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CEDC Request 2001/11/26NOU 26 2001 16:23 FR NICHOLS JACKSON DILLA4 965 0010 TO 9723047063 P.02 /03 Robert E. Hager E -mail: rhager@njdhs.com Comptroller of Public Accounts Exempt Organizations Section Post Office Box 13528 Austin, Texas 78711 -3528 Dear Sir or Madam: NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. Attorneys & Counselors at Law 1800 Lincoln Plaza 500 North Akard Dallas, Texas 75201 (214) 965-9900 Fax (214) 965 -0010 E mai} NJDHS(@'NJDHS.com November 26, 2001 RE: Coppell Education Development Corporation ROBERT L. DILLARD, JR. {1913.2000) H. LOUIS NICHOLS LAWRENCE W. JACKSON OF COUNSEL We are writing in response to your letter dated October 30, 2001, addressed to the Coppell Education Development Corporation, 255 Parkway Boulevard, Coppell, Texas 75019, regarding our request for a franchise tax exemption. Please be advised that the Coppell Education Development Corporation is a corporation established under the provisions of 379A of the LOCAL GOVERNMENT CODE. Under Subchapter B of Chapter 171, a non profit corporation organized solely to promote the public interest of a City is exempted from the franchise tax. This Corporation was organized for the purpose of receiving sales tax proceeds and distributing those funds to other publicly funded institutions for the promotion of literacy, foreign language and career technology for a skilled workforce. It is exempt under Section 171.061 of the Tax Code. The Directors of the Corporation have requested that we forward to you this letter as the written request of the Corporation for a franchise tax exemption under the provisions of Chapter 171.061, Texas Tax Code. We have enclosed herewith copies of the following documents: 1) Articles of Incorporation; and 2) Certificate of Incorporation; and 3) Letter from Comptroller providing effective date for local sales and use tax. NOU 26 2001 16:23 FR NICHOLS JACKSON DILLA4 965 0010 TO 9723047063 P.03 /03 Comptroller of Public Accounts November 26, 2001 Page 2 Be further advised that this Corporation is organized under Section 379A of the TEXAS LOCAL GOVERNMENT CODE. Subsection 379A.051(a) of the Act provides that a corporation may develop and implement programs for (1) job training, including long term job training and en- training support service grants; and (2) early childhood development that prepares each child to enter school and that make each child ready to learn after completing the program and that provides educational services under the provisions specified in the Act. Also, Subsection 379A.053(b) specifically states, "Section 25.07(a), Tax Code, does not apply to a leasehold or other possessory interest granted by the corporation." As a result of the provisions of Section 171.061 specifically provided for exemption for purely educational purposes. A review of the above provisions of the enabling legislation and applicable Articles of Incorporation clearly establishes the educational purpose for which an exemption is appropriate. Thank you for your attention with regard to this matter. Please let us know if anything further is necessary to establish the franchise tax exemption for this Corporation. REH/cdb Encl. cc: Very truly yours, NICHOLS, • " ., SON, DILLARD, HAGE : & S TH, . .P. B Jim Witt, City Manager (w/o encl.) (VIA FACSIMILE 972/304 -7063) Libby Ball, City Secretary (w /o encl.) (VIA FACSIMILE 972/304 -3673) NICF1OLS, JACKSON, DILLARD, HALER & SMITH, L.L.P. 44600 ** TOTAL PAGE.03 **