**OFFICE OF**  **THE AmORNEY**  **GENERAL OF**  **TEXAS AUSTIN** Holcaorablr Tfm Seay - page 2

oontnot with theAmarillo Ba84ball Club, Inc., inrordr and Slgura8 the 8am4 a8 the

### contrect **rdurod to**  **in** the anolo84d order,
-At tha tire this 

### order**ram p8884d**  **and the**  oontmot wan 

### 6ntued into, th4 8bovr 

### refurod **t0 prOpUtJ**  n8 6ituatad OUt8ib8 of thr City Liqiitrof the City oi Amarillo, but ban r4a4ntlt **b48n inoorponted**  **la** 

### the **Uitr Lbit8.**  **IU prop**  **4rt7 llOW**  **1148 804**  **h8 iOr**  IIloll&t-4 lain in th4Aaerillo TJld4p4lld8llt Sohool Di8triet.

"Purmmnt 

### tothe tunu of 

### theoontxmot, thrAmarillo B484ball Club **oonrtruotd** upon th8 leas4d ~remi848 a be84ball park, oonri8t**ing of**  **(mnd 8t4nd,**  bleaehars, ticket **OffiO48, fOnO48,**  **4t6.**

**“ Th4**  **qU48tiOn** hs8 now ari84n a8 torhsth4r theAmarillo Ba84ball Club should be r4quir4d **t0 p6;r**  **t4X48 t0**  **the** V4riOU4 taxing ag4uOi48 **On** th4 **4884884d** VFh6tiOIi Or th4 **8trUOtUr48 pf404d**  Upon th4 14884d Prd4.8.

%4 ~811 your att4ntion to tha tact that at the expiration ot ths oontraot involv4d, **the tit14**  to all OS thr lapromm4at8 oon8tru4- ,tsd **br th4**  Amarillo **Ba88bdl** Club -8848 $0 an& v48t8 **ia th4**  **COW&~ u**  **r4ntFd8 for**  **the bUa**  of the grelud upon which **rid b~W3lb4llt8**  am3 **oonstruOtd0**

**“ I%4**  VUiOIU hXilbg ag8Mi48 hew mqU48t4d that Iwrit4 pu I4pmtm4nt 

### Sorvour opinion a8 torh4th4r th4 improvam4nts **oon8truotrd** by th8ba84ball olub are 8ubj4ot to taxation by the various taxing units.*

**The ?ollming**  **arm putfnrnt**  **p?Oti8iOlUS 8opi6d**  from the oourt **ordu** ati 14a84 whloh GUY 8ubEitt4d dtb your rvqueotrhonorable 

### TomSSPJ -page 3



### (*I "It I8 agreed t&at et tL4 expiration Or tho tblm OS th18 lgr44mont th4 

### title to 4eid ba84ball park to bo colutruoted upon 

### thrabove d44crItctd.prop4rir8hal.lpe84 to en& V48t in f44 8iEpl4 in th4 COuntr, **to** b4 **owned,** o04upi46, and u84d by It a8 it 8048 rit, rhIoh 8eId ba84bell park 8hall b4 rscsivcd by th4 Cowt7 in full **8et** i8fbQtiOn ofall r4ntel8 

### dueend 

### owingto it 

### hareund4r."
(b) nlt 18 eg446 that Ia th4 814nt J&4- 844 fei18 **t0** UC4 Eidd ba84brll park **fOT** W2y an4 Ormorc baseball 8belOn8 iOr th4 pUtpO84 Of flayiog be84bell 

### therein,th4n end in 8uoh 4r4nt 

### theCounty, **cr** 44 on4 d48ignetrd by It., 8hell hers th4 right to OQOIIPJ, une end enjoy 8aia baseball park 

### foreq and l ll purpo840 thet 4am4 may be ussdwittboutde.eegin~88id property be

### yond ordinery w@er 8nd 

### tberduring all of such pears SS L4s840 do44 not play be84ball th4r4in; but in such year8 as L46844 pl4yS bssebal.1 in Eeid ba84bell park, it 4hall b4 4otItl86 to '~4 . 8eid park for th4 portion ot such y4ar8 84 8eme Is not ueed 

