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OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

G AUSTIN 

BoBorable’ffeorge 8. Sheppard 

Comptroller of Publio Aooountr 

Aurtf.B, Texas 

Dear Sky 

laotory to the de 

the retail prioe 

putlng the tax 

1noluder.t in 

vehlole vhe 

i8 ftrlanoed 

8 the tax vhem tvo parties 

ror tramfor of title to the 

r on motor vehicles and olalm 

that they are of equal value and no differqoe 

. ha8 been paid by either party in the trade? 

Sootion l(a) of Artiole 6, House Bill Xo. 8, aforesaid, provideat 
Honorable George 8. Shappard, Page 2 

"Seotion 1. (a) There 18 hereby levied 

a tax upon every retail rale of every motor 

vehlole rold in th18 State, ruoh tax to be 

equal to one (1) per oont o? the total OOB8idOratiOB paid or to be paid to the seller 

by the buyer, which COB8ideratiOn 8hell include the amoUnt paid or to be paid for said 

motor vehicle and all aooe8sorle8 attached 

thereto at the time of the 8ale, vhether 

such oonsideratlon be in the nature of ca8h, 

credit, or 4xoh.snge of other property, or a 

oombination Of th484. XB the event the COBsidoration reoelved by the seller includes 

any ta% lmpo84xl by the Foderal Government, 

then such Federal tax 8hall be deducted fro81 

such oonaideration for the purpose of oomputing the amount of tax levied by this Artlole upon 8uah retail rale." 

Section 3(a) resdst 

"See. 3. (.a) The term t8a14t or '8ale8' 

a8 herein u8ed 8hall include instalment and 

ore&it aale8, and the exthsnge of property, 

a8 veil a8 the sale thereof for. money, every 

olosed tranaaotlon oonrtltuting a 8ale. The 

tMn8aOtiOB whereby the pO88088iOn Of pl'Operty 18 trawderred blithe seller retains 

title an security for the payment of the 

price shall be deemed a wile." 

It.18 our opinion th8t your fir8t qUe8tiOB =8t be 

aEsver4d in the negative. The t&X l8 OalOUht8d 011 the 'tOt41 

consideration paid or to bo paid" for the VOhiel4 and to our 

mind8 the irolght vhioh the doalor h8S b4OB Out and vhiah 18 

added to the charge vhleh he make8 to his customer 18 unque8- 

tionebly a part or the *total aon8ideratioB" which the ou8tomer 

i8 to pay. 

us an8ver your 8OOOBd qu48tlon in the negative.. Buoh 

"carrying charger," that 18, interest, lnsuranoe premium8 and 

perhaps other things, are not a part of the oon8ideratloa for 

the vehlole. Rather they are oon8iderationa for other thing8, 

suoh a8 the use of money and lneurance. Some of the language 

f’ 
BoAorable Oeorgo H. 2&4ppad, P8go 3 

. 

used in the flr8t 84BtOBCN Of 8eOtiOn l(S) A0 doubt proiqhd 

your qU48tiOA. Hovevbr, v8 bellevo such lenguege mally mean8 

that 8UCh a ta* 18 levied 8~d payable in hrll, deeplte the 

faot that the trsnsaotlon m8y be OB credit in vhole or ia 

part. 

Your third quertion 18 a80 anavered in tho negative. 

Seotlon 5 goes more to the remedy, or machinery iOr collection, 

than to ths subjeot matter of the tax. As ve construe the Act, 

Section l(a) 14v148 a tax upon sales made after'the 42f8'ctlve 

date of the legL8lation, and Seotlon 5 merely provide8 how 

*the tares levied in t&i8 Artlole* sball be collected. 

Ye now ad&ear our8elver to your fourth quertlon 

Ue have already quoted 8OotiOn8 l(a) and 3(a). Sections 1{b) 

and 3(b) rw8dt 

"W In all ca848 of retall 8al48 

illVdViIl&J the eXOh4Age Of motor YshiOlSO, 

the party trlrn8ferriAg the title to th8 

motor vehicle haylAg the greeter value 

shall be consider4d the 8eller, and no 

tax 18 fazposed upon the transfer of a 

motor vehiole tr8ded in upon tba purchese 

price of wme other motar vehtcle. 

"(b) The term ‘tietall sale' or 'retail 

8a14st aa herein wed shall include all mlea 

of motor rehioler except fhO80 whereby the 

purchaser acquire8 a motor vehiale for the 

4201U81V8 purgose of resale and not tor use: 

A reading of S8Ctlon8 )(a) and 3(b) vould 444m t0 

tidlcete that ru4h a tmnsactlon a8 thir conatltut48 a retail 

8810 vithln the meaning of tho Act. Aov4~er, the Act does not 

say vhich party voulU be liable, nor that liability ror ths tax 

should be apport loned between them equally. Furthermore, nothin& y$sln di80108e8 an intentlsn,that each of them should pay 

We do not believe a tax ~821 be charged against a nma 

wtthout’a statute vh:ch show8 by express lmguaae or by n4ce8- 

nary imyllcation that he--the person sought to be ohargsd--18 

liable for the tax. It I8 not eutYlciont to be able to point 

to a statute vhich merely say8 that h4 or another 18 liable, 

vlthout apecttylng vhich. our ftn9wer to thi5 qu48tlon 14 that 
. 

Honorable Oeorge If. Shoppard, Page $ 

no tax 18 oolleotlble Yh8r4 the vahfcler are of equal valur 

and are actually exohanged without eny differems being paid. 

ATTORKEY OENERAL OP TEXAS