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 shlppeb twik to the subofrloe and the pur&aner 

oalla, Sor the n@rohandfse and pay8 for it. 

The urabaeer may pay for the fmrohandlso 

at t rl etime he ~&&MI the order.~ 

*‘a have e number of 00n4erna oper6b 

ing dleglaay roenis in the State of Texas in 
+hioh s8rohaadIao I8 dIrplay8d. Th8 ourtoaar 

an118 at thI# plaoo or 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 th8 raotr indhate that 

80a8 of the plaore ham, and m do not v** mail order 

oatalogr whIoh may be U8rd by ourtwnre in meking ~rohandir0 eol8OtiOil8. 910 d0 wt bOliet8 t-h&t difi%XWLo8 in th8 

p&O08 h & Ti3X O W l fi8Ot OZI th8 UI8WU t0 SOW C&UOiBtiO& w0 

dl80 believe that the Man8r In which the morehwUi88 ir 

1 ror is ImaterIal in d*olding the an8w8r to your quo8- 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 

"SO0 l 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 any aeronntil8 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 dlaouaa whether 0r not they 8ZW 

ur o a ntlla l atabliabmanta. Th8 8tvtuta iaoltadv8 "any 

8tvro * + * or WAY asrvantllo ertablI&amat.* By ah* 

ow of both term& w8tOr8m 8ad %vraantilv r8tablia&mantw, 

the &8&8bttU8 8ppUnntly iII8Uld~d fOr th8n tv h8n alfr8mat 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'UOtloa la J&ON uninmelly rooognlwd tbaa 

tkmt *hIoh aoapsla the oourtl to gIm 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: 

*'X0 18 the duty of t&8 aourt tv @In 

otS8vb, if possible, t0 Wary OhU8S rad 

word of a 8tatut0, avoid* if 10 mky bo, 

say 8olUtZ’UotiOn rhioh &i&98 that tha 

I#gI8latworaafgllonntorthommaingar 

th8 lenmgv 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 for thus 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 rParnIng to eaoh wvrd a8 nvarly a# 

08n be conslataatly dons ulth the vbjeet ana 

purP$"r Of thS brgi8]atU?Or 

l 
Se Bate bean u?iablm to fiad 

nneroMtilo l 8tabli8hmeat,w 

a6rin* th8 t8ra 

8 wXr8 dOflaftion or th8 ordinary maialag or th8 word vtorer~ I)0 tha 

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 bualIWE8 

room,butmay inaludr In ia8&%8 

aoaa r8tablirbmont where Dare 

$‘hU8 W8 800 fht a 8tOX’O h *a bUliar80 aStSbfir*luat whW0 

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* LIpd 114. It will be aotlosd In Bhat dsfinition 

that it does llob 8tky 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 SWOaDtilO 08tabli8hmentr Thmerore, we believe that tha raot 

that the smrohandlas 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 Or not them dlrplar 

r00ma am plaoea "In whloh good8, war08 or mrohandlam 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 broad suenix& aooord1~ to tha ocntert or the aurroundlng oirouaahnaea and the 

oonduot of the part1.a". 

In many lnattmoea under the faota preaantod title 

to the merobandise did not soWally pass exoept upon dell~ery. 

Wwever the tranaaotlon of the aale took 

or order room. The question then la whet i 

laoe at tha display 

l r or aot the Leglalature intended to tax the plaoe of delivary where tltla paaaed or rather on the other bend, intended to tar a plaoe of 

buaineaa at whloh the business tranaaotion to& plaoe. Fe 

bolleva it to be the latter. 

In thie oomeotlon it isl important to noto the 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 withlnn~~afflraatlvyJ operation of the Aot r~ar&lrSS of the ex- 

. The oourt -aald that 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 l ome manufaoturlrrg eonoerna 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. 

Obviously they would not oome wltUn the afflmative operation of the statute es we here 

construed it, end therefore no express exeaptfon was required to relfeve them from the 

burden OZ' the tax." 

The language of thr Supreme Court 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 plaoe of buain~aa on 

aales of serohmliae are loado in 

a&ions take place therein. 

the other hand at whloh 

the aenae th+t the tramUnder euoh oonstsuoti~on, it la our opinion that 

all of the display room mentioned, inoluding those in whioh 

the delivery la not rmde thxoqgh auoh display rooaa to the 

purohaaer, are meroantlle eatabllahmnta at 

wares and aerohanOiae are sold within the mean 

Texas Chain Store Tax Mt, aa4 ale therefore 

0ax. 

Yours very txuQ 

ATTCWitYOlX?EULOFTgLAb~