The Attorney General of Texas 

November 19, 1981 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. Box 12548 

Austin. TX. 78711 

512/475-2501 

Telex 9101874-1367 

Telecopier 512/4754266 

1807 Main St.. Suite 1400 

Dallas. TX. 75201 

21417428944 

4924 Alberta Ave.. Suite 160 

El Paso, TX. 7QQu5 

9156933494 

1220 Dallas Ave.. Suite 202 

Houston. TX. 77002 

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808 Broadway, Suite 312 

Lubbock. TX. 79401 

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McAllen. TX. 79501 

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200 MaIn Plea. suite 400 

San Antonio, TX. 79205 

512a25-4191 

An Equal Opportunityl 

Affirmative Action Employer 

Honorable Roy Blake, Chairman 

Senate Committee on Administration 

State Capitol Building, G-27-J 

Austin, Texas 78711 

Opinion No. Mu-391 

Re: Whether residences owned 

by the Texas Department of 

Corrections and used by its 

employees are taxable 

Dear Senator Blake: 

You have inquired about the tax status of certain property held 

by the Texas Department of Corrections. You state that the department 

owns a number of housing facilities which are serving as private 

residences of the department's employees. You ask whether such use is 

a "private use- such that this property is taxable under the Texas 

Constitution and the Property Tax Code. 

Article VIII, section Z(a) of the Texas Constitution provides 

that "the legislature may, by general laws, exempt from taxation 

public property used for public purposes." Article XI, section 9 of 

the constitution provides that "all other property devoted exclusively 

to the' use and benefit of the public shall be exempt... from 

taxation." Section 11.11(a) of the Property Tax' Code, effective on 

January 1, 1980, provides that "property owned by this state or a 

political subdivision of this state is exempt from taxation if the 

property is used for public purposes." Section 11.11(d) of the 

Property Tax Code, also effective January 1, 1982, provides in part: 

(d) Property owned by the state that is not 

used for public purposes is taxable. Property 

owned by a state agency or institution is not used 

for public purposes if the property is... used to 

provide private residential housing for 

compensation to members of the public other than 

students and employees of the state agency or 

institution owning the p ro P ert . . . . (Emphasis 

added). 

Acts 1981, 67th Leg., 1st C.S., ch. 13, 130, at 127. Section 11.11(d) 

of the Property Tax Code does not expressly make the housing 

facilities taxable. It in fact suggests, although it does not state. 

that use of housing by state employees constitutes a public purpose. 

p. 1330 
Honorable Roy Blake - Page 2 (MN-391) 

In order to answer your question , we must determine whether the use of 

residences by employees of the department constitutes a public or 

private purpose within the meaninn of the constitution. See David 

Graham Hill-Foundation v. 

-- Highland-Park Independent School District, 

371 S.W.2d 762 (Tex. Civ. App. - Dallas 1963, writ ref'd n.r.e.). 

Briefs submitted to this office raise the question of whether the 

employee's use of state-owned housing primarily benefits the prison 

system or the employee as a private individual. In our opinion, the 

relevant legislation defines the provision of housing to an employee 

as compensation or an emolument. Article 616629, V.T.C.S., provides 

that certain prison employees shall receive lodging in addition to 

their salaries. The General Appropriations Act gives certain prison 

employees an entitlement to emoluments, which include "housing 

belonging to the Department of Corrections." Acts 1981. 67th Leg., 

ch. 875, at 3309. The Board of Corrections may also authorize 

emoluments to other employees. Id. The housing used by Department of 

Corrections employees has thus been characterized by the legislature 

as an emolument. "Emolument" is the urofit arisine from office or 

_ 

zemployment and it is more comprehensive than salary. Thomas v. 

Abernathy County Line Independent School-~District, 278 S.W. 312 (Te 

Civ. App. - Amarillo 1925), r* 

Comm'n App. 1927); Taxpayers7 

P.Zd 897 (Wyo. 1936); At 

!v'd on other grounds, 290 S.W. 152 (Tex. 

League of Carbon County v. McPherson, 54 

torney General Opinion WW-719 (1959). Thus. 

we believe the legislature intended the use of housing ‘to be part of 

the employee's compensation. 

In our opinion, the department's use of housing to compensate its 

employees constitutes a public use. State funds appropriated to 

compensate public employees are not taxable to the state merely 

because.they will eventually be spent by the employees for private 

purposes. Nor, in our opinion, is the housing in question taxable. 

See generally City of Sherman v. Williams, 19 S.W. 606 (Tex. 1892). 

SUMMARY 

The use of residential property owned by the 

Department of Corrections to provide housing as 

compensation to its employees constitutes a public 

use of the property. The property is not subject 

to ad valorem taxation. 

MARK WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

p. 1331 
Honorable Roy Blake - Page 3 (Mw-391) 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Susan L. Garrison 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilpin 

W. Reed Lockhoof 

Jim Moellinger 

p. 1332