OFFICE OF **THE** ATTORNEY **GENERAL** OF **TEXAS AUSTIN** 

Bonorablo **500. IL**  **Sheppard J**  **< “** 

**.** Coa@roller of Publlo Aooounts AU&in. ?!eXall (\

**at for**  **en op$lam**  order ewtabllshblank for suoh mttrohaadise, mailed to ths ~frlod, or ioh the Issrohendlae is ahipwd to the purohaasr's addrese. Or, in so98 lnstano6s, t&e **faerohantllee** is shlp

### peb twik to the subofrloe and the pur&aner 

### oalla, Sor then@rohandfse and pay8 for it. The urabaeer may pay for the **fmrohandlso** at trl e time he ~&&MI the order.~
*‘a have e number of 00n4erna **oper6b** ing dleglaay

roenisin the State of 

### Texasin+hioh s8rohaadIao I8 dIrplay8d. **Th8 ourtoaar**  an118 at thI# 

### plaooor btMnes8, n&88 

### a 

### purohaw irap the,m8rohaa4Iu on dirplay, and. **later** the **c~oneern** deliver8 **to** the **oustamer,** 8ither by Its own 

### truokr or 

### by par001 port, tha mrohnndiee puroha8ed.
9oer either oi them tro plaoo8 ooy within the u0rinltion of a 

### &ore 88 s8t.0ut In the Chain &ore Tu **AotF i**  **ra your**  

### atdm8nt **of** 

### th8raotr **indhate** that

80a8 of the plaore ham, and m do not v** mail order **oatalogr** whIoh may be **U8rd** by ourtwnre **in meking**  **~rohan** dir0 eol8OtiOil8. 910d0 wt bOliet8 t-h&t difi%XWLo8 in th8 **p&O08** h&TO

i3XW l **fi8Ot OZI**  **th8 UI8WU**  **t0 SOW**  **C&UOiBtiO& w0**  **dl80** 

### believethattheMan8r 

### InwhichthemorehwUi88 

### ir 1 **ror** 

### is ImaterIal ind*olding the an8w8r 

### to yourquo8- 8

. ! j **A8** to 

### nh8ther or not the diqlay room in qumtlon **am** 8tO2'88

**Is d8tsZMi&8d**  by **th8** deiinitioa of the **tarit** "8toro" In the Tuaa Chain Store Tax law (Iiowo Ml1 18, Oh. 400, AOtt **&th Z8giPl..aUVl**  **IiZSt wi8d**  **8088fO&, i@3&**  COdifibd **88** Ar9iole lllld, Penti **cOd8),** maid definition **roadbig a8**  followor
"SO0l **9.** The **tWY!A '8tOiO'**  **68 W8b**  **it.3** thle Aot, rhall be aaastnud to man and

are owned, oparatod, praiataiaad, of aoatml18d by the 8aae **portion,** agent, reoelror **truteb, f%ma,**  aorperatlon, **oopertnrr8hip**
or aaoooiation, 

### either domertla **or** iorelgn,

**The** part of the d8fhltIQn with whioh wo ere atanoeimed eaym that *the tom ‘8tore’ * l * 3uJ.l * * * meai'~ +:* * any **store** or **storre** or 

### anyaeronntil8 88tab~bhment Or estab2i8hamte * * + in whIah 43OOd8, ware8 or **t40r0hnaf08 0r**  **any kind**  **tie 8old.** **” Thwefors,**  If the88 display roofM Srs "aeroantlle establIehmoatsR and are [b) p]soe8 "In whIoh goods, ware8 or mrohandisa of any kind are 001d,~ th8y are

### 52;

"8bOl'S8* **within** 

### the maning or 

### the Qhaln 

### store Tu kw,

iis 

### will **first** 

### dlaouaawhether**0r** 

### not they8ZW ur oantlla

l atabliabmanta. Th8 8tvtuta iaoltadv8"any 8tvro * + * or WAY asrvantllo 

### ertablI&amat.* By ah* ow of bothterm& w8tOr8m 8ad %vraantilv r8tablia&mantw, the &8&8bttU8 8ppUnntly iII8Uld~d fOr th8n tv h8n alf**r8mat** m8~nln68~ **In otbor**  ***or ’** **&8 th8y**  **do not**  **mean tlw**  aam8 thin& but th. t8ZIN “MrOmti& @8tablhhmnt” YaO8 #OUhhing **bifr8mnt** ahen a "8hl@*. IS thS Oa88 **Of** TOXS8 Bela a m8t co:t. Austin, ll8 Tn* 201, tB0 8. Yy,161, 

