GEFt4LDC.lUHN Au- ai.TEXAS .a-- ommmnA& HonorableGeo. H. Sheppard Comptrollerof PublicAocounts Austin,Texas
Dear Sirr OpinionNo. O-2037 Hei Liabilitybf!propertyowed by the LOrreiColoradoRiver Authorityto State and countyad wlorem taxes.
Lkder date of l&arch4, 1940, you suhnitfor the opinionof this Departmentthe followingquestion:
'The Lower ColoradoBihr Authoritypurchasedfromthe Texas Power and Light Canpanyoe+ain real estateand power linesin ColoradoCounty on which ad wloremtaxes had been previouslyleviedand colleoted. Is this propertynow subjectto ad valorsmtaxes under the new ownership?"
.Ho questionis presentedhere as to the Vesting of title in the L&r ~tiloradoRiver Authorityto certainreal estateand power lines in ColoradoCounty by virtue of its purchaseof ssme from the Texas Power & Light Company, or~of taxationthereofwh%le onned by grantor,but the only questionbeforethis Departmentis whether suoh real eatatebe-es ex- empt from State and countyad valoremtaxationin the hands of Authority, under oontrollingoonstitutional and statutoryprovisions.
Artiole8, Section2, Constitutionof Texas, providesthat "the Legislatwe may, by generallaws, extrnpt fromtaxation publicproperty used for ~ubliopurposes." Article 7150, Vernon'sAnnotatedCivil Statutes, provides-'eertain exrrmptions from taxation,anong them "all property, *ether real or'personal,belongingexclusivelyto this State,or any politicalsubdivisionthereon,. . ." (Section4).
re now turn to pertinentconstitutionaland statutoryprovisions to ascertainif the Lover ColoradoRiverAuthorityis "a politicalsubdi- Vision" of the State,within the tax exemptionaffordedby Artiale 7150, Vernon!sAnnotatedCivil Statutes,so as to constitutethe real estate in question"publicpropertyused for purlib purposes,"within the intend- ment of Article~8,Seation2, Constitutionof Texas.
The Lower ColoradoRiverAuthorityis a body politicand corporate oreatedunder Article 16, Section59a, Constitutionof Texas,and the EnablingAct of the Legislaturepursuantthereto,appearingas Olapter7, Acts of the 4th Called Session,43rd Legislatirs(Vennon'sAnnotatedCivil Statutes,Article8194 note). This smondment,known as the "Conservation Amendment"providesfor the creationof conservationand reclamationdis- tricts as-follows,: HonorableGee. H. Sheppard,Page 2 (O-2037)
%ec. 59a. The conservationand developmentof all of the naturalresources of this State, includingthe oontrol,storing,preservationand distr.ibution of %ts storm and flood waters,the waters of its riversand strelrms,for ir- rigation,power and all other useful purposes,the reclamationand irrigation of its arid,s&-arid and other lands needing irrigation, ,thereclamation and,drainageof its over-flowedlands and other lands nee&ng drainage,the conservationand develousentof its forests.water and hvdro-eleotrio Dower. the navigationof its &land and aoastalwaters, and the-preservation -&I - oonservation of all such naturalresourcesof the State are earn and all here dealaredpubliorights and duties;andthelegislature shall pass all such law as may be appropriatetbreto.
e(b) There may be orsatedwithin the State of Texas,or the Statemaybe divld- ed Into such nuisberof conservationand realamationdistrictsas may be deter- mined to be essentialto the accomplishent of the purposesof this amendmentto the constitution, which distfiots&all be governmentaiagenciesand bodiespol- itic and corporatewith eooh powersof governmentand with the author%* to exercisesuch rights,privilegesand functionsoonoerningthe subjectmatter of this amendmentas may be oonferredby law." (Underscoring ours)
The abovebat, creatingthe Loner ColoradoRiverAuthority,declares, in Seotion1 thereof,the nature and purposesof the Authorityto be as follows8
*sea. 1. There ia hereW oreatedwithin the State of Texas.In additionto the distri& lnto~whiohthe-statehas heretoforebeen divided,.aconservation and reclamationdistriotto be known a8 Qmer ColoradoRiver ~Authority*(herein- after calledthe District)and consistingof that part of the State of Texas whiah is iaoludedwithin the boundariesof the countiesof Blanoo,Burn&, Llano, Travis,Bastrop,F'aytte,Colorado,Sharton, San SabP; and Matagorda. Such Dis- triot shall be snd is herebydeolaredto be a goverrnnental agencyand bom- tic and corporate,with the powersof governmentand with the authorityto exercisethe rights,privilegesand funationshereinafterspecified.and the