HE 

### ~T~RNEY GENERAL OFTEXAS

Hon. Robert S. Calvert Opinion No. 

### ~~-146 Comptroller

of PublicAccounts CapitolStation Re: Whether the Cigarette Tax Law allows Austin,

Texas the use of certain new type stamp and the use of a machine to transfer the Dear Mr. Calvert: stampsto the cigarette packages. Your letter requesting our opinionin reference to the captioned matter reads as follows:

"Sec. l(e) of the Cigarette Tax Law definesa 'Stamp'. Section 

### 3 providesfor a 'Cigarette Tax Stsmp Board'and outlines the duties of the Boa@ with respectto securing cigarette

tax stamps. "Themanufacturer

that has our present cigarette

tax stamp contract

contemplates

in the near futureperfecting a machinethat will transfer stamps to packagesof cigarettes. The present stamp is a water stsmp and has to be transferred by hand. The new stamp will be a heat stamp and transferred

by the new machine. The new stamp is similarin appearance to our present stomp and will be serially

numbered. "Would the provisions

of our Cigarette

Tax Law allow the use of the new type stsmp and the use of the machineto transfer the stamps?" Sectionl(e) of Article

### 7047~2-1, Vernon's

Civil Statutes,

defines "Stamp" as follows: "'Stamp shallmean the stamp or stamps printed,

manufactured

or made by authority of the Board as hereinafter defined,

and issued, sold or circulated

by the Treasurer

and by the use of which the tax leviedhereunder is paid." Section 3(a) of Article7047c-1, V.C.S.,

provides: "A 'Cigarette

Tax Stamp Board' composed of the Board of Controlof this State,designated hereafter

as the 'Board'

is hereby- L

Hon. Robert S. Calvert, page 2 (~~-146)

createdand the said Board shallbe and is hereby required

to designand have printed or manufactured

nsw cigarette

tax stampsof such size and denominations and in such quantities

as may be determined by the said Board. The stamps shsJ.1 be so manufactured as to renderthem easy to be securelyattached to each individual packageof cigarettes;providedthat a different and separate serial

number or combination letter and number

may by assigned

to and printed on the margin of each sheet of stamps, or othermethods of identification be adopted as the hoardmay decide. The printingor manufacturing

of the stamps shallbe awarded by competitive

bid and the contract shall be awardedto the person submitting the lowest and best bid that will affordthe greatest

and best protection to the State in the enforcementiof the provisions

of this Act." In addition

to the above quoted sections, we have a-l.so

considered the otherprovisions of the Cigarette

Tax Law and we have been unable to find any provisions therein

which, as a matter of law, will conflict with the use of the "new type stsmp"or the use of the machine to transfer the stampsto the cigarette packages. Sec. j(a) of said article providesthat the "Cigarette

Tax Stsmp Board" shall award contracts for the printing

or manufacturing

of stampsto the person submitting the lowest and best bid that will affordthe greatest and best protection to the State in the enforcement

of the provisions

of the Act. Whether the new type stamp and machinewill or will not affordthe greatest and best protection to the State in the enforcement of the Act, is a fact question to be determined by said Board.

SUMMARY

The provisions

of Article7047c-1, The Cigarette

Tsx Law does not prohibit the use of a new type heat stamp to be transferred to packages of cigarettes

by a machinetoHon. Robert S. Calvert, page 3 (~-146)

evidence

the paymentof the cigarette

tax. Yours very truly,

WILL WIISON Attorney

General

W. V. Geppert Assistant WVG:&s APPROVED: OPINION

CcZ.KLTpEE H. Gmdy Chandler, Chairmsn Robert 0. Smith Edward Cazares Will Davis IiEVIEWEDFOR'IKEATl'ORNEYGENERAL BY: Gee. P. Blackburn