## EA 

# ORNEY GENERAL ~FTICKAS

November 14, 1956

Honorable Robert S. Galvert Opinion No. S-22,0 Comptroller ofPublic Ac~counts Capitol Station Rta Applicability ofthe Prise Tax Austin, Texas imposed byArticle 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 ofthe prize and awards tax imposed byArticle 704?f, Vernon’s Civil ~Statutes, on a tdevbi~n station ander thefacts submitted in your request.

The facts are brisfly as folIowa$ Television station KFJZ-TV, Fort Worth, Texas,, conducts a contest referred toas ‘KASH BOX.” There are eight different span- ,. 

### sors ofthis program using this medium ofadvertising their products. The television aadieace is invited to participate. The 

### announcergives ariddle and each member of the television audience Laasked to send inan answer to the riddle with e,ither a label from one ofthe sponsor's products or inlieu ofa label a reasonable facsimile of such a label. Only one member ofthe te,lev,ision s,tation staff knows the answer to the riddle and he checks all answers rsceived and determines thewinner from the answers sent in. In case of duplicate answers the one bearing the earliest pest-mark is dec~lared thewinner. Prizes are given for correct answers starting with $300.00, and each day an additional $100.00 is added if

### there is nowinner. 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 ofyour opinion request is not liable for the prizes and awards tar imposed byArticle 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 todo is to tune inthe station and look and listen. The statate us,es the significant langaage *paying the s,ame charge for any certain serrlce , commodity, 

### oreatertaIament,* and itmust be the same to all participating inthe contest for a prize or award.Hon. Robert S. Calvert, page 2 (S-220)

Even ifitshould be considered that the purchaser ofone or more ofthe products advertised was paying ,acharge for the entertainment furnished, measured by the price of the product so purchased, still this would not meet the requirements ofthe statute. A prize may be awarded without the participating viewer making a purchase of any ofthe products advertised. A facsimile ofa label suffices for eligibility to compete for aprize or award.

Secondly, theviewers of the television show are not withinthe purview ofthis statute, as theviewers are not the patrons of the television station which gives the prize or award. The **statute** does not define patrons hence, we are justified ingiving to itthe 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.** Itwould be a strained construction of the word “patron, and Ypatranise’ to say that the viewers of television programs are patrons ofthe 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 theviewers look and listen to the programs does not inthebroadest sense constitute them the patrons of the television station.

You are, therefore, advised that under the facts submitted byyou, the television station, **the subject**  ofyour opinion request, is not sublect to the prize and awards tax imposed byArticle 7047f, Vernon 6Civil Statutes. SUMMARY

A television station which gives prizes and awards to its viewers who pay nothing for the privileg,e ofviewing 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