* THEATTORNEY 

### GENERAL OF TEXAS

GROVER S-S AUSTIN m.T-s

-N A1TORNEY UENERAL

Hon. Geo. H. Sheppard Comptroller of PublicAccounts State of Texas Austin, Texas

Dear Sir: OpinionNo. O-6255 Re: Llabilitg ofAvon 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 opinionupon the above mentionedmatter. Inyour request for opinionyou st out the followingpertinent facts, towit:

"AvonProducts Inc. is a foreign corporationand it sells cosmetics through local sales representatives who secure orders from Texas customers throughpersonal contact on a regular and uniform printed form furnished by Avon Products Inc.,which purchase order stipulates that It is subject to acceptanceby Avon Products Inc., (in the case of Texas purchasers at itsKansas 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 forwardeddirect to the sales representative for delivery to the customer C.O.D. The sales representative isunder 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 OUPunderstanding of the contract, is not subject to cancellation OP rejection by the customer. No sales are ever made Inwhich the merchandise is delivered in Texas at the time of sale.

"TheAvon 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 beingHon. Geo. Ii.Sheppard, page 2 o-6255

made from the Kansas City Branch ofAvon Products Inc., to the sales representatives for delivery direct to the customer solelyupon 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 handlesno merchandiseand makes no sales or deliveries.

"Underthe facts stated above, Is Avon Products Inc. subject to the cosmetics tax leviedunder Article X ofHouse Bill 8, Acts of the Regular Session of the Forty-seventh Legislature, or does suchplan of operationbring such concernunder the rule a3 laid down by your OpinionNos. O-4263 and O-4275?"

The fact situationas same is now statedby you in the above quoted portion of your letter, reflects a transaction which is plainly a sale of cosmetics in Interstatecommerce.

Article 7047-1, ofV.A.C.S., does not attempt to Impose any tax upon the sale of new cosmetics in interstatecommerce. Said statuteplainly provides that the tax referred to Is lmposed upon salesmade In Texas.

Insormchas under the facts submittedby you in the above quoted letter the transactionreferred to is one made in Interstatecommerce, and is not a sale made in Texas, you are therefore advised that the transactions referred to comeunder the rule as laiddown by our opinions Number3 O-4263 and O-4275, which said opLnion3are here expressly adhered to and reaffirmed.

Your3 very truly

ATTORNEY GENERAL OF TEXAS

GPB:AMM:wc

APPROVED JAN 15, 1945 s/GroverSellers ATTORNEY GENERAL OF TEXAS By s/George P. Blackburn George~P. Blackburn Assistant

This opinion considered and approved in limited conference.