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## THEATTORNEYGENERAI.

OFTEXAS 

### AUSTINm.T~xas
September 1,

## 1960

Honorable Edwin :,. Keller Opinion NO. 

### ww-928 CountyAttorney Zrath .Ccur,ty Re: Taxable status of land Stephenvil!

e, Texas devised to Tarleton State College for designatedpurposes and presently rented to an individualnot Dear Mr. Keller: connectedwith the college.

In vour recent letter requesting our opinionupon the referenced subject,you outline the fact situationprompting 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 directorsgoverning 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 thepurpose thereof and suchpurpose being the attraction of good bs,nd

material for Tarleton College and to encourageTarletonbandmen to exert themselves and show their best ability, a directionwas made for a cash award of $200.00to be given to each bandman notHonorable 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 abovementioned donation of property arising therefrom from ever becoming a part of the permanent Tarleton State College Fund also provided that the Legislature shouldhave 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 informedus previously that the land Is presently rented to an individualnot connectedwith the college, and requested that we adviseyou whether or not the land is taxable by State, County and District authorities. It is our opinion that thisproperty is exempt from taxation.

The buildings, land and equipment of John Tarleton Agricultural Collegewas officiallydonated to and acceptedby the State,thus becominga part of the State's educational
;:zi. )

Acts 1917, 35th Leg., Ch. 

## 33, p. 58 (Arts. 2616-2619, Its name was thereupon changedto Tarleton State College. 'Art. 2616a,V.A.C.S.

In Statev. University ofHouston,

## 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 includedthe State, County, common schooldistricts, a road district, and a drainage district. While the reasoning of the Court in the opinion is somewhat obscure, it apparentlyheld that the property was public property of the State of Texas held by the University,ofHouston as an agency of the State,and used solely for the benefit of the public, thus bri3 lng it within the scope of Arts. 7150, subdivision4, and 2 15 k. R.C.S., Art.VIII, sec. 2 and Art. XI, sec. 9, Constitutionof Texas. See XI Baylor Law ReviewNo, 2 (Spring, 1959),p. 142.

In Attorney General'sOpinion 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 certainpurposes designated in the will for the benefit of the University, which landwas rented to outside interestswith the revenue therefrom dedicatedto 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 propertyyou describe, although devised substantiallyin trust to the board of directors of Tarleton State College for designatedpurposesonly, must be considered as tax-exemptpropertyunder the previously cited statutesand Constitutionalprovisions.

SUMMARY Certain described land, devised to the board of directors of Tarleton State College for certainpurposes benefiting the college and presently rented to an individualnot connectedwith~thecollege, is entitled to tax exemption and is thereforenot taxable by State, County, or district authorities.

Yours very truly,

WILL WILSON AttorneyGeneral ofTexas

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 ATTORNEYGENERAL By: Houghton Brownlee