Hon. John W. Crudgington 

County Auditor 

Potter County 

Amarillo, Texas 

Dear Sir: 

26, 1945, 

Opinion No. O-6863 

Re: Under the Constitutional 

Amendment to Article 8, 

Section 9, known as the 

"Re-allocation of County 

Fund Amendment," may 

bonds be issued to mature 

more than six years from 

date when their validity 

rests on the probability 

of reaffirmation by voters 

in six years. 

We are in receipt of your letter of September 

which reads as follows: 

'The constitutional amendment (House Bill 

#1.8) of Article 8, Section 9, which was voted 

by the people in November, 1944, and known as 

re-allocation of county fund amendment requires 

that the tax paying voters of each county vote 

'upon the matter before the Commissioners' Court 

is legally empowered to act under its provisions; 

in addition, the people of the county must confirm by their vote each six years the right of 

the court to operate under its provisions. 

"The previous 25 cent restriction for 

improvements may now be expanded, which would 

allow greater bonding capacity, however the 

added bonding capacity might be taken away by 

failure of the people to renew the use of the 

amendment at any six year period. 

"In view of this, would the Attorney General 

approve bonds (maturing more than six years from 
Hon. John W. Crudgington, page 2 (O-6863) 

date), the validity of which rested on the 

probability of an affirmative vote six years 

after the issuance of same?" 

Section 9 of Article 8 of the Constitution of 

the State of Texas, as amended in November, 1944, provides as follows: 

"The State tax on property, exclusive of 

the tax 'necessary to pay the public debt, and 

of the taxes provided for the benefit of the 

public free schools, shall never exceed thirtyfive (35) cents on the one hundred dollars 

valuation; and no county, city or town shall 

levy more than twenty-five (25) cents for city 

or county purposes, and not exceeding fifteen 

(15) cents for roadsand bridges, and not exceeding fifteen (15) cents to pay jurors,'on 

the one hundred ollar valuation, except for the 

payment of debts incurred prior to the adoption 

of the Amendment September 25, 1883; and for 

the erection of p,ublic buildings, streets, 

sewers, waterworks and other permanent improvements, not to exceed twenty-five (25) cents on 

the one hundred dollars valuation, in any one 

year, and except as is in this Constitution 

otherwise provided; provided, however, that 

the Commissioners Court In any county may reallocate the foregoing county taxes by changing 

the rates provided for any of the foregoing 

purposes by either increasing or decreasing 

the same, but in no event shall the total of 

said foregoing county taxes exceed eighty (80) 

cents on the one hundred~dollars valuation, 

in any one year; provided further, that before 

the said Commissioners Court may make such reallocations and changes in said county taxes 

that the same shall be submitted to the 

qualified property tax paying voters of such 

county at a general or special election, and 

shall be approved by a marjority of the 

qualified property tax paying voters, voting 

in such election; and, provided further, that 

if and when such re-allocations and changes 

in the aforesaid county taxes have,been approved by the qualified property tax paying 

voters of any county, as herein provided, 
Hon. John W. Crudglngton, page 3 (O-6863) 

such re-allocations and changes shall remain in 

force and effect for a period of six (6) years 

from the date of the election at which the same 

shall be approved, unless the same again shall have 

been changed by a majority vote of the qualified 

property tax paying voters of such county, voting 

on the proposition, after submission by the Commissioners Courtata general or special election for 

that purpose; and the Legislature may also authorize 

an additional annual ad valorem tax to be levied 

and collected for the further maintenance of the 

public roads; provided, that a majority of the 

qualified property tax paying voters of the county 

voting at an election to be held for that purpose 

shall vote such tax, not to exceed fifteen (15) 

cents on the one hundred dollars valuation of the 

property subject to taxation in such county. And 

the Legislature may pass local laws for the 

maintenance of the public roads and highways, 

without the local notice required for special or 

local laws. This section shall not be construed 

as a limitation of powers delegated to co,unties, 

citle5, or towns by any other section or sections 

of this Constitution." 

Since you do not state the amount of .Potter County 

permanent improvement taxes now obligated, or the present 

authorized levy, we will, for the purpose of more clearly 

answering your question, state a hypothetical question and 

answer ,It. 

When we use the term "Permanent Improvement Fund," 

we mean the constitutional twenty-five cent ad valorem tax 

authorized by the Texas Constitution for co,unty permanent 

improvements as provided for in Section 9, Article 8, above 

quoted. 

