OFFICE OF.THE AITORNEY GENERAL OF TEXAS 

AUSTIN 
Honorable George H. ,‘heppard, i?age a 

0r tit18 law tha Comptroller bad rurnished ay 

olient with nsoersary for&a to use when selling exempt rsotor ruol,* aa rar as tklrr department haa knowledge Other atatawnts In the letter are true anO oorrsct, but the above quoted. 

ototement Is Incorrect Insofar as It amarts, 9 the Corptrollrr had furnished ky ollent 

&ii k*rs.ry rorm. FrIOr to -et;tezbof’ 1, 

1929, the Comptroller preaorlbetl the form for 

we In alelslng refund or the rotor fuel tax 

but did not furr.Ish 8-e. The Comptroller has 

8lwapa rurnlshed the 0lal.a r0m.e 

The &ore 6rtaIletl iaotual situation whIOh pto;;igteb your inqulrp Is oopied from the attaoheU oorreepondonae 

roforrod to aa roii0m: 

wh6w 

%y olleot, EoNutt oil ik P,csfIaIng Coapany, 

prinelpl plant $8 sltuatbd at Briokland, 

?i~w ~Lulaoa Just aoroos the border rroo 91 Pam, 

has beon oil r~rlntu-6, wholesale dIstrIbutora 

a&d rotallers or motor fuel, as well as mmafaoCurers of motor fuel, end throughout the ymrs 

have paid taxes to the Comptroller of Fublio 

AocoMt8. srtlole 706Sa-13, regarding exeniptiOa ZUId fOfUUdSs WMit intO eifbOt 011 ~.:OFt#3ber 

1, 1939, and ror a long tl.ae prior to the mb0- 

tivo date of thI8 law the Co&ptroller had iurtiehe np olient with meetmary fonm to IKW 

ovcen 0sUIzig oreapt aotor ml. ?ning a rprtaed 

by circular or ot:i(tnviae that under the proposed 

new law It would be neceesary to amwe a Iioenae to sell exesPpt motor fuel, although no 

ohargo would be nade for the lfoenae, lajr client, 

on July 27, 1939, In 8 letter to the Comptrollsr 

or Publlo hacounta, Awtln, Texas, requested 

‘two appltcations tor Texar State lfoense in 

conneotioa with the noently enaoted mtor fuel 

law partainfng to’refuna exemgtlow.~ I have 

in tho file a oarbon aopy of the letter. TbIr 

later was duly zi~ilsd et the United Sate8 fost 

mice. 

“Arter July 27th and up to 00t0ber 19, 1939, 

my olient, in aooordaaoo with what they had ountomrlly done theretofore, paid taxes to the 

Comptroller in ap;~rOtitOly the uu of S25.00 

On tax uerpt mtSOr fuel; that Is t0 say, tho 

PUrakasers thereof would be entitled to a reiund 

ia a;groxleatal- the SW, or $lZS.OO, an4 In l aah 
Rmorablo charge H. Shopprd, Page 3 

lnatanoo melled direotly arkr oaah transaotlon 

to tbo Conptroller 0r Fublla Socounts oopios of 

the lnr o lo ef l a ro5qt~oon oa sa108, la aocordanae rlth lnvoloo~ oustonarlly used prior to 

the 0rmtir0 tit0 of tho new law in rorersnoo 

thereto. It is 4 undarrtandlng that there la 

no matsrlal dlrfsrenoo in tho lnvolcos of ot 

axptlon used beroro and slaae tho eiiectlre date 

of tho new law. 

*On Catober 9, 1939, not hating rooalte& 

an anmmr to tho applioation nra40 for lloennem 

.mado oa July 37th. my client aealn nquortdl 

nooeasary form, eta. and this ~8 rlnauf so0tvsd on 00t0b0f 19 1939. On OOtObor 7 1939, 

the Comptroller wrole to PIJ ollent, in oifoot, 

t&t Involoos of rxeisption lssuod by them on 

201% 7065-B had boon oolning to tho Coaptrollor~r 

orfloe) that there fonnr wore obaoloto as shown 

by a pbuaphlst o? tho lau enoloard with the lotter. 5omo of tho puroharors o? exempt motor 

ruol xoqusstod tax rofwds, an6 in answer thereto tho Coagtrollor uroto thorn thet their dealer 

had not used the now form of ln~olco of, oxotap 

tlon and doollned to mko the rbSund, and in 

tho letter to ths porohasers they wore a&onished thst in tho rut&are thor should be aareful to OH that the;1 booght ima liosnrad dealeru. 

