OFFICE OFTHEA170RNEY GENERALOFTEXAS 

AUSTIN 0smm.m a. MIWU *Trom*cv oP(- 

tionoreble M.11 L?%nn iilah%rd%on 

asrfrtant s%owtarp of State 

Au&in, Texas 

opinion Ho. 04l37 

201 Am0m or ruing rS6 SS~ 

?ranohise tax ta be pold by 

a aorpcratlon. 

Your rkqueat ror an opinion of thi% department 

PUh: 

“We h&we been' lkrnbhed with en ep~&18tlun 

fop 4 charter or tb above nnmod qorpomtltion. +31e 

purpo8e etat%U.ln tha oharter lilt 

-'The eupport or ala9 1itmw?y and eoieatirla undertakln& to-wit: to rid in loakily ., 

aroiluble to civfc and aultural erganlsations 

and groiipps the rervloie of l utholritiar in tarlolu govsrmentel, clvio *Q oultimal tlol(la.* 

"sUbdiViei011 6 Or the eDpiiUatiO& ii&d%8 

that tbemels no oopital steak, no aaoet8 and 

that the oorporatlon 1% net organized for profit. 

wThlo Department haa raised the qwrtlon 

a% to nh%ther the aorporatlon should be %x%mpt 

rmm tmahise tax %nd pa9 only th% $tO;OO iiilog see. You will note that tkm1at*er pest or. 

the purpose cl6uee sham that thi8~ earpqrzktion~ .' 

is going to rwnif+h eivl.0 orgnnlsotlons with tha 

eerviaoe of authorltlos in various fioldr. Thir 

aejm*cnt was at Sli% opinion thet in no'doing, 

the corporetlon WE% actually aatiw an a 'booking a(;enoy ror leoturers’ and should puy a $SO.OO 

filing tee and %n annual ?raaohf~% tax, even 

t$ough it wns not organized ior pyoflt. 

"i:o should bs pl%a%%d to~have en oplnloa.- 

rm0 your Department aa to what riling ree should 
Eonortrble *ill &3mn Rleherdron, Page 4 

ba ohargeci an6 whether tho eorporetion, la 8th 

jest $0 the payment 0r an annual Sranohloo tax." 

33% lnaorporatoro 0r the prop0004 oorporatlon 

%m apparently raeeking to. incorporate under i?oatlon S of 

-iale 1308 of ths Revised CIvIl Statute8 r$lloh roador 

*B-A* 8upport or any lltsnry and malen- 

' tirio undertaking; the melntonanae oi a library, 

or praaotion of painting, muala and other Iino 

art%.* 

Ycu state in your letter tbet your dagaSi.mant 

~1s of the opinion that the purpooe alma80 a8 okrto4 in the 

charter applioetion woUl.d ooaatituta' tlm orgprriutlon l 

booking %g%nay ror l%atur%ro r%quIring th% paymutt of Q 

mo.00 filing rec. If ouah lo 9ouv oplnloa, we rind w 

appropriate oubdl7lsion or mtlala lSO8 under whloh a btmkIsg %g%noy oould be lnaorporat%d~ 8% do not in thla opiaioa paoa .ugon the question or whether the parpa 6lauo6 

l ubrittod appropriately co~oo u&or 6ubdlvIolon 3, l up r e, 

aa suah question ~:IJ not bcroro UI. 

Ii yco should, In #lo %xer%loo 0r JO&j: dls6retbn; 

detena inthat e l uoh propored 66rporation lo in foot on% ior 

6 11tor%r9 cm4 sofom.lsIo purpooo under l uoh sobdlv~olon s 

then we aubmlt for JOLIZ uuIdan66 tho rol.ltndnf& 4loou~8lon 

or tho law applicable thereto. 

mtiole 3914, Revlaoa Ciril Otututeo, providea In 

gut that the 6eoreta:rg of State %hall aolloot ae is081 

Wpon llllng oaoh oharter, emendgent or 

%uppl%lcsnthereto or a oorpontlon ror the l upport of pub110 worehip, any bmwvolenoo, ohm-itablo, ebuaatlonal, mIseloJUrp, LItorarJ! or aaiMtiflo undertekfng, . a riiinrr fee of ElO.00 '. 

. . .* (imiareaorl&f'ouro) 

irrtiale 7094, lievie Civil Gtatuteo, sxmpto 

certain oorporstiona rr0rn the payment or franohlmo taxoo. 

It modrr: 

-31% trenohiee tax Im~oeod by thlo ahaptor 

&all not apply to eny ineuruiao compw, ewety, 
Ronorsblr Will Kena Tiohardson, Paga 3 

gumanty or fidelity cornyany, or any transpntation company; or anyiilaeplng, palaae oar and 

dinInn; oar orm::nny ahioh is now rerclred to pay 

an annual tax m?&sured by their grose receipta, 

or tc oorporstione having no oapital rt,ock end 

organized for the axolualve purpose or promoting 

ths publio~ interest 9r my oitp or town, ear to 

oorporatione org0niooU ror the purpose or r*llglous wcrahlp, or ror provldiag plaoas of burial 

not ror p;ivata profit, or oorporatione organizid 

tar the purpose of holdlnu agricultural fair8 and 

enoouregiag agrioultural pursuita, or ror l trlotlp 

eduoational purz‘oses, or for purely publio charltg." 

7here are several other rrtatuter, exempting ootnaln 

60aigrratse .typea br corporation8 rmm the papent or franohlsa taxes among nhioh am iutiolas 1407, Eilg, 28118 an6 

82309. Hone or thee0 8tatutaa. howover, 8pe0frfdsg mmatioa 

a oorporat~on orgaalsi3d ror the purpoua 0r sup~orfbg e4 

litwary or solantlflo und*rtaklng. 

It Is too r~ih~ntdl to require the.oltatloll ot 

ruthorlt;fea that one alaiming an umption rror: thr raymeat 

. . or times mum% oloarlp 0011, within the sxmptioas Wmrofrom 

promha by the law. St is our opinion, therefore, that l? 

suoh propored.ahartar ia granted 8s a litarary and sQlantlfl0 

undartaking a riling roe or $10.00 will be ohargrable and 

that sush oorporation will be liable ror iranchla tax.8 under 

the provlsioar 0r iu-tioh 1094, ~~~2x4. 

ATTORNEY GffN=-AT. 

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