ $a%es." RegudleSS Of I&O~~OP t-h0 wonts in 1iOU. 

### Of 

### tU08' imposed 

### UpoP OitiOS aad~tWIi0 

### w 8. B. 520be eQ)sI Sidsrrd M ad YjON tUO8 Ob U OO~tiorr t&WE, the mOti= Of SUOh WStOIhtS ObV%0~84 18 IMOOWti~tid. If ths PEyWI¶tS b0 ~~~mnd U ad vdOm ~uOS# whvr 

### 01~a~40rrend theaboveproylnion8eitherbybelngba8ed upon au utlffofal rather than aa aatual value 0s 

### the, property

or by be-- Zlltpo8ed upon the property of a:En+ nlolpal aorporatlcax. Llkevlu, 

### if thements be ooaaldered u oOoUp&lOA tUtUS

### ,theytmUmn~r~p~b~ tlCULagskut tbs bp3Sfti~ Of this m Of tU Upon the aotlvltle8 of 

### a muafofpal aorporatfoa. 

### If itbs OOIitOndOd tht the80 pWIItCULt8 ~0 

### neitherad valolur 

### nor oooupatlon taxes, that Thor am some speoler or tertlu **qald** vhiah oanoponte u do Ol’dflW7 **t&WE,** OaO aCrOaOgl%Sh thO ~808 t.hOWOf, but aane8mpe the 

### Umftatlonsthereoni the uuvsr.to suah 0ontentioB fs plaia. What 

### cannot be don0 

### dlreotly oaanot be aeoapll8hed by lndlreotlon~ aotloa 1s ~ltr efreot rathar~than by Its label. To ooaoa udged by
e thatmualofpal 

### property owl0 c for generating end aiStF;buting ~: eleotrlolt~ uamot be **~wub eat** 

‘this typwand that 

### a mudo& PA 

## 0s au o&~alorsm 

## tar’of lty oaunot be subjeoted to an oooupation tm ?3yvisitor it8 aotlvltle8 in generat- 

### %ngauddlstrfbutlng 

### eleatrlolty, yetat 

### the 88xte tftneto aver that 

### a legal 

### exaot$on oslled 

### a *payment ln lieu 0s ~' torus* maf bo had lrom naiol 8lit~es beaauaa 0s their 

### ovaersaLp or 8wh property Ku3 

### theirelIfJagiagkr.SUdl aotlvitles uoulclbe to elevate form ovep rubetanoc and to point .the~980,toan e&Sy 

### evaalan 

### 0r the llmltatlonr * pored by our Carutltutlca 

### uponthe paves to t8x.

Cotiequent~, you 

### are rerpeoti\lllp advised 'that the pr6vlslon8 oontalned la theaeoond paragraph 0s SubdlYi8iOn k Of Sectlorr1 Of H. B. 520 relating to the \.

, 1

### I *

Hr. Rfo L. 

### Ladnor, **Page** 6



## 1 exaation **of** ***payment8** in lieu of tu08* fn?u altA@s 8ml

tows 

### underthe alrowstanoes and la thememnertherela 1 Set forth U@ tiObt%ve Of the **8bOw** QAOtti pOPtlCUI8Of

our Con8tftutloa. **As a**  matit **of tbi8**  **oonolusion theM**  is noneedto 

### enterinto8 8e~uakdi8ou88laa10r the oonrt.ltutlanJit~of theprovz8oto thbpar&gmphab~ut vhbh you IaqvlMd.

ThlseplnfoafslnaoltaytobeooMtruedu **p&SSing** UpOX&**thO OOZl8titUtZbXMl%t~**  **Of th0**  **f%Mt m**  

### graphofsubalvlslon4arelatfq to theexaotlonorpay~ **SWtS** 

### irr

u.OU**Of tUO8**  

### frcothO**diEtriOt** 

### a& **8UthOPitieS** 

### tbarelndesarlbed~ aeltherdeue espress mayopinlozlhere

### in 88 to the **valldlty 0s**  

### the **last** prnsrsphorsub-dlvi81oa 48 Mb&t&g t0 **VOlUilkl7 OsyPleatS**  

### b OitfeS 8tld tOlfM~



### ‘Pnutlna that the **r0mg0ing** ratfefaotorlly enavers your lnqulry, vu are

.