Untitled Texas Attorney General Opinion ( 1963 )

THEATTORNEY GELVEIRAL Q,FmXAS Honorable Ben Atwell, Chairman Opinion No. C- 59 Revenue and Taxation Committee House of Representatives Re: Whether margarine made Austin, Texas from safflower oil is exempt from taxation under Section 2 of Article 7057c, Ver- Dear Mr. Atwell: non's Civil Statutes. We have received your letter of April 2nd, in which you request an opinion as to whether margarine made from saf- flower 011 is exempt from taxation under Section 2 of Article 7057c, V.C.S. You express the view that it was probably the Intention of the Legislature in the original enactment of the tax on mar- garine to exempt from taxation margarine which Is composed of domestic fats or oils. The original act in question is House Bill 32, Chapter 6, p. 8 of the Acts of the Third Called Session of the 43rd Legis- lature (1934), and Section 2 of that Act is Section 2 of Arti- cle 7057c, V.C.S., reading as follows: "Sec. 2. That in addition to the taxes now provided for by law, each and every wholesaler, as defined in this Act, who is now engaged or may be here- after engaged In his own name, or In the name of others, or In the name of representatives or agents in this State, in the sale of oleomargarine as herein defined, containing any fat and/or oil ingredient other than oleo oil from cattle, oleo stock from cattle, oleo stearlne from cattle, neutral lard from hogs, cottonseed oil, peanut oil, corn oil, soya bean oil and/or milk fat, shall not later than the fifteenth day of each calendar month render sworn statements to the State Comptroller of all such oleomargarine sold by such wholesaler in the State of Texas during -286- Honorable Hen Atwell, Page 2 Opinion No. C- 59 the preceding calendar month, and pay an excise tax of Ten (10) Cents per pound on all such oleomargarine so sold as shown by such statement In the manner and within the time here- inafter provided." (Emphasis supplied) Section 1.6of the above mentioned Act, the Emergency Clause, does refer to the importance of the Act to the agri- cultural and to the cattle industries of this State, and the necessity for the fostering and promotion of those industries. Webster's New International Dictionary, 2nd Edition (1957) defines "safflower as follows: 'An old world thlstle- like herb having large orange colored flower heads". The question is whether oil derived from,,safflower.falls within the above quoted Section 2 of the Act as . . . containing any fat and/or oil Ingredient other than oleo 011 from cattle, oleo stock from cattle, oleo stearine from cattle, neutral lard from hogs, cottonseed oil, peanut oil, corn oil, soya bean oil and/or milk fat, 0 . .'I. We fall to see that 011 derived from safflower falls within any of the above classifications, and for that reason are of the opinion that margarine composed of such oil is not exempt from taxation. SUMMARY Margarine made from safflower oil is not exempt from taxation under Section 2 of Article 7057c, V.C.S. Yours very truly, WAGGONER CARR Attorney General of Texas HGC:jp:pw -287- Honorable Ben Atwell, Page 3 Opinion No. C- 59 APPROVED: OPINION COMMITTEE: W. V. Geppert, Chairman John Reeves Bill AlIen James N. Stofer Pat Bailey APPROVED FOR THE ATTORNEY GENERAL By: Stanton Stone -2aa-