# The Attorney General ofTexas August 20, 1979
MARK WHITE Attorney Geneml

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4313 N. T.“th. SuiW F McAum TX. 73sol Sl?.M?.-bS47 Honorable George N.Rodriguez County Attorney ElPaso county BlPaso, Texas 79901 Opinion No. MW- 47 Re: The deposit by the County Tax Assessor-Collector of automobile License fees in abank’sdaily interest savings account and whether the interest earned bythat portion ofthe deposit b&nging to the state must be turned over to the latter. Dear Mr.Rodriguez: You have requested our cpinion concerning the collectian of interest on automobile license fess held by the County ‘Tax Assessor-Collector. These monies are paid to the Tax Assessor-Collector as isrequired byarticle 6675a-2, V.T.C.S. It is then the duty of this officer to distribute these fees to the’county and state in the manner set out in article 6675a-10, V.T.C.S. Yourrequest encompasses two related questions. Youwant to know ifthe County Tax Assessor-Collector may secure the payment of interest for the short period during

which he retains these fees. If the above question is answered so that interest can be collected, you also want to know if the state isentitled to the interest earned by its share ofthe license fees. The answer to your first question is that the County Tax AssessorCollector is authorized by law to seek interest on the automobile registration fees he holds pending the distribution of these funds to the county and state. Article 6675a-10 provides the procedure by which the license feesare to be apportioned between the county depository and/or the State Highway Department on the Monday of each week. In American Surety Co. v. Waggoner Nat’L Bank, 63P.2d 99, 101fSth Cir. 1936),the court observed that:

Raving the responsibility ofkeeping the fees until the Monday ~following their receipt, the tax collector necessarily possessed the concomitant authority to choose the method ofkeeping them. Ci v. Two Republics Life Ins. Co. (Tex.

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S.W. 231,233. He was under no duty to deposit these funds in the county depository until the Monday following their collection. No statute forbade temporary deposit of such fees in a nondepository bank for the purposes stated, so that at least as to automobile license fees the bank violated no statute in thus accepting the deposits. This construction of the statute enables the County Tax Assessor-Collector toplace these fees inan interest bearing account for the short period they are inhispossession. The answer to your second question is that the county cannot retain the interest earned from the deposit of that portion of the license fees owed to the state. This interest belongs to the state. Where ‘the county holds money in trust for another party, the interest is an increment that accrues to the owner. Sellers v. Harris County, 463S.W.2d242(Tex. 1972). See also Attorney General Opinions M-468 (1969)and C-610 (1966). In Lawson v. Baker, 220S.W.260, 272(Tex. Civ. App.- Austin 1920,writ ref’d), the court stated that:

Interest, according to all the authorities, is an accretion to the principal fund earning it, and, unless lawfully separated therefrom, becomes a part thereof. We think it is clear that the interest earned by deposit of special funds is an increment that accrues to such special fund.

... Because the money inquestion iscollected under statutory provisions that set it apart for the purpose for which it was collected and require that it go to the State Highway Department, this is a special fund. Inlight of the above authorities, the interest, as well as the corpus, must pass:into the possession ofthe state. SUMMARY The County Tax Assessor-Collector can deposit automobile license fees inabank’s daily interest savings account for the short period he is in possession of these funds. All interest earned by that portion of the fees that are to be paid to the State Highway Department becomes part of this special fund and cannot be retained bythe county.

MARK WHITE Attorney General ofTexas

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Honorable George N.Rodriguez - Page Three (m-47 )

JOHN W.FAINTER, JR. First Assiitant Attorney General TEDL.HARTLEY Executive Assistant Attorney General Prepared byWalter Davis Assistant Attorney General APPROVED: OPINIONCOMMITTEE C. Robert Heath, Chairman Jim Allison David B.Brodts Walter Davis Susan Garrison Rick Gilpin William GReid Bruce Youngblood

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