Honorable George H. Sheppard

'Comptroller of Public Accounts Austin, Texas Dear Sir: Opinion No. O-3519 Re: Interpretation of Article 6 of HouseBill 8, 47th Legislature. In your letter of May9, 1941, you request our opinion in response to these questions arlsing under Article 6of House Bill 8, 47th Legislature, to-wit:

9,

. . . "1. If a person assembles and registers a rebuilt car, is there atax to be paid; if 80, onwhat value is the tax to be computed? "2. Thefollowing question was submitted to this department by the Chevrolet Motor Company: 'Chevrolet Motor Division secure8 licenses for new car8 which are issued to Chevrolet officials to we in handling our business throughout the State of Texas. These cars are maintained in this service for approximately five thousand miles and are then sold andtransferred to Chevrolet Dealers as newcar demonstrators and are sold by the dealers at retail. Will webe required to pay the one per cent tax on theae.cars at the time weiesue themto our officials andtake out licenses for their operation?'

“3. Adealer sells a,motor vehicle equipped with radio, heater, and like attachments, adding to the list price of the vehicle the list price of the radio, heater, etc. Is the tax to be computed on the list price of the car or the total amountpaid for the car, the radio, the heater, etc.? "(a) HouseBill No. 8also provides for a gross receipts tax to be paid by the dealer in 'new radios.' If you answer the foregoing question that the purchaser of the car is required to pay the tax onthe total price of the car, the radio, the heater,Honorable George H. Sheppard, Page 2 (O-3519)

etc., then would the samedealer be required to pay a gross receipts tax for the sale of this radio?

“4. In cases of repoeserrion of motor vehicles where the ownership revert0 to the seller or to the lien holder, or where the original aale wanmadeunder e conditional sale contract, aa the cane might be, would there be atax due onthe paeeing of the title to the seller or the lien holder?

“5. Is a car purchased in another et&e and operated in euch other state for a period of time before being brought to Texan for regular une subject to the tax aa outlined in the eecond paragraph of Section 5of Article VI.?

“(a) Such cer waepurchased by prerent ownerprior to May1, 1941.

“(b) Such car waepurcheaed in euch other rtate rubrequent to May1, 1941, but operated in muchother rtate for sometime before being brought to Taxam.

“(c) If ouch car were purcbared la 1941 but not brought to Texae until 1945, onwhatvalue would the tax **be** computed?

“6. (a) Apurcherer buys from the dealer atruck-chaleie and factory madetrailer at the nametime. II the total price of both truck andtrailer to be considered whencomputing the tax?

“(b) In another caee the purchaeer buys the cheerill from the dealer andthe trailer from another party on the samedate; is the total price of both chaallr andtrailer to be considered whencomputing the tax?

“(c) Wouldit makeani difference if the chaeeie and the trailer were bought at different **d&da, an**  **far** amthe tax levy is concerned?

“In this connection weare referring to trailer amthe truck bed or the tandemwhich lr alwayl an actual part of the truck itself whenin uee.” You have eubmquently advhed UI that in **your question**  No. 5you have reference to non-reridentr only, and our anewere to it will apply to themonly.

Weanewer your firrt question Inthe negative. Thetax is not levied except in the cane of a male. In our opinion, Section 5of Article 6wasnot meantto exclude regirtration or tranef&ti+“, ‘

.‘,.Honorable George H. Sheppard, Page 3 (O-3519)

except in those cases falling within the tax levy andwhere the tax has not been paid. The transaction mentioned in this question is not a sale of amotor vehicle and is not taxed by the statute. Hence, Section 5 does not forbid the registration.

If weunderstand your second question correctly there is no sale of these cars to the officials, but they remain the property of the Chevrolet Motor,Company andare merely used by such officials in the,business of the Company. If this be true, then weanswer this question in the negative. If such are not the facts wewould appreciate information in more detail concerning the nature of the transaction.

The tax is levied onthe total consideration, "which consideration shall include the amountpaid or to be paid for said motor vehicle andall accessories attached thereto at the time of the sale". ,Section 1 (a). If the radio, heater, and like attachments are attached to the vehicle at the time of the sale we ., are of the opinion~tbat the tax will be computed onthe total amount paid for the car and such accessories. This is In anewer to the first part of your third question. Replying to the second part of this question, it Is our view that uponbeing attached to the car the radio becomes a part thereof, losing its identity a8a radio andtaking it out of the tax 1evied:on newradios by Article 10 of said HouseBill 8. Wetherefore answer question 3(a) in the negative.

Wenowconcern ourselves with your fourth question. Asweunderstand you the repossession which you speak of is in the nature of~a foreclosure, that la, the vehicle is repossessed under the power given in the mortgage or conditional sales contract, in a case where the note given for all or a part of the purchase price is in default. It is our opinion that such atransaction is not subject to the tax. Technically speaking, it maybe that the title passes but as a practical matter the transaction, rather than being a sale within itself, represents the failure of the original sale. Notax is dueunder any of the fact situations outlined in your fifth question. The "use" tax levied by Section 2 is confined to residents of this Statei'while as already indicated your question relates only to non-residents.

Wepass to a consideration of your sixth question. In our registration statutes, trailers and semi-trailers are considered as different vehicles from the truck to which they my be attached. Motor vehicles, trailers and semi-trailers are each defined in Article 6675a-1, Vernon's Annotated Civil Statutes. The license fees payable ontrailers and semi-trailers are fixed in ArticleHonorable George H. Sheppard, Page 4 (O-3519)

6675a-8. Article 6 of HouseBill 8 speaks only of motor vehicles. In Section 5thereof it is provided:

“Sec. 5. Thetaxes levied in this Article shall be collected by the Aseeesor and Collector of Taxes of the county in which any such motor vehicle is first registered or first transferred after euch a eale; the Tax Collector shall refure to accept for regirtration or for transfer anymotor vehicle until the tax thereon 18paid.

It is our opinion that trailere and remi-trailer@ required by Article 66758 to be reparately registered maynot be conrldered a part of the truck to which the lamemaybe attachad, nor a#an accelnory thereto. And

### HoursBill 8levier notax upon the rrb of muchtrailerr and iemi-trailrrr. 

### Hence,wel 

### mmr **your** ilxth quaition in the negative throughout,, if the %nilerN which you mention Ii a trailer or remi-trailer 

### ai **deliaad** inArticle 6675a, If a vehicle different 

### fromthat ii involved plrrrr obtain 

### and iubmit cloier detaili. APPROVED

MAY23, @41 /8/ Orover Selleri FIRSTASSISTANT ATl?ORNEY'ZNERAL Your1 

### very truly ATI'ORN'BY

OEWERAL

OFTZXAB

By /I/ Ollnn R* Iawir

Ollnn R. Lexir Airiitant QLR:mp:llu

APPROVED OPINION COMITNE