## GENERAL: TEZE Aassmy

OF TEXAS " GIBALDC.~
e '. Ausrrxiw1s. TJEXAE

Honorable

George I?.

Sheppard comptMller of Public Aaoouata Austin,Tears Dear 8irr opinion no. o-2146 &I (1) TurIdlitjr

of prirorunder **Arti 70471**  giha amy at 8 horse **rhuw; (2)**  **Admickiqm8** tit:* **hono** rrhm **under** Art. 70478-19, VAC.8.
We reosived

yonr,l&ter dated l&r& 28, 1949, r~usstlng our opir ion on sewral queetims Bassd upon the faots **oontained in**  **P** lettar from the ProgramChairman oftie DallasSpringHorse Won. m quotefran yopr latter as follows: **,*A** oharityherse s&vwas held in,~%llaa re-tly **for** the purposeof raining nmds for a Finnish Relief Fund. &bi~6iOlWOf P.00 pm person wore oollkoted

and prireo~,amounting to $10,OG&OO were giw8 to, fhe mers of', the winninghorses anteredin thb various olasses **,of** tilbs. An aritombile was giver amay bymsrns of a drawingoonfest. Yamattaahing a lettar fromthe Chairmsroftha ProgramCcmittee **of** the horse shm nbioh e+alns in detail the manor of oonduotiagthe~show +M the methodsused ia mvar+Jingthe prize&" Ik, quote fromthe enolosed letter‘mitten *Mr. UP. Y. Qmem&d~ and addressed

to you+ as follomr nReplying

to yourletter

of,ldaroh

20 to thebest of q hbulmdge the Charity

Horse Show nus operated as follows: "ZQ-stpriaes of #lO,OOO mm set up for the winners ofthe various alas-. sea, it bsiag neoessary to gim cash prires in order to attraohentries and insure the 8uooessof the shop. In addition to thescorkh prizes, various trophies

were, givea,& of which were donated by people interested in the show a" it8 8uoo088. *Admissioq

totb show ~8~ charged oa the basis of $1.00 per person for eaoh performmae. In additionseasonboxes were sold, of which I believetheremre om htmdmd, thosa boxes sellingat #lOO.pO- 801~ few et &io.oo. 'The Comnittee

i& ohargeantioipated that the reoeipbstrcmthe stab **of** bores, and the entraoefees reoeived, and &tall 

### rentsfrom thou l8tsring horses,

muld be more thaa enough &may to proride fortha aish prizes aadforthe xeomm~r~r expexise~.

Refit fromtheShmnr8 oxpeot-' ed tobe derivedfromthe gemtil tioket sale, from concessions, and from&mrenir Progmms~Hon. Geo. H. Sheppard, page 2 (O-2146)

*Most of the beverage houses,oandydistributors, and otherpeopledonated theirmerchandise

to the Show in order to swell the net receipts from the oonoessions

standpoint. "The Souvenir

Program,nhich is a featureof every Home Show, inaamuoh as it is neosssary

for the spectators

to have a prograrn~in order to followthe peformames, was financed by the sale of advertising spaoe,md as you know most purohaeers

of spaoe looked on it as a,oontribution rather tham as ocmnneroial advertising. "Ta order to swell the sale of the programs themselves,

aad they were sold at 26+ saoh, it-was suggested that we get a group.of mm to giw us the monsy to m the automobile, lhiohwas done2 and the automobile was then purohaaed at ooat or appraximate:oost. (P.each program

was a coupon

which aartitled

the holder to a ohanoeat the autmobile, aad all coupons were deposited

in a reaepta018 a& one drawntherefrom, the oxmr of that ooupon bsing the reoipient of the automobile.

***YOU** uaderstand,

of aourse,

that all pmoeeds, above expenses as set out herein, mre for tht,

befit of the Finnish ReliSf Fund. It was not rWiuir& tbt~the tinner should

be present~at

the dradng, amd in fact it nas not required that he be Resent at nny performance of the Show,therefore he was not mq&ed to buy my admission

ticketto the Shm, but paid 26 cents for progm. ” BasedUponthe aMe statedfaots, you requestour opinion oa the following

questions: 1. Is the autcmoblle, giveaaway in oonneotior, with the Dallas SpringHorse Show, subjeot

to the 2lY$

award tax leviedby &tic10 7047f, V.LC.S.7 2. Are the prizes;given to the owner8of the winninghorses,,subjeot o the 20% awaer tax leviedby Artiole 7047f, supra? .~~ 3. Arcthe admissioa chargessubjectto the admission tax leviedby Article 7047a-19,

V.A.C.S.0 &-tiole 7047f,reads in part a8 followsr "(a) Ebery person,firm; or oorporation oonduoting

a theatre,

plaoe of amusement, or any basineesenterprise in aomecticm withthe operation of which a prim in the form of money or somthiag of value is offeredor giveato me or more patronsof,suohtbatre, plaoe of amusement, or biisimm eaterprize, pad not given to all patrons thereof payingthe same charge for any oertaiasumioe, oomnodity,

or entertaimnent,

shallma@ a verified monthlyreport on the twenty-fifth

day of each month to the Comptroller of PublicAooounts of the State of T-8, showingthe azwuntof money so given ia prizes,andthe ~alua of all prilssor awards so given in oolaneotion withsuch business during the next preceding

monfh.Hon. Gee. H. Sheppard, page 3 (O-2146)

*(b) There is hereby levieda tax equal to **Imen*** per co& (2%) of the value of all suohmoney, p&es, and awards given in aonnsation withthe operation of each and all of the foregoing bxiwss enterprizes, and at the tims of making the report tothe Comptroller of Fu&lio

**Aooounts,** the owner **or** operator of any ..suoh businessshallpay to the State Treasurersuch tax upon the total amount of money, pxYmes,

and awards so **giver** duringthe next preceding month. . . ." This Departmant

has held that the operation of a theatreor a plaos of amuseme& must be operated as a "business

enterprissw

in order for the prize to be taxa% uader the statute in questioa. Our Opinion No. O-1689. It appearsfromthe heretofore melntionad

facts that the horse shanwas operated, not as a busin 888 enterprise, lut as a benwolsnt or charitable enterprise. H& conolude,

therefore,

that neither the Dallas SpringHorse Show, its members nor its officers

are liablefor the 2% award tax on the automobile. In answer to your secondquestion, we are of the opinionthat the prfres or awards giwn to the owners of the winning horses are not sub@& to the 2% award tax for the reasonthat the horse showwas not oonducted as a "business enterprise"

as that term is used in Artiole 7047f, supra,and for the further reason that the persons who mere awarded tha prizes and awards nure not npatrone

thereofpaying the same ohargsfor any oertaimser~ioe, oommsodity;

**or** spltertainment*

within the rmaning of the above article. See Conferenoe Opinion No. 3026. In answer fo your third uestioa, wa are of the opinion that you zs oorreotly

advised

the officers

or mom rs of the DallasHorse Showthat the admisSion

tar is not applioabla to the admissions

oolleoted

for the reascas set out in our OpinionHo. O-820.

ok, trust that this is the iSformation desired. Yourswry truly ATTORXdY

GE-SEEAL

OF TEXAS By /s/ Glema B. Lewis

Isr8wregw Glenn B. Lewis Assistant By /s/Lee Shoptaw
APPm APFLI

19, 1940 /s/ Gerald C. Wan ATlWkWY GENERALOF TX@