Untitled Texas Attorney General Opinion ( 1944 )

.. ‘, a. OFFICK OF THE ATTORNEY GENERAL OF TKXAS AUKTIN thir do~rtment, rhloh ior tha uko 0 l# r 0u0ms 06 br vlrtua of lr a eo r io n,wth h 088i0o r r d0r 8I a n6 IIwnl storer la d tho motor fuel sot naval rtorrr, in r k no wnlI the Buok rn-mrtwright Ireon Ai6 out below ruoh portlom o? our Motor .- or tha Ka~6oll-c8rtwrlght ~oarnl Aid Aot 1 l~mmrhg your auertlonr. m880 lrotr “Zoxa* Kotor ?url hxfag Aot: “(arl’heroahall ba aA im hornby 1ori.d and impor (oxaopt a horolndtrr protlded) the tlrnt #ale, dhtributlon, or wo OS 10Y zg ru0i in thi8 atate aa oooupatioaal or alroi84 tar or r0ur (4) 00th pat muon or rr~0ti0e.- ‘r; ;he;r”’ 80 rold di8tribut8d. or Wed in tr8m drtributor who 88k88 0 iir8t 8818'Or dlrtribution 0r utor ruqr ia I 890 * Bon. Oeo. 8. Sh8gglrd, Fag8 8 thi8 St&8 rOr My pUrpOa8 Wh8t808v8r Shdl, ai th8 th8 O? ‘UOh ‘Ill8 di‘trfbUtfOll,001. Or 1800 th8 said tax rroo thr puroharsr or rsolp- lent 0r 8aid motor fU81, in adtlltloato hi‘ 881lin6 prio8, ana shall r8port aad pay to tho St&O Or T8X88 th8 WX 80 OOfl88t8d at th8 tlmo and in the mum8r her8lnaft8r prorl68d. tr8ry ruoh dlrtributor 8hall a180 br liabl8 to th8 Sk&t8 Or T8X1h8 rot th8 Mild t&X Of rOUr (4) 88nt‘ per pllon On 8aOh WllOn Of motor f~81 or rm0ti0d part therrof 118814 or oon- rued b him nab r&all ropart and p87 ~16 tax 8‘ h8r8IMrt8r prOtt686.‘ C8uokAi88nbMt CO th8 IiapWkCartWrfght t8U8tcrl Ai6 A8tS “SOOtion 10. (8) That all tax88 18V18d by lllystit8, T8rritory Or th8 Dl8triOt Of Coltmbla with r88jB8Ott0 Or =MWUOd by, ‘(Lf8, ~tWOh8‘80, ‘tong8 Or U88 Or y8OfiD8 Or Oth8r WtOr 78hiO18 fU818 My bs 18Vi8d; illth8 8a58 mbMIr 8od to th8 ‘aae eXt8at. with r88Q8Ot to Such furl8 when ‘old by Or thtoU&h Bolt eX0h8~8.r ‘hip 8tOl’88, 8hip 88IViO8 StOr88, 808tw84rl88, riiiiag 8taiOM, ffO8D88d tl'&ddr‘, Uld other ‘idfar 8g8flO~88,1008t8d on United Stats8 Military or other r88orvatlona,wh8n luoh tu818 ar8 Dot ior th8 8XO1W1?8 U88 Or th8 United Stator. Suoh taxe8, 80 levi8d, lball be paid to the proper taxing authOrltla8 d the Stat8, T8rrl- tory or 'th8 Dl8trlot Or Columbia, within 8ho88 bordrx-8 th8 ?888matifJti8afreoted My be loo&ted. (!?&#aBi‘ Our‘) c ‘(b) ThS OrriOOr in Oha~g8 Or 8UOh ?88O?T#ItiOa ‘hall, on or botorr the rlrte8nth day of eeoh mvllth, rubolt a written Skstement to th8 proper taxlag au- thOriti88 Of the Stat8 Territory Or th8 DirtriOt Of Columbia withia rbO88 krd8r8 the r888matiOn 18 loonted, rhoring th8 arOUt Or ruoh motor fU@l with rerpaot to rhloh tax88 are payrrblounder rub-rsotlon (a) ror tb8 pr8oedlag month.” 