WGn Soven;ber 9, 1939, the Coffiptroller wrote 

to zy allent am folluear 

~1 am In feoelpt of your letter of Ootobar 25th la rofrronoo to Lioonse to 3011 Rorund Eotor -busl, rhioh was dtsouassil with yaou 

rrorntly by a supervisor aor- out a? this 

daparbnent. I oall your rttantion to tbs OXcergt oi the luu at the bottom of pa~o ?f4 of 

tho paniphlat sent you at t&O tlBko A~pllOatlOn 

ror Liornse to roll Rofunb rotor Fuel was sent, 

whloh prohibits thl8 dopartaeat aakin r8fWUl 

oa anp motor fuel unless suoh imtor Sue1 has 

been purohasod ?mn or umd by a llcansed dlstxibutor. For thl8 row00 the lnroloea of OIomption lmued, ~‘ba the old form by you aftor 

:?eptember 1st oannot be protaotsd. 

*‘This may appaar to bo a llttla bareh 

houover, you had knouledgo of the ahango an d 

th4tt you niuot ha70 a lioea80. You failed to 
fionorablo Gsorgo !i. Thepc,ard, Page 4 

tollow up any roquaste whioh might hare been 

nab by you as rtatsd in you? latter or Oatobor 

25th. which roads as tollornr 9. . . thl8 letter was illed an4 the proper follow-up was not 

sade. q 

-‘I hate -do a thorough search and rail 

to flml any record of a roqueet hating beon raoolred iroa you on or about Jrily 27th, and this 

ras nom than 30 days prior to the time tho 

ohango was uado. 

** I mgrot that this ovorslght oocurre4 

mad that x aa not in a posltlon to asnlst rurther .’ * 

s’poa tho t0mmng taots the oontootiw or tar 

lWund olaimaot, by hlqattorney, is aa follows: 

*In view of the taat thst ti Coarptroller is 

pmsuwb, under t&o law, to have reoelrod the applloatlon ior tho lisenso, although his reoords 

do not show the spplioatloa; snd la +lew ot the 

taat that thop had been prosilnont doalors in aotor 

fuel for years, and had been oontlauously selllag l x@pt motor tuol aad had bean ooatinuously 

wrklag reports lo aoootianoo nith tons presoribed by the Comptroller; and in +$*a of the raot 

ttuat tho Coacptrollsr*s ozlloe had been reoelring 

these touchrlrs SIV~ the saloir as they wura mado 

and no not100 was glrea to l4aiutt Cl1 .!i Eofining 

Goqmay thst they had not yot beon lloease4; and 

in tiew of the faot thet unless the Comptroller 

mkss thrso refunds to tha purohslrsers of exeicgt 

motor tuel ay clloxt is honor-bound to stake mrtltutioa out or tholr own pocket thersot; an4 

In view of the faot that the Stata will bs UDduly sarlched to the oxtsnt of the wont themof, 4 OLlent foolr that fn jastico sad oquftt 

the pumhassra of this orospt uotor fuel should 

hare tho taxos refunded to them rhea they make 

proper apFlioatloa.* 

Although tba above taotual atatwnt prosant 

Osrtaln oonfliots, such a8 whether or not ths applioatlon 

of 4Loxutt oil a wining Company for a lloense a8 a dirtrlbutar of uotor fuel, tsros 00 which are aubjaot to nfund, was reooived by tuo Co&ptrollerc8 dspartzant prior 
Emlorablo ceorge I!. mQqxwi, ?age 5 

t0 th4 6ff6atiV6 d8t6 Oi tbs XYigUhtOrJl WtUt46 in 6UQh 

0686s prOTbi6d, W6 6Wt WJ that it iS not the pl-OFIr &WOW 

iaoo or tbi6 d6~Z'tWUt to r08olve such iaot 168Ue6, but 

Otiy t0 add66 if thi6 iaOtw1 DitWitiOn, 4v4D ?iOwOd lEOSt 

faVorabLy to rotund alainaat, shall be allow4d to alter, 

~odif'y or ovsrrldo tba plain and unaabiguour tar&s and proVi0iOW Or Arti 70658-13(b), Vblp00'0 AWOt8t6d ciYii 

sxatutoe, providing, in part, a6 follOw6: 

