Mr. Robert C. Lanier Chairman StateDepartment ofHighways and PublicTransportation Dewitt C. Greer StateHighwayBldg. 11thand Brazes Streets Austin,Texas 78701
Dear Mr. Lanier: OpinionNo. JM-593
Re: Whether a sales tax onmotor 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 collectionderived from motor vehicle registration fees, and all taxes, except gross production and ad valorem taxes, on motor fuels and lubricantsused to propelmotor 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 administrationof such laws as may be prescribed by the Legislature pertaining to the supervision of trafficsand 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 shallbe allocatedto theAvailable 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 Countyunder the laws in effecton January 1. 1945. Nothing contained herein shall be

p. 2650Mr. 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 taxeswhich 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 seekyour official legal confirmation. Simply stated,your question iswhether, if the Texas Legislaturewere to impose a sales tax on gasoline, the proceeds of that tax could be used for any purpose other than those stated in articleVIII, section 7-a. We answer in the negative.
If the constitution earmarks money for specific purposes, that money canbe dedicated tono otherpurpose. 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)
. ArticleVIII, section 7-aprovides in relevantpart that

[slubjectto legislativeappropriation,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 [accomplishingspecificobjectives].
It is beyond cavil that this language earmarks the revenue generated by 9 tax on motor fuel, other than a grossproduction or ad valorem tax, for the purposes named in the article. It can hardly be argued that a sales tax on gasoline couldbe characterizedas 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 themeaning of the constitutionalprovision. The proceeds of a sales tax on gasoline, therefore, fall squarelywithin the terms of articleVIII, 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 enumeratedtherein.

p. 2651, Mr. Robert C. Lanier - Page 3 (3.6593)

SUMMARY The proceeds of a sales tax on gasoline could be used only for thepurposes expressed in article VIII, section 7-a. of the Texas Constitution.

Very truy yours.

l&-h JIM MATTOX AttorneyGeneral of Texas
JACKHIGHTOWER FirstAssistantAttorneyGeneral
MART KELLER ExecutiveAssistantAttorneyGeneral
RICK GILPIN Chairman,Opinion Comittee Preparedby Jon Bible AssistantAttorneyGeneral

p. 2652