November 13, 1962 

Mr. Robert S. Calvert Opinion No. W-1468 

Comptroller of Public Accounts 

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 beginning May 26, 

1931. Until January 1, 1942, It was collected b 

8 

the Tax Collectors of the respective counties of the State. The tax 

imposed for each year beginning January 1, 1942, and since, 

together with the tax delinquent for any of the years 1931 

through 1941, is to be collected by you.3 

In 19314 the Legislature first im osed this tax by 

amending Subdivisions 7 and 12 of Art. 70 t 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, 7053 and 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 (Opinion No. WW-1468) 

Subdivision 7: 

"From every person, firm, association of 

persons, or corporations, dealing In bonds, 

and/or stocks, either exclusively or in 

connection with other business, the sum 

of Fifty Dollars ($50.00) for each town 

or city in which such person, firm, association or corporation maintains 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." (underscoring added) 

Subdivision 12: 

"From every person, firm, association of 

persons,or corporation, following the 

business or occupation of merchandise 

broker and/or commission merchant, either 

at wholesale or retail, in cities or 

towns of twenty-five thousand (25,000) 

or less population, an annual tax of 

Fifteen EoLlars ($15.00); and in cities 

of more than twenty-five thousand (25,000) 

population an annual tax of Twenty-five 

Dollars ($25.00). A commission merchant 

in the meaning of this Act is every person, firm, association of persons, or 

corporation, receiving country produce, 

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 shall not be construed 

as taxing the traveling salesmen." 

(underscoring added) 

Subd. 12 defines "commission merchant" but does not define the 

term "merchandise broker". However Subd. 7 In its second sentence does define a broker of merchandise. The definition of 

a broker who negotiates purchases or sales of merchandise contained in Subd. 7 refers to "merchandise broker" who is taxed 
Mr. Robert S. Calvert, Page :3, (Opinion No. WW-1468) 

by Subd. 12 of this same Act. See also Attorney General 

Opinions Nos. o-4287 (1942) and O-3999 (1942). 

A 1943 Act of the Legislature5 by 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 merchandise brokers 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 is principally engaged 

in such business or not, there shall be 

collected Ten Dollars ($10) per year. 

A 'broker' or 'factor,' for the purpose of this subsection, is every 

person who, for another and for a 

fee, commission or other valuable 

consideration, . . a negotiates purchases 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 substantially the same provisions as Art. 19.01(2) of this 1959 law.7 

The tax payable by merchandise brokers will be controlled by the rate specified in each of the foregoing Acts 

and the span of time during which each of those Acts was 

effective. 

SUMMARY 

The occupation tax on merchandise brokers 

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 (Opinion No. 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 different periods 

of time. 

Very truly yours, 

WILL WILSON 

Attorney General of Texas 

By: 1,8 lLi%J 

W. E. Allen 

Assistant Attorney 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