PRICE DANIEL 

ATTORNEY GF.NERAL 

September 17, 1949 

Hon. Robert S. Calvert, Opinion No. v-906. 

Comptroller of Public Accounts 

Austin, Texas Re: Assignability of a creditia 

taxes paid on oil fram tank 

bottoms under Article 7057~1, 

V.C.S. 

Dear Sir: 

* Your letter request in reference to the above captioned 

matter reads in part as follows: 

“During the period from Jiqly, 1942, to December, 1946, Petrolite Corporation, Ltd. was producers 

(sic) of oil in the East Texas fields, and their source 

of production consisted of of1 obtained from tank bottams . During this period they paid into the State 

$9,407.51. On February 5, 1947, the Comptroller 

notified Petrokite Corporation of the Stack Case (199 

S.W.Zd 701) and advised such corporation that they 

were due no more tax as the producer on oil obtained 

from tank bottoms. 

“Petrolite Corporation filed no report of preducing oil from any other source in Texas. Section 13 of 

Article 7057a, provides: 

‘(13). When it shall appear that a taxpayer to 

whom the provisions of this Act sinall apply has 

erroneously paid more taxes than were due during any tax paying period either on the account 

of a mistake of fact or law, it shall be the duty 

of the State Comptroller to credit the total amount of taxes due by such taxpayer for the current pertod with the total amount of taxes so erroneously paid.’ 

Petrolite Corporation has been unable to take credit 

for the $9,407.51 paid on tank bottoms because it is not 

at tke present t&me a producer of oil. 
Hon. Robert S. Calvert, Page 2 (v-906) 

“Petrolite Corporation has by an assignment, assigned the credit due it to Rock Hill Company of San 

Antonio, Texas, which company is a regular producer 

and would be authorized to a credit, should such company make erroneous tax payments. This Department 

is now confronted with the question as to whether we 

are authorized to allow Rock Hill Company to take 

credit on its current tax payments with the amount due 

Petrolite Corporation properly assigned to it. 

“I shall thank you to advise this Department 

whether we are authorized to permit Rock Hill Oil 

Company, a producer, to take credit on its current tax 

payment of $9,407.5 1, which amount has been assigned 

to it by Petrolite Corporation, Ltd. * 

vides: 

Subsection 13 of Section 1, Article 7057a, V.C.S., pro- 

“(13). When it shall appear that a taxpayer to 

whom the provisions of this Act shall apply has erroneously paid more taxes than were due during any tax 

paying period either on the account of a mistake of 

fact or law, it shall be the duty of the State Comptrolkr 

to credit the total amount of taxes due by such taxpayer 

for the current period with the total amount of taxes 

so erroneously paid.” 

The Comptroller of Public Accounts has only those powers which have been expressly delegated to him by the Legislature, 

and those implied powers which are necessary for Mm to carry out 

the powers expressly given. 

You will note that subsection 13 above quoted authorizes 

the State Comptroller to credit the total amount of taxes due by the 

taxpayer for the current period with the total amount of taxes erroneously paid and in no wise proasides that the Comptroller has the 

power or authority to give this credit to anyone else. 

You further ask in your opinion request whether the 

credit might be allowed the Rock Hill Company on the theory that 

the Rock Hill Company and the Petrolite Corporation, Ltd. are one 

and the same corporation in that the stock ownership and the governing officers of the two corporations are sufficiently related so 

that the two corporations could be considered one and the same. It 

appears from the file submitted to us that the Petrolite Gorporation and the Rock Hill Oil Company are two separate and distinct 

corporations. They are two separate legal entities. These corporations evidently recognize the fact that they are not one and the 

same or they would not have made the assignment in question. 
. - 

Hon. Robert S. Calvert, Page 3 (V-906) 

You are, therefore, advised that the State Comptroller 

does not have the authority to credit the Rock Hill Company with 

taxes erroneously paid by the Petrolite Corporation, Ltd. However, 

the Petrolite Corporation is not without a remedy, if in fact the 

taxes erroneously paid were not a voluntary payment but were paid 

under duress as set out in your request. It can file its claim for 

a refund with the next Legislature, which will have the authority 

under our Constitution and laws to make an appropriation in the amount so erroneously overpaid. 

SUMMARY 

The State Comptroller does not have the authority to credit the Rock Hill Oil Company with oil production (tankbottom) taxes erroneously paid by the Petrolite Corporation, Ltd., on an assignment of the credit 

due the Petrolite Corporation, Ltd. The Comptroller 

may credit only the taxpayer who made the overpayment, 

and not his assignee. Art, 7057a, Sec. 1, subset. 13, 

V.C.S. 

Yours very truly 

ATTORNEYGENERALOFTEXAS 

BY 

W. V. Geppert 

Assistant 

W VG/mwb 

ATTORNEYGENERAL