### forplaying b284ball for plajlog or conducting oth4r iaeoesnt 8port8 tharoin, 48 h4r4Inaboro prorib for, It b4in(rin th14 conneoliofi~igrosdthat et any 

### the v&411 bss4ball 8eR8On I8 not in prOgr488 l hd l.4884418 ilOt using **or** hao not plennsd to ~80 8eId b444b8l.l park for oth4r ionoc4nt 8port8, tli4Cou&ty shell hav4 the 

### righttodolegateto thr hmerillo TriStRte GXpO8itiOn tiinright to **U84** S8id ba84bRll **oprk** forMay pUlYpo80that Uill not **dUM(;4** 8epM J4or4 then ~lnying b484bell th4rrIn, 8nd **beyond**ordin

### dry

### weeran4 teer without coat **whctso4rrr to**  8aid h84rillO Tri-%.at4 k'XpO8itiOn,JmOVid4d however +hat anp.mtuIel aaeiag4bayorrd ordinary

near 

### endt4er don4 to 8eId pr4mI848 by 8eid ASerilio Trl-kIteta xspo8Ition 8hell b4 **rsp4lr4d** by it et It8 4We CO8t alId 4Xp4n84.”Honorable Tom Seey - page 4



### (0) "It la agreed that In the event It 18 d8tenlned by the varlix18taxing agene%&, that the lmprovem8nt8 oolutructed upon the above da8orib8d treat of land by Lea8er are taxable as porronal property, the L8888r shall and ~111 promptly pay much faxes e8 they beaome due and payable.I 

### (a.1 "It 

### 18

l gmad that in the event L@8808 install8 a lighting 8ymtam In Bald ba8obal.lpark for the purpo88 OSplaying ba8eball therein at night time.,8aa8 rhall be at all tlmss'aonulderad p8rronal proparty and sot a**apart**cf.&e bassball.park; and upon the expiration of thi trrm ,herelnor at any t~imeit d8slrsa Ls888s ahall have the rlgtt to remove all or any part. of said llghflng ry8tem from 8ald baseball park, there being rwssrved to the .County,howaver, the right to purchase 8ald lighting systam from Lesrea at the 8rplratldn of the teqhareof~or at euch other tlmr aa Le88e8 dl8oontlnues u8ing said baseball park or upon a breach oftany of the covenant8 hrrain contained and the doolaratlon o? a forraiture by the County ror a @rlcr to be determined in the same mannor prorldod for determining thevalue of 8alvage **In** Pangraph 3 horeof.w

Inmtro& v. Mla8ion Indepandont School ::lrt. **et** al., 195 3. W. 895, (r8tsrsed on,othar ground8 in gZE 9.WC.ZOl) the tiourtheld that improtsments placed apoo the land .oSa rsllroad 

### companyby a lesseewith an agreearnt that Itm8 for the ~88 bf tile188sr8 and with the further a eament that it could be removed wac perso= wy an

+ZTYiZTr~eXa~TF aourtald, however, byway of dictum:

*If it

### werenot ;lereonalproperty end wer4 real estate, it oould not hate beentax an the property of 

### theMlralon Cotton Oil Company, but a8 the property of the railroad company that orrnedthe land to rhlch th8 lm,provsnsntswere 8rrixea.- ,,

lionorableTom Yeay -page 5

Inyour tmot situation, we hive lmprovement8 erected by the lr8ae8 upno lend of a oounty, with no right to rem018 much improvements, but an exprese agreement that title thereto "She11 pa88 t0 Md VOSt iAt

. . . the **OoUnty ”**  rt the explratlon of the term of the lease. See paragraph "(a)* above. The lOa#e agreement furt bar **provide8** tbRtth8 1888ee ~111 imprOY=#nt# "ia the SVSJAtit f: ay the tales againat the 8 dStSrP3i5edby thevar1OUS taxing agenOie8 that the i~9rOtWSntS OOnStrUOtod upon the above described tx%ct of land by Leee-e are taxable as personal property.* gee paragraph *(a)- above.

