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THEATTORNEYGENERAI. 

OFTEXAS 

AUSTIN m.T~xas 

September 1, 1960 

Honorable Edwin :,. Keller Opinion NO. ww-928 

County Attorney 

Zrath .Ccur,ty Re: Taxable status of land 

Stephenvil! e, Texas devised to Tarleton State 

College for designated purposes and presently rented 

to an individual not 

Dear Mr. Keller: connected with the college. 

In vour recent letter requesting our opinion upon the 

referenced subject, you outline the fact situation prompting 

such inquiry as follows: 

"In regard to the above question, the 

facts are that D. G. Hunewell and Fannie 

Eales Hunewell, husband and wife, left a 

written will by which they devised farming 

and ranch lands in Erath County to 

Tarleton State College, but in trust to 

persons who at the death of the survivor 

composed the board of directors governing 

such college as trustees for the use and 

benefit of Tarleton State College empowering the trustees to administer the trust and 

donation including the income from such 

property and to apply the same to the purpose or purposes set out in the will, and 

such donation and any fund or property 

arising therefrom to be called the Hunewell 

Band Fund, empowering the trustees to hold, 

mortgage, manage, control, exchange, lease, 

alienate, invest or reinvest in any way 

the whole or any part of such donation and 

to collect the proceeds and income and to 

pay out the income, or if insufficient, to 

pay out of the principal all expenses of 

the trust in carrying out the purpose 

thereof and such purpose being the attraction 

of good bs,nd material for Tarleton College 

and to encourage Tarleton band men to exert 

themselves and show their best ability, a 

direction was made for a cash award of 

$200.00 to be given to each band man not 
Honorable Edwin L. Keller, Page 2 Opinion NO. w-928 

to exceed ten each year and excess revenue 

for the purposes to improve the band, such 

as instruments, band house, uniforms, etc. 

"It is provided in the will that neither 

the donation nor any fund or property arising 

therefrom, should ever be any part of the 

permanent fund of Tarleton State College. 

. . . . 

"The provision of the will in question 

which prohibited the above mentioned 

donation of property arising therefrom 

from ever becoming a part of the permanent 

Tarleton State College Fund also provided 

that the Legislature should have no power 

or be in anywise authorized to change the 

purposes of the will and trust nor to 

divert such donation, fund or property 

from the purposes set out." 

You had informed us previously that the land Is presently rented to an individual not connected with the college, 

and requested that we advise you whether or not the land is 

taxable by State, County and District authorities. It is our 

opinion that this property is exempt from taxation. 

The buildings, land and equipment of John Tarleton 

Agricultural College was officially donated to and accepted by 

the State, thus becoming a part of the State's educational 

;:zi. ) 

Acts 1917, 35th Leg., Ch. 33, p. 58 (Arts. 2616-2619, 

Its name was thereupon changed to Tarleton State 

College. 'Art. 2616a, V.A.C.S. 

In State v. University of Houston, 264 S.W.2d 153 

(Tex.Civ.App. 1954, err.ref. n.r.e.), it was held that producing 

mineral interests in land belonging to the University of Houston 

were exempt from taxation and thus could not be taxed by appellants, 

which included the State, County, common school districts, a 

road district, and a drainage district. While the reasoning of 

the Court in the opinion is somewhat obscure, it apparently held 

that the property was public property of the State of Texas 

held by the University,of Houston as an agency of the State, and 

used solely for the benefit of the public, thus bri 

3 

lng it 

within the scope of Arts. 7150, subdivision 4, and 2 15 k. R.C.S., 

Art. VIII, sec. 2 and Art. XI, sec. 9, Constitution of Texas. 

See XI Baylor Law Review No, 2 (Spring, 1959), p. 142. 

In Attorney General's Opinion No. O-1861 (1939), it was 

held that land devised to the Board of Regents of the University 
-- - 

Honorable Edwin L. Keller, Page 3 Opinion NO. w-928 

of Texas to be used for certain purposes designated in the will 

for the benefit of the University, which land was rented to outside 

interests with the revenue therefrom dedicated to the designated 

purposes, was exempt from taxation as property belonging to the 

State. 

Considering the University of Houston case and Opinion 

No. O-1861 together, we believe that the property you describe, 

although devised substantially in trust to the board of directors 

of Tarleton State College for designated purposesonly, must be 

considered as tax-exempt property under the previously cited 

statutes and Constitutional provisions. 

SUMMARY 

Certain described land, devised to the 

board of directors of Tarleton State College 

for certain purposes benefiting the college 

and presently rented to an individual not 

connected with ~the college, is entitled to tax 

exemption and is therefore not taxable by State, 

County, or district authorities. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

JRI:jip 

APPROVED: 

OPINION COMMITTEE: 

W. V. Geppert, Chairman 

Thomas Burrus 

Paul W. Floyd, Jr. 

B. H. Timmins, Jr. 

mes R. Irion 

REVIEWED FOR THE ATTORNEY GENERAL 

By: Houghton Brownlee