Honorable Thomas A. Wheat 

County Attorney 

Liberty County, 

Liberty, Texas 

Dear Sir: 

Opinion NO. o-1536 

Re: Is the property of Meroy 

Hoapital exempt from 

taxatlon? 

'We are in receipt of your letter of September 30, 

1939, together with the excellent brief contained therein, 

in whiqh.you request an opinion of thla Departmentas to 

whether or not Mercy Hospital Is exempt from the payment of 

taxes. 

Article 8, Section 2, of the Constitution, reads 

in part as follows: 

utes 

"The Legislature may, by general 

laws, exempt from taxation public property used for public purposes;* * *n 

Article 7150, Section 7 of the Revised Civil Statof Texas, provides as follows: 

"Public charities. - All bulldings belonging to Institutions of 

purely public oharity, together with 

the lands belonging to Andy occupied by 

such institutions not leased or~otherwise used with a view to profit, unless 

such rents and profits and all moneys 

and credits are appropriated by suoh 

institutions solely to sustain ~suoh institutions and for the benefit of the 

sick and disabled members and their 

families and the burlal of the same, 

or for the maintenance of persons when 

unable to provide for themselves, 

whether such persons are members of 

such institutions or not. An institu- 
Honorable Thomas A. ‘heat, Page 2, (0-1536) 

tion of purely public charity under 

this article is one which dispenses its 

aid to its members and others In sickness 

or distress, or at death, without regard 

to poverty or riches..of the recipitent, 

also when the funds, property and assets 

of such institutions are placed and bound 

by its laws to relieve, aid and administer 

in any way to the relief of its members 

when in want, sickness and distress, and 

provide homes for its helpless and dependent members or other persons." 

In your letter you state that Mercy Hospital la 

operated by the Sisters of St. Frances and that the 

property of the hospital is owned by them and is devoted 

exolusively to the purpose for which the hospital is 

operated. The hospital provides hospitalization to all 

who may come to It. The profits of the hospital are used 

solely for the purpose of operating the institution. 

The leadlng case which construed Article 7150 was the 

case of Santa Rosa Infirmary v. City of San Antonio, 

2% s. w. 926. In your letter you disCussed this case and 

correctly analyzed the holding therein. As you state the 

test of whether or not a hospital is exempt from taxation 

depends upon whether or not the property is owned by the 

particular institution and used exclusively for the work of 

said institution. The hospital may make a profit and be 

exempt from taxation if this profit is used for the maintenance of said institution. 

From the facts set out in your letter, it Is evident 

that the Mercy Hospital would come within the definition 

of a hospital exempt from taxes as set'out by the Commission 

of Appeals in the above discussed case. 

In your letter you comment upon the fact that the County 

Is billed for services rendered to patients placed in the 

hospital by the County Health Officer. In the San Antonio 

Case, the Court recognized that even a charity hospital had 

pay patients and that a profit was made from said patients. 

The only requirement is that this proFit be used for the 

operation of the institution which requirement seems to be 

complied with in your case. 

It is the opinion of this Department, then that from 
Honorable Thomas A. Wheat, Page 3, (o-1536) 

the facts received, Mercy Hospital should be exempt from 

taxation. 

Yours very truly 

ATTORNEY GENERAL OF TEXAS 

/s/ Billy Goldberg 

BY 

Billy Goldberg 

Assistant 

BG:RS:EB 

APPROVED OCTOBER 20, 1939 

/8/ Gerald C. Mann 

ATTORNEY GENERAL OF TEXAS 

APPROVED 

OPINION 

COMMITTEE 

By B.W.B. 

Chairman