**OFFICE OF**  **THE AlTORNEY**  **GENERAL OF**  **TEXAS**

%:ononble Gbo. Coaptrollor of *u&tin, Texa8 **a. Shopper6** 

Publio Xooauata ’ 

## 521

, 

### .v,,/ -::..i:’ ,‘. owt oplalonhddlng :2 ; r attain

### storr taxen ~0 ‘faxXot, I nil1 lnfons numbered O-2507, PO this ~!egertannt the h of Ceotlon 1 of Artlole V r eesalon of 

### the Forty-seventh

ag rmbw tbc‘t utilities ~ayii-16 an r thin Artiolo s&e11 not herrafter **y the**  l~oonse fee irnpoeedin AHiolo 

### 1 SO. 18, Chapter 400, Aott 

### ot the rilegeof 88llZag s tar thr repairs popciletion

acoorbing



### "Arestore8owned snl operated by utilities 

### OOSpaah! in towns having l 909ld.stiOCL l*tt then 3,000 i~abltimtt nw texablrunder Beotion 5 of tbr Chain 3tOra Tax Aot?"

## 522

l@norcbla 080. II. Gheggard, pcge 2



### xs SSLII~II~

that 

### the rroent oourt opinion 

### referred to in 

### your lattar ia thvt of Contra1 Power k Lkbt Co. V* ;tste, 165 3. !P‘.

(26) 920, in wliioh wrlt of error v&e tofused by our state 3upreme court, 

### and hppacl alsmlered by the Supreme Court of the Ynnltcd?tattn, 87 L* Xd. 926.

**ztt Our**  **OjdAIGA &050.**  **o-2507** WO **held thct**  **!%AtlGA*** **5** cad 5a OS ~Art.lllld,V. P. ,C ., set up 

### two separate 

### tax aehadulas 

### and taxed 

### two oaperota bud3oa860, snilthat storrt opsratd by utnity 

### a~ap~nloa ima whlo4 were cold aleotrlo end ear 

## lWPaeat end applicnooa ware,texcble under Sootion 5a, while 

### storer oFar:tadby suoh ooa~cnlaa 

### end salllng 

### other aerohandieewere taxcble under 3eotion 5, and that auoh OhQiAQ Were Sapcrcta, an& 

### the storer oauld not 

### be tsxe4 ts a olndla ohaln. Thla holdIna aas dlreotly bsrora the ooxrt in the Oentral 

### Power4~Light coqany OWO, and was thero‘overrulaa,a8 ~11; be DOlAted out hcralnafter in greater detail.:. j :~’ \ .I,~

1~ :‘:: : ’!., ~’
In our OpiAiOn %oi&3637, wa, J&l& thet 

### .btlOl45, 3. 3. 8,.67th Leglelstura’ &inUln;i Artl;ole 7060, R. C. Y., 

### exemptedthe atores of utlllty oomganias Iroe the OperntiOn Of thr CheLn Store Tax Law.



### b 0~ op;nion~Xo.0-&2&i;we kieldthat if * 6as atillty OO~i~a~ ncn exan;ltfro5 tha operationof ,theChain :tOro Tsx tow by raceon. of 

### -the” lg&.l~, ismenki.ent

to firtiola

7060’; 

### it ?ould not subjeog itself td 

### 1labi‘Llty by recnon’~of 

### relllng t-da-in **tmrohaa&Iae** 

### sooeptad in **ptiynent** 

### for ne~ahsndlae ~Jtborlzedto be **aold** under auoh exemption.

ro. O-2507,

$a our opinionNo. C-435b.ve iolloved our oPln1on cnu 

### had thct .W,oree**or** utility oowanfar lodatad lA ~inoorporeta~ tmm or jOOC or len#~populationverb 

## l rrbfaot to the tax under 600. 5 of 

### Artiole UI6,tr. P. C., and that rtor- Of ruoh eompcnler ‘ltleeor 

### town8 of mora rtloh were i004t4a la lnoor~orrted A@* 5 of euotlrrtlol*. ihcn 3000 populationVera taxable under

Ttreprrtiaentpert of Artlola 7060, R- C. 2.. at ‘aaAa*a, kota 1941, 47th taeislature, H. .B. 8, ZXt- 5, %a- 1, rub aa rOnows:

*And flrorldad

further &hat utilitiee ~cy1.q an 

### OOOUPStkn tar under thle ,;rtiole ebn,ll not here&tar be roqulred to Pay 

### the liaanra rme i~~o?ra~ in rrtiol~, Rouua Blll ~. _- _---- -_- -.-, ---- i~Q*18; Chaptur 600, -- ._----- :toFreof iwaxy-Toart 1Za&klatura, 

### ror

## 523

.

