**OFFICE OF**  THE **ATTORNEY GENERAL**  OF **TEXAS AUSTIN** 

**,**

opinion HO. rrer l3etluul rjOl3. :xaney Latham ;;eoretary

of State Auatln, Texas
**Dear 8lrr** 

Your rsque8t So h&3 been I7MeiVOd #MM! OOQS quote fmm **your letter**  **of**

***For the**  tax **or bras**  **round no**  **ia**

**or State,**  **however, reolami**  b pubA.io

ut;lltlea and 

### proo6eded 86 franeailre

taus u&or Sub-

### *In thr trlulOY the @me judgaeatwas rodered

in favor 0r the piaintiris and against thu State OS Texas. '3~ **JuQper:t** of **the** trl%l oourt was rubrequently aftlrmed by **tho 3rd**  **Court of**  Civil Appaels, 174 SW(2dJ 70. Thls daoisionwen rendered Duly 28, 19L3, and DO writ of error W%B %pplhu? for. Y3e0tlon 2 of Art1010 

### 7057bprovides asongother fhfnge 

### 66 follow8r *P%oridod,bowever,where a olae0 

### ootlon 1s **brought** by 

### anytax-parer all other **tax-payers** bolon~ir~ to tn. OlEOO 9 who hare pro9er ohm1 **not be**  required **to** tile **esperate** wit8 **but** ahall be ontitled to at;Q~or#raeQ by the Qaolol6a ru#QwoQ la l toh elauu eiotlan. A 018#S aotlon OhUl taoltrdo any l lt

***It is**  to **be noted**  **tha8** 

### theault 

### broPght byTexasXexlo%n R&iluayC~~panyan6 San Antonio ROuthwnRtilway 0-y 0oaplIes nlth tiba dOfInlLl4sn0s a olism mtloa a* **oontaiaed in**  **th rte6uto**  **rlma +han**  **uom a8**  **rweJT as**  **two**

### plalnWia **Jo- ln**  **t&o**

# uutt **but** 

# tin le~gu~go %uQ reproaeated ia suoh olaua Mt 1oat appoad.n& ln MO **statute preoo4lng**  the **datlnltlm M**  l **oh85** 

### aotbm **mom0** 

### pomfblgto lndioate 

### thet ekl@eWe8 

## l

xpeeoblng

toalalm the benoilta Of the 01~0 aotioa should pa~sibl~ bs CWOU in ths 

### petition

ax~otherwl~ raprasekkte6 la 

### theOoit. lwna~ous rallr~Q8 ftilln& rLtbl.0th0 naae 

### olaes adt Terse-baloaa and son Antonio **;55outbera have**  **naw**aa0 **Qwands of**  thi6 offi **ior a**  **Tuftlnd** Of **e&k Of&It**  Of ircmohlei taxea haratoforo ptild **under** 

### protest. **Hone of**  these railr0aQs, emept Temm-i~exioori anQ %9anAntonio **::outhern, wore**  **6QU#t?iWt11y naLaoQ** **a0** 

### pulntrtrm **tt the**  

### petition,



### andsofplr

88thlrofflde

llli abviswl,

none04 **the otfiers**  **laterruM la**  **auah suit**  **but** thay mm aantend thet they ar~ssntttlOa to the bene hte of the JuQg000t runtiered

at .+.:7-.burt1

of the STEM ol.1~8 aa the naned

### 373

plalntiffe. :Wer 

### &ate of Jamary 18, 

### 1944yo,ur departm~t in A latter .mdressed to Non. Tssee Jtmoe, ?tata Treamrer, apeoif~oallyauthorlsed a refund to the plaiotlffr amed itithe ju@.unt. *In the lluht of the crbow 

### t;rete, will you pleaee advlee tr.le



### Gepartrxbnt

upon t&s foXlowln.g ~QUiXi68:
*A. Is it neoesMry thnt one olslmlng the bensilts 0E tho olaas eotlon prmlded r0r la SeOtlon 2 or Artlals **705?(b)** be speolfloallynamed as **a** plaintiff or lnti3rvercor

in a suit to reoovor r2mnohi80taxes.#ald under protest.ln or?ferto alsim the benefit8 of e judesmnt .ronberedin 8 alass aotlon7

3pOulU this ~fi'ioa refund the frmohlse **taxes** pa%4 $r pretest to t&o88 railroad soapasiss is the aem alasr ss Terms Meerisss Railway Caay)aaJ

and 3sn Antonio FWuthorn Railway Goap%rw?

tjhojlathis offlcre in We 

### ll@htoE the Court,

### ;?.UW Appeels Qeelsl&i

rbtio 

### roforrad'to,

main ruolusiig mmh ~Ureodr and eampute Weir t&x08 hereafter unbar Bubaivislos **(b)** 01‘ Artlole 

