Texas Attorney General Opinion: MW-4 Page: 2 of 5
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Honorble Tim Von Dohlen - Page Two
Deacon v. City of Eule, 405 S.W.2d 59, 62 (Tex. 1966); Cox v. Robison, 150 S.W. U49
(T. 1912); Attorney General Opinions H-634 (1975), H-14 0973). Where private rights are
not involved, the legislature may impose retroactive legislation on political subdivisions.
Deacon v. City of Euless, r at 62; f Love v. City of Dallas, 40 &W.2d 20 (Tex. 1931)
constitution protects property which political subdivisionholds in trust for people). The
vested rights of taxpayers will not be injured by the grant of tax exemptions effective
January 1, 1979, since it creates rather than destroys a right. See Attorney General
Opinion M-413 (1969); 2 Sutherland, Statutory Construction S 4L02~th ed. C.D. Sands
197 3). Although statutes are generally presumed to operate prospectively, they will be
given retrospective effect where the legislative intention is clear, and where no
impairment of vested rights results. Deacon v. City of Euless, supra at 61; see Code
Construction Act, V.T.C.S. art. 5429t-2, 5 3.02 (statute presumed to operate
prospectively unless expressly made retrospective).
Other constitutional provisions prohibit the state from applying a tax exemption
retroactively when the tax liability has matured. Article 3, section 55 of the Texas
Constitution provides as follows:
The Legislature shall have no power to release or extinguish, or to
authorize the releasing or extinguishing, in whole or in part, the
indebtedness, liability or obligation of any corporation or
individual, to this State or to any county or defined subdivision
thereof, or other municipal corporation therein, except delinquent
taxes which have been due for a period of at least ten years.
A delinquent tax is a liability within this provision. State v. Pioneer Oil & Refining Co.,
292 S.W. 869 (Tex. Com. App. 1927, jdgmt adopted). Once a tax becomes a liability article
3, section 55 makes it irrevocable, and the legislature cannot extinguish it by repealing
the statute which enacted it. See also Sloan v. Calvert, 497 S.W.2d 125 (Tex. Civ. App. -
Austin 1973, no writ); Smith v. State, 420 S.W.2d 204 (Tex. Civ. App. - Austin 1967), aff'd,
434 S.W.2d 342 (Te, 1968); Attorney General Opinions M-34 (1967), C-200 (1963."In
addition, article 8, section 10 prohibits the legislature from releasing the inhabitants of
any county, city or town from the payment of taxes levied for State or county purposes
unless in case of great public calamity. See Bass v. Aransas Coun tyLS.D., 389 S.W.2d 165
(Tex. Civ. App. -- Corpus Christi 1965, writ ref'd n.r.e.) (dicta).
Moreover, a statute which attempts to grant an exemption with respect to a tax
liability accruing before its effective date might also violate article 3, section 51 of the
Texas Constitution. This provision prevents the state from making or authorizing a grant
of public funds to any individual, association of individuals or corporation, in the absence
of a public purpose or consideration moving to the state. State v. City of Austin, 331
S.W.2d 737 (Tex. 1960); Attorney General Opinion H-416 (1974). Article 3, section 52 also
prevents the legislature from authorizing political subdivisions to grant public money to
individuals and corporations. In Morris v. Calvert, 329 S.W.2d 117 (Tex. Civ. App. -
Austin 1959, writ ref'd n.r.e.), the court held that a statute providing an inheritance tax
exemption applied only to estates of persons dying after its effective date. Somep. 10
(MW-4)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: MW-4, text, March 13, 1979; (https://texashistory.unt.edu/ark:/67531/metapth271849/m1/2/?q=%22White%2CMark%22: accessed May 1, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.