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### ~~EA~~ORNEYGENEPLAL OFTEXAS AUSTXN 11.TEXAS November 18, 1959
Honorable Robert S. Calvert Opinion No. WW-73G Comptroller of Public Accounts Capitol Station Re: #ether parts for an air Austin 11, Texas conditioner, when bought arid used for repair purpose8, are taxable under Dear Mra Calvert : A&2;+01 of X.B. 11,

. e, 56th Leg. By letter dated October 14, 1959, you advised:

“This Department requests the opinion of your office on the following q.1eart1or.s:

“IS an 

### autarwbils ir aold with an aIf COWtioner fn I: (and the tax Imposed by Art. 6.01

. of X.B. ll,, 3rd C.S,, 56th Leg. on such sale is duly paid) or IS an ai? oondltioner is sold and installed in an automobile ,(and ths tax imposed byeArt. 20.04 of W¶.d Aot on auoh sale 16 duly paid) and then such air oond%tioner bscomer in need of repair, which repair necessitates the replacemant of some c;e-Dectlvepart, is the replacement 

### of such dcfscttve part In 

### connection with and 

### as a necessary 

### element of tha **rffeotub-,** Alon of such repair aervics a ‘retail sale’ 86 &fined in Art. 20.01 of said Aot?

“If it 1-syour opinion that such replacement under such clrc-~mstsn~crs is a ‘ret&l sale’ within %d.chdcfinltlon, thsn your opinion is also requested whether, under such clrccmstances, such rej)~,aJ~i”~~.~>,‘~;

<z,~-‘:,1, 2 an :3.j: cc,nd.itone2: wlthi.7 the dtfl I:j,tion0372,rt. 20.01 ii) of said Act.” Und,er the authority of Attorney 

### General’s Opinion No. WW-6c,6(April 2Ll, 1.959) i,t

.‘Lsapparent that parts lnstalled i.:~t.he cource of repair of an e9.r conditioner and billed to the owner thEreof (whether such ‘>iill,ng segregates ohargee far services and parts or includ~es Ghemin one total) arei the subject of a “sale.” However, because of the view taken of the second c,uestlon which you propound, this point ir rendered moot.Hon. Robert.. S. Calvert, Page 2 (Opinion No. WW-734)

... .

.’The pertinent portions of the titie to House Bill 3.1. pertinent portions state that it Is “an act.
. .levylng certain new and addi-+:. :: .levylng certain addi-+:. support Government including tional taxes for support of the State Government including excise taxes on. . .air conditioners.

. .” conditioners. Article 20.04 of House Bill 11 states;

“There is hereby levied and shall be imposed upon the sale, distribution or use of air conditioners in this State an excise tax equivalent to three per cent 

### (3%) of the retail price for which such air conditioners are sold,”

..-- - (Emphasis added) Although Chapter 20 of House Bill 11, in which the excise tax on air conditioners is set forth, specifically taxes component parts of radios, television, sets or phono-’ graphs, there is no comparable tax levied upon component parts of air conditioners. In view of this, It olearly appears that it was not the legislative lnten t to levy 

### the excise tax upon component parts of air co,ndit.loners sold for the purpose of repair. This conclusion 1,s fortified by,the canon of statutory construction that all questions ooncerning, whether a rev

### enue measure extends to narticular objects are to t’e. strictlv

‘construed against imposition of the tax a.ndIanfavor of .the - taxpayer. State **V:** San Patricia, Cannrn.g Co., 

### 17 S.W,2d 160’ (Tex.Civ.App. 1929 t hl’atory); ,Western Pu.bl’i,c Servic,e Co, v. Meharg, 116’T%w$3, ‘~292&WI lb6 (lYZ( )” Southerland ” Statutory Construction (2nd BtL), page 293, Ch. $7, Sec.. b701- ’ and see 

### Attommy General’s 

### Opirdon No, W-fi34 (September 2, 

### 1959): Aminute examination eb the .definition of

.“a%rconditioner” contaIned In Article’ 20.01 ,of Chapter 20 of 

### House Bill 11, 3rd Co&, 56th Leg., verifies the foregoing conclusion. Th,e first portion of such definition state,8 that “air’ c’onditionars” shall mean any self-contained unit, apparatus, device, commonly knowni sold and used as an airy conditioner. This, language merely Is declarafory~ of the intent to levy the tax upon, div;lces,.~known, sold or used as air conditioner& The’::. definition then proceeds to state ‘&at the term air conditi&er
“shall include’ any Instrument, ,apparatus, or mechanical con’t;ri-
‘Vance -desIgned, constructed, or assembled as part of .any s&h self-oontained unit, apparatus, or -device to cool or ,assist in the cooling of air In any manner.” This Language does hot 

### extend, f&e. ioope of the tax to 

### inG.ude gar’t%t@dtslJ.e@ .%nair condltlbnetis during the course 

### of repair. Iii vlew,.bf the legislativk intent ‘and the 

### canon, of statutory: construct$on dfscusse~dabore, this language 

### c,anonly be ;construed to, include all instruinents,, ‘apparatus or contrivazxes which are designed for use ln,,~dr’ constructed,@ assembled as part ofj an original tqxablk :unif:,Hon. Robert S. Calvert,’ Page 3 (Opinio:? No. W&T?&)

The second sentence of the definition of the term air conditioner states: II

. . The term ‘air conditioner’ shall also irklude all sub-assembl.les, devices or instruments commonly used In conjunction with any such other apparatus, device, sub-assembly or Instrument, which when combin,ed or connected as a functioning self-contained unit, apparatus or deyice will constitute an air conditioner.

. . . This language does not enlarge the scope of the tax so as to tax other than air conditioners as that term Is defined. Though the language used is broad, specifying sub-assemblies, devices, etc., It is limited by the phrase “which when combined or connected as a functioning self-contained unit.” The tax is still levied only upon %he air conditioner. ObVlously the language in the second sentence was included for one purpose, i.e. to avoid fraud and evasion of the tax by sales of separate pa.--ts of air COl?ditiOr.erS with a subsequent assembly thereof e.s an orlginnl taxable aiz conditioning unit. Parts sold for s;lch purpose are taxable, but the definition of “air conditlo?er” Ij affords no basis upon which to tax replacement parts or par~ts Installed in a!.r conditioners during the course of repair.1

In summaryyou are advIsed that a3.1de-~ioes, assemblltis, sub-assemblies, etc., designed or sold for orlgklal installation or assem3ly’ as a3 air co;:diti?::er are taxable, but that parts sold or installed fo? the purpose or during the course of repair are not taxable.

language is not in conflici: with i-:5&oplr.ior, expressed aDove. It wa7 inci2ded ir? Opilslion No, WW-53Gonly to iiI23- trate the proposition that a11 devlczs, sub-assemblies, etc., sold or designed for origkal i>stal?afion or assembly’ as an air cord.itioner would be taxable.Hon. Robert S., Calvert, Page 4 (Opinion No. 

### ww-734j’

SUMMARY Parts for a~r:.~coaditio~etis when ,~.. bought and used for repair purposes are not taxable under Article 20.01 of H.B. 11, 3rd C.S., 56th Leg.

, Yours very truly, WILLWILSON Attorney General,

JNP:b<t APPROVED::' OPINIONCOMMITTEE: John Reeves, Chairman Robert T. Lewis J. Arthur Sandlin Robert G. Scofield RE'JIEWED

FORT;-IEATTOtiEY GENERAL: By: W. V. Geppert