WILL WILSON

ATIXBRNEY GENERAL. January 7, 1960
Honorable J..R. Owen Codity Attorney Yilllueon 

### Cbunty Georgetown, Texa8 Dear Nr. Owen: opinion Ilo. w-771 

### Re: Whetlaerthe S.P.J.S.T. Bert Hare In Taylor, Texas, 18~ exempt ,from taxation.
Tour letter of Hovember 27, 1959, statee:

“Kindly refer to your opinion number w-453. Subsequent to t4e tire that your above opinion waswritten, the Board of Directors of the SupremeLodge of S.P.J.S.T. adopted a provision whereby indigent occupants would be accepted $2: S.P.J.S.T. Rest Homeat Taylor,

Weare Intoned that at this tire there-axe no 100s charity patients at the Home, however, If any applied, they would be accepted.

“Ye have further been Informed that the Home’s fee ~tolte patients is $lOO,OOper month, but that the Homenowhas several prtlen.te whose only source of income is old age‘pension. These patients pay only $56.00 amonth on the $100.00 fee and are thus partially oharity eases.

“TheRest Hometakes the poettlon that In view of the above facts it ha8 fulfilled the third requirement of your above referred to opinion. Our Commlssionerf8 Court ha8 requeeted this office obtain a 8upplemeny tal opinion from you whether under these, clrcum8tances the property ie tax exempt.' (Yote: It Is assumed that the property referred to in the opinion requaat Is real property. Section 7 of Article 7150, V.A.C.S., which exempts property belonging to lnstltutions of purely public charity, makes nomention of per8enal **property;** therefore, such property Is not exempt from tUatlOB. See Attorney Qeneralfr Opinion lo. O-5599.)Honorable J. R. Owen, Page 2 Opinion No. WW-771

In holding that the S.P.J.S.T. Rest Homeat Taylor, Texas, did not qualify for exemption as an lnetltution of purely public charity, Opinion No. WW-453 atated:

“The SupremeCourt of Texas, in City of Houston v. Scottlah Rite Benev, Assn., 230 S.U. 978,held that property Is exempt from taxation If It la both owned andused exclusively by an lnatltutlon of,publlc charity. The court further stated that an Institution was one of ‘purely public charity’ where, first, It madeno gain or profit, second, it accomplished ends wholly benevo.lent, and third, It benefited persons, Indefinite In numbers andpersonaltiee, by preventing them, through absolute gratuity, from becoming burdens to the State.

,“Fromthe information that you have preaented, It Is apparent that the property In queetion is ownedand ueed ;s;l;~;ely by the S.P.J.S.T. Reat Mome. Homeconforms to the first two requirement0 of a ‘purely public charity’ as set forth In the foregoing case, but fail8 to meet the third requirement. Since the Rest Homedoes not accept any resldent on a strictly charity baais, it does not benefit persons, Indefinite: In numbers and personalties, by preventing them, through absolute gratuity, lrom becoming burden8 to the State.” Aninstitution mayqualify a8 one of purely public charity whenIt dispenses ite service freely to persona in need of such serviceu, whether they can pay or not, though such a8 are able to pay are expected to do 80. See City of Palestine v. Hlssourl-Pacific Lines Hospital, AssIn., 99 SY 2d 311 -CT Clv.App. 1936 error rel’d ) W V

. . Geppert’ i Discussion 6fekx Exempt Propkty In Texas, kylor LawRev&w, Volume XI, No. 2 patient8 & Atax exempt institution need not seek out its

charitable ob,jects in the “highways and byways”

. Raymondvilla Memorial Hospital, et al. v. State, et al., 253

. . 1012 \Tex.Clv.App. 1952, ref. N.R.E.) You state In your letter that the S.P.J.S.T. Rest Homeie prepared to render service to charity cases on a strictly gratuitous basis, and that It Is actually rendering partially charitable services in that It receives payment only In accordance1

.

Honorable J. R. Owen, Page 3 Opinion No. WW-771

with the patient's ability to pay. Coneequently, It 18 the .oplnlon of this Office that the S.P.J.S.T. Re8t Homequalifies a8 an instltutlon of purely public charity, and that 18real property i8 exempt from taxation. Thla opinion supersender Attorney General8 CplnlonWW-453 

### (1958).

SUMMARY
'me real property ownedby the S.P.J.B.T. Rcet Home18entitled to tax exemption since the Rest 

### Homequalliles and 18functioning a8 a "purely public charity." Yours very truly, WILLWILSON Attorney General of Texas

JBP:ca APPFt0VE.D

: OPINIONCOltnITTEE: 1.V. Geppert, Chairman ;ar;et;;v;;Gregor Payne C: Dian Daole Charles D. Cabanlss REVIEWBD

FORTREATTORNEY

GENERAL By: Leonard Passmore