City of Dallas v. Cochran

• Decision Date: 02 April 1914
• Docket Number: (No. 1292.)
• Citation: 166 S.W. 32
• Parties: CITY OF DALLAS v. COCHRAN et al.<SMALL><SUP>†</SUP></SMALL>
• Court: Texas Court of Appeals

166 S.W. 32

CITY OF DALLAS v. COCHRAN et al.^†

(No. 1292.)

Court of Civil Appeals of Texas. Texarkana.

April 2, 1914.

Rehearing Denied April 16, 1914.

Appeal from District Court, Dallas County; Kenneth Foree, Judge.

Suit by City of Dallas against Sam P. Cochran and another. From a judgment for defendants, plaintiff appeals. Reversed and rendered.

The suit is brought by the city of Dallas for taxes claimed to be due for the year 1911 by appellee Cochran, as owner of certain real estate located in the city of Dallas, and to foreclose a tax lien. The United States Bond & Mortgage Company, Incorporated, was made a party defendant, upon the ground that such company held a mortgage lien on the premises, and a foreclosure of the tax lien as against it was prayed for. The property in suit, described by metes and bounds, is 100 by 90 feet in block 125/33 according to the official map of the city of Dallas. The petition alleges that appellee Cochran rendered the property for taxation to the proper officers of the city of Dallas, and that it was accepted and incorporated in the official rolls. The appellees each answered by denial, and specially averred to the effect that the lot was occupied by a churchhouse, which was the First Presbyterian Church, and that he had, on May 31, 1910, executed a lease or rental contract to the church, by the terms of which the church was to pay a stipulated rental and was to occupy and use the house and the lot for the exclusive purpose of public worship, and that the church had, since said time, used, and is now so using, the entire premises and building thereon exclusively for public worship, and that the premises were by law exempt from taxation for the year 1911. The case was submitted to the court upon an agreed statement of facts, and judgment was rendered in favor of the appellees. The agreed statement of facts, which the trial court adopts, is as follows:

"(1) That on, to wit, about May 31, 1910, the First Presbyterian Church conveyed to Sam P. Cochran, defendant herein, the following described land [description follows], reserving in said deed and notes express vendor's lien to secure the payment of certain indebtedness, to wit, the sum of $60,000, therein mentioned as part of the purchase money of said lot, $10,000 of which has been paid, and the two notes remaining unpaid of $25,000 each, with vendor's lien, having been conveyed by proper deed of conveyance to the United States Bond & Mortgage Company, Incorporated, and that the said United States Bond & Mortgage Company still owns and holds said notes; that subject to the express vendor's lien above mentioned Sam P. Cochran owned said lot on the 1st day of January, 1911.

"(2) That on the date when the said lot was conveyed to defendant it was occupied by a churchhouse, which the First Presbyterian Church has been using for years for the exclusive purpose of public worship; that it had used none of it, or the grounds attached thereto, for any other purpose.

"(3) That on the date when the said lot was conveyed to said defendant, he immediately executed to the said First Presbyterian Church a lease or rental contract, which was accepted by the said First Presbyterian Church, by the terms of which they continued to occupy said lots and buildings thereon as they had previously occupied them for the exclusive purpose of public worship, for which they paid the said defendant a stipulated rental; that under the said lease contract said church has, ever since the date of the said conveyance to the present time, including the 1st day of January, 1911, occupied said lot and buildings thereon and used same exclusively for public worship.

"(4) That all of the buildings thereon and furniture in said buildings and the grounds attached thereto are necessary and proper for such use.

"(5) That no part of the said lots, buildings, or furniture has been leased or rented out by the said First Presbyterian Church, or otherwise used by it with a view to profit.

"It is agreed by the parties hereto that if the exclusive use of this property by the said First Presbyterian Church for the purpose of public worship, and under all the circumstances above stated, and that it has not leased out any part of it, or rented it to any other person for profit, does not exempt same from taxation under the laws of Texas, the defendant is liable for taxes thereon due the plaintiff for the year 1911.

"(6) It is agreed that the assessment by the city of Dallas was duly and regularly made, and that the amount of taxes due for the year 1911, exclusive of penalties and interest is $829.92.

"It is contended by the plaintiff in this case that the fact that defendant has bought the property under the circumstances above stated, and leased it to the First Presbyterian Church, renders him liable for the taxes thereon; whereas defendant's contention is that the ownership of the property might be construed to be in him is immaterial, as the exclusive use of the property by the church exempts it from taxation."

C. F. O'Donnell and Marion S. Church, both of Dallas, for appellant. Crane & Crane, of Dallas, for appellees.

LEVY, J. (after stating the facts as above).

The trial court gave the legal effect of the agreed facts as follows: "It is concluded as a matter of law that the property above described is exempt from taxation by reason of the fact that it was used by the Presbyterian Church for the exclusive purpose of public worship, notwithstanding the fact that the Presbyterian Church did not own the property." The assignments challenge the ruling of the court. Appellee Cochran was the owner of the premises, and leased the church building and lot to the Presbyterian Church for a stipulated rental. And it is the owner who here seeks and claims exemption from taxation. And thus there arises the precise question for decision of whether the property is exempt, under the statute of this state, from taxation at the hands of the legal owner thereof on account of the use for purely religious worship which the property is put to by the lessees....