The flr8t qu8Rtlon for our detennlnation 1st Are the btiprOVement8COnStrUOted by the 1eSeee upon the 

### land0rthe county *personal 9ropertyY Xe thinknot. It ia true that the lease provides that title to the improvsm85te #ho11 ,?essto and vest in the county "at the expiration of theDorm”of the lame, butwem-9 of the opinion theftsuoh im~rovemente lost tlielrcharacter ae Wperson&l property" immediately upon being erected upon the land of the oounty and then became amrt of the "real 9et5tS " or the oounty.

i%'# have been unfibli, to find any Texas OaSeS directly in point, but in Intrrnational Nnr. Co. v. Barber, 47 K. E. 46, a ahod eracted by **tie** leeoee upon P

### pier,pUr#Uant t0 a lea88 from the City requiring it8

Iid -~=t~~~h+p!l& yy~~o~2t~~8~"~- GEiFt 0 prqomo eo yassoonasitwaa ereoted and arrixea to the realty, and hence not 88888- sable Sor taxation am property of the le.88ee. The 

### court Said:

*The appellants rert tholr argument with reapeat to t&e question of OwnerShi upon the prOViSiO5 of the leaee abovo roneioned, that the ohed shall beoome the property of the oity after the 8r9lration of the lease, whloh provielon, as theymaintain, shorn thrrtitWallin ContWplstlon of both parties that the ereotione Should be the property Of the #teamShip company aurlnu the texm of tho lease. We think that this is a5 inaorrWt view Of the eitWtiO5.IionorabloTom Seay - page 6

It is a ranlliar rule that, **when** 8truotur88

**are** 8r8otea byparsons not 

### ow58re0r the land, they beooru part 

### orthe realty, and am 8Wh the property et the landowner. lt r8qulre8 a5 a~8W85t 

### t0bo **.Xpr@###d** in OrdSr t0 **PrSVSJlt** the operation of this rule. If the right of removal la r888rred to tha 108808 in a lease, 

### than in euoh a ease howill be regarded a8 an OW58r Or r#ai #Sk88 ?OT **th0** pmpO88 Of 8aXation.*

88 think the above oaea i8 OOfiSOt i5 prinO~pl8 and in **haneony with**  the *diotwP in Armstrong T. Nl88ion I5&8~8nd85t Sohool Diet., 8UPl.a. ATtie 7171 **prOYid88** that *al1 real oatate shall be a88e88ed to the omer ther8ot

. . . ." *Real s8tat8w i8 0058tru8d by Artiole 7146- **to** inoluae the land itself. . .and all 

### buildings,#tl'Wt~## and Lmprorem85ts, or othar fiXtUrC38 ofnhaterer kind thereon

. l .*
15 Dougherty v. ThO1~p805,9 8. Vi.09, the YUprelLe Court of Teras maid:

"'ThSg#ll#l'M1

rId0 i8 that the OW58r Of real l Sktrf i#a##d 18 kX@id UpOlI the #ld.irO VSlUe th8 pro-and tki# SIRtiSiieS the OOmtitUOf
tional **requ~r8m8nt** tha8 *allproperty in th3.8 State 

### rh8thatOWlk#d~-b~ Pot-1 PSQDIU OrOOrfOIdOM Other thM=&Oi&Nl, 8hm **b8 baX8d**  II p,rOpOrtiO5t0 it8 falU0. '" (mphaSi8 OUFS)

the Imad of the OOUnty 

### i5VOlVadi

### 088Oftbi8 0finiOn, that n pour fist 8 tUatb8 Wa8 Bia l88Um8, 

### for thePOr
rxmpt 

### from taxation 

### priorto the exeoution of the lease. If not,we think the 

### 1888ee liable for the payment OS th8 taxes UndSr the covenant "(0)" above. A8 we CO58til~Sthis oofenant, it is trntamou5t to 0ayiILgthat the ls88ee will pay all taXe8 against the lmprov8mente, ii any 

