. 

OFFICE OF THE AlTORNEY GENERAL OF TEXAS 

AUSTIN 

Honorable George Ii. Sheppard 

Comptroller 0r Pub110 Aooountr 

Auetla, Tex88 

Dear dir: 

ot Thm Amerleaa Be 

free Sror ad 

mbmltted ror ou 

6plled a6 followar 

arty ln the Cltr of Clebunts, 

*io &i uoe ie thlo property being put at 

10 well rented and after doduetand oo?anty tuom, inmranre and upkeep, 

are about e aad uo wed In the malntenanee of thr Dollar Chapter, Amerlom Red Crors artlritlr8. 
Eonorpble Forgo 8. Sheppard, tige 2 

"2. What be your plom aa to lto iW 1~00 

The proput lo on the market for oale. It 

lo the 08ly plooe of property held. Uo hte trlod 

to get l naoonable prior ?or thlo ?operty l inw 

it M O l qepted br 6008 Au&uet 1, 1 1 43. It the 

prop er ty l 0a bo Bold tho )ro.o.dO will k iBtOOtOd 

iB u. 8. boBdO. 

“3. 'If oonronlont thlo Daportuat ohould 

like you to oend a pa8phlet of the law thot l uthorlzoo 

oreatlon of tho looal ahapter of The Amrlo&n ZmI 

Cross and oopy of the Charter.’ 

-ho luerlour Rod Woo8 ~88 lnoorporated 

br ~1 set of Coqgroeo In 1905 no l ?ederal a&enoy. 

A8 we Pnderotod it there lo DO law whleh uuteo 

looal ohaptero. Wo l e (nrloolng herwlth l photol totlo oopf oertirylng tht the Dollar Oorott Ohaptor 

Lcr, jPrlodiotioB and lo l poelfle~ll~ authorbed to 

l rrr y o n Red Or 080 lOtiritieS and monthly r&port8 

l e sent to thr Amerioan lktioml Rod Croao. speoirirally Red Qrooo Chaptoro ue not pormittrd to hold 

titlo to rod cotate and the title to the proputy 

l t Cloburne lo in the aano of tho Anerloa8 Red Orooo, 

ruhlngton, D. O., l Fedorol yenoy. 8hould tho 

property be 0016 by the Aaorloan Rod Crooo, the 

proooodo would be turaod over ior uinteunoe or 

the Dalloo Chapter. Shlla we l o not aulrq the 

property in qrreotlor dlmtlr ior Red Or088 br 

ouapanor, tho proooedo are king uoed for maintenanoe of tho Dallao Qhaptor. We bellevo that 

thlo proport l hould bo uomp% from tax&ion and 

l e l k lBg that y o u l o mll0.~ 
Hanonble Gaorgo H. qheppord,. Pago 3 

W; h4ro help l xpraooly In our protlouo opinion 

-. - No. O-4291 The Amorle’M Red Orooo, or any duly organized 

or azlotlng chapter thereof, to be an lnotrumontollty of 

the United States. O111lko the oltuatlon of unp other 

inotnmaat4litieo of the Felar41 Governmenb, whora Oongrsso ha4 axpraooly provided for loon1 nondloorlmln4tory 

ad 14lora4tu llabllity, the otatutea ara silent regarding 

ouah tsx llsblllty or iamunlty of the Red Crone. Suoh being 

the oaoe wa ore l~ollnad to iolIor the tact laid domi in the 

reoent onoo 0r ~ravoo v. Pa0910 of %ntb 0r Jew Yori:, 306 

il. 3. 466, 83 L. Id. 927, 59 S. Ct. 595: 

?3110n00 0: cougroso Implies Immunity no more than 

does the ol~~anoa or the 0onatltution. It r01101;0 that 

when exemption iroll l tsto taratim lo olaiaod on the 

C;rouad that the federal gorarnzmt la burdened bf the 

tex, and Congress hr;s dloolo8ad no Intaatlon rlth 

rsspeot to the olalmad lmnunlty, it is in order to 

oonsldsr the natura and ofieot of the alleged burden, 

. . .” 

n looal. nondlao$lloinatory sd raloropl tax on pror,srty 

of a Tsderal instrumentality ham bean uphold ln numerous 

daoiolono of <ha Jnltod St4tca 3uprbna Court baoause Its effoot on thb Gorornnrbnt ~8s. ramie md indlzeot. ZfCullooh V. 

