HE ~T~RNEY GENERAL 

OFTEXAS 

Hon. Robert S. Calvert Opinion No. ~~-146 

Comptroller of Public Accounts 

Capitol Station 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: stamps to the cigarette packages. 

Your letter requesting our opinion in reference to the captioned 

matter reads as follows: 

"Sec. l(e) of the Cigarette Tax Law defines a 

'Stamp'. Section 3 provides for a 'Cigarette Tax 

Stsmp Board' and outlines the duties of the Boa@ 

with respect to securing cigarette tax stamps. 

"The manufacturer that has our present 

cigarette tax stamp contract contemplates in the 

near future perfecting a machine that will transfer stamps to packages of 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 similar in 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 machine to transfer the stamps?" 

Section l(e) of Article 7047~2-1, Vernon's Civil Statutes, defines 

"Stamp" as follows: 

"'Stamp shall mean 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 levied hereunder is paid." 

Section 3(a) of Article 7047c-1, V.C.S., provides: 

"A 'Cigarette Tax Stamp Board' composed 

of the Board of Control of this State, designated hereafter as the 'Board' is hereby 
- L 

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

created and the said Board shall be and is 

hereby required to design and have printed 

or manufactured nsw cigarette tax stamps of 

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 render them easy to be securely attached to each individual package of cigarettes; provided that 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 

other methods of identification be adopted 

as the hoard may decide. The printing or 

manufacturing of the stamps shall be awarded by competitive bid and the contract shall 

be awarded to the person submitting the lowest and best bid that will afford the 

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 other provisions 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 

stamps to the cigarette packages. Sec. j(a) of said article provides that 

the "Cigarette Tax Stsmp Board" shall award contracts for the printing or 

manufacturing of stamps to the person submitting the lowest and best bid 

that will afford the greatest and best protection to the State in the enforcement of the provisions of the Act. Whether the new type stamp and 

machine will or will not afford the 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 Article 7047c-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 machine to 
Hon. Robert S. Calvert, page 3 (~-146) 

evidence the payment of 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