### are juaicially 

### deterJ&bedtobe dUD. any Other oolutruction would rO5dSr this oova5e0t ~Oani5glOeS.

J~~~ming that 

### the leaSed portion Of the COUnty
was exuppt,prior to the lOeSQ, thl8 qUeStiO!l next uriLW8;IionofablsTom zZn8y- ;?nga7

316 auch@operty l&8$1Jta y&apt chtmdter whag leaaad:~

. thebaeeball club for the purpose of ylts.yinc baseb611 thereon? Le think not. Gbviously, 8UOh property fs S.lbjeCtto %x8- tion unle88 exempt either by the constitution or the stat,l&es of this State.

orolu8ively to this State, Of" shall be exempt from taxation. Countias are political aubdivislons of thr:state. Constitution, Article 11, Section 1.
frtlcle 7150 would appear tobe broad enough to cover the property in question, for certsinly such property "belongs exclueivaly" to the county, but au pointed out in City of .libilene v.Stata, 113 S. ii.(2d) 631, the exemption declared in this Article was **more** comprehensive than the power which the Legislature possessed.

In Cltp ofAbilene v. State, supra, t,he court held that 24 tracts of land nurcbased by the City ofAbllene for the purpose of a 

### reservoirsite for impounding water to be used by the city wae exempt frou all taxation, though suoh traots were beins temporarily leased for agrictiltural purposes, where the city had not abandoned its Intention to build the reesrvoir. it iS significant thet the trial court found that eince acquisition of the lands by the city, it had "been leuslng 8.aile for agricultural jxr?ose.s for anappr~r1mat.eaggregcte annual rental of 22, LOO and that during the pact five years Oa8h rentals have been paid therefore and that prior to thattime receipts from **mid** property in cash rer8 baaed upon apnuul production of ngriCUltUr81 products undrr the normal l/3 and l/4 rentaln." In construing tho above quoted provielons of our constitution ant Article 7150, the court said:Honorable Tom Seay - p:ge 8

. WThese~oonrlderatiors leaa us teChn conclusion that 8s to the power of the Legislature, to exempt pub150 property 'fromtaxation, 811 such property should beregarded as *used for publio purposee' when it Is owned and held for public purposes*, but not o-:nedor held exclu- --

“*

. . It is, tterefore, our vier'that when the facts of a given case sst8bXsh the ownership ofproperty by a muniolpal oorpcration,~whIoh haa been acquired for an authrrlzed public purpose, and tha purpose for which It is owned and held has not been abandoned, such property ie to be regarded a8 used for public purpoees ( 8nd the Legislature has the power to provide by Ceneral 18~ for its exemption from taxation."

There can be little doubt that the property owned and beld by Potter County for a fair-ground 1s "public property" within the rontemplatlon of our Constitution, 8nd owned and held ror a "public purpose." *Cases cited in 92 A. L. H. p. 77D. a;ethink by the authority ofCIty of kbllene v. State, suprh, it ten be seid to be "used for e.pub110 purpose." No "cash rental" was paid PotFCounty, but only the “bareball park” eta. whioh wa8 8 physical lmproviment tothe fair-grounds. In this respect, here is a strongar fact ease than thsCity ofAbllene v. Stats, supra, for there the oitp did receive "oash rentals." -,otterCounty re88rVed the right to use the vbaseball 

### p8rkusetC.at all time8 itwas not being used for playing baseball, thereby lnoreaeing the deeirabillty of Its rair-gound fecilities. .Seeparagraph "(b)" above.

;n State v. City of lfou8ton,140 :j.X. (2)277 (writ refused) the court said:Honorable Tom Sear - page 9

I ~c‘.*a -I AL,- - ‘ - - - ,,_ .,,_ -- - - LL - m ..d.