### 7084Eather thsn as 

### a publ1~

utflity Under

### %hQhl~lan (Qlanyeahsretefore done?"

**I.** So6tion 2 or~Artlol@ 

### 7057b,Vi A. 0. 9., proride8: ?Yjmn the paysmit of aueh tarsa or f*eBt a~oeotnpnled **by** .auohnrltten 

### protest, tbs taxpsyqr shall have niasty (90) bay* fxasl

amid **dates** witth+n

rblah 00 file 

### suitfor the reootery thereof.

. .I**La sspeol6llw**  true **in view**  **al She**  **qualiifeattonr the**  **atetute**

psorltiea of these **other** tarpayem rho aim11 not bo repulsed to file separate **sulta.** myso (1) iuast

be "of the same olamw$

Them other tax#ererel&; f,",,";g rated In auoh aotion"I ad (31aust "hftt~ aOi)Orly proteuted 88 hersln pmwldeu.w f Q tarpayer is of the 88~28olass as tho8e Sillng the stilt,and has properly protest&d, he 1s thdn pZIBittd tieiat@WTetW ia tbt **Wit** itIStO@d **Of** b&ng re~ulred to tllr an lMepc+ndmt cult. This **w60** prmldsd by w Lq&alature in ardor to avoid a multfplloity of **ruftm.** nota of 1939, 

### 46thLe&lature 9. 8. Ro. 400, iseo.4. A$eont mm& a **rtatutfmy** provis~oo, this

# taxpayer~a attempted **&lpder ln**  **the ame**  **muit would**  **be iPlpropb&**  and woald not be 

### panltted,**aa** 

### hisoakme

### ef eotion is 8rpuata end **Uietinot** ftola

that of the plaintiffwho brought the **auit,** 

### That **affirmative aotion**  **ir re**  **uired wlthln**  **the ninety**  **URy period**  **ia rmihw**  **P oi**  the taxpiyor **nuioatiea by**  **them &&ultlolml**  **proTis~onmr**

"It 

### wit 18**not** 

### brought tidbhln thet&m aa4within tit0 muaner

**Bezels** 

### b2m3wlddI.

b

.than

aedinthat went It elm11 **be** t&e duty of the State 'huasumr **to tranrfar**  l uoh yamy Zxwn the ru8pmmo,aooount to the prox#r fund

. . . 

### Under thlo rZI,loR, (Ba ww inted **out b**  **Confer** enae Oplaton Nai 301$ OpinionNo. O-640 , 1S at the 

### exptratlon r- r3” ef ninety daye sio**suit has**  **!xwn film3**  by **%hsl** protortlng taxpyer, 

### fort&orwemery af srloh taxer, the 

### OOlL00tlogdepartimnt oamet 1eLegelly keep or oauw to be kept ia ru8pense euoh taw4.

*The iaeuea to be Uetemalaed in euoh #tit 6hti.l

(Emphasis ours)seotion 4 of krtlole **7057b**

### protides:

hereinabove by suoh pub110 

### offloialand that' taxmmr. theA and in that event 

### itahall-ibex the d&y o? &e~Stak Tma8urer to **rotund** auoh 

### unount,

together

with the

### prorata interset earned themon, to m&oh tax&nkyer.* (%&pha818aura) **Thle prorislon,**  **as 1** * pointed 

### out **is Oplaion**  **No.** 

### 048l9,~

**meant8**

### the

**t r8fWl**  **OM be**  **anda only**  **after W&utent**  fnrorable t0 taxpayer.



### Although

Seetlon

**2** rafus to ruoh aotion al)a *8Y"us ratfal," tt Is 

### submlttdl that it 18 not a ola88 aotlon 

### fn the uauaIeenm, but Ls **one** 

### in a very lidted, **atabutory** WE% B th8 01688iO ~18 Of the teX?R(Cma the dOefd1IU&8 Or the emmta.at equity sag 

### be exmiaed to deter&&i8 whether ***wati$& pro~lslocr**  **are mpplloable**  

### to**a gtven**  **ma0 -&7**  

### c. **f.** i+J, Sea. 831 Tobla t. PortluM Wll$ag Co., U Or. 269 62 P. **7631 q**  **elma aetlt+tir;**  **e** 

# muft **breu&ht by**  **one or**  **110~8 $alntifio,**  

### for tbhmnl.+w sod ethem almUarly*it~ated whm'a a o**or** general **iptuest** la InvoWed or the p&e* 

### ue ~0 

### numerous Chat it 

### would be 

### impraotQ%itble io bxf"B them all **before** 

### the wart, and their oommm 

### 8ftuatien snd ntmst -he it pmmlble, or their grad mmbu makes it neeesruy iar one or mare to mNPr(limlItal1. **20 I?.**  **C.** 

### L. 669,

1 FX?eexmi

On **~Ud&BE~S t&h**  **Ed. 950**  **Se& 4351**  

### 6ee.9; 62 C. t. 1001: Sea. 12k &are there mum00 bo a 

### maplate deterialnrt~ea ot the oontrwereg uithbut **the** 

### prommoe **of the**  **pwmm la**  **uJmi8** 

### bakmlfl&e plelntlit lwlaga the sot&n, a mgreeecalrtite Ot *la86 aOtion 86nnot be aalntelaed. 47 3:. J. 43, Sea. 64, 8cd authorities 