Zaryland, 4 Wheat 316, 4 L. id. 579 (local real osthtti tax 

on national banks); iicndareon 3riddc Co. Y. Kantuoky, 166 

u. 3. lS0, 17 s. ct. 532 (atatc property tax on bridge usslin 

Into,-•t?te oormaroe snd artabllohed am s post road by Congress); 

IJnlon Faoltlo H. K. Co. f. Ponloton, 85 3. 3. 5, 21 L. E‘d. 787 

(state property tax on railroad pro9arty, the railroad being 

ohatered by tha ;orarmant lu ardor to osrry out the pawars 

of Congress relative to lnterotata o o miuo l e, otabllohlng 

post roads, 6to. ) ; Thom8on v. Union Paolrlo Railroad Co., 

76 J. s. 579, 19 i. Ed. 792 (same fact oituotlon 00 In Ekklon 

Pagitlo i?. R. Co. v. Paoloton l uprs); AIw4rd v. Joh4oa4, 262 

il. 8. 509, 75 L. i4i. 496, 51 4. Ct. 273 (propotty wed in 

oper,itiq an 4utowttta stag, line between polato in 04llfornl4 

uador a eat1 oarrlar*a oontrrlot); Indian Tsrritow IIlumlnatlng 

011 Ooapamy v. Board of ~quallzatlon, 286 T. S, 327, 77 L. ‘Td. 

612, 53 9. Ct. 388 (tax upsn oru2o oil groduoed tram exempt 

Xndlan lands held by the oorapany In its storage tanks); Tsbar 

v. India Territory IllPrLnatlag Oil Oompan~, 300 3. 3. 1, 

81 L. i L. 463, 57 S. Ct. 334 (property used by the oom?any 

In its opartitiono on 4x oil rind gas lease oorarl~, lande of 

rootrioted :‘EVh60 Indiana). 
Honorable Ueorgr II. Sheppard, Pago 4 

On thi othbr band thors arb many authoritlbr holding th4 sank4 t/pe 0r tti ~016 by rbason or th6 tu being l 

diroo t burdsn on the Unit4d Sbstbs Gorbmmsnt. Clallam County, 

Uastln&on, V. UIlitSb State8 6Sd Unltsd StbtbB SprU44 ProdUotlon Corpolrtlon, 263 0. S. 3U (Property a4 Lirbd and la4d ror 

w4r produotlon); tilted Stat.48 V'. Coghlan, 2 8 1 lr. 425 (propbrtp 

owns& by Fbdsral Shlp;in(l Bo4rd Emsrgono~ Flbbt Corporstion 

and uaod ror war produotioo); lUng Oounty, ‘Uarhlngton, t. aitbd 

sthtss Shipping Board Fleet OorpOrotlOn, 262 ?. 950 (sum ract 

l ltustloa as In Ilnltbd Stst48 v. Coghlan, supm); tilted States 

~ouaing Corporation v. City 0r natartan, 113 8. I. Ylsc. 679, 

166 1. Y. Supp. 309 (land 84qUlrOd to hsu~r workbra in 488ontlal indurtri48 during world Iur One). It is to bb noted that 

in saoh of the a“48 oltbd in thi‘ paragraph the Fbd4ral Oovernnent own06 rll the rtoek,or the bntlrb banr~lolal intbrbst in 

thb stosk, Of the 4OrpOrStiOn8 SOu@lt to be tUbd. 

We bbliOV0 the proper teat ia found In Coolsy on 

Taxation (Ith Bdltlon), Volum4 2, Seotlon 607: 

*. . . The teet is :whbther the tax doprlrbs tha 

parsons or oorporatloas taxed, in truth, of power to 

aarvb thb go+brne.ent (ia they were intsndbd to aor~e it, 

or hinder the Orri0ient sx4rolob or their power. 

“It rollowa that a atete ta% upon the property or 

sn agont or the redbral gorbrm4nt la not prohibited 

merely bbOaUl3e it is the property of suoh an agent. 

*Tu8tlon or the agonog is taxation 0r thb EOmsi taxation or thb property of the agant 18 not alws~s, or 

gmnsrallr, taxation o? the man~.~ A tax upon the 

'pr4pbStr' Of 4gbIlt4 4? l gOll4ibS Or thb ib64r‘l gOtOmmoat dobs not nb4e4s8rily drprltb them or thblr psuor 

to ssrvs suah gorenmsnt nor hinder the rfflolbnt usr4184 or the power, and hens@ may be rightrull;r laid; 

bat a tax upon tholopsrstionsl Of suoh s&bats or agsn4188, 1. b., an ooaupatlon or prirllege tax, being a 

dlrbet obstruotlon to the l xer4184 of fed4ral pmef, 

18 lnralld. But where the proprrtp 0r a aorpmmtlon, 

eaga@d in exboutlng a rederal agsnoy, is itablf the 

means by whiah suoh w54noy ië l xOOUtb thb d, PrQpbrty 

is not SUbJ6Ot to State or loeal taxation.” 
P5U 

lionorable aUborgr E. Sheppard, Pegs 5 

Se. dS0 Indian idOtOI’SgOlS CO. V. &ited StStbS, 283 YJ. S. 