ifsnorabls

0.0. FL Shopparb, paes )



### the pririlrgo ot selling gas and OlbOtrlO PppllaIU3Oa and parts tor ths repair thsraor, ln toann of thrst thouaand (3,OCO)or lb38 in po;sulatlGn aoootdlng to the next praotdlng Fmberal CODS*AS.* (L~;rhaaia ours)
It ~1111

be aoou that the quotrd l mdaont to 

### Art. 7060 wae dlr*oted ont7 to 

### the 

## l xuptioo oi au6b 

### utility oompaay 

### stores troa the tax %xpoaeb ;n Art1010 

### ~II*of the Chain &ore Tax Law. In Central 

### Powtr .kLight Co. Y.‘,State, l ugra, the oowt in hold- that utilltp oompenlea wera **sub** 

### jrot to the tax kupoaed by 

### Seation 5 OSthe Cheln Store Tax law ueed the tollowlng languager



### “T&opertinent bxb%ptfon of Sao. 

### 5 MO of ‘any bueineaa now~pqlng aa oaoupqtlon tax ~lsaaureb by gross 

### ~:f~p&kociptz r;88that FrbSOribsd iq ArtlOlb 

### 7060; :,:

‘5”hr only ocouption tax &id by kppellanta

_ ii.C. s., Vernon*n Annotated Clrll 3tatuttk,,irt.. 

### 706!,,,,.:’ ahlob wa8 upon roooZpt8 only lrorml lb otrio

light an4 **Doubr** 

### la iDcorporate& 

### oitiss of not lraa ~thsn2,,500 Inhabitants sooortiaag to the **next prtoodln$**  **Ll. 3.**  **OOnaUa.** Thla was not a gross rboofpta tax uponthe Qualneaa oi asrradanta ln that It dla 

### not iaolude 

### rsooipte from bualneaa 40~ outaidt ths doalgnatod olkiea, and dl4
. not lnolu4t 

### reoelpts fmia say ot lto bualnesa, whsrarbr dono, other than the supplying of elootrla ourrent.. The 

### tsrm *menaurwl by &rosa rboalpto’ 1s all laoltislve an4 

### ~XOludsstheao,?oeptof reoalptsmaaure~l by anything ltso then all b*mlnoao done. *J, utllt;, -&ioh did not operate or maintain l *tore 

### or othtr brrslnseaeatsbliah~eent where aerohandlao wao sold. alsrrly did not ooze within tee ~urvlvn OS the Aot. 

### mera it 

### oper;ltcd stores tar auob sale, it a13 **no** reoslpts **tax upon**  **that bual,nesa.**  ComesuuiitlY, ,t **oOUld** not iall within thb bXOePt10n, Of the The very purpose

exoeptionwas 

### to relieve froa payin% two otioupatlon turn,,nonely: a sale tax and a ehala otore tax UpOn tt* mm ntrohandi.sing buc$lntaa.*(Espheala our@)

## 524

Huaoroble Oeo. !?. hoppbrl, pxe k

iief0rrlr.g

to **tDb** boldl:.g.

ot thd fupreme Court ln tee east of **Hurt Y.**  Cooper, 130 i’ex.433, 113 S. .Y.(21) 896, the oiurt further statedt

“It la .zenlftat

that tta ?uprcne COW’Y did not regard an eleotrloutility,whioh aleo operated 

### #tom8 vlthia the iraanlng or the Lot, 80 irom;a by **rOMOA** 0r the ract thnt It peid a gro66 rtoriptrb tax asoaure4only by a 

### part of ttnbuolneas In supplylq 

### l leotrio ourreAt.* &ala, :n dlsousalng tbs efEeot of SbOtlOn ia, tba owrt **aald:** 

### “while the saotlon vaa in efi’eot**5brOlY** oumulatlve’~.,~‘,~: ~_ . of rjeo.5 in teats it8 proylaioAa were already iaoluded*~- ~;i~ therein, ita gurposemay readllp~ be explalhe4’

as a~olerl-- !‘. rloetlon or the rcurth~ 

### bxoeptiozfin 560: 5t~n’,,; ,,- ”,~:,’ ..,,;,,~:’ : ’ Illh the oaae of fiurt

v. Goopsy, a’iipra, the 

### Suprode Court rxprtsalp statcd that the **OAly** bwlnrsr **fallin;** s;ithlA tka ttrsra of tbc *fourthcxooptloa la 3~0~ 5* whfob III“anp bushtea nov payfag nn oooopatlon tax mbeaured bli &roan re- ,.~r.l‘+:,, oelpta* **vae** teat or textbook publleheps.. i ~. _.?.l ;CT.* .‘: I,, ’

,. . .*..,‘ .; ‘~I

_ *,_ cIosrefril

reading of’the oplnlisaaIn the’ 

### cams of ‘.

,‘! Central -Or tr. Llsht Co. Y. State, and Hurt Ym CoOpb, 

### aupra, ~‘, i lfmis to ths lncsorpable **oonoluulo~** thnt **nom** of thb stores of utility ooq~ganles have ever buea subjsot to tax under 300. !h, :a. lllld, v. P. c., but teat all of 6u0e atom.8 hrve been sub- : i j*Ot to the tar lm;ossdby Sto. 5 or auoh WtlOle et cl1 **tiQbS** i *lnoe 

