THE Amro~m~ GENERAL 

OF EIKAS 

AnTI-IN 11. TEXAS dOEIN BEN SJZICPPEHID dT¶vsRlNEI “PtNrnRAIAugust 28, 1956 

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Honorable Robert 9. Calved Opinion No. S-214 

Comptroller of Public Accounts 

Capitol Station Re: Application of State Prize 

Austin, Texas and Award Tax under Article 

Dear Mr. Calvert: 

70471, V.C.S., to awards 

under certain circumstances. 

You request our opinion as to whether a State Prize and 

Award Tax accrues on awards given under the following circumstances: 

"1 . To win the TV set or trip, bring the car You 

are driving, regardless of make, to Don 

McMilllan, Inc. for an appraisal during this 

Want 6 Day Event. Some lucky appraisal ~111 

be drawn and will be the winner. 

"2 . To win the 1956 FORD, every buyer who purchases 

a 1956 FORD CAR OR TRUCK from Don McMllllan, Inc. 

during the 6 days may complete the statement 

"I bought my 1956 FORD from DON MCMILLIAN, INC. 

because . . . in 25,,words or.less. .The best 

statement judged by an independentboard of 

judges will win the 1956 FORD they bought for 

the person who writes It." 

Article 7047f(a), Vernon's Civil Statutes, provides: 

'Every person, firm, or corporation conducting 

a theatre, place of amusement, or any buslness enterprise in connection with the operation of which a 

prize In the form of money or something of value is 

offered or given to one or more patrons of such theatre, 

place of amusement, or business enterprise, and not 

given to all patrons thereof paying the same charge 

for any certain service, commodity, or entertainment, 

shall make a verified monthly report on the twenty-fifth 

day of each month to the Comptroller of Public Accounts 

of the State of Texas, showing the amount of money so 

given in prizes, and the value of all prizes or awards 

so given in connection with such business during the 

next preceding month." 
Honorable Robert 5. Calvert, page 2 (Opinion No. S-214) 

Article 7047f(b) levies a tax of twenty per cent of the 

value of such prizes. 

Since no "chargd'is required of the participants in the 

first above mentioned situation, we do not believe the tax is 

applicable to the award mentIoned therein. 

However, as to the second above named situation, the requirement of the purchase of an automobile or truck constitutes a charge. The fact of a variance in the purchase prices 

of the various types of automobiles and trucks sold would not 

of itself remove the transaction from the application of the 

statute, as long as such variance has no relation to a chance 

for the award. Neither would the requirement of submission 

by all contestants of statements of 25 words or less of the 

reason for the purchase of the vehicle remove the transaction 

from the statute. Therefore the tax Is applicable to the 

second named situation. 

Prior Attorney General's Opinions In conflict herewith, 

including Opinions Numbered 0-378 and O-662, are hereby overruled to the extent of such conflict. 

SUMMARY 

Article 7047f, V.C.S., does not levy a Prize 

and award tax unless a charge is paid by the persons 

oarticipating in the chance for the award. A prize 

awarded to the purchaser of a car who submits the 

reason eelected as best for the purchase of the car 

is subject to the tax where all participants are required to purchase a car and submit a statement of 

reason for the purchase. 

Yours very truly, 

APPROVED: 

Will D. Davis 

JORRBEN SHEPPRRD 

Attorney General 

Reviewer 

J. Arthur Sandlin BY 

Reviewer As 

L. N. Gray 

Special Reviewer 

Davis Grant 

First AssIstant 

John Ben Shepperd 

Attorney General