Honorable George H. Sheppard 

'Comptroller of Public Accounts 

Austin, Texas 

Dear Sir: Opinion No. O-3519 

Re: Interpretation of Article 6 

of House Bill 8, 47th Legislature. 

In your letter of May 9, 1941, you request our opinion 

in response to these questions arlsing under Article 6 of House 

Bill 8, 47th Legislature, to-wit: 

9, 

. . . 

"1. If a person assembles and registers a rebuilt car, is there a tax to be paid; if 80, on what 

value is the tax to be computed? 

"2. The following 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 and transferred to Chevrolet Dealers as new car 

demonstrators and are sold by the dealers at retail. 

Will we be required to pay the one per cent tax on 

theae.cars at the time we iesue them to our officials 

and take out licenses for their operation?' 

“3. A dealer 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 amount paid 

for the car, the radio, the heater, etc.? 

"(a) House Bill No. 8 also 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 

on the total price of the car, the radio, the heater, 
Honorable George H. Sheppard, Page 2 (O-3519) 

etc., then would the same dealer 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 wan made under e conditional sale contract, aa the cane might be, would there 

be a tax due on the 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 5 of Article VI.? 

“(a) Such cer wae purchased by prerent owner prior to 

May 1, 1941. 

“(b) Such car wae purcheaed in euch other rtate rubrequent to May 1, 1941, but operated in much other rtate for 

some time before being brought to Taxam. 

“(c) If ouch car were purcbared la 1941 but not brought 

to Texae until 1945, on what value would the tax be computed? 

“6. (a) A purcherer buys from the dealer a truck-chaleie and factory made trailer at the name time. II the total 

price of both truck and trailer to be considered when computing the tax? 

“(b) In another caee the purchaeer buys the cheerill 

from the dealer and the trailer from another party on the 

same date; is the total price of both chaallr and trailer 

to be considered when computing the tax? 

“(c) Would it make ani difference if the chaeeie and 

the trailer were bought at different d&da, an far am the 

tax levy is concerned? 

“In this connection we are referring to trailer am the 

truck bed or the tandem which lr alwayl an actual part of 

the truck itself when in uee.” 

You have eubmquently advhed UI that in your question 

No. 5 you have reference to non-reridentr only, and our anewere 

to it will apply to them only. 

We anewer your firrt question In the negative. The tax 

is not levied except in the cane of a male. In our opinion, Section 5 of Article 6 was not meant to exclude regirtration or tranef&ti+“, 

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

except in those cases falling within the tax levy and where the 

tax has not been paid. The transaction mentioned in this question 

is not a sale of a motor vehicle and is not taxed by the statute. 

Hence, Section 5 does not forbid the registration. 

If we understand your second question correctly there 

is no sale of these cars to the officials, but they remain the 

property of the Chevrolet Motor,Company and are merely used by 

such officials in the,business of the Company. If this be true, 

then we answer this question in the negative. If such are not 

the facts we would appreciate information in more detail concerning the nature of the transaction. 

The tax is levied on the total consideration, "which 

consideration shall include the amount paid or to be paid for said 

motor vehicle and all 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 on the 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 upon being attached to the 

car the radio becomes a part thereof, losing its identity a8 a 

radio and taking it out of the tax 1evied:on new radios by Article 

10 of said House Bill 8. We therefore answer question 3(a) in 

the negative. 

We now concern ourselves with your fourth question. 

As we understand 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 a transaction 

is not subject to the tax. Technically speaking, it may be 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. 

No tax is due under 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. 

We pass 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 on trailers and semi-trailers are fixed in Article 
Honorable George H. Sheppard, Page 4 (O-3519) 

6675a-8. Article 6 of House Bill 8 speaks only of motor vehicles. 

In Section 5 thereof it is provided: 

“Sec. 5. The taxes 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 any motor vehicle until the tax thereon 

18 paid. 

It is our opinion that trailere and remi-trailer@ required 

by Article 66758 to be reparately registered may not be conrldered 

a part of the truck to which the lame may be attachad, nor a# an 

accelnory thereto. And Hours Bill 8 levier no tax upon the rrb 

of much trailerr and iemi-trailrrr. Hence, we l mmr your ilxth 

quaition in the negative throughout,, if the %nilerN which you 

mention Ii a trailer or remi-trailer ai deliaad in Article 6675a, 

If a vehicle different from that ii involved plrrrr obtain and iubmit cloier detaili. 

APPROVED MAY 23, @41 

/8/ Orover Selleri 

FIRST ASSISTANT 

ATl?ORNEY'ZNERAL 

Your1 very truly 

ATI'ORN'BY OEWERAL OF TZXAB 

By /I/ Ollnn R* Iawir 

Ollnn R. Lexir 

Airiitant 

QLR:mp:llu 

APPROVED 

OPINION 

COMITNE