HonorableThomas A. Wheat

County Attorney Liberty County, Liberty, Texas Dear Sir: OpinionNO. o-1536 Re: Is the property of Meroy Hoapitalexempt from taxatlon?
'Weare in receipt of your letter of September 30, 1939, togetherwith the excellentbrief containedtherein, 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 taxationpublic property used for public purposes;* * *n Article 7150, Section 7 of the Revised Civil Statof Texas, providesas follows: "Public charities.- All bulldings belonging to Institutions of purely public oharity, togetherwith the lands belonging to Andy occupiedby 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 institutionssolely to sustain~suohinstitutionsand for the benefit of the sick and disabledmembers and their families and the burlal of the same, or for the maintenanceof personswhen unable to provide for themselves, whether such persons are members of such institutionsor not. An institu-HonorableThomas 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, sicknessand distress,and provide homes for its helpless and dependentmembers or other persons."
In your letteryou state that Mercy Hospital la operatedby the Sisters of St. Frances and that the property of the hospital is owned by them and is devoted exolusivelyto the purpose for which the hospital is operated. The hospitalprovideshospitalization to all who may come to It. The profits of the hospitalare used solely for the purpose of operatingthe institution. The leadlng case which construed Article 7150 was the case of Santa Rosa Infirmaryv. City of San Antonio, 2% s. w. 926. In your letteryou disCussedthis case and correctlyanalyzed 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 institutionand used exclusivelyfor the work of said institution. The hospitalmay 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 Hospitalwould come within the definition of a hospital exempt from taxes as set'outby the Commission of Appeals in the above discussed case. In your letter you comment upon the fact that the County Is billed for servicesrendered to patientsplaced in the hospitalby the County Health Officer. In the San Antonio Case, the Court recognizedthat even a charityhospitalhad pay patients and that a profit was made from said patients. The only requirementis that this proFit be used for the operationof the institution which requirementseems to be compliedwith in your case. It is the opinion of this Department,then that fromHonorableThomasA. 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