OFFICE OF THE ATTORNEY GENERAL OF TEXAB 

mor~blo oeor&e 8. Butler, Chalrlaan 

urd of xnauraMo oomlrrlowra 

mtln lk, Pa-8 

, 

~Oplalon BO. 6-6539 ' 

&I collactlon of a gr 

tax on one of the 

we l cknouladge rata 

m on the above quartloo, m 

47th b8- 

ec oartain 

ompany ovna ia to be 

vea ment 

1 

uuder the 

toiora given u8 a 

and flxturaa are to be reet for purpoaea of determlnlng the 

a aompany, 88 a base for computla particular Company contends 

ura and Sixturea are to be clasoed 

the tax computation, ther should 

rlao be regarded 08 an lnvaataent under Article 

7065 for the purpoaa ol fLxi 

brrckot. This oolrteatlon la "g 

the prenhm tax 

aaed upon the UWuage of Artlob 7064 in vhlch tax reducing inVe8tmnta are aet forth, partloularly the OOirOlUd~w 

p&am vhloh reada: ‘or other proport7 10 thlx 
604 , 

. 

‘1poorabla GOrp B. Butlar, paga P 

*, Mate in vhioh b7 UV Iwura&e emlera may la- 

..vaat their funda.* 

"P16aae 8dvlae ii the Comp.saj~a furniture 6od 

flxturaa, of th6 v6lua lt la uaed aa part OS the 

rntlre 6886t8, 6167 also beQ6aaed '68 6 t6.x r6ducI= lnVa8tJQOat Uudcr Artiola 7064,” 

Artlola 7064, aa 8taanded by bate 1941, 47th Legialatrole, page e69, Chapter 184, Artiale XVIII, Section 1, prorldr8 that 6t6r7 in8W6We oorporatlon, Lloyd~a, or reciprocal, 

m4 every other organicatlon or concern tranaoctlug the busl0188 of f&6 h8wana6 vlthin thf8 atat6, 8hBll pa7 Cartatn 

t&Is8 Upon the* groa8 promiua recelpta. S6id artiole provider 

r&her that 66ch of l uch.oompaalea ah611 file vlth the BoaM 

of Iaaur6nce CommiaalOn6ra 4 l voro raport shoving the amount 

of auah premium8 ooll6ot6d b7 it during th6 preaedillg 7anre 

?rovlaloa la made for & reduatioa In tha amount of said t8x6s 

u f6lloval 

“If an7 l uoh lnauraace carrier ahall:‘have aa 

much aa 0128 fourth of it8 entlrs l a a eta aa , ahow 

b7 aald avora statement, invested la on7 or all of 

the follovl~ aeaurltlca:~tate la this Stata, 

bond8 of thla stat6 ore of any county, fnccrpmwted 

oity or tom of this State, or other brmartY in 

this State in vhlch br lev mu% Insurance carrierp’ 

WY invest their funddo, then the anruW tax of aw 

auoh iwuropoe carriera aball be ona and bog hall 

(1 l/2) par oent of It8 raid &roar premlluP reC6:Ptat 

an& if an7 such iaauraace carrier”shal1 lavaat aa 

aforeaatd aa much aa one halX (l/S) OS l-eta, 

un ths annual tax of l wh la a ur mc a oerrim a&611 

b6 three fourth8 (3/h) Of OW (1) per cant of it.8 

oaa p r emlua raorlpta aa l bova datlnede . . . 

our81 

Tbp6 we tbr66 atbtutea vhloh deflw tha SeoWitlaa 

rod propart which prat + ovwd and held bt auoh ocWWleal 

. 
.: . 605 

. : 

,, 

soPorable George 8. Butlrr, pga f 

. 

?. ArtlOb 4705, R.C.S., aa amended, definaa the 

poperty aad l aourltl6a of vhloh tha oapltal atook of bry 

lnr~r6LiO6 OWpaW, Oth6P th6n life, haalth @ad b6O:dabt, mm7 

coaalat. 

3. Article 5706. R.C.S.. aa amended. defleaa the 

nourltl68 allowed for the-investmint of funda-over and &~a. 

tba gpld-up capital atook of auab compani6a and v6 bellan it 

tootrole tha praaeat lnqukr7. 

tallova I

Thla 6FtfCl6 raada la part a, 

“Ho oompatay, wtcept any vrltlng Life, Hoalth 

aad Acoldent bCUP6UC6, organized und6r the pravl- 

: alone of thlr Chaptar, ahall invest Ita funds over 

. “L ..I and above It8 -id-up o6plt61 atoak ln any otbr 

. manner than aa~ follova: 

..~ .-. 

‘ia) In bond0 of th6 Unltad State8 or of rly 

Of the stat68 Of thr mtad Stat68 pJloVid6d au& 

.---A 

beada 6P6, bt the tlare of purchase, irrtereat-be&r- . 

lag or not lo dafoult. 

i 

I 

"(b) In bond8 or firat lieaa on unincumbered 

real aotbte la this atate or lo any' other atate, . : 

Ommtry, or prOVinCe in vhlab conrpsny me7 be dul7 

1106a88d t0 OOWlUOt a~ ln8UrbnCe bualnraa. . . . 