QUESTION: If the Potter County Permanent Improvement 

Fund is now obligated by outstanding bonded indebtedness in a 

sum that requires ten cents for the payment of 'interest, 

principal and sinking fund, and the Commissioners' Court has 

beenauthorized, by a vote of the people, to increase the 

Permanent Improvement Fund Levy from twenty-five cents to 

forty cents for a period of,six years from the date of the 
Hon. John W. Crudgington, page 4 (C-6863) 

election, (1) is the Attorney General authorized to approve 

permanent improvement bonds for Potter County, maturing within six years from the date of the election, or maturing more 

than six years from the date of the election, based 'upon the 

remaining thirty cent levy; or, (2) is the Attorney General 

authorized to approve Potter County Permanent Improvement 

Bonds when part of the issue of bonds mature more than six 

years from their date, in an amount that would require the 

remaining thirty cent tax levy for a period of six years~ and 

the remaining fifteen cent levy beyond the six year period? 

In the City of Aransas Pass v. Keeling, 247 S.W. 

818, 821, the Supreme Court of Texas held that when the 

Legislature remitted the taxes to a costal city for a period 

of twenty years for the purpose of building a seawall and the 

city issued seawall bonds payable over a twenty year period, 

the Legislature would not be authorized to repeal said tax 

remittance at any time during the twenty year period since 

such a repeal would be an infringement of a contract. We 

have a similar situation In this case, in that the Constitution authorizes the people of Potter County, by an affirmative 

vote, to Increase their permanent improvement levy for a 

period of six years, and after increasing said levy, they would 

be authorized to obligate the increased levy for a period of 

six years, and after obligating the entire levy, the county 

would not be authorized to change said levy within the sixyear period, since it would be an infringement of a contract. 

Assuming that the Commissioners' Court of Potter 

County has submitted to the people of,the county, and the 

people have approved, the proposition to increase the constitutional levy for county permanent improvements from twentyfive to forty cents, and assuming that ten cents of the twentyfive cents, or ten cents of the forty cents is now obligated 

for the payment of Indebtedness already outstanding, lt is 

the opinion of this department that the Attorney General would 

be authorized to approve Potter Co,unty Permanent Improvement 

Bonds maturing within six years from the date the increased 

levy was authorized in an amo,unt that would require the remaining thirty-cent‘levy to service. However, the Attorney General 

would only be authorized to approve bonds maturing more than 

six years from the date of the election that fifteen cents 

of the remaining thirty-five cent levy wo,uld service. The 

full thirty-cent levy cannot be obligated for a longer period 

than six years since fifteen cents of the thirty-sent levy is 

contingent upon the people of Potter County again authorizing 

the increased levy. 
. . 

Hon. John W. Crudgington, page 5 (O-6863) 

Section 9, Art. 8 of the Constitution, as 

amended, authorizes the counties to change or reallocate 

the tax levies for a period of six years with the right 

to change or reallocate again at the end of said sixyear period. The amendment does not in any manner affect the authority of the county beyond the six-year 

period, and if the people of the co,unty do not again authorize a change and reallocation the authority of the 

county reverts to the twenty-five cent tax levy. If the 

people of the county authorize a change or reallocation 

for a period of six years, said county is still authorized 

to obligate the twenty-five cent permanent improvement 

levy beyond the six-year period. If Potter County 

obligated the entire twenty-five cent levy beyond the sixyear period, then Potter County would not be authorized 

to decrease the twenty-five cent levy at the end of the 

six-year period by an election since such an act would 

be an infringement of their contract. 

Therefore, in answer to the second part of the 

hypothetical question, you are advised that if Potter 

County, in compliance with the provisions of Sec. 9, 

Art. 8 of the Constitution, increases its permanent improvement levy from twenty-five to forty cents, and is 

now obligated to pay indebtedness which requires a tencent levy, the Attorney General is authorized to approve 

Potter County Permanent Improvement Bonds maturing for a 

longer period than six years, but the bonds of the iss'ue 

maturing within six years must be within an amount that 

a thirty cent levy would service, and bonds maturing 

beyond the six year period must be In an amount that a 

fifteen cent levy would service. 

Yours very truly 

APPROVED OCT 24, 1945 ATTORNEY GEXERAL OF TEXAS 

/s/ Grover Sellers 

By /s/R. J. Long 

ATTORNEY GENERAL OF TEXAS 

R. J. Long 

RJL:EP:am Assistant 

APPROVED 

OPINION 

COMMITTEE 

By /s/ B.W.B. 

Chairman