November 13, 1962

Mr. Robert S. Calvert Opinion No. W-1468 Comptrollerof PublicAccounts Austin, Texas Re: When the occupation tax on merchandise brokers lg.O1(2j,%%2A Taxation-General,wis first levied,and the period of time for which you should colDear Mr. Calvert: lect it.

You ask us when the occupation tax on merchandise brokers, now Art. 19.01(2),Title 122A, Taxation-General,was first levied, and the period of time for which you should collect it.

This tax was first levied in 1931,l beginningMay 26, 1931. Until January 1, 1942, It was collectedb8 the Tax Collectors of the respective counties of the State. The tax imposed for each year beginning January 1, 1942, and since, togetherwith the tax delinquent for any of the years 1931 through 1941, is to be collectedby you.3

In 19314 the Legislature first im osed this tax by amending Subdivisions7 and 12 of Art. t 70 7 of the Revised Civil Statutes of 1925 to read as follows:

lActs 42nd Leg., 1931, Reg.Sess., Ch. 212, p. 355, Sec. 1, subd. 7 and 12. This Act amended subd. 7 and 12 of Art. 7047, of the Revised Civil Statutes of 1925. 2Art. 

### 7050,7052,7053and 

### 7054,Revised Civil Statutes of 1925, and Art. 7047a-20, Sec. 7, Vernon's Civil Statutes. 3Acts 1941, 47th Leg., Ch. 631,p. 1393, Sec. 1, codified by Vernon as Art. 7047a-20, Sec. l-8. 4Note 1, supra.Mr. Robert S. Calvert, Page 2 (OpinionNo.WW-1468)

Subdivision7: "Fromevery person, firm, association of persons, or corporations,dealing In bonds, and/or stocks,either exclusively or in connectionwith other business, the sum of Fifty Dollars ($50.00) for each town or city in which suchperson, firm, association or corporationmaintains an office. For the purpose of this Act, every person, firm, association of persons, or corporation whose business It is to negotiate purchases or sales of stocks,bonds, exchange, bullion, coin, money, bank notes/promissory notes, produce or merchandise,or anything else for sale, for others, shall be regarded as a broker." (underscoringadded) Subdivision 12: "Fromevery person, firm, association of persons,or corporation, following the business or occupation of merchandise broker and/or commissionmerchant, either at wholesale or retail, in cities or towns of twenty-five thousand (25,000) or lesspopulation, an annual tax of Fifteen EoLlars ($15.00);and in cities of more than twenty-fivethousand (25,000) population an annual tax of Twenty-five Dollars ($25.00). A commissionmerchant in the meaning of this Act is every person, firm, association of persons, or corporation,receiving countryproduce, horses, cattle, sheep,hogs, grain, corn, hay,lumber, shingles,wood, coal, goods,wares and merchandise or anything else for sale, to be accounted for to the owner when sold and charging a commission therefor. The provision of this Section shallnot be construed as taxing the traveling salesmen." (underscoringadded) Subd. 12 defines "commissionmerchant" but does not define the term "merchandisebroker". However Subd. 7 In its second sentence does define a broker of merchandise. The definition of a brokerwho negotiatespurchases or sales of merchandise contained in Subd. 7 refers to "merchandisebroker"who is taxedMr. Robert S. Calvert, Page :3, (OpinionNo. WW-1468)

by Subd. 12 of this sameAct. See also Attorney General Opinions Nos. o-4287 (1942)and O-3999 (1942).

A 1943Act of the Legislature5by its Sec. 6 repealed Subd. 12 of Art. 7047 of the Revised Civil Statutes of 1925, and by its Sec. 2 amended Subd. 7 of Art. 7047. This Act, insofar as pertinent to this opinion, continued in effect the occupation tax upon merchandisebrokers but in a lesser amount. In its pertinent portion the 1943 amendment levies an occupation tax upon,

II

. . .every person, acting for himself or on behalf of another, engaged in the business or occupation of a Broker or Factor,whether he isprincipally engaged in such business or not, there shall be collectedTen Dollars ($10)per year. A 'broker'or 'factor,'for the purpose of this subsection, is every person who, for another and for a fee, commissionor other valuable consideration,

. . anegotiatespurchases or sales or transfers of

. . . produce and merchandise of any kind; whether or not he receivers and delivers possession thereof;

. . .' In 1959 the Subd. 7 of Art. 7047 F gislature expressly repealed Sec. or but enacted substantiallythe sameprovisions as Art. 19.01(2) of this 1959 law.7

The tax payable by merchandisebrokers will be controlled by the rate specified in each of the foregoingActs and the span of time duringwhich each of those Acts was effective.

SUMMARY

The occupation tax on merchandisebrokers was first levied effective May 26, 1931.

%kts 48th Leg., Reg.Sess., 1943, Ch. 372, P. 654. 6Acts 56th Leg., 3rd C.S., Ch. 1, P. 187, Sec. 7, Note 27 (at pp.374-375)* 7Art. 19.01(2),Title 122A, Taxation-General.Mr. Robert S. Calvert, Page 4 (OpinionNo. WW-1468)

You should collect this tax imposed for each year beginning 1942 and since, together with the tax delinquent for any of the years 1931 through 1941. The amount varies for differentperiods of time. Very truly yours, WILL WILSON Attorney General of Texas 

# By: 1,8 lLi%J
W. E. Allen AssistantAttorney General WEA:pw APPROVED: OPINION COMMITTEE W. V. Geppert, Chairman Frank Booth Sam Stone Paul Phy L. P. Lollar REVIEWED FORTHE ATTORNEY GENERAL By: Leonard Passmore