### the **8upr8am**

### Oourt.

of **T8raa** 

### uidt

n+ * + 110

l-Uh**Of 8tcltUtVl-j** **’ OOWtX'UO**  

### tloala 

### J&ONuninmelly rooognlwd 

### tbaa tkmt*hIohaoapsla 

### theoourtltogIm l

### (YI ureot to wary Sxpr~ar d8olaratloa **or** lay 18letIn iatent. Th8 nil0 I8 olearly rQatad in lL k, k T. 8yr Co* of 'Paxa r.~~ffoy, 105 Tax. $998,

150 8, We = Ott&& Z&&i88 Bd.Ui'8 vplaloa **for** th8 u&m4 8@6tS8 w pram8 t3ourt In Xoa8olaIr *r -8u 

### 109 3. sr 158 1L

a* Qt. 896,er L. B&L 41, WhSrS 

### it 18 88&t: 

### *'X018 the 

### dutyof t&8 

### aourttv @In otS8vb, if possible, t0 Wary OhU8S rad word of a 8tatut0, 

### avoid* if 10mkybo, say 8olUtZ’UotiOn rhioh &i&98 that tha 

### I#gI8latworaafgllonntorthommaingar th8lenmgv it 

### emp%oyed.~'

01 the 880~ Of B8Bk8 'Ir&%ktO, 88 ti. 6d6, th. ~p8liUrt ha bea Oorr*lOtOd Of viOlSt)ag the **8ttetUt8** ISSk@& kt II **fO*** tO'8tUl "tllI~ **hVr80,** g8lbin8, MN, **SOlt** (US, Or mlc~,~tnd 8he oourth8ldth8tbyaringthswarbr *hor88'* 8nd %nr8* thv la&blcdur8 iatmdsd 

### forthus to mvan bfffvrvz& things **and** thvt the HIP% "hvr88" LD. t&v **8ta8UtO** dfd 

### not Imltie Qarvw evaa though tha tewm *her8P ordinarily WS8 8 ~W8riO t8lTil **th8t** hlOlUd8b nI?)oa ~tk8tO8SS th8 0oux-t raid;

r+ * +* **Xt** 18 our,duty bs gin t6 ohs artlolo 8uoh a ovn8trvvtiva a8 will #TO 8ifoot end rParnIngto eaoh wvrd a8 nvarly a# 08n be conslataatly dons 

### ulththe**vbjeet** 

### ana purP$"rOf 

### thS brgi8]atU?Or

lSe Bate bean u?iablm

### to fiad **nneroMtilo** 

## l **8tabli8hmeat,w** a6rin* th8 t8ra **8 wXr8**  **dOflaf** tion or 

### th8ordinary maialag or th8 word vtorer~ I)0tha **01108 or**  

### contInentnl **Paper F&g**  **CO*** **v*** **lkuwortih, 896**  **a*** **w.** 100, th8 Coaaisalon of **Appeal8** of ToxaU aaid: 1

***Ia Aawrlona**  **Q&8&&0, tha**  **woti ‘** **8tOZ8,** ***** whu **uployod** to daaIgwte **a plaoe**  

### of bual**IWE8** 

## room,butmay

inaludr

In 

## ia8&%8
aoaa r8tablirbmontwhere Dare

**$ ‘** **hU8 W8**  **800** fht **a 8tOX** **’ O**  h *a bUliar80 aStSbfir*luatwhW0 paraondty **18** kept and aold.” go baliate 

### th8t th8 L8 l&urn intend& for the tam *maraantIlo **a8tnb~i8&am** 8~04 00 iokihbw dlrrorurt 

### thaa**a** 

### storec

**Th8 tanu**  mmmmaatilm **s8tabli8h!B8ntw i8**  8l Oerpu8 Yuris 004, as rollorralr

**“ A**  **pleus wham**  **the** buyIa& **aad 8.rflinn**  Of artlales 0x lWWdUlti8O~aS an fNqawma* **18** owduotmd.” 68riaaa In



### 2%~MI derialtloa or 

### I *'as~antIle edablialuaont~ WM usad laths oases or continental B8k$n& 00, V* Cawba&l, lT6 Ok&+ 818 5s **P*** LIpd114. 