38 d8U it import&at t0 keep in mind th8 pUrpO88 8lld tunOtiOn Of there tW0 ‘tatUt88. OUr St8t8 ‘ktUt8 18 a taxing aot by virtue of rhloh the tegirlatur8 wlthia l~,# oonStltut&Ollalpower8 h8 lOtie lO 8XOi8e t&X UDOD th8 fi?8t 891 Hon. oeo. a. Shs&Q&rd, Psge s J S&18,-th8 first dlrtrlbutloa, 01 th8 rk8t WI I& this st‘t8, uhloh i‘ d8‘i&Mted l8 .a OaOUQatiO4l Or &XO&‘a tax. Th8 ib~d8lI-C.tiWrightt868r.l hid &t 18 8 p8r- a18SlV8 Or OOIlgr8‘81OUi1@Wit Or vU8r t0 th8 atat t0 18V7 th8 kX oa orrtaia yrn0188 or irutru88nt811- tt88 lld8r p868MY jPritiiOt&OllfOO.te6 00 t7dt8d 8t‘t.S mllltam or MVal i888rVrtkmS, vhloh Oth8rWi88 might b8 8x-t under th8 ?rdaral Conitltutlon. rh8 ObrfOw intOn% Or Our 8ktUt8 18 to 18~~ th8 kx a&net thr uaar or 80nmm8r or 8stor fu81, but the 6ts- tributor 1s Ooll8titUtrd th8 OOll8OtiEl@ r(leI%Oy Of th8 8kt8 iOr the OOll8OtfOJtOr th8 taX. xt 18 OlUr th8t th8 tu 1‘ lmpo88d upon only on8 ulr or dirtrlbutloo and not upon suo- 08881r8 or sub88qu8nt *a188 br dlrtrlbutloor. This 18 alrr rror th8 r0imitig pert 0r th8 rtatut8r “Ia woh 8Ub88qU8lkt 8is18 Or di8tributloa Of #tot fU81 HpOn rhloh th8 tax Of your (4) oantr 8? ailOn h8‘ b88a OOlleOt.6, th8 Pid kX sh8ll E 8 8 xdad to the 881114 prior, 80 that 8uOh tat 18 paid titiMt817 by th8 psr8Oa U‘iIqJ Or OoaM- ily uld aotor ruei ror the purpose of ~snentlai5 power ror the propulsion oi any motor r8hlolr~ up- On th8 pub110 hi@iWa)r Oi thi‘ Stat8.- wr drw it h8ipiul as u8 prooerd to not8 oortaln 68rfkdtfOM OontafA8d in Art1018 9055b-1, Just a8 th8 oourt did in the consld8ratloa 0r th8 0850 0r st8t8 ** city 0r 151 -80 (Suprem Court), 143 S. 11. ted) 368, in aonrtrulng our rotor tu81 t&X StatUtO 88 it th8a ut8tod Olidb8iOr8 it -8 -8lld8d. Mach mid iA thf8 Oar8'f‘ not iMppropriat8 in OOlUid8r14 ‘Ut pr888Ut Statute. Th8 OOUrt d88m8d it heJpfu1 to AOt8 the derblftiOJl‘ OOl+iWd in th8 .Ot, 88~8Oi.lly th8 drfinltlon or the tax, which was the sea8 a8 sontalnrd In th8 pr88ent aot, 8nd 18 aa r0iiw8: *An oo8upatlon or 8x0188 tax 0r 40 prr gallon 0r motor rue1 or tnotloaal part ther8oi.w The tax, by th8 8x~r.S‘ landuad8 Oi th8 #t#tuta, is Urtributlon, or rirst U8e 0r motor 8utUt8 d8rmS rir8t 8818 thwr *fret rale) shall a8aa th8 rir8t ma18 or dlrtrlbutlon ia thlr Btat8 or motor fuel r8ila8d, bl8ndrd import& into, or la any othrr Itlnn8r, produord in, aoqulrad or brought into this Stat8." 892 &I. 080. 