R-909 

THEATTORNEY GENERAL 

OF TEXAS 

PRICE DANIEL 

Auwrx~ 11. -a 

.4TTORNEYGENERAL * 

December 3. 1947 

Hon. LaVern I. McCann 

County ,Attorney 

Hockley County 

Levelland, ‘T,ex~ 

Oplalon lo. v-437 

Rer Tsability of lend 

purchased fop a county poor farm but prereatly I~eaae& or rented 

to tn-ird pertlea 

Dear Madsmr 

You have requested a~ opinion from this Department ila to the taxability of certMn land owned by 

Eockley County. Your request adviser us’ oi’the following iacts : 

G”Ia 1928 Bockleg County bought a 

labor of’ land containing 177 scpea, i~or 

a County Poor Farm. There is not~rnd 

never has bean any~‘htieM OS tmprooementa 

on the farm. The lend has been l,eesed 

and rented for agrloultural, pumoaea and 

also l,es,aed to dn o,iP company for the development .and prod,ucti.on of oil: and at 

this time there are three ,produclng oil 

wells on the farm. All the Income derived from the land In question, whether 

from egrlculture or 011 production, has 

been turned into the Genersl Charity Fund 

of the County and has never been used for 

any other purpose. 

“The farin la located in the~Levelland Independent Sohool District and has 

been placed, on the 1947 tax ,rolla of the 

District. The County end S&o,01 are ruxioua to know their legal ,poaition Yn the 

mstter and the taxes will be paid or the 

farm will be removed fMm the dlatHct*r 

tex,rolls 8a soon l o an oplaiou orn be had 

from your d spa rtment l ’ 

“The property. of cout&thes . ., . ow~ff, end 

hold only for public ,pmoaea . . .” is dmol utely 
H0n. LeVera I. McCann - Page 2 (V-447) 

exempt from taxation by virtue of Article XI, Section 9 

of the Conatitutlon of the State of Texas. hphaaea 

added throughout this opinion). A. & M. Consolidated 

School Dlatrict v. City of Bryan, Texas, 143 T 348184 . 

. 0 1 914 Likewise, i to the power'conferred by Ariicle VIII,, Se%?%s??fethe Constitution I, ( * * . but the Legislature may, by general lawa, exempt 

from taxation public property used ,.for public purpoaea. 

"), the Legislature 

i140; V.C.S., 

ensoted, Section 4 of Article 

exempting wall property; whether real or 

personal, belonging exclusively to this State, or an 

olitical subdlvlalon thereof. . .'I This, pravls -37---L on 

een held olleiatfve as 'an exercise of all the power 

the Leaislature had. * valid to that extent. and‘deolaratory o? an exemption for "public property used for plblit purposes. . . .I' City of Abilene v. S?%'i%, 113 

S. W. (2) 636. Seotlon 6 of Article 7150, V.d.S. reads 

88 follows: 

*Poor-houaea .--All landa, houses and 

other buildings belonging to any county, 

precinct or town, used exclualvely for the 

support or accomodation of tha., poor.8 

Thus it is appsrent that if the county had 

accomplished its initial purpose of establishing a poor 

farm on the land here Involved, said land would no8 ba 

exempt from taxation. The question is whether the 

present leasing and renting of the land to third partlea 

prevents its coming within any of the various categories 

of exemption above set ,out. 

We are not advised as to whether or not Hockley 

County still plans to utilize the land for a poor Sam. 

If, in fact, there has been no abandonment of the puapoae 

for which the land was orlalnalls bouaht. it is tax exempt . 

v. 

City &AE;kene V* State.-11 S.li;, (2) 631; State 

City of B 161 S.W. (2) 324. We enclose scope 

of Opinion OJi2cIb 0; thla Department, which diseussea 

these casea in detail in connection with a consideration 

of the tax exemption of certaln~ olty property. Likewise 

this opinion atates and adheres to tha convene ~of the 

rule: I-e., tax exemption oannot be accorded property 

whloh la not used for public purposes or held in furtherance of a present intention t,o ~devote said property to 8 

speaific public purpose even, though the public is benefit: 

ed lndlreotly through funds derived from the property. 

The Opinion also, distlngulahea the cases ,which have dealt 

with situations in which the, property stood aa a aubsti- 
Hon. LsVern I. McCann. - Page 3 (V-447) 

fact situation there 

property was held for 

tute for a special fund from the 

under consideration In which the’ 

the benefit of a park fund. We view the dlstlnctlon 

there dlvwn as applicable to the facts of thla oaae, 

and you are therefore advised that if Hockleg County no 

longer holds the land for a apeclfic public purpose, it 

Is subject to taxation. Seotlon 6 of Article 7150, previously quoted, does not change this result. Even If 

the language of this section were construed to include 

the revenue derived from county-owned income producing 

property and used exclusively for the support of the 

poor, (and we do not think this construction the corroot one), such Inclusion would be an attempt to exempt 

public property regardless of its use and ineffective 

br reason of beinn in excess of the exemntive Dowers~ 

cbnferred by Article VIII, 

v. State, 113 S.W. (2) 631. 

Sectby 2. City of- Abllene 

Of course a determination of the exemption 

atatus of the land owned by the county has no effect 

on the taxation of the estate held by the owners of the 

011 lease; for “since the ordinary form of oil and gea 

lease passes to the lessee an Interest in real property, 

he Is iiable for the tax thereon to the extent of the 

31 Tex. Jur. a 452 and authorltiea cited thereTherefore, the ownera of the 011 lease from the 

cointy are liable for aid hold their estate subject to 

all taxes imposed on their estate by the State, county, 

School District, and any other taxing unit having jurlsdiction to impose a tax thereon. 

SUMMARY 

Land purchased for a county poor farm 

is exempt from taxation If there has been 

in fact no abandonment of the Intention to 

use the land for auoh purpose even though 

Dart of the land la Dresentlv leased for 

ig&ultural purpose; and pa& for the produotion of oil. City of Abllene v. State, 

2: ix* 

631; State v. City f Beaumont, 

. . 344. If there Is n: present 

Intention to devote the property to a specific 

public purpose, the fact revenue derived from 

the property goes to the General Charity Fund 

of the county is not sufficient to exempt the 

land from taxation. Opinion o-4285. The 

estate created by the 011 lease from the oounty ia subject to taxation by the State, OoUnty, 
Hon. LaVern I. McCann - Page 4 (v-447) 

School Matrict and any other taxing unit 

having jurisdiction to impose a tax thereon; 

and the lessee Is liable for such taxes to 

the extent of the grant. 31 Tex. JUP. @ 

452. 

Yours very truly 

ATTORNEY GENERAL OF TEXAS 

BymMW CrW 

Assistant 

APPROVRD: 

%z- cz4LL-J 

ATTORNEY GENERAL