'(0) rr& bonda or other intercat-baaring 6vidence of lndebtedneaa o? bay OOUut7, mad dlatrlot, 

vater dlatrlat, munlclpallty, any aubdlvlslon of a 

County, iLWXpOrbt6d olty, tom, achosl tlI8trict, 

l anIt6ry or aever ayatem bonda OT varrauta, vh6n 

apaclal revenue8 to meat the principal aed intereat pqncnta of such munlolpally owned revenua 

vater ayateo lmd aevar ay8t6m bonda or varranta 

ah611 have bean appropriated, pledged or OtherVl86 

provided for by auah mualalpAllty. . . . 

‘(a) 1. In the l toclca, bonda, dab6atUr68, 

bill8 of l xohbbge or oth6r oommaro~l not68 or 

bill8 end 866LW:t:68 Of a07 88b6et d&V&&at 

oorpo?atlOrr, lwaporat6d undar the la*8 Of t ET8 rim 

.tat6, uhlah ha lyt Qfmlkd in thr m7-at o? 
noaorabla Oaorga 8. Butler, p6g6 ~4 

‘any of it6 obllgatlona fas a period of flv6 (5) 

year8 icuaedlate~~ preaadw the d&t6 of the & * 

v68tfII6at; . . . 

"(a) In loaaa upon the pladge of ~7 nor+ 

g&&i, .8tO6k, OF boeda, Or Oth6r 6Vid6M6 Of ladeb ta deal uoeptabl6 r m, 48 ~aveatmeota uadar the 

t6rM Of thi8 hI, . . . 

8 . . . .' (Bawhaala oura) 

The tarn glnve8tm6at~a b88 been dafinad many M&68 

ty varloua oourta, and thoae da?leltlona are ramrltably aoatlttoet . t?Ot6 th8 ?OllOV:~l 

606 

,: 

“An ~lavaatmanc~ oauall7 mama tb6 mm IaI68thd OC th6 FOpaFt pWOb8SSd by th6 107iIl8 06% 

of moea or oapitrl lo 66996 agaalea of wogwt 

. for laoo~8‘or dfit*" 

la., 7 A (26) EL 

Zlppott I. Tipgett, & I . 

. . 

g~Iav6ataerrta* usually *ad8 th6 putting out 

Of 1110aay on lnter68t 6lth6C b:r 108~8 or by ths 

purehare of fnaome-produeleg raparty.” Drove va 

Cuml~a Dlatlll6rlea Corp., -5 F. bum. 659. 5 

"~favaatment~ aa aomonl7 used and underrtood, mcaaa the pl601~ of capital or laying out ,. 

of mock67 in a va7 lntffndea to 6eoure laaama or 

.* profit icon It8 6mployrusat."- In r6 &van, 49 1. 

’ 9. (Pd) 753B 141 Ohlo St. 603. 

aAn @l.avestmeat’* Im geearally daflaad 48 th6 

aonv6raloe of rm4y or eirau&tlng capital late 

aoma l p a o leof a proparty Prom vhloh an luecm6 or 

profit la axp6otod to br dorived in the ordlMrt 

comae at trad -0 bua100aa~” In r6 Peneeuka 

ma, 35 x.a. ? 36 1 1n, a35 XrYr 875. 

*ro ~InwW’ ma-7 earrlea ths id60 Of 80 

la y la g it l to po@ mo a ?o twn. To 1nvmrt la 

. _ 

r,4* ‘. 

I- 

. . : 
fPoorabla Oeorga 8. Batlar, pago 5 

not to erpead ia aa uaprbduotlm thing.” D&r%8 

q, BulUngtoa, 47 83. (W) 555, 164 man. 272. 

. . 

.i 

It i8 awent, therefore, that the term8 l la ve8tí 

& %weetment’ are urob in Articles 7064 aad 4706 :a thdr 

0rdlWFJ oonnotatloay, and that money pale out for furniture 

md fixture8 18 not iavrrted.', Although &tiole 7064 as 

umaed requlrer that the value of such furniture an4 firtar.8 be inoluded in the repwt of “entire a88et8,’ the pl&U 

@ton&eat of that art1018 18 to l rolude them from t&e li8t 

of tu rodwing lare8tmeatr. 

We u-8 aot unalndful of the prorlrloar oi Artlale 

., vhloh deal rlth the goner81 power8 o? piv8k 

@argoratloar, prt1ouur17 the f011001ng~ 

?Evw7 p&vat@ oorpomtloa u rwh hai powor; 

a 

. , . . 

f 

-“4. To purohue, hold, loll, modgag;; or 

otherwiri oonvey rush real eltate 8n4 perroael 

88tat8 98 t& 

require. ;a . . 

plU'~O808 Of th0 COl'~ONLtiOll 8h811 

Thl8 srtlele generally l utho~lrar all corporatloor 

to purchase and own ruch property, but the p~ovlrlon8 of the 

utloles pertalnlng to then8 pwtloular corporatlonr, .i.e., 

ln8ur8nce oompcmle8 other thba life, health and 8cOldeq, 

mp3r8oee ruch general 

6r 

OVl8lOPr 1ll8OfEW 48 iWOll8i8tellt 

tlwrev1th. Article 70 lo aot 811 eunbllng rtatute. It i8 

OtU 8tbtUto 8rrd mU8t b0 8brlOtlJ OOartrUed. PliFtitllW Ud 

Iixturu8 are not vlthla t& rtrtutory deflaltloo of tu Fe- 

~UOlng iavalt~at8. 

lhutlng that ttm toegolng Sally l n8ver 8 7our la1 

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