OFFlCE OF THE ATTORNEY GENERAL OF TEXAS AUSTINSection 2 of hrticlo 111X, Fenal Cod0 of Texas,

cozz-:;only

kno,.:n and cited as the "Cl-mill ::CCTCTax Lax,* provides r,encrallythbt any person, Sir3 or corljoretion desiring to operate , mintain, open or establish a store or mrcsntils establ~iehnent in thio St::toskl.1 rake application for a license so to do In .thefom and .riannur provided, and fui%har rcquii-esthat "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?dOr ii0be O;Ml+:>ted ~fOI’ the j?JrpCeeCf dcrrGyinC the CO~:tr: of ud,.zinistretion of ttlisAct." "
Section 3 of the above cited Act provides that if,
ucon exaximtion, VVannmlir.ation is found to be eatlnfactorv. and ii the f1i.n; and l.iccnsefoes &r.



### -' krein 

### pr9acribea, 8kii hcivobeen jxid, t50 CcuLlptrollor of rublic Accounts ahnll ir-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~~cedingyear shawl.be issued by the Co:qtrol.ler cf Lublic Accounts, u?on 'ap,?licationtharel'or,accompanied by the filing fae of Sifty cents for aach 8tOl.o.

Section 5 of the Chain Store ?ictprovides 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:Ooi:ncdand operated by the llccnsee.

In discussing the nature of this so-celled liceose fco, the Suprma Ccurt OS Tcxaa, in the cssr:of ZiLTtet 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:2v~hich mch revenue v&l1 be raalized. The 8ct 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:ethih'dt'ne

### priymrg purposa of t.haAct 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 tiietthe 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 plyP2lltf$VeS th ri,$itt0 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 ACcounte, u;jonpaymnt 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 statut3s s Acnotsted Civil :.tet*utes,
nrs np,?licable to the nttmpted transfers or assi~+~ento ef the license involved h3re. Such ststutes 2roovidcas fOlloiIs:!ion.George Il.She?oard, F=Ee 4.

for in the original oppl.icationr! for such licensee. EoChi?~ in this 3s~ishall 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;onsfollo~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.opurckas:crthereof rhsll hsve the right to **pursue** the occu>%ticn naziedin said license, or trenefer it to any other person; pmvided, such occuoation'lioenns shal.1under no circur,-

I-. stollcn~bs tr&n:;frjyrc2(i rcoratbc!~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.ean unexpired oocupation tax license such OS the one Involved hsrc ~1stransferable 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;nisathe validity,of a\lchsecond trensfcr or aseig~went. Such sec0,nd traosl'oree or assignee would be~re~~ired to pmkre a 1~0~:. license for:t!lebslence Gf the calendar year upon fom~al application, acc~+en&ed by the fil.icgfee of fifty cents, in accordanue:vA.th Sectioq 2 of the Chain Store Tar Act.

Kecurr1.q nCcito YOUITfirst 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 liczansosoriginally 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 hlE olrs~dy b?:enpaid. Under the holdin: of the ':.u?rc:ze. Court iiithe CCIECGf Xui'tat al'vr..Cooper ct 31, supra, this.



### filing,fee of fifty cants ‘::a8 h:?ldto bs a rekul3tory fee for the purpo~3 of defroyin,;,cx~encos incident to o~plications for chain st.orstax licenses, rather than a fe3 undor tkx pcwcrr of taxation. The o!:ain ?Gore t:?xLicense, for dich such filia,;fet,Vief3 orlgin3lly paid, is, un;!erth.3facts givtxIiA con1?3Ct.i~!1 with your fj,rstc~ue~~tio!~, Outstanding, and vliU.rexin so until the end of tte calender year. Concequently, any en:pcnsointillent to the transfer or nssicnment of ~uc!2chain store tax license is not t&en care of by the flllw f~c,of fifty cents originally paid, noris any odditiozal fi:erequired for r,uchpwposes by eny lar.@ag;o which can he poir,teCto in tbo Chsla Stork :'LX;$ct. -2



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