DocketNumber: V-806
Judges: Price Daniel
Filed Date: 7/2/1949
Status: Precedential
Modified Date: 2/18/2017
EXAS AU~TXN SI.-IL%XAS PRICE DANIEL ATTORNEYGENERAL April 8; 1949 Senator A. M. Aikin, Jr., Chairman &mete ~&ate Affairs Committee Irifty-firstLegislature Austin, Texas Opinion No. V-806 Be: The constitutionality of 9. B. 147 providing that coo eratives and fraternaE associations or corporationsshall pay the same liden fees and taxes as oth- er associationsor cor- porations engaged in the some or similar business. You have.requeated tha opinion of the At- tornsyQeneral wdWlve tomthe constitutionalityof Seaate Bill I& 147 with ~particularreference as to whether or not it vjo.late,s Se&ion 33 of Article III of the Texas Constitution,which provides: "All bills for raising revenue shall .originatein ~theHouse of Representatives but.the Senate may amend or reject them as other bills.” Seuate Bill No, 147 reads in part as fol- lows: “Section 10 Every co-operativeor fraternal associationor ,corporationauth- orised to do any business of any kind or ,mture whatsoever chartered by or having a~pendt. OF ~mrtih.icateof authority to do business, or.doing business, in the State Senator A. M, Aikin,~Jr.~,Page 2 (V-806) of Texas.,shall~,bes,ubjectto the payment of~the same license~~fees'andtaxes as any other associationor..corporation,either dome.sticorforeign, engaged in doing the same or simi1a.rbusines~sin and under the laws of,,thisState. The license fees and taxes herein referred to shall include all fees and taxes,of any ~kindor description whatsosver,which are now or may hereafter be, impose.d,. lev,ied.or provided for by and under the.Co.ns&ution and laws of this State in behalf of the State or any political.subdivision thereof. " * . . "Section 4. The fact that there are many co-operativeand fraternal associations or..corpo.rations..now engaged.in various kinds of business in..Texas.andwhich pay no State orlocal taxes, and which are in direct competitionswith private.individualsand corporations,engaged in the same or simi- lar ~bu.siness in this-State,and paying tax- es fors.uch.privilege,and as a result such tax-exempt.associationsor corporationsare not.bearingtheirsshare,of the cost of gov- ernment, creates an emergency and an impera- tive~public.necessitythat the constitution- al.rule requiring bills ta be read on three several~daysin ea~chHouse be suspended, and said.rule~ishereby suspended,and that ~thisAct ~shall.,take:effect and be in force,from and aft.eritspassage, and it is so enaoted." law will unquea- This bill if .enacted~,into ~tionably raise-revenue. However, since the early case ofDay.Land &Cattle Company v. State,68 Tex. 526
~.41 S W 865 it has been settled that the pro- visIona o).~ecti& 33, Article III of our Constitu- tion,,should be..confinedto bills.to levy taxes in not to bills for the strict sense of,,thewords,~and. ~..,.other purposes which may incidentallycreate reve- nue. Senator A. M, Aikin, Jr,, Page 3 (V-806) The purpose of.Senate Bill No. 147 is set forth in Section b,.thereof,wherein it states, "there are many co-operative and,fraternalassociations or corporationsnow ,engagad ..in various kinds of business in Texas and.which pay~na State or local taxes and which are findirect competitionwith private indivi- duals landcorporationsengaged,in the same or similar business in this State. and Davine taxes for such Dri- and as a result i;ernalassociationsorMcorporations'tobe subject to the payment of the same license fees and taxes as any motherassociationor corporatl,on doing the same or similar business,andthus..beartheir share of the cast of gavernment, ~The.bill~.leviestaxes in the strictsense of the words and shavingoriginated in the.SenaW is inviolat~ionof Se.ction33, Article III, Constitutionof Texas, .....I&Opinion,No,.. V-860,~dated March 31, 1949, the Attorney General held that Senate Bill No. 376, relative to retaliatoryreserve and tax requirements on foreign insurancescompanies,, was not a bill for raising revenue within the meaning of Article III, Section3,3of~.theTexas Constitution,and can there- fore originate in...the..,Senate, The primary purpose of Senate Bill Ko.:.376~~isto~.retaliateagainst the laws of other .States...if~ any.,which...put a greater regula- tory,andtax 'burden, oninsuranoe.companies domiciled inthis.State and.doingbusinesain such other States, than waehare heretofore put on insurance companies domiciled in such other St.at.es,and doing business in this .State. In~..carryingout its primary purpose of retaliation., the bill may incidentallycreate rev- enueQ It 1.stherefore clearly distinguishablefrom ..SenateBill No..ll+'?,~which~..has for its primary pur- .pose..thelevy.of,taxes,in order that CO-O erat,iveor fraternalasso.ciatione or co,rporations~ wiE1 bear their shareeof the.cost of government. Senator A..M. Aikin, Jr., Page 4 (V-806) SUMMARY Senate Bill No. 147 providingthat cooperativesand fraternal associat1on.s .,orcorporationsshall pay the same li- tense ~fees.and~taxasas other associa- tionssor corporationsengaged in the same or similar.businessis unconstitutional as it is a Billsfor.raising revenue orig- inatinginthe Se,nate. Section 33, Arti- cle III,,. .Constit,ution of Texas. Yours very truly, ATTORNEY GENERAL OF TEXAS APPROVED ?/b--J- Gi+ RST ASSISTANT ATTORNEY GENERAL DMG/lg