OFFICE OF.THE AITORNEY GENERAL OF TEXAS **AUSTIN**

### Honorable George H. ,‘heppard, 

### i?agea

**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 anOoorrsct, 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 whIOhpto;;igteb your inqulrp Is oopied from the attaoheU oorreepondonae roforrod to aa **roii0m:**

wh6w%y olleot, 

### EoNutt oil ikP,csfIaIngCoapany,

**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 mmafao

### Curers 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 lawthe Co&ptroller had **iur** tiehe np olient with meetmary fonm to IKW ovcen0sUIzig **oreapt aotor**  **ml.** ?ning arprtaed by circular or ot:i(tnviae that under the proposed
new law It would be neceesary to amwe a Iioenae to sell exesPptmotor fuel, although no ohargo would be nade for the lfoenae, lajrclient, 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, myolient, 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 aahRmorablo charge H. **Shopprd,** Page 3

lnatanoo melled direotly arkr 

### oaah transaotlon **to** tbo 

### Conptroller **0r** Fublla 

### Socounts oopios of 

### the lnr oloea

f l ro5qt~oon

oa sa108, la aocordanaerlth lnvoloo~oustonarlly used prior to the **0rmtir0** tit0 of tho newlaw in rorersnoo thereto. It is 4 undarrtandlng that there la
no **matsrlal** dlrfsrenooin tho lnvolcosof ot axptlon used beroro and slaae tho eiiectlre date of thonew law. *OnCatober 9, 1939, not hating rooalte& an anmmr to tho applioation nra40 

### for lloennem .madooa July 37th. myclient aealn nquortdl 

### nooeasary form, eta. and this~8 rlnauf so0tvsd on 00t0b0f 19 1939. OnOOtObor7 1939, the Comptroller wrole 

### to PIJollent, in

### oifoot, t&t Involoos of rxeisption lssuod by themon 201%7065-B hadboon oolning to tho Coaptrollor~r orfloe) that 

### there fonnr wore obaoloto as shown **by** 

### a **pbuaphlst o?**  **tho** lauenoloardwith the lot

### ter. 5omoof tho puroharors o? exemptmotor ruol xoqusstod tax rofwds, an6 in answer thereto tho Coagtrollor uroto thorn thet their dealer hadnot used the nowform 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&arethor should be aareful to OH that the;1booghtima liosnrad dealeru. WGn

Soven;ber9, 1939, the Coffiptroller wrote to zy allent amfolluear

~1amIn feoelpt of your letter of Ootobar25th la rofrronoo to Lioonse to 3011 Rorund 

### Eotor -busl, rhioh wasdtsouassil with yaou rrorntly **by** a 

### supervisor aor- out a? this daparbnent. I oall your rttantion to tbs OXcergt oi the luu at thebottom of pa~o ?f4 of tho paniphlat sent you at t&OtlBkoA~pllOatlOn 

### ror Liornse to roll Rofunbrotor 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 dls**txibutor. For**  thl8 **row00 the**  lnroloeaof OIomption lmued,

~‘ba

the old form by you aftor :?eptember 1st oannot be protaotsd.

*‘This mayappaar to bo a llttla bareh houover, you had knouledgo of the ahangoand th4tt you **niuot** ha70a lioea80. Youfailed tofionorablo Gsorgo !i. Thepc,ard, Page 4

tollow upany roquaste whioh might hare **been nab**  **by you**  **as rtatsd**  **in you?** 

### latter or Oatobor 25th. which roads as tollornr9.

. . 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, andthis ras nom than 30 days prior to the time tho ohangowas 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&olaw, to have reoelrod the applloatlon ior tho lisenso, although his reoords do **not** showthe spplioatloa; snd la +lew 