8. Shrpwtb, Pad8 d uho und8r th8 8tatUte laltlat88 a ffr8t 8.18, a dl8trlbutlon or we 0r motor furl upon whloh #8 tax 1s 18Vf86? The sta tute ln8w8rsl (a) "di8trlbutor*. aho 18 a *418trlbutor"9 Adala thr statute amr8rs 88 r0lidwt lDl8trlbutor shall m8aa 8nd lnOlu48 8~817 p8rron in this stat8 uhe f8ffn88, di8tfii8, maauu- $8OtU?8‘, prOdUO blend‘, Or OO~~Ound‘ motor furl or bl8nd86 rCerlal8, or in any other msnaer lo q ulrorr rp08808888 motor rue1 or bl8nd8d mt8?- 8hlpsr trsn8portr or fmortr any mtor turl or bl8nd8d Ilot8rial ht0 thi8 sat8 8nd mk88 #8 ~8. or df8tribUtfOa 0 iiVA.idr88fdU8nt Or MtuiOi 88, OOm8Oay m as drip lp8olfne, or rho 18 r88pOllSibl8 for tb produotlon or r08386tf0aor raid drip ga8olln8, lAtcllltiOM1.4Or Othorri.8, WA1888 88id p?OdUOt 18 tOta.klyd88trOy8d Or r8adsr8d lleUtFa1 8‘ motor rue1 or a8 a produot o&p&b18 0r w8 as Potor furl in thf‘ 8tat8." (m@B818 -8) In order that th,rr b8 DO lOOph818 for 8‘oape in thorn8ln8tanoe8 wherr th8 tax rallr upon the rir8t un8 or dl8trlbutlon 0r notor ru0i a8 di8tingul8h8d from a ri t W8 &gain loo& to Oarkin d8iinftiOM OOntainO&kthr w tnhrs8 ar8 as roii0w88 Thr trra *user* shall br OoMtrued to moaa any perron who us88 or OOMwe8 *liqUeff86 68888" and wOthW liquid tu81“ within this stat8 in int8rMl oomburtloa 8fl&88 iOr th8 68Il8lWtiOll Of pOW8r to prop81 motor Vrhi- 018‘ UpOn th8 publio hi&W~y‘ Or this stat8. ~~Dirtrlbutlon~ shall me&a and fno1rsd8 my tran8aotlon8, other than a 8818, In whioh ora8rshfp or tit18 to motor fU81, or any 48riratlt8 0r 8iud8 011 or artural gas, p8808 rma on0 prr8on to aaoth8r.m **peraon~ ah811 m8an and lnolud8 every lndlvfdual, if&-m,,a88oolatlon, joint #took oompaay, 8 ndioat8, Oogmtner- #hfp;oorpor&tion (publlo, prlvatr or mun Ialpal), truULlt88, lgenOy.or ro08fV8rs' (gmphaSi8 OUr8) "bSh?w 4hSll m@UA Sad iAOlUd4 4V4ry p4r4OA other-than a Uatributor who ,~~ea in the bualneaa iA this stata of dlatributiog or adlily aotor fuel within this State.’ To vita AU?. 06rtSiA tsrO8 Wad iA this t&t a6t ba uniformly Pndrratood 8Ad unlfo?ml~ applied, the La~lalAtUra 8laOteU to defA4 them, and to tit880 drfini- tioaa IV. mat ld h o r o . 8umarirlng further, what vm ham mdeutorod to lu yla lr p r a a aby e6Juatior Crltr fA the aaaa of Sktr t. City Of a h80, APPZ’U, a4 iDfhW41 Vroa th elararal lta9utory prorialonr it la WfbOAt *bat th0 LO&4kU$iVr LAbAt, 44 4Xg44444d iA the abovr 4t4tuta4, 14 to impose a motor tual tUX Of tOUP WA%4 p4r @lOA OA the fir.% 4Uh Of motor ru41, wham lu6h furl la aotually aold lo Texw . xt la furthrr WtldaAt that the L*glalaturr iAt8nd4d to imp040 a four 84At4 p4r @llOA user tax 011all rotor fuel Web OAthr publio highway8 of this stat0 in IA~~uA~w$ whuro the user obtuha lua h mo to rtUe1 UAbr lu4h O~rOUaatAAOaa that AO 8otuul aalr theroot wuwpina in Twaa. 4tUt.d. Wheo OUZ leotO?t&id tax 14~4 Or0 Tea v lAd oOn8t~rU ~8 u WholQ. it l8 evident that the tax Xoriod ror use of motor fuel in thla state SoQ ha@ ~UX l.rvLedfor aalr OZ plotorfurl ara the aam. On&ort&ulxiwaar wo r d4OS the atatut 0,us* GotOr heel WithOut 8AtUai 441@ iA thla State ia still a statutory lalet that ia.