Untitled Texas Attorney General Opinion

OFFICE OF THE AITORNEY GENERAL OF TEXAS
pei&
any-busties and wit
ths *xldJmlm rranahlse oald such COT-
ed n-xx its
s that every dcnea-
tw9lua and undivided
nding bond8, Dotes and
sataring in less than a par.
ra its entim buslmsa.
Se taX fS a *X 00 th6 6OYJ0Ilrt.6
in thl.s Stat6 end is not a tax upen
Z aSSOt8 Oi'thb OOQW6tiOli. There-
on aamiot escape or avoid the rrtmchfse
tax by inaativity. It meti $6~ tks tax abether it Is ao-
tually dcing business cr not. IDnsas City M. & 9. R. Ca.
vs. Stiles, 28 A. L. R. 425.
so th6 question involv6d la just on6 of nsasuring
818
Bonorablh M. iLFlOW6r8, PC486 8
the amoutat 02 rmnchis0 tax. Tha Legislature of Texas has
said that the amOunt shall b6 meeaured a8 provfdbd in Ar-
tie10 9004, aupra. The rormula provided by the Leglelatare
ia very simple and th6 aimunt Of taxes to be paid by suoh
oorpomtion Is only (IInBttsT Of mathsmatloal oaloulstlon.
Ii a corporation bns don6 no business and has xm reoslpto,
then it osrtainly oennot bs taX6d by the formula laid down
by btiOl6 9084, SUQSE. Th6 SeOr6tPq Of St8t6 -Il ZLOIUOre
@i&O out the OorpoTatiOns Oa9ita1 atook, sur$hW, eta.
and levy th6 tax on that then out he levy ths tax dirsot-
ly on ite propsrty. To psrmit the s6aretary of stats to
deTht6 rma th6 labthod presoribed by the Legislature world
bi 6~2 io~0i3iOn 0r the i0gi8btiV6 ticad and, in 6rrt30t.
r6pBel th6 Stp916 arid 6X9r6S8 9rOViSiOUS O? Arti 7084,
supm . This the Seoretary 0r State oannot do.
since the fnnohiae tax is a tax on ths right
to do bUSiJl6s8 in thi8 Stat6 and ArtiOl6 9004, 8U9SS, pro-
rl4es that all aorporations shall pey the tar, it Is our
opinion tha= oorporetlon uhloh does notbusiness In thfs
Stat6 should be rsqulrsd to pay the $10.00 ninkawn provided
by Artiol? 9084, suPm.
Trusiing that the r0mg0lng fully answers your
inquiry, w6 ar6
Yotlra oery truly