### the onaotaent of tbe law. The Lrglslature, ln passlag the amendment to 

### hr‘t, 7060, did not undertake to rxeapt thr

: otorea or 

### suoh oo~psalea rmnl t&s **op'eratloa** Of G60. 

### 5 **Of** 

### tea Chin “tore Tax LOW but **oaly** attempted to axren?t oartrln **ntOroe** 

### 2 *m% thr operation if %a; 5.~. Clenrly auoh 

### asenbatbt had no .l rf@ot upon **the o?eratlon**  or ho. 

### 5, and orlropinion So. 

### O-3637, i lnaofar es It dt&ras teat no rurt:er tax o&n be oollc.oted on 5. tuoh stores by yirtuv of tht prcvlrlbna ol Situ.5, to that extent $1 a ivy -0ASOu8, and **suoh** holilng **la** ,h/:reby oV6rrUltd. 1~

### I
.. r

~onorabls 080. ii.%~ppard, page 5

:‘io 

### are oonrlnotd that all Stores ai utility 00u~~n10~, wheraver loo&ad In this state, havo been taxable \mdor the protlsloao ot Sso. 5, ,‘.rt. 11116, ‘i.P. C., **et** all **tlmba** 

### alnor the **efieatlob** date of that etatutb, and that the quoted amndmbnt to 

### irtlolo 7060 was 

### wholly 1Aetfsotlve to remove natohllablllty,

. alncr t&t anoadasnt nas dlreotbd to 

### the p~ovlslonr of Sea. Sa only, and the 

### obtlwa lnttat of the Leglslaturb wae rimply to 

### l ll.finate



### whatovar liability, ii eny, whloh 

### erhtc4 r&iBrt thb 

### 8tores nsmed therein by **Vlrtuc** of the Drov~S10ns Or 

### suah nbOt~OB~

**It** follows thst year questionmust bo **rn6w6rbd fn**  the rrflrmatlvo, 8nd insofar OS our oplnloar Wnbera o-2507, O-1354 and c-4269 are ln 

### oonfllot with th:S oglnlon they are 

### hereby l x~rbaslyovrrruloa.



### ao reel, however, that lt should be pointed out 

### here that sec. 5 ot the Chain store Tar Law (.+tiolc 11116, 

### V. P. 0.) vSS a&ended by H. 3. 30. 10, Cot8 1963, 68th Lcglrlaturok This bill

### wns >aaseb maan emorgenoy 21b&BwO, but 

### did not rOOeiV0 the rbq;LlSlta

A:;mber

### or votea to beoonao lxaedlatbly 8ffeOtlvO. It vi11beoo.:oorrbotlvb, however, ninety days after the adjouZAQoAt of the Lsglslaturb.

30 rbr 89 this bill arfootn tho llabillty 0r stores Qr Utility

### .ooe~pm~los,it provides that no Ohein rtoro tax 

### or fee shall be roqtired or suoh stores or suoh oon?aAios whore they are 100at0d in tOWnB or 

### 3000 or lass populetlon, provided 

### that an mob ae ScveAty-rive 

### per oont of the total gross rbcfdpts 0: such oozxpatibs duriA6 the prebobing, year ki each town where 3aoh storea are located wee dltrlvol from the 

### sale of gaaeand/or elcotrlo1~0n1oo~ &Ad provldoa furthor that all 

### other **ntoror** oi b-h utility ooa$anlen, whloh are

### loo&M in towns of znorothan !SOO popu.lation,Shall * ~4 5 or the isot. **pay** only the fees 

### lnpoaed bY 3botiolU 2, Thus Ii,a. 10 ‘oloarlybli1%!AtttbB any quaarb or the llabillty 0r euoh store8 UAdar the provlrlone

### 0r -We 5s. The &QtiOA oi the LagiSlatUre 1A SpOOifiOa~iy Stati= 

### rib~*l~,osed by q6QtiOAB 2 4 aad 5,” thur Oliah?itiUg SAY pan10 thst suoh 

### stores Shall be ‘requlrad to Ray only tho ‘lb14 liability ‘;nderset.’5a, supporta the poaltlon herblnabooc rakaA,that the tmend::ent to ;rtlcle 

### 7060 ??a1llhmlso blmply for UQ Purpx~ or blinlnatln~ any posblblb liability si the 8tOres 

### AapW the-eln under Sea. 5a. This action 0r **the** Leylalaturo also “Phsalzca the fSet that the aneAd;leAt 

### to .4rtlole

### 7060 wOInot lAtb~aEdto and did n‘,talter the lleblllty Of SW BtOrW Under “@ trOTl~l0~6of ::eo,5.Trilstln<that the sb+'e filly **t1ABWWB** your inqtin, we are 

# ,d&&

Fowlbr ~obbrta Anelrtant

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