OFFlCE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 
Section 2 of hrticlo 111X, Fenal Cod0 of Texas, 

cozz-:;only kno,.:n and cited as the "Cl-mill ::CCTC Tax Lax,* provides r,encrally thbt any person, Sir3 or corljoretion desiring 

to operate , mintain, open or establish a store or mrcsntils 

establ~iehnent in thio St::to skl.1 rake application for a license so to do In .the fom and .riannur provided, and fui%har 

rcquii-es that "each ap;;lic~tion shall bo accomponiad by a 

filiq See OS fifty cents (5C$) for ench store or :mrca:ltilo 

oetablirhxent O~l~etr?d Or ii0 be O;Ml+:>ted ~fOI’ the j?JrpCee Cf 

dcrrGyinC the CO~:tr: of ud,.zinistretion of ttlis Act." " 

Section 3 of the above cited Act provides that if, 

ucon exaximtion, VVan nmlir.ation is found to be eatlnfactorv. 

and ii the -' f1i.n; and l.iccnse foes &r. krein pr9acribea, 8kii 

hcivo been jxid, t50 CcuLlptrollor of rublic Accounts ahnll i r-sue 

~aop~licont a llceuse for each store or zercsntila establishxcnt To"or xhlch an a~;~lication Sor a license shall have 

bow mde." (%iphrr.sis o!ms). 

Section 4 of the Act provide3 that all licenses 

shall be issued Sor a period of the calendar geer so as to 

erpirc on ths 3lst day of Deccrzber af each year, and on or 

beforo th;?c date a ra~e~al liceesa for the :;u~~ceding year 

shawl. be issued by the Co:qtrol.ler cf Lublic Accounts, u?on 

'ap,?lication tharel'or, accompanied by the filing fae of Sifty 

cents for aach 8tOl.o. 

Section 5 of the Chain Store ?ict provides for the 

payaent,~ in addition to the above described Siline See required by .'.ections 2~ and 4 03 tho Act, of a license fee, 

Crsduated accordin& to the nuzbcr of stors:O oi:ncd and operated 

by the llccnsee. 

In discussing the nature of this so-celled liceose 

fco, the Suprma Ccurt OS Tcxaa, in the cssr: of ZiLTt et fll 

vc. cooper ot al, regortcd at 110 S.'Y. (?a) '96, spoke 6s 

follcws: 
.~. 

??on. Goarge R. Shopparil, Togo 3. 

exceed the a:!lount realized therefrom. Pa other 

is a levy af a licenm fee for cnch store fro:2 v~hich 

mch revenue v&l1 be raalized. The 8 ct apporti one 

the rcvenuc boik~cen the svailabla school fuhd and 

the Eencral fmd, and the only feet stetcd for the 

existence of an mergency is that the state is bed-, 

ly in need of u2ditionsl revenue. The tcntetivo 

opinion of the Court of Civil Appeals accoqsnying 

thLs ccrtificste comoctly encwers this qu3st5on 

in the follo:.Gn~ lrmgungc: 'i:e thih'd t'ne priymrg 

purposa of t.ha Act vms to raise revmues, alth.ouch 

the levy is WXiCiOilsd 8s a "licc~se fee." The e.r;lerfiB!lCF clause rccitin~ the need of additional rcsvonue; 

the mousts lsviod being Sar in excese of regulatory 

needs, end the distribution mde cfter collec+,ion, 

,ind,icate cleerly tiiet the Acty?:rrs inten~ded, primarily 

at li'ast, 3~ a revenue masure,~ Ye do not think 

it a mtter of significacco th3t the levy is called " 

a olicehse fee, " CS its plyP2llt f$VeS th ri,$it t0 

carry on the business Y/ithout the, performnco of 

any other condition.'** 

This decision has a direct beerin upon the detors&nation of the instant question bocause,'in holdln$ the 

chain storo licesee foe levioo by Soctioh 5, Article llllb, 

Ymcl Code of Ycxas, to'be un occumtion tax, the chain 

store tax license issued by tie Co%atrollcr of Fublic ACcount e, u;jon paymnt of such license fee or' occupation tax, 

would be coversed squarely by the temc snd I::ovisions c/f 

Article 7055 nnd 7056, Vernon' 

insofar as such statut 3s 

s Acnotsted Civil :.tet*utes, 

nrs np,?licable to the nttmpted 

transfers or assi~+~ento ef the license involved h3re. 