Vi0 rofwd of ths tax 6h611 b4 gnnkrd on 

any motor fuel to w&y $eraOn, o1alilL4nt, ilxm, 

OOrJWatitXI, Or otharuriaa, UQl4S6 6uoh n&Or 

rwl haa been ~wah4645 ima or wad by 8 liaana6d dlstrlbutor 66 prOVi44d ior iB this Aot: 

6nU th4 Coaptroll4r 16 h4rrbr prohfbitdd froPr 

issuing warrrnt la paymat of any wtitid 0r th4 

tax on any a&or rnsl not prmhawd rrom a IIoonaod d6al4r, l x wp t r4ftm4 on aotor rue1 4x1 

QOrt6d or Lost by aoaidwt, or a668 by dirtribUtOr iW ZOhrnd &Xll’gO846.* 

Tho instant oa8a ialla 6quaroly within th4 ab074 

otatutory prohfbIt$On In ragax. to th6 tseuaaor by th4 Camptroller of fublio Aooowto O? refund W8?l'Wt6), bboau64 it 

16 ablttod bJr all parties to this COrhrOVOrsy that aal 

Of laotor f~41 by Miutt Oil k Rafinfag Cooapay dwiag the 

period bsgirming 24ptm&6r I, 1939, and ending Ootobsr 19, 

1939, UpOn ahloh olafau r0r izOtor ti4l.tax rm8.a an lnvolrod, vmr~ inmae befor maid ooaigaq b6Owe a lioaneod 

distributor for thie Qurp0.s4 Uxidor cmbdtrlalon (b) of the 

abow oltrd retund motion 0r ths Eotor Fuel Tar Len providing 80 rOilOn,: 

