EA ORNEY GENERAL 

~FTICKAS 

November 14, 1956 

Honorable Robert S. Galvert Opinion No. S-22,0 

Comptroller of Public Ac~counts 

Capitol Station Rta Applicability of the Prise Tax 

Austin, Texas imposed by Article 7047f, 

V.C.S., to the televised Kash 

Dear Mr. Calvert: Box riddle contest award. 

_, _ ~--. 

You request the opinion of this office on the applicability 

of the prize and awards tax imposed by Article 704?f, Vernon’s 

Civil ~Statutes, on a tdevbi~n station ander the facts submitted in 

your request. 

The facts are brisfly as folIowa$ 

Television station KFJZ-TV, Fort Worth, Texas,, conducts a 

contest referred to as ‘KASH BOX.” There are eight different span- ,. 

sors of this program using this medium of advertising their products. 

The television aadieace is invited to participate. The announcer gives 

a riddle and each member of the television audience La asked to send 

in an answer to the riddle with e,ither a label from one of the 

sponsor's products or in lieu of a label a reasonable facsimile of such 

a label. Only one member of the te,lev,ision s,tation staff knows the 

answer to the riddle and he checks all answers rsceived and determines the winner from the answers sent in. In case of duplicate 

answers the one bearing the earliest pest-mark is dec~lared the winner. 

Prizes are given for correct answers starting with $300.00, and each 

day an additional $100.00 is added if there is no winner. When a 

corre.ct answer to a riddle is given a new contest starts by reverting 

again to $300.00. 

There are two reasons why the television station which is 

the subject of your opinion request is not liable for the prizes and 

awards tar imposed by Article 7047f, Vernon’s Civil Statntes. 

First,, none of ths viewers of the program “KASH BOX,” 

which advertises various products, pay anything for the privilege of 

watching the show. To enJoy the entertainment afforded by the 

station, all they (the viewers) have to do is to tune in the station and 

look and listen. The statate us,es the significant langaage *paying 

the s,ame charge for any certain serrlce , commodity, or eatertaIament,* 

and it must be the same to all participating in the contest for a prize 

or award. 
Hon. Robert S. Calvert, page 2 (S-220) 

Even if it should be considered that the purchaser of one 

or more of the products advertised was paying ,a charge for the 

entertainment furnished, measured by the price of the product so 

purchased, still this would not meet the requirements of the statute. 

A prize may be awarded without the participating viewer making a 

purchase of any of the products advertised. A facsimile of a label 

suffices for eligibility to compete for a prize or award. 

Secondly, the viewers of the television show are not within the purview of this statute , as the viewers are not the patrons of 

the television station which gives the prize or award. The statute 

does not define patrons hence, we are justified in giving to it the 

usualand commonly accepted meaning or definition. *Patron, as 

defined by Webster, Is “one who supports a commercial enterprise.’ 

Pursuing the dictionary further, the definition of Ypatronizev is to ‘, 

support and favor a commercial enterprise. We must construe these 

terms in connection with the intent of the Legislature as applied to 

this particular statute. It would be a strained construction of the 

word “patron, and Ypatranise’ to say that the viewers of television 

programs are patrons of the station. The.y pay nothing to the station 

for the privilege enjoyed and the stations make no charge for the 

privilege. The mere fact that the viewers look and listen to the 

programs does not in the broadest sense constitute them the patrons 

of the television station. 

You are, therefore, advised that under the facts submitted 

by you, the television station, the subject of your opinion request, is 

not sublect to the prize and awards tax imposed by Article 7047f, 

Vernon 6 Civil Statutes. 

SUMMARY 

A television station which gives prizes and awards to 

its viewers who pay nothing for the privileg,e of viewing the 

program in connection with which prizes and awards are 

made, is not taxable under Article 7047f, V.C.S. 

APPROVED: Yours very truly, 

W. V. Geppert 

Taxation Division 

Eibert M. Marrow 

Reviewer 

J. Arthur Sandlin 

Reviewer 

L. W. Gray 

Special Reviewer 

Davis Grant 

First Assistant 

John Ben Shepperd 

Attorney General 

LPL: cs 

JOHN BEN SHEPPERD 

,Attorney General 

By L%COL? 

Assistant