HE ATTCBWNEW GENERAL 

XAS 

Honorable Robert S. Calvert 

Comptroller of Public Accounts 

Capitol Station 

Austin, Texas 

Dear Mr. Calvert: 

Opinion No.M-418 

Re: Construction of H.B. 

1158, Acts of the 61st 

Legislature amending 

Section (9), Article 7.08, 

Title 122A, TaxationGeneral, relating to 

payment for cigarette 

stamps. 

You have requested our opinion concerning the effect of 

H.B. 1158 on the availability of money received in payment for 

cigarette stamps and meter settings during the month of August. 

Section (9), Article 7.08, Title 122A, Taxation-General, as 

amended by H.B. 1158, provides in part as follows: 

"The State Treasurer shall require that payment 

in full for stamps or meter settings be made within 

fifteen (15) days from the date the stamps or the 

set meter are received by the distributor. In each 

fiscal Year, payment for stamps and meters received in 

Auqust of that year shall be paid in full on or before 

Auqust 31 no matter when purchased or received by the 

distributor durinq that month." (Emphasis added.) 

In Muldrow v. Texas Frozen Foods, Inc., 157 Tex. 39, 299 

S.W.2d 275 (1957), the Supreme Court of Texas held that taxes 

were not paid to the State until the tax money becomes available 

to the State. 

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Honorable Robert S. Calvert, page 2 (M-418) 

Section (9) of Article 7.08 requires in each fiscal year 

that payment for cigarette stamps and meter settings received 

in August of that year to be paid in full on or before August 31 

regardless when purchased or received by the distributor during 

that month. These provisions are mandatory. In view of the 

holding in Muldrow v. Texas Frozen Foods, Inc., supra, money due 

the State must become available to the State during the fiscal 

year in which the cigarette tax stamps and meters are received 

by the distributor. 

This mandatory provision was apparently provided by the 

Legislature for the reason that Section 49a of Article III of 

the Constitution of Texas provides: 

"From and after January 1, 1945, no bill containing 

an appropriation shall be considered as passed or be 

sent to the Governor for consideration until and unless the 

Comptroller of Public Accounts endorses his certificate 

thereon showing that the amount appropriated is within 

the amount estimated to be available in the affected 

funds." (Emphasis added.) 

Therefore, the provisions of Section (9) of Article 7.08 

above quoted, requires all revenue to be available to the State 

during the fiscal year when cigarette tax stamps and meters 

are received by the distributor. 

You are therefore advised that Section (9) of Article 7.08, 

Title 122A, Taxation-General, Revised Civil Statutes of Texas, 

1925, as amended by H.B. 1158, Acts of the 61st Legislature, 

1969, requires that payment for cigarette tax stamps and meters 

received by the distributor during the month of August shall be 

paid in full to the State Treasurer before the end of the fiscal 

year. 

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Honorable Robert S. Calvert, .page 3 (M-418) 

Article 1.13, Title 122A, Taxation-General, referred to in 

your request has no application to monies due under the provisions 

of Section (9) of Article 7.08 for the reason that Article 1.13 

applies to reports and paymenisto be remitted to the Comptroller 

of Public Accounts, while Section (9) of Article 7.08 applies 

to monies to be paid to the State Treasurer. 

Accordingly, all monies due for cigarette tax stamps and 

meters received by the distributor during August must be 

considered as revenue available to the State within the meaning 

of Section 49a of Article III of the Constitution of Texas during 

that fiscal year for the reason that such monies are required to 

be paid in full before the end of the fiscal year. 

SUMMARY 

Section (9) of Article 7.08, Title 122A, 

Taxation-General, Revised Civil Statutes of 

Texas, 1925, as amended by House Bill 1158, Acts 

of the 61st Legislature, 1969, requires that 

payment for cigarette tax stamps and meters received during the month of August shall be paid 

in full before the end of the fiscal year and 

all monies due for cigarette tax stamps must be 

considered as revenue available to the State 

during the fiscal year. 

., 

Attorney General of Texas 

Prepared by John Reeves 

Assistant Attorney General 

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Honorable Robert S. Calvert, page 4 (M-418) 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

George Kelton, Vice-Chairman 

Louis Neumann 

R6bert Crouch 

Roland Allen 

John Grace 

Terry Goodman 

John Banks 

HAWTHORNE PHILLIPS 

Executive Assistant 

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