### Itwill 

### be aotlosdIn Bhat**dsfinition** that it does llob8tky that marohanblas **18 8nd**  80ia la a 

### MrSUItile .Stablf8hmSllt ha I8 thS OS88 (Coatlaaatal %WF Bag Uo. I. Bmuorth mtpra) but 

### It oaly says tha$ buyktig urd. **881w na**  **an** e5piOymMt **18 OOadUOtOd**  **iI3 a**  **SW OaDtilO**  **08tabli8hmentr** Thmerore, we **believe** that tha raot **that** 

### thesmrohandlas **that** is 8old **18 not**  **k8pt** izI the **P]aO1, but**  **th&t** only~**aampler** axe **kept** therm fxva **being a**  mSxaSatilo Srtab~i8hsaa~Ptr dW8 not PreVOat it

Ke will now diaouae whrthmr 

### Ornot them dlrplar r00ma **am** plaoea "In whloh **good8, war08**  

## ormrohandlam **of any**  **kind ara**  **aold.w** otilxmri4 P aalo takaa **plaor** nhora **tit10 t0**  **X6r0haE4180 pallSb8~.**  **we 818**  Of %hr OPbia b6RevOr~ t&t f?os a ScradIng of the dhain rtoro tar 8tatUte in it8 

### ontiraty,

It is evident that the **Lagi8latura was**  **8tt8** "9c **th&?g** to tax a plSoS of butxlnass at whIoh n8mhondla6 war,so d,

# ”-- 525

Eonorablo &o. H. **Sheppard, e**  **5**

meaning the plaoe where the tnxnaaotlon **took** place nthar than the plaae where the aotual title to raid 

### merchandise paaaed. 

### As ata$ed **in 53**  **Corpus** Juria **S6, r[owever**  as **used** by the authorities, *sale* la not a word of fixed kvartable meaning **but may**  be **given a**  **narrow or**  

### broadsuenix& aooord1~ to tha ocntert or the aurroundlng oirouaahnaea and the oonduot 

### of 

### thepart1.a".

In many lnattmoea under the faota 

### preaantod title to the merobandise 

### did not 

### soWally pass 

### exoeptupon dell~ery. 

### Wwever the tranaaotlon of the aale 

### took or order room. The question then la wheti

### laoe 

### at tha **display** lr or aot the Leglalature intended **to** tax **the** plaoe of delivary where 

### tltlapaaaed or rather 

### on the otherbend, 

### intendedto tar a 

### plaoeof buaineaaat whloh the business tranaaotion to& plaoe. Fe bolleva it 

### to be the latter.



### In thie oomeotlon 

### it isl 

### important

to notothe 

### Ianguage of the **Cowmission** 

### of **Appeale of**  **Texee in**  **the oeae**  **of .Burt**  

## Vs**COO~Q~ ‘** **, 130**  Tax. **433, 110**  **S. V.**  **(%d) 896.'**  **ti OSaStl'UiX&** **thy** exeagtion **in Seotlon**  **5** of the **Aot,** whleh appUe8 to aanu?aotiurln$ oonomna distributing produota of thelr own mnufaoture; the oourts **stated** that buoh plaoee **of buelneee**  **do not**  **ome with**  lnn~~afflraatlvyJ operation 

### of the **Aot r~ar&lrSS**  **of the**  **ex-**

. The oourt -aaldthat the "teat la whether sales ot 

### goods, wares, or aerohandlse are made at the 

### plaoe.” Sn polntlng to plaoaa of bualnaas at whlsh 

### sales **of** 

### goo&a,.wqma or merobnndlre are not made 

### at the plaoe, the Cour% anld:

*It nay **be** that lome manufaoturlrrgeon

### oerna maintain **bona** fide 

### 616trlbutlng points at whloh **no relets**  **era** anda, **but** Prom whloh they merely dlatrlbutr at wholesale to their stores or at retail to purohaaara from 

### their sales 

### agents. If eo, auoh business would appear to be within the tom8 of **thl8 p~0tisi0n.**  

### Obviouslytheywould not oomewltUn the afflmative **operation of**  **the statute**  **es we**  **here** 

### construedit, **end** 

### therefore **no** express **exeap** 

### tfonwas requiredto relfevethem from the burden OZ'

the tax." 

### The languageof thr 

### SupremeCourt above **n,uo8ed** supports our oonolualon to effeot that 

### 'the **diatfnctlon fs**  between a ptioe of buslneaa on the one **hand** whloh 

### la amraly a dlatrlbut~

### Xionorable Oeo.8. Sheppurd,Pago **6**



### point and a plaoeof buain~aaon aalesof serohmliae are loado in a&ions take place 

### therein. the other **hand** 

### at whloh 

### the aenaeth+t the tramUnder euoh 

### oonstsuoti~on, it la our opinion that 

### all of 

### thedisplay 

### room 

### mentioned, inoludingthose in whioh 

### the delivery 

### la not rmde thxoqghauoh displayrooaa to the purohaaer,are 

### meroantlleeatabllahmnta at wares and aerohanOiae are soldwithin 

### themean Texas Chain StoreTax Mt, aa4 ale therefore 0ax.

Yoursvery txuQ **ATTCWitYOlX?EULOFTgLAb~**