### ot**the** taat that thop hadbeen prosilnont doalors in 

### aotor fuel for years, and hadbeen oontlauously selllag 

### l x@pt motor 

### tuol aad had bean ooatinuously wrklag reports lo aoootianoonith tons presorib

### ed by the Comptroller; andin +$*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 .!iEofining Goqmay thst they hadnot yot beon lloease4; and in tiewof the faot thet unless the Comptroller mkss thrso refunds to tha purohslrsers of exeicgt motor tuel ay clloxt is honor-bound to stakemrtltutioa out or tholrown **pocket** thersot; an4 In view of the faot that the Stata will bs UDduly sarlched to the oxtsnt of thewont themof, 4 OLlentfoolr that fn jasticosad oquftt the pumhassra of this orospt uotor fuelshould hare tho taxos refunded to themrhea they make proper apFlioatloa.* Although tba above taotualatatwnt prosant Osrtaln oonfliots, such a8 whether or not ths applioatlon **of 4Loxutt** oil a wining **Company** for a lloense a8 a dirtrlbutarof uotor fuel, tsros 00which are aubjaot to nfund, was reooived by tuo Co&ptrollerc8 dspartzant priorEmlorablo 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 anymotor fuel to w&y$eraOn, o1alilL4nt, ilxm, OOrJWatitXI, Or otharuriaa, UQl4S66uohn&Or rwl haa been ~wah4645 **ima** or **wad by**  **8** liaana6ddlstrlbutor 66 prOVi44dior iB this Aot: 6nUth4 Coaptroll4r 16h4rrbr prohfbitdd froPr issuing warrrnt la paymat of any **wtitid 0r**  th4 tax on any a&or rnsl not prmhawd rrom a IIoonaod d6al4r, 

### l

xwpt r4ftm4 on aotor rue1 4x1 QOrt6d or Lost by aoaidwt, or a668 by dirtribUtOr iW ZOhrnd &Xll’gO846.* Thoinstant 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 bJrall 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 maidooaigaq b6Owe a lioaneod distributor for thie Qurp0.s4Uxidorcmbdtrlalon (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 OQrrhloh Rrefund of the tax is authorlzad by thta AOtshall, be tom rcakiag 6uoh appropriation 

### or Yal6, u&c43 a* plloatloa t.0 the Cosqtroller or FublIo Aooounts, uponior- to be preaoribed by th6 COc.ptr0114r andoontainlng suah tnforzattoa as tluCoarptrollor aay mqulra, for a lloowe to ~11 0uchmotor rut+it and it ahall ba unlawful for any ~er&OBto 86Lf or apymgriate any amtor ru4Luponrhloh u mSond of the tax will be GA&O,or A8intends6 to bo aadb, without first hq+iQ;:,obtalned rrom thmcwptroller **Oi** t&oStat0 Of "i6xaoa liO4n64 to 8.11 **or** appro- ~prhte suoh aotor fuel,

-A separate aapliaation shall be madeto the Conptrollar by ouch pstt+oa **or** dlatrlbutor for 6aoh plaoa or boalness rroa which midixonorablo 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~eeaoh 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 6UOhliOen64, the la66 shall b4 i6sWd. Wbn 6uoh applioatlon $a 

### l pprorrd

by th0 co6ptroller tb applioant for lioe~se shall b4 required to file 06th with th4 Conptroll6r th6t hadll faithrul1y making &WOV 610Q for th4 6614 65d d16tribUtiOQ

r **rronr** 8nd 00aply with th4 8tatute

0r 

### ziotor fuel **6ubj4ot to**  a ama 0r the nrator fuel tu4s. EaohlIosn64 166u4dhoreuad4r l Mll raaaln In full for04 and 6rf66t Until the flrat &ITOr 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 Png llomoa*,to 6611 6uOh6OtoF fuel as h4reIn prorldad. AnykiO4U64 16Su6d hordfmdar 16 QOtt2mlsrsrabls unles6 auoh transrer~ls **author** lmd **by** the Comptrollsr. Any**p4rson** who66116 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 susinot to sxo6ed OneThousand (gl,OOO.OO) Dollarr, or by ajail 86ntenoe not to exoaod six (6) 6onth6 In Jail, or by both such fine +ndjail s43tanC4."

xisutt oil brRoflnlng Canr&mnf, having fall& to oolnly, &alP 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 Fu41Tu Lawand 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 i6auingHomrablo George H. Shtvpard, Page 7

w4rrae in paysentof any nruiid or the tax on anymotor fuelnot purahasedfro5 a Lloeaesddealer.*

i’ioare not unmirrdfulof the hardshlpa and the lhequlty to be visited In this ln8tanoe upn these refund olaFrants beoaure 31 the fallme of the distributor with whomthey dealt to ooaiplywith the plain @iandateof the Legislature hereinabove set out, but the tegislature of Texas b44 spokea in unmistakable term In prohibiting reftmdr la theseaaass,and thla Ceprtzent is not **at** liberty to depart. from, alter or lcodlfy the pl4in lotter
or the statute **to** ffi44tthe stress 8na ooatlngenoles of Individual ofme 0r hardship uuohas the Instant oaab. mothpzemr.qtirely, an5 actually, xexutt Oil &Reilting Ccmpany

was: apprlze5 OSthe req~lsetontr and con5itlons OS the ~tatutiwgorernlng the **banlne8s** in whleh **they** mre engaged, an5 the law take6 a0 eq~l%anee andmk88 no lra6ptfone 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.