...-.. :.a,..- ,m d

*Thr Saot that tha property ra8 rmntsd to prlrate poroo1I8, lsdwarnOlossd to ths **public,** a0a4 not a4o444arlly detumiae that suoh i8giot held for a publio purp~u.~

In our opinion, the Lurrlllo Baseball Club, **1s nslthsr**  **llablo for**  tax44 against ,thslmproromeatm asIno., aporsonal pr~psrtp bsloaglng to it,,aor br rsasoa Of its **ootrrvlat** la the lams4 to pay **tuss,** but that such blub 18 limb14 to pay taxes against tha wloasehold iatarast" 

### lt aoqtirod **br the**  lsasa. ,Artiola9198 

### protldur

*Property t&d under a leau of three yearn or

### aoro . . . .bslonglng to this Stats, or that
tlieowner Is uunot b •l~~~f~Ltant~oa

XE the hands 'PT

Tl **bo** eoa4 

### aZFZtTiYaTT

9 ~p~o~~oa, as'the property of thl psrson so holding the same. . . ." (smphasls oure) 

### Artida T194 proridss, in

### part:

. . 

### "4nbla laasshold 

### askates shall be ralusd

at **sueh**a prlss as they rsuld bring **at** 

### a fair voluntary sals for oash.*

**In Daugherty**  **f. Thempson,**  supra, the **Court saldt** 

*Th* onlf law provl4lag that a 14444e shall pay tax44 Oa 1oassU proparty 14 found In artl010 4691, RsT. qt., mhlah dstarmlnes what laasshold lstat8 shall botaxable. Eiubdlrision4, art, MOP, E&. St,, aaa ham 

### l pplioatioa to no other lusshold matatom than suoh u are Isad*taxable .* **by** the

### praoedlng artlols; 

### for la all othei oases, in the **abseaos**of a **statuk** directing to the oonWary; the owmr Ot the nal l kti~ mtl8tppy tax08 oa the **mtira** ralua of 

### theLaaIi,whether leased **or** not. In USM to nhioh arfAo10 4691 14 appli**oabla, it**  **rust bo** bald that itma the lntentlon 

### otthe**le&s&tura ew**  **to iqposa**  **on ths**  lss8e. a tax based oa the raluo of thr utaublm laa8ohold oatate," an4 **a& lmpomo**  upoa **him n**  tax based oa a sum equal to the tull raluo oi the ram1 estata, **to.bm**

### l

soertahd

**as proribs4**  in subdldsloas 1, 8, 8, art. **4b92,** Refd3t.mi;onorableTom r;eay- page 10

The texing pOliCy.ot the State IS axpress4d'la Art1010 8, Section 1, 0r our Conatltution as follcm4: *Ali property In this State, whether owned by natural pereorG?r

-- -- corporations, othman munial al shall be taxed in roortlon to lts~e. &In 1-.mzi&iL?~e-VlWEl&*
%-rIi.bopertz ,real,personal 

### ormixed, except such as may

expressly exempted, **la** subject to

### taxation, and the same shall ba

### rondaredan~l~sted as%roln 

### prorldod .” (4mpha414 ours)

Since the property in question 14 *held under o lease of three pars or

### more*and is suoh property *that is ercuuptby law rrom taxation in the hands of the oanor thereor," we

### areoi the opinion that the "leasehold interest? of such baseball olub in said property is taxable against the .marillo Baseball Club, Ino.,and Article 7173 is both appllcable ani controlling inyour'fact situation.

The lighting syntem is, of course, taxable against the baseball club.

Trustlag that the above 

### anmom your questions, we ma,

Yours very truly,

w@EOVED NOV. 10, 194S 

### GrorrrSellers FIRST 

### ASS

ISTAFT ATTCRN'T GENERAL ATl'ORtEYTlXEi!ALOF TFXAS

BJr/*/ Thorn.B. Ruggaa r84istant

16

A?PROVED OPINION COMWITIEB BY BL'BCJIRUAN

TBD:r*