Such ststutes 2roovidc as fOlloiIs: 
!ion. George Il. She?oard, F=Ee 4. 

for in the original oppl.icationr! for such licensee. 

EoChi?~ in this 3s~i shall be so construed as to 

t%UthOrixG tiY0 OP zore persone, firas, corporations 

or associations of personi; to follow; the saw? occupation under one license at the sa:is tii.33. Xhonever any person, first, corporation or essociation 

of >eri;ons follo~ir;; en occupation s&l1 be clo:ed 

out by leEal. iwocess, the oocupation license shall 

be deered an asset of soid .zrson, fir%, corporation 

or nssocfatio~ of reriro:ir, znd. sold as other property bel.on@! to said person, fir:;:, cor~orntion, 

or association; and tb.o purckas:cr thereof rhsll hsve 

the right to pursue the occu>%ticn nazied in said 

license, or trenefer it to any other person; pmvided, such occuoation'lioenns shal.1 under no circur,- I-. stollcn~ bs tr&n:;frjyrc2(i rcora tbc!~ one t r;e.f+ -- 

fxxx1~ ours.) 

-IT:ji+- 

The underlined portion of Article 7056, T~~snon*s 

Annotated Civil Ztatutees, next above quoted, furnishes a specifio answer to your stxon6 question. Dy tlx lsttcr of the statut.e an unexpired oocupation tax license such OS the one Involved hsrc ~1s transferable or an&gable only one tice dur& 

the calendar '@or for which tucb liccnso is offcctiva,.and 

coneoquently you \i;ou ld,not be eutf-orized to recoc;nisa the 

validity,of a\lch second trensfcr or aseig~went. Such sec0,nd 

traosl'oree or assignee would be~re~~ired to pmkre a 1~0~:. 

license for:t!le bslence Gf the calendar year upon fom~al 

application, acc~+en&ed by the fil.icg fee of fifty cents, in 

accordanue:vA.th Sectioq 2 of the Chain Store Tar Act. 

Kecurr1.q nCci to YOUIT first TJestion, it 13 our 

opinion thst'the filing fee, cf fifty cents would not be requirod to occor~eny en og~lfl.catlo:: or request for a ccrtificota reco~nizi~ the first transfer or aasi,',n::-nt of t!le 

ohain store tax license; This co-czlled application is not 

the cpplicotion ccnt~;:.lpletod or revJircd by Section 2 of' 

Article lllld, Fcnal Code of TeX%G, for,the in~ucncc of a 

nev; license or liczansos originally issued to the prson, fir= 

or corporatfcn desirin;: to omrzts, naintnin, oy-n or establish stores Gr 2ercantile ceta31isbzents in Texas, and vie. 

aI’9 not authorize: to cnlarg,a t!>n F.CO~ of Secti 2 of this 

Act co as to xako it co:cproh:end e ro?uent or npplicstion 

$TGXin(l Out Of en n;si~n:;ent Or tr2nsi'cr 0% a chain store 

tar ,liCm,p1, in conn:,ctl~on ~Y3it.h xhic?~ thn fiiifi:: fee of fi.fty 

cmt s hl E olrs~dy b?:en paid. Under the holdin: of the ':.u?rc:ze. 

Court iii the CCIEC Gf Xui't at al'vr.. Cooper ct 31, supra, this 
. 

filing, fee of fifty cants ‘::a8 h:?ld to bs a rekul3tory fee for 

the purpo~3 of defroyin,; ,cx~encos incident to o~plications 

for chain st.ors tax licenses, rather than a fe3 undor tkx 

pcwcrr of taxation. The o!:ain ?Gore t:?x License, for dich 

such filia,; fet, Vief3 orlgin3lly paid, is, un;!er th.3 facts 

givtxI iA con1?3Ct.i~!1 with your fj,rst c~ue~~tio!~, Outstanding, 

and vliU. rexin so until the end of tte calender year. Concequently, any en:pcnso intillent to the transfer or nssicnment of ~uc!2 chain store tax license is not t&en care of 

by the flllw f~c,of fifty cents originally paid, noris 

any odditiozal fi:e required for r,uch pwposes by eny lar.@ag;o 

which can he poir,teC to in tbo Chsla Stork :'LX ;$ct. 

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