Hon. Harry Ben&e 

Texas Employment 

Austin, Texas 

Rear ~#r. Crazier: 

q3itr’ ‘jyil?=>&Q?ij 

~AUSTXX,, ?t%?ZAS, ~. 

dune.29, 1948 

Crazier, Chairman 

Commlssiotl 

. ‘. 

Opinion No. v-620 

Re: The authority of the 

Texas Rmployment Commission to grant a refund of taxes volun- 

~tarilg paid, upon a 

finding that an incorrect rate of tax was 

paid. 

We refer to~your letter wherein you req,uest 

the opinion of this office concerning whether the Texas Employment Commission has the power, rightor authorlty~to grant under Article 5221b-12(j), V. C.~ S., 

(now Article 5221b-12(j) (l), V. C. 9.) a refund of 

unemployment compensation taxes as applied for by 

Consolidated Steel Corporation. 

As to the circumstances surrounding this 

application for a refund, we quote from your letter 

as follows: 

'"The Consolidated Steel Corporation 

was assessed by this Commission unemplogment compensation taxes forthe'%year of 

1944 at a rate of 2.7s. The Corporation 

voluntarily paid the taxes for the first 

quarter of this year at the rate of 2.7s. 

At a later date and during the second 

quarter of 1944, the Corporation decided 

that its rate for 1944 should be 0.5s lnstead of 2.7% and paid its taxes for the 

second quarter of 1944 at the rate of 

2.7$, but under protest, claiming the correct rate at which it should pay its taxes for 1944 was 0.5%. Suoh was likewise 
. . 

* 

88 Hon.' Harry Benge Crosier, Page 2 (v-620) 

the procedure It followed for the taxes 

that accrued during the third and fourth 

quarters of 1944. 

“Suit was Instituted under Article 

7057b for the recovery of. the taxes paid 

under protest for the second, tI$rd and 

fourth quarters of 1944, e e D 

"Consolidated Steel Corporat'io'n,pr.e- 

*vailed in the suit brought for the recov- 

,, 

erg of the taxes paid under protest for 

the second,~ third and fourth quarters of 

1944. ‘Now the Corporation comes before 

this,Commission and seeks a refund under 

particle 522ib-l2(,j~.) of the taxes voluntarily paid for'the first quarter of 1944 

In excess of t' computation at the rate of 

0.5% . *: .;m, . 

., 

The'~exas'Employment Commission is given 

the'authority to !&ke~ refunds by Artlc~e 5221b;l:2 

(l), which reads: 

(j),~ 

:. 

“me,e ‘aby,, &&yi&: igit &~;na& a 

p&m&t to' th.e .Comviiss,lon~,,'of contr~ibut$oqq ~., .. 

alle'ged to, be due, and Iti' is J.a%er determlped that' 'such ,contributions were' not! due.,. 

id 'whole or in' part, the emp~oy@ig'unit '. : .j ~. :. 

making such payment. may make ,applic,ation :, 

to the Commission for an adjustment thereof..i.n connection with contribution. payments then',due‘, or for a refund thereof. 

becauh sudh adjustment cannot. be made',.~ : .I :, 

and if~the Commission shall determine that 

such contributions,:or penalty, nor ,a,ug portion: thereof wereerroneously .coQected, 

the Commission shall allow such, employzng,' :. 

unit to make an adj.ustment thereof Without i'uterest inky connection with'. contribu- : 

tionpayments then due by such emplogi,ng '~ 

unit, or,,if such adjustment cannot be, 

made, the. Cdinmiss~oh~shall~ refund said ,amount witpout 'interest from the Fund, : pro-",., 

vlded that"no applloation foradjustment. 

or refund 'shall .ever be.~ considered by' the 

Commission unless the same. shall have been 

fli& within.~four: (9). ,years ,from the'~date . . 

._.' 

<,.: ; 1.: -;, : ~~ . ,!' ,::,,I. , 5' ,',. :' : 

t 
Eon. Harry Benge Crozier, Page 3'(V-620) 89 

on which such contributions or penalties 

would have become due, had such contributions been legally collectible by the Cornmission from such employing unit. For 

like cause, and within the same period, 

adjustment or refund may be so made on 

the Commission's own initiative." 

Unquestionably this article gives the Commission the authority to make adjustments or grant 

refunds of taxes where it has been determined that 

such~ taxes have been erroneously collected. As to 

the application of this statute, this Court in the 

case of ~James v; Consolidated Steel Corporation, 

19.5 9. W. (2d) 955, refused, R. R. E., held that it 

-"relates to errors made either by the contributor 

or by,the.Commisslon In the calculation or collection of such taxes which have been paid voluntarily." 

It has been determined that the taxes for 

which refund is here sought have been erroneously 

collected under the provisions of the Texas Unemployment Compensation Act. Rates at which taxes are 

paid are computed upon a calendar year basis. Since 

the Court lnthe,case of James v. Consolidated Steel 

Corporation held that the rate at which Consolidated 

should have paid its taxes for the last three quarters of 1944 was .5$, it necessarily follows that the 

rate .at which it should have 

r 

id its taxes for the 

first quarter of 1944 was .5 Instead of 2.7s; the 

rate at which its paid the taxes for this quarter. 

It is apparent from your request'that Co.nsolidated's application ~for a refund relates'to taxes voluntarily paid through,errors of the contributor or the Commission in the calculationor collection thereof. 

_. 

Based upon the foregoing, it is our opinion 

that the Texas Employment Commission has the ~power, 

right and authority to grant the refund as applied 

for by Consolidated Steel Corporation. 

The delay.in replying to this request has 

been occasioned by careful study and briefing and 

the holding of numerous conferences with reference 

to every phase of this question. As requested we 

are returning the application attached to your letter. 
90 Eon.~Harry Benge Crazier,, Page 4 ,(v~620) 

SUMMARY 

Th T&as'Bmploymelat Cotiis~sio~~~~s 

the power, 

5221b-12(j) 

right and authority under Art., 

(l),,V. C. S., -to grant a re-, 

‘fund of unemployment compensation taxes 

erroneously paid. , 

Very truly.yours, .~ 

ATTORNEY GENERAL OF TEXAS~ 

Robert 0. Koch 

Assistant 

. .