‘to4s~~ ‘firat uaaq la ~rirat tha aale’ for taxation ~urpoaiiT- where tbrr4lia AO aotwl rlrat lala.~ (mphaaia oura) kplii'yiag iurtbar, a *diatrlbutor* or %¶4aler* may ba sot OAly a. O@&laOtin# l& .AO iAy behuli Of thm Stata ror the oollrotion 0r a tax UpOA thr motor fusl diatrlbuted or aold by ft, bu8 a U4.P Of motor fud UPOA it8 OUA 4OoDUAt; in both inatanoaa, ltable to aooount tar and pay the tax 88 provided fn the aMtut to thr Coaptroll4r ot Publie Aooounta. ll4do sot oonatrw the oaa4 of Standard Oil Comp44y of Calliornf4 T. JO~ASOU (United Stutoa Suprrnw Court), 86 I,. I@¶.1611, ~8 holding tbt iA no atsat My the 8tate laty 4A lxoim~awx OA tha luh, dlatributloa, or we 0r motor fUal,but 14ft th4 QUO4tiOA op4A if it lhoul6 OOA. t0 tb4 OoUrb Upon 4 oorrwt drterainutloa by the Suprsmr Court of Calltoml4 of thhr lt6tua of Poab hOhange4 aAd l?a~alStOPa ua yadaral iAat~- .uo5tulltl*a. YOr8OfaC, it do@4 AOt&&l@W hl t&i4 OU4e WhUt 894 Hon. 01~0 )I. Sheppard, P&JO 6 raoognitlon, Ii u~y, lcoorded by the Court to the *a s fiuydrn-cutwrlght todual Al4 not in rraohing its doolaicfn. WI, tbereforr, isal ju.ntlfiedby the upreaa pro- rlalona of our motor fuel tax law and the Hayden-Cartwrlgit Tadrral &ld Act, and thr aUthOrltY of Stat@ v. City oi El P u SO,lupru, in holding that tha dellvery IA Tour to a post lxohango or naval sto r e by l ~biatrlbutor* aonatitutra a first sale upon whioh thr distributor should oolleot and remlt the motor tueil tax, lxoept upon auoh motor fuel us used bx- olualraly by the United States Oorrrnmat. Aa we htwr noted, howore?, the ltattltr prorldra that in aaoh aubaaquant anlaor dlatrlbutlon of motor f’url upon whioh ths tu of 4# par gallon baa been oollaeted, the as14 tax shall br lddrd to the lalllag prloe, so that auah bar la paid ultiaratdy by the person using or conaumlag au14 tax for furl tar the propulsion of any motor +ehiolr upon the publio hl@nmya of this Sktr. In other words, a post exebanga or mm1 stare that ha& paid tha tax to the diatrlbutor aa4 subsequently rolls to tho user, other than to tha United Statra Qovernaont, la authorized un4er the law to reimburse ltsrli by oolleotln(l tha tax tron tha ultieste user, 30 trust we bare ~48 plain our views. Vary truly yours ATTQR~XYWNERALGy TXSAS LPL:RT 0 APPROVED O?INlON WYYIITLR .1- olA*lu