### oited.
Where there eriete 45 mu8 0oraffuUtgof iatrreet in a gu~stion of a a olarra sot&en miuiat be maintained. %kus a bWrOw63 who **&d** beea ohsrged WUT~OW interest Ootia **not me**  **for** hfa8elf tmd al8o ior the benefit of other8wEe bed paid tha aa.m dstcmdaaut uoux-loua

iatemlrt **to** ~eoo*ar such ~~ssent6, althaugh the aetion was Sow&id upon t&e 8fme 8tatute. **ThaPas** ****** **Yecixa:sy Rust**  **co., 156**  **IQ*** **260,** 160 a. -:.

### 1037: 47C. s. 47,see.929A0 wornsaid in 

### Trustemor Jaakeon T0wnmhip v.

T&S#iA; 51 Ohlo St. 

### 285,37**N.** 

### E.52).526:

**'A suit**  **to** 

### reewerba& isqalte 4ilYexent 

### in tne 

### growlaupon

whioh 

### a raowergOM beha4frost R suit 

### taenfoln

8 tax, **IA** the 

### latter O(l8d, eaah fa not only interested in the **question** Involved, but e

So here, the rarlous pxot~6tMtm aust be W&a 

### theoowt (eaah

wltain 90days 

### frwnthedate 

### ofSiUng his **proteat),** 

### eNher a0 putlw piamirr **or lntww5erts,**  **beaausor**



### 1. Thetares

are m notjoid. 2. B&ah **proteat** Is 8emrato and dit&laat and laPet **8tsnd 05**  **ltb Awn**  **asl4C8. 0s**  **netwwlty the**  **oourt oannot**  **drteraiae** the ralialty of the ixrdirldsml proteats,rhlah **aze** 88xlatly **aautrued uhwe**  **mab or**  **t&e& ia**  **not preamited**  and at **lame.** 

### 0bt10& theparty dw lartitute4



### thewrlli ir lntoreste4 only in protin& the validity of hla om protest **aad** right **w refed,**  **and ban**  **io no**  **scumer bs**  **maid ce**  represent pXOt8StAAtll

BOt ~0IWAt. 3. ikioh

payaient$6 a mparste tzWmablO5. **Aa** -ah taxpayeP6 aauso ot aatlon ir 8opanbe an4 diatinot, 8h4ra la no atmao titlm 01:,8uoh%deAt&ty or 

# interesta* to bring dli *ithin 

# thetie 8r vimal ~0p~~~krbit35.

t-h.6 

### rightsati awaif or aaah 

### alab far

# wund
ww.bi not bo ae *4ju4la*ti~A

### roranother.

5. S-emate doreases **woi0.d**be r~~ulrs4 ta raaah alalm. 6. ::a,s?arste xeaovarisa wwl.4 haos to be **rdJu4&e4** to eaoh alelmant.

## Thcs purpose oi tho requlmme~t in Seatlon 2 of .rirtfcle

7057b, thst ttm proteetlag tnxpeyermist rth suit ~a his alai% within ninety 4eye is to quiet the title to the :~.tst.o*r

,mneye, and to enab a Cm auspenae acaomt i &tam to be plao8d in the funds to whiab they bslon&. Tf any otiier

oo~struoti.on then the one we adopt be plaoed an the *claes slation’ pravlelau, 5any swpenso ltsm .ziay **r*oaiA** in **CpiWtiOII** lAd6iiAittiy.

h **SASWBP** to YOU? riLr%t**iAqUiPy** We hotd that It 1s **naaoeaary** for om alaMt& tha berm& or the “alaas nation”provided ln Sootion 2 oi Arblale 7057b-to be speaiflany naree4(LBpi615tirr 5r ln~ommer in auuh **sul~t** In order to moorer Sraaahlse texeo peld **uadsr** pmatesf.

**IL The**  **judspunt in**  Capw Eo. **63,609** in the **96th** i Plstrlat Court or Trawls County, Rallvray

Co., st 61. -8.:z. style4 The Texea !.fexlaan 0. 

### FUmoxa,etal., entare 05 NW. 23, 19.2, rezi40In part 6throlloval

“It la 

### therefore

ordered, .dJu4@ en4 drone4 br the ammt.
. . theft 

### “(3) Thedrremlant,



### issee Jamas, Raa~unr ortha State of Texae, mke proper refuad ae prorIde by 

### Extlale

7057b,am amended, to saoh eorporatloa of

# the aleea

# r0rthe benetlt 

## 0r whlah thla 8ult he8 **bean**

## lnstltutea an4 whiah 7057 68 

## 6~93ma,9o 2; “v; ygg&llcd

## withArtlole 0 an 1% 0 it to a refund-la aaao ulth thla judgmsnt.W (:%lphe81* ours)
**i%r the**  **rwmu18 set**  out ln anewer to yