* THEATTORNEY GENERAL 

OF TEXAS 

GROVER S-S 

AUSTIN m.T-s 

-N 

A1TORNEY UENERAL 

Hon. Geo. H. Sheppard 

Comptroller of Public Accounts 

State of Texas 

Austin, Texas 

Dear Sir: Opinion No. O-6255 

Re: Llabilitg of Avon Products, Inc., 

its representatives in Texas 

for the luxury excise tax levied 

by Article 7047-1, Vernon's 

Annotated Civil Statutes, upon 

the sale at retall of new cosmetics. 

Under date of January 2, 1945, you have requested our 

opinion upon the above mentioned matter. In your request for 

opinion you st out the following pertinent facts, towit: 

"Avon Products Inc. is a foreign corporation and 

it sells cosmetics through local sales representatives 

who secure orders from Texas customers through personal 

contact on a regular and uniform printed form furnished 

by Avon Products Inc., which purchase order stipulates 

that It is subject to acceptance by Avon Products Inc., 

(in the case of Texas purchasers at its Kansas City, 

Mlssou~i, office). The sales representatives send 

these orders to the Kansas City, Missouri, branch of 

Avon Products Inc., for acceptance or rejection. If 

the order is accepted by the Kansas City Branch of 

Avon Products Inc., then such items 83 are ordered are 

prepared for shipment in the office at Kansas City 

and are forwarded direct to the sales representative 

for delivery to the customer C.O.D. The sales representative is under contract to either remit the amount 

collected from the purchaser OP return the merchandise 

to the Avon Products Inc., at Kansas City. The 

original order, according to OUP understanding of the 

contract, is not subject to cancellation OP rejection 

by the customer. No sales are ever made In which the 

merchandise is delivered in Texas at the time of sale. 

"The Avon Products Inc. does not maintain a sales 

office in the State of Texas, nor does it maintain any 

stock of merchandise in Texas, shipments to Texas being 
Hon. Geo. Ii. Sheppard, page 2 o-6255 

made from the Kansas City Branch of Avon Products 

Inc., to the sales representatives for delivery 

direct to the customer solely upon orders theretofore submitted. Our investigation shows that Avon 

Products Inc. do maintain an office in Texas, but 

it is solely for the purpose of training salesmen 

and it handles no merchandise and makes no sales or 

deliveries. 

"Under the facts stated above, Is Avon Products 

Inc. subject to the cosmetics tax levied under 

Article X of House Bill 8, Acts of the Regular Session 

of the Forty-seventh Legislature, or does such plan of 

operation bring such concern under the rule a3 laid 

down by your Opinion Nos. O-4263 and O-4275?" 

The fact situation as same is now stated by you in the 

above quoted portion of your letter, reflects a transaction 

which is plainly a sale of cosmetics in Interstate commerce. 

Article 7047-1, of V.A.C.S., does not attempt to Impose 

any tax upon the sale of new cosmetics in interstate commerce. 

Said statute plainly provides that the tax referred to Is lmposed upon sales made In Texas. 

Insormch as under the facts submitted by you in the 

above quoted letter the transaction referred to is one made in 

Interstate commerce, and is not a sale made in Texas, you are 

therefore advised that the transactions referred to come under 

the rule as laid down by our opinions Number3 O-4263 and O-4275, 

which said opLnion3 are here expressly adhered to and reaffirmed. 

Your3 very truly 

ATTORNEY GENERAL OF TEXAS 

GPB:AMM:wc 

APPROVED JAN 15, 1945 

s/Grover Sellers 

ATTORNEY GENERAL OF TEXAS 

By s/George P. Blackburn 

George~ P. Blackburn 

Assistant 

This opinion considered and approved in limited conference.