Honorable Robert S. Calvert 

Comptroller of Public Accounts 

State of Texas 

Austin, Texas 78701 

Opinion No. M-1110 

Dear Sir: 

Re: Exemption of Arlington 

Park Corporation from 

franchlee tax under 

Art. 12.03, Title 122A, 

Taxation-Genera1,V.C.S. 

You have requeated 

quoted matter: 

an official opinion on the following 

"The Arlington Park Corporation was Issued a 

Certificate of Incorporation on April 7, 1971 

under the Texas Non-Proflf Corporation Act 

(Article 1 96, Revised Civil ,Statutes of Texas, 

a8 amended 3 . . The corporation was organized 

at the Instance of the City of Arlington for 

the purpose of providing sports events, other 

entertainment and recreation for the citizens 

of Arlington and others. Its primary activities 

Include the operation and management of Arlington Stadium, the home of the Texas Rangers 

major league baseball team, and Seven Seas, a 

recreational sea-life park. The stadium and 

park belong to the City of Arlington. It 

apparently is anticipated that significant 

profits will be generated by the business activities of this corporation, which profits will 

be transferred to the City of Arlington for 

Its exclusive use. 

"The Corporation has requested exemption from 

payment of the franchise tax under Article 12.03 

of the Franchise Tax Act on the baeis that it 

is a 'corporation having no capital stock and 

organized for the exclusive purpose of promoting 

the public interest of any county, city, or 

town, or other area within the state'. Copies 

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Honorable Robert S. Calvert, page 2, (M-1110) 

of the Articles of Incorporation, the by-laws 

and the Lease-Operating agreement between the 

corporation and the City of Arlington are enclosed. 

"Your opinion is respectfully requested whether 

the Arlington Park Corporation qualifies for 

exemption under Article 12.03 of the Franchise 

Tax Act." 

From a study of the material accompanying your request, and 

in particular, Article eight of the Articles of Incorporation, 

we have concluded that the corporation Is organized without membership or capital Stock, Is non profit sharing, and that the 

exclusive purposes and proposed operations of the corporation, 

as expressed In its franchise and agreement with the city, are 

substantially in accord with the purposes and QrOQOSed activities summarized in your request. 

Article 12.03, Title 122A, Taxation-General, Vernon's Civil 

Statutes, exempts from the imposition of the franchise tax "any 

corporation having no capital stock and organized for the exclusive purpose of promoting the public interest of any county, city, 

or town, or other area within the state." This exemption is applicable to any corporation organized and operating within its 

terms, regardless of the engendering of profits by such operations. 

Consequently, it is the opinion of this office, from the 

facts presented, that the Arlington Park Corporation as organized, qualifies under the terms of Article 12.03 for exemption 

from the imposition of the franchise tax if it is operated solely 

Ilfor the exclusive purpose of promoting the public interest." 

We furnish herewith a copy of Attorney General's Opinion No. c-76 

(1963) which delineates the elements necessary to justify exemption under this Article. 

SUMMARY 

The Arlington Park Corporation, having no 

capital stock and organized for the exclusive Qurpose of promoting the public interest of the City 

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. r 

Honorable Robert S. Calvert, page 3, (M-1110) 

of Arlington, TeXaE, is entitled to exemption under 

Art. X.03, Title 122A, Taxation-General, V.C.S. 

from imposition of the franchise tax if it Is operated solely for the exclusive purpo'ire of promoting 

the public interest. 

very truly, 

p?, 

@/,&G 

. NARTIN 

eneral of Texas 

Prepared by Bob Lattlmore 

ASSiStant Attorney General 

APPROVED: 

OPINION CONNITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

James Quick 

Bill CaIIIQbell 

Kenneth Nordquist 

Joseph Sharpley 

SAMUEL D. MCDANIEL 

Staff Legal ASSiStant 

ALFRED WALKER 

Executive AEEiEtaIIt 

NOLA WHITE 

First ASSiStant 

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