Mr. Robert C. Lanier 

Chairman 

State Department of Highways 

and Public Transportation 

Dewitt C. Greer State Highway Bldg. 

11th and Brazes Streets 

Austin, Texas 78701 

Dear Mr. Lanier: 

Opinion No. JM-593 

Re: Whether a sales tax on motor 

fuels must be used exclusively 

for public roads by virtue of 

article VIII, section 7-a. of 

the Texas Constitution 

You have asked.for an interpretation of article VIII, section 

7-a, of the Texas Constitution, which provides: 

Subject to legislative appropriation, allocation and direction, all net revenues remaining 

after payment of all. refunds allowed by law and 

expenses of collection derived from motor vehicle 

registration fees, and all taxes, except gross 

production and ad valorem taxes, on motor fuels 

and lubricants used to propel motor vehicles over 

public roadways, shall be used for the sole purpose of acquiring rights-of-way, constructing, 

maintaining, and policing such public roadways, 

and for the administration of such laws as may be 

prescribed by the Legislature pertaining to the 

supervision of traffics and safety on such roads; 

and for the payment of the principal and interest 

on county and road district bonds or warrants 

voted or issued prior to January 2, 1939, and 

declared eligible prior to January 2, 1945, for 

payment out of the County and Road District Highway.Fund under existing law; provided, however, 

that one-fourth (l/4) of such net revenue from the 

motor fuel tax shall be allocated to the Available 

School Fund; and, provided, however. that the net 

revenue derived by counties from motor vehicle 

registration fees shall never be less than the 

maximum amounts allowed to be retained by each 

County and the percentage allowed to be retained 

by each County under the laws in effect on January 

1. 1945. Nothing contained herein shall be 

p. 2650 
Mr. Robert C. Lanier - Page 2 (.JM-593) 

construed as authorizing the pledging of the 

State's credit for any purpose. 

In your request letter, you stated: 

It is of course well established that this 

constitutional dedication is applicable to motor 

fuel taxes imposed under chapter 153 of the Texas 

Tax Code. While we are confident that the dedication would equally apply to any taxes which might 

be imposed on motor fuels through appropriate 

amendments to provisions of the Limited Sales, 

Excise, and Use Tax Act, chapter 151 of the code, 

we seek your official legal confirmation. 

Simply stated, your question is whether, if the Texas Legislature were 

to impose a sales tax on gasoline, the proceeds of that tax could be 

used for any purpose other than those stated in article VIII, section 

7-a. We answer in the negative. 

If the constitution earmarks money for specific purposes, that 

money can be dedicated to no other purpose. See, e.g., Gulf Insurance 

Company. V. James, 185 S.W.2d 966 (Tex. 1945); Brazes River Conservation and Reclamation District v. McGraw. 91 S.W.2d 665 (Tex. 1936); 

Lawson v. Baker, 220 S.W. 260 (Tex. Civ. App. - Austin 1920, writ 

ref 'd) . Article VIII, section 7-a provides in relevant part that 

[slubject to legislative appropriation, allocation 

and direction . . . all taxes, except gross 

production and ad valorem taxes, on motor fuels 

. . . used to propel motor vehicles over public 

roadways, shall be used for the sole purpose of 

[accomplishing specific objectives]. 

It is beyond cavil that this language earmarks the revenue generated 

by 9 tax on motor fuel, other than a gross production or ad valorem 

tax, for the purposes named in the article. It can hardly be argued 

that a sales tax on gasoline could be characterized as either a gross 

production or an ad valorem tax, nor could it be contended that such 

tax is not a "tax on motor fuel" within the meaning of the constitutional provision. The proceeds of a sales tax on gasoline, therefore, 

fall squarely within the terms of article VIII, section 7-a. 

The prefatory language in article VIII, section 7-a gives the 

legislature the right to control the "appropriation, allocation and 

direction" of the proceeds of a sales tax on gasoline. Neither this 

nor any other portion of this constitutional provision, however, 

permits the legislature to dedicate those proceeds to any purpose 

other than those enumerated therein. 

p. 2651 
, 

Mr. Robert C. Lanier - Page 3 (3.6593) 

SUMMARY 

The proceeds of a sales tax on gasoline could 

be used only for the purposes expressed in article 

VIII, section 7-a. of the Texas Constitution. 

Very tru y yours. 

l&-h 

JIM MATTOX 

Attorney General of Texas 

JACK HIGHTOWER 

First Assistant Attorney General 

MART KELLER 

Executive Assistant Attorney General 

RICK GILPIN 

Chairman, Opinion Comittee 

Prepared by Jon Bible 

Assistant Attorney General 

p. 2652