November 18, 1969

Honorable F. T. Graham Criminal District Attorney Cameron County Courthouse Brownsville, Texas

Dear Mr. Graham: Opinion No. M- 509 Re: Effect of Subsection 5 Of Section l-e,Article VIII of the Constitution of Texas on fees tobe paid by the county to the Assessor-Collector of taxes for services rendered inassessing State and county taxes.

You have requested our opinion on the amount of fees that should be paid the County Tax Assessor-Collector by the county for assessing and collecting State and county taxes inview of the provisions of Subsection 5,Section l-e ofArticle VIII of the Constitution of Texas. Subsection 5of Section l-e ofArticle VIII of the Constitution of Texas, as amended in 1968, provides:

"5. The fees paid by the State forboth assessing and collecting State advalorem taxes shall not exceed two per cent (2%)of the State taxes collected. This subsection shall be self-executing." Article 3937,Vernon's Civil Statutes, fixes the compensation of theAssessor-Collector of taxes forhis services as follows:

-2439-Honorable F. T. Graham, page 2 (M-509)
"EachAssessor of taxes shall receive the following compensation forhis services, which shall be estimated upon the total value of the property assessed as follows: For assessing the state and county taxes on all sums for the first Five Million ($5,000,000.00) Dollars, or less, five cents (56)for each One Hundred ($100.00)Dollars ofproperty assessed; and on all sums in excess ofFive Million ($5,000,000.00) Dollars three and one-half cents (3JiC)on each One Hundred ($100.00) Dollars ofproperty assessed: on all sums inexcess of One Hundred Million ($lOO,OOO,OOO.OO) Dollars, two and onequarter cents (2%c)on each One Hundred ($100.00)Dollars. One-half of the above fee shallbe paid by the state and one-half by the county..." Article 3939,Vernon's Civil Statutes, provides, inpart: "There shall be paid for the collection of taxes as compensation for the services of the Collector, beginningwith the.first day of September of each year, five (5%) per cent of the first Twenty Thousand ($20,000.00) Dollars collected for the state, and two (2%)per cent on all taxes collected for the state over said sum: for collecting the county taxes, five (5%)per cent on the first Ten Thousand ($lO,OOO.OO) Dollars collected, and two (2%)per cent on all such county taxes collected over said sum ...ll Articles 3937 and 3939 provide other fees for assessing and collecting taxes fordrainage districts, road districts and other political subdivisions specified in theArticles. InAttorney General's Opinion M-318 (1968) itwas held that as toall State taxes assessed on or after the effective date of the amendment to Section l-e ofArticle VIII of the Constitution ofTexas

I, ...no fees should be paid for the assessment service alone, but a fee of 2% of the amount of such assessed taxes which are actually collected should be paid as compensation for the complete service ofboth assessing and collecting such taxes."

-2440-Honorable F. T. Graham, page 3 (M-509)

It isnoted that the 1968 amendment did not affect the amount of fees for assessing and collecting county taxes, but rather limited the amount of fees thatmay be paidby the State. Article 3937 prescribes the formula for determining the amount of fees tobe paid theAssessor-Collector of taxes forhis assessing services and states that one-half ($)of the above fee shall be paid by the county. You are therefore advised that the county is required topay one-half of the feeprescribed inArticle 3937but the State may notbe required topay more than two (2%)per cent of the amount of State taxes assessed which are actually collected as compensation for the complete services ofboth assessing and collecting of such taxes. YOU are further advised that the county is required topay pursuant to the provisions ofArticle 3939 the fees prescribed therein for collecting county taxes.SUMMARY

Subsection 5of Section l-e ofArticle VIII of the Constitution of Texas.limits the fee that may be paid by the State to the Assessor-Collector of taxes but does not change the amount of fee that is tobe paid by the county pursuant to the provisions ofArticles 3937 and 3939,Vernon's Civil Statutes. YO very truly,

Prepared by John Reeves Assistant Attorney General APPROVED: OPINION COMMITTEE Kerns Taylor, Chairman George Kelton, Vice-Chairman

-2441-Honorable F. T. Graham, page 4 (M-509)

Bill Allen Lonny Zwiener Arthur Sandlin Malcolm Quick MEADE F. GRIFFIN Staff Legal Assistant NOLA WHITE First Assistant

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