570, 75 L. 166. 1277; lox Film Corp. f. Doyal, 286 U. s. 

76 L. Ed. 1010. 

123, 

In our oplnloa the property of Tha Anbrlaan Red 

Cross la not in ltaolf the moana by whlot Its agenoy ror 

the. Onltad Stetee Gotom.bnt is l xboutod. The Cbderal Uotbrnmat does not wholly own its stook, alnor there is none. Although the 4orporatIon la rather strlotly aupenlsed by Ita 

ormtor, and 1s assisted In lta operations by substantial 

SWSJS direotly ap~roprlated fro- the national treasury, the 

peop1e of this netion. are large& responsible ror its support 

through voluntary oontributlons. Too, its purposea are not 

all strlotly goternmontal In ohuraoter, 6 a rhown by Subaeotlona 3 an1 5, Ssctlon 3, Title 36, II. 5. C. 5., rhioil read 

85 r0n0ws: 

*The purpoocis of the oorporatlon ar6 and ahhli bb - 

nFlrst. To fWi8h.tolUteer aid to the alok and 

woundbd or armles in tin4 or war, In aooordanos with the 

spirit ana oonditlons 0r the oonferenoe or Gbnbta or 

Ootobbr 1863, and also of the treaty of the Red Cross, or 

the treat; Jr Ganava, oi August 22, 1664, to whloh the 

Vnlted Stat.68 of Lmerlea gore ita adhesion on %13rOh 1, 

1882. 

". . . 

"Fifth. iad to oontinue ma 0arrJ on a rystem 0r 

national and internatlonal relief in tla4 of peaoe and 

apply the sa:m in mItlgatln& the suitering ssuoed by 

pestllenoe, famine, ilrb, Sloods, and other great 

national aalamitiea, .and to hric;e and carry on meamres 

ror prbventlng the aame.w 

You will note that tbe parpO8b8 rO? whfoh Thb Amrioan 

Red Crosr wa s lnoorporuted l lluw it to rblie+e di.stre88 In 

rorelgn lands. We b41lsr4 thsn that its sltustlon la dirtingulehable from that oi inotrumentalltlea wholly owned and oontrolled by the ?edoral Oorernmmt and whO8b propbrtiee are the 

means through rhloh the Psderal powera arb exenisbd. 
. . - - 

Honorable Uoorge H. Sheppard, Page 6 

'IO the&fore 00n4iud0 that ad ralormai trxos laid 

agelast The As4rloan Red Ok88 under the prbasnt olroumstances would not oonstltufe a dlreat burden upon the United 

St8 tbs. 

The purpoaes of The Aamrlean Red Cross 80 set 

rorth In Tltlr )6, Chapter 1, 3eatlon 3, U. S. C. A., show 

it to be a ohultabls organlsatloa. This b4lng the ease, 

WI gust now oonsldu the poeslblllty of the building being 

cxeapt iron taxation by reason or our state ConstltutscPn 

and rtstutes. We r,rlotr a portion of Attible 7150, V. A. C. S., 

4~ r0ii0as: 

*The rollowing propsrty Uh81: be exe?ipt mm taxation, towit: 

“. . . 

"7. Fubllo charities. - All bui1Jings belonging 

to lnstltutlons Of purely public oharlty, together with 

the lands belonging to and 044UFIed by suoh institutiona 

not lorsbd or ottbrwlae udbd with n view to prorlt, us1088 

such rents and profits and all moneys an4 orsdlts are appropriated by suoh inatitutiana solely to aurtain 8U4h 

Institutions. . . .* 

It would aem fro3 the language qsotsd that the 

property oonseraeb t;ere w0tid * l xampt. I;O.:bYbr, our courts 

hbrs vary erftitivel; ntiiirbd this protlslon 0r the statute 

by their oonstruotlon of Artiole 8, Seotiou 2, or our State 

Con8tltutlon. A hoat of Texas dealslona are In aoaord on the 

propoeltlon that the propsrty mat be owned and used *uelualrely* by the oharltable organiaatloa. The latrat expresalon 

by ow highest oourt on this point Is round In the oass OS 

City of Longtiaw v. Markham-%sRee Mezsmlal Hoqpltal, 137 Tex. 

176, 152 S. Yf. (26) 1112. 

Slno4 tht use to whloh the bnIldIng la put admittedly 

18 not Nexoluslven, Fhb hmerloan Rad Or088 la liable for the 

a& trlorea taxa laid against thr property inquired about. 

woo&row Edwards 

As8lDt‘nt 

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