-Any person or alatributor dbslrlng to 

approprlats or sellnotor fuel OQ rrhloh R refund 

of the tax is authorlzad by thta AOt shall, be 

tom rcakiag 6uoh appropriation or Yal6, u&c43 a* 

plloatloa t.0 the Cosqtroller or FublIo Aooounts, 

upon ior- to be preaoribed by th6 COc.ptr0114r 

and oontainlng suah tnforzattoa as tlu Coarptrollor 

aay mqulra, for a lloowe to ~11 0uch motor rut+it 

and it ahall ba unlawful for any ~er&OB to 86Lf 

or apymgriate any amtor ru4L upon rhloh u mSond 

of the tax will be GA&O, or A8 intends6 to bo aadb, 

without first hq+iQ;:, obtalned rrom thm cwptroller 

Oi t&o Stat0 Of "i6xao a liO4n64 to 8.11 or appro- 

~prhte suoh aotor fuel, 

-A separate aapliaation shall be made to 

the Conptrollar by ouch pstt+oa or dlatrlbutor 

for 6aoh plaoa or boalness rroa which midi 
xonorablo Ceorzo 8. 2&2prd, Fag% 6 

aotor fwl io to bs sold or diatrIbut4d by 6uoh 

per606 or dlltributor, and th4 Canptroll4r rhall 

muJIrp664pm!e4 1104il6. ror l aoh 6UOh El806 or 

The Co#iptXoll4r 6h811 4~aml~e eaoh ap 

iWatlo~ for lioens4 reoeiv4d br hla, and ii 

found iQ du6 tom, and if within tho dlsoretloa 

0f th6 Coqtroller tho applloant 16 entItl4d to 

6UOh liOen64, the la66 shall b4 i6sWd. Wbn 

6uoh applioatlon $a l pprorrby d th0 co6ptroller 

tb applioant for lioe~se shall b4 required to 

file 06th with th4 Conptroll6r th6t ha dll 

faithrul1y 

making &WOV r 610Q for th4 6614 65d d16tribUtiOQ 

rronr 8nd 00aply with th4 8tatute 

0r ziotor fuel 6ubj4ot to a ama 0r the nrator 

fuel tu4s. Eaoh lIosn64 166u4d horeuad4r l Mll 

raaaln In full for04 and 6rf66t Until the flrat 

&IT Or Earoh fO~Oti68 its da!0 Of i6sU4, alkd 

annually on tha first day of mrsh 6aah 8ppl1- 

oaut,*g#rson or distributor, dwiring to wll 

or approprlat* motor fU6f upon whloh a r4rund 

of the tax is authorized inset obtain Tram tto 

Cm troll4r a 1io4a64 or a r4n4wal 0r h26 6x1st P ng llomoa*, to 6611 6uOh 6OtoF fuel as h4reIn prorldad. Any kiO4U64 16Su6d hordfmdar 16 

QOt t2mlsrsrabls unles6 auoh transrer~ls authorlmd by the Comptrollsr. Any p4rson who 66116 

ffiotor fuel own nhloh a refund of th6 tax 6~6~ b4 

authoriwd, or $6 olaM, ander th4 prOYi6ioU6 

of thlr Aot, without harln~ obtalnsd a 31061)60, 

a6 provided for und4rthi6 Aot, 6hd3l br guilty 

0r a nl6dowanor and upon oonvlotlon 6h811 b4 

liable in any susi not to sxo6ed One Thousand 

(gl,OOO.OO) Dollarr, or by a jail 86ntenoe not 

to exoaod six (6) 6onth6 In Jail, or by both 

such fine +nd jail s43tanC4." 

xisutt oil br Roflnlng Canr&mnf, having fall& to 

ooln ly, 

&al P 

in any roap6ot, with tha romgoing statutory rortiss, d%ri@ed to loor0 4ffeotIvel~ mlforo6 ma control 

th@ aduinfstratlon of the rotund provl6Ion6 or th4 Xotor 

Fu41 Tu Law and pnvrnt l buw8 theroof, w err oowtrainrd, a8 a 5attor of law, to aphold In its rtii lnte6rlty 

that exproesed prohibitton of tho sup0 6tatute that YIO 

refund of the tax shall bo grantsd on any aotor fu4l to 

anr FU~OB, olalreant, rfria, corporation, or otherwlae, 

ualoss such motor rual has been purohwed from or us06 

by a licensed di6tributOr a6 provided for in this dot; 

and the Gxaptroller is hereby prohlbite~d fropr i6auing 
Homrablo George H. Shtvpard, Page 7 

w4rrae in paysent of any nruiid or the tax on any motor 

fuel not purahased fro5 a Lloeaesd dealer.* 

i’io are not unmirrdful of the hardshlpa and the 

lhequlty to be visited In this ln8tanoe upn these refund 

olaFrants beoaure 31 the fallme of the distributor with 

whom they dealt to ooaiply with the plain @iandate of the 

Legislature hereinabove set out, but the tegislature of 

Texas b44 spokea in unmistakable term In prohibiting 

reftmdr la these aaass, and thla Ceprtzent is not at 

liberty to depart. from, alter or lcodlfy the pl4in lotter 

or the statute to ffi44t the stress 8na ooatlngenoles of 

Individual ofme 0r hardship uuoh as the Instant oaab. 

moth pzemr.qtirely, an5 actually, xexutt Oil & Reilting 

Ccmpany was: apprlze5 OS the req~lsetontr and con5itlons 

OS the ~tatutiwgorernlng the banlne8s in whleh they mre 

engaged, an5 the law take6 a0 eq~l%anee and mk88 no l ra6ptfone of the reasons and exouuea rar not oo~plylng 

thsrewlth. The terms of the statutk are naadatory rather 

than pe~mlsslte, and the Comptroller of Fubllo hooaunt8 

has no disoretlan in the matter ot allowIng and pasd.n(( 

td warrant, rsfun5 olalms for taotof robi t6xea on motor 

fuel sol5 by unlloeased diotrlbutore, but Is required by 

law to disa.llow such 014ims.