Texas Attorney General Opinion: C-76 Page: 3 of 5
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Honorable Ben Atwell, page 3 (C- 76)
no capital stock and organized for the exclusive purpose of
promoting the public interest of any county, city, or town,
or other area within the state. . . since it is' well settled
that Article 12.01 leviesa franchise tax on corporations
without capital stock as 4ell as corporations with stock.
McCallum v. Associated Retail Credit Men of Austin, 41 S.W.2d
45 (Comm.App. 1931).
Prior to 1957, the exemption under this provision of the
statute was limited to corporations organized for the exclu-
sive purpose of promoting the public interest "of any city or
town.' Under that language, the Attorney General's Office
had held that chambers of commerce of cities and towns were
exempt but that county or regional chambers of commerce were
not exempt. Att'y. Gen. Ops. 0-7240 (1946), WW-I06 (1957).
In 1957 this provision of the statute was amended to read "any
county, city, or town, or other area within the State," and
these opinions are now obsolete. However, your opinion re-
quest raises the question, among others, of whether a state-
wide organization can qualify for exemption. We are of the
opinion that the phrase "other area within the State" includes
the entire State as well as lesser regions and that a corpor-
ation is not precluded from exemption because its activities
are state-wide.
It is also our opinion that there is nothing else in the
purpose clause set forth in your request which, on its face,
would prevent exemption. Although the charter recites that
the corporation is formed for the organization of a chamber
of commerce, the further recitations show that the corporation
is not intended to operate as do usual chambers of commerce,
which function not primarily to promote any one industry but
rather to promote the general interests of the public in the
areas which they serve. However, a purpose of a more special-
ized nature is sufficient so long as it is exclusively in the
public interest. The promotion of the industrial development
of an area is in the public interest.
Within the orbit of the purpose clause under considera-
tion, a corporation could carry on some activities designed
primarily to benefit the private interests of those engaged
in the industry rather than the interests of the public at
large without exceeding its charter powers. We do not think
it is necessary that the corporate charter be so worded that
any function not designed primarily for the promotion of the
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Texas. Attorney-General's Office. Texas Attorney General Opinion: C-76, text, May 15, 1963; (https://texashistory.unt.edu/ark:/67531/metapth268495/m1/3/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.