R-33 

T-HEATToWNEYGENERAL 

OFTEXAS 

PRICE DANIEL 

.ATTORNEY GENERAL 

AUSTXN II. TExas 

January 24, 1947 

Honorable C. H. Cavness Opinio~n No. V-33 

State kuditor 

Austin, Texas Re: If there is no statutory 

or constitutional limit 

on ad valorem tax levies 

which can be made in Texas by cities, school districts) and irrigation 

districts, based on assessed valuations required by law to be 100 

per cent of the actual 

valuation, what would be 

the legal manner in which 

any such limits could be 

imposed? 

Dear Sir: 

This Department has received your request 

fan opinion in answer to the following question: 

for 

“If there is no statutory or constitutional 

limit on ad valorem tax levies which can be made in 

Texas by cities, school districts, and irrigation 

districts, based on assessed valuations required by 

law to be 100 per cent of the actual valuation, what 

would be the legal manner in which any euch limits 

could be imposed?” 

The general rule concerning the power of the 

State to impose taxes is that it is an inherent governmental power, and the source is neither fmm the Federal 

or State Constitutions but is an attribute of sovereigntys The general rule is well stated in the case of 

Clegg v. State, 42 Texas, 605, 608, as follows: 

” The taxing power7 is a power inherent in 

sovere f gnty, and without which constitutional government cannot exist . It is vested in the Legislature by the general grant of leqislative power 

whether specifically enumerated in the Constitetion among the powers t,o be exercised by it, or 

not. The constitutional. provisions in reference 
Blamable C. Ii. Cavness 9 Page 2 

to ft s thererore, ar~e,more~usuall.y intended and underetoed as,limitatfonsend restrictions upon fts 

exorcise, ‘than as, the direct grant of the power to 

tbs Legtslature.” 

The same ‘rule fs expressed in the case of 

Strstton v- Commissioners 1 Court, 130 S 0 ‘8, 1170 (error 

termsed), whsrsin the Court held in part as follows: 

“The. power to tax is an attribute of soverefgnty p and the extent to ,whfch this power may be exeroised for governmental purposes ffnds its onLy 

l.iaftation Ln the Constitution. Unless restrained 

by the Cofietftutfon, not only is this power unlimited i.18 ita reaoh as to subjects, but it recognfzata, no limita 9 and may be o,arried to the extent of 

o~ustion and dsstruotio,n, c 0 D 

“The general rule of constitutional law that a 

sovereign power conferred by the psople upon one 

branch of the government oannot be delegated aplies with peculfar force to the case of taxation, 

8 fi& ‘, taxiw power Is vested by the Constitution in 

the Legfslat,ure; and within that departl(Qnt of govbpmmeht lies the euthorfty to prescribe the rifler 

81 taretfan, end to regulate the aanner fn whiah 

$&me 1.~16s shall be given effect, The Legislature 

#LP$ in everg Enstsnce prescribe the rules under 

v&$*51 t*f@f,drn my be laid. It must arf fnate the 

rut&OXf’$$ t&&Q rhfch, (If?iibf duo proceed f ngm, the 

wg ~~lW3b&P QeliBndi3 t&a oontrfbutfon; but ft need 

Y$ut t,here fs one seeming exception to the genrxal Fele t’hst the Legislature may not delegate any 

pert,Oon OS its authority, whfch relates to munfefpal corporations o Such corporations are a pert of 

the machinery of state government, ‘and the authorfty given theai by the Legislature frequently extends 

Based upon the foregoing principles of law, where 

. 
Honorable C. H. Oamera, Page 3 

.- 

no constitutional limitationa @r rostriotiona have been 

enacted es to the l&t or the trxihg power af the governing bodies of Oities Df t@x$wa ola86e@, aoheol diatrfote ei va%Yous clessee, and irrigstfon dirtrlote of 

various olasse8, the Leglslatltrs has the ivole right to 

presoribe or impose a limit of the tax to be levied by 

any of the foregotug municipal corporationa, provided, 

howov@r, that the tax limita 881 heretofore provided by 

the Legislature by statutory emctment applicable to 

any of the foregoing municipal gubdlvisioqa oannot by 

a oubeequ+nt sot of the Legislature be dsoreased 80 as 

to inpair the legal obligptiCm8 incurred by suah runiolpal s~ubdivisione fop the papmemt vi which a taxable 

U&it has already been fixed bf the Leglelsturer 

SUWART: Where the Constitution of Texas proVidbe &I legal l$J$t on ad walorem texea which can 

be levie+l by cities, raeha di&riota, and irrigation diutriots, then the Legislature of Texas plsy 

impose such limit ee it seem fit, provided the obligatioae or sxirstlng l&qal contracts incurred under a prior 8tatutO~ li&it fixed by the Legislatare maJ not be impailW. 

Your13 very truly 

ATl’ORNEY GENWRAL OF TEXAS 

4I2#&&& 

BY 

C. K. Rioharde 

Assistant 

“AppMved Opinion Comlttee 

,,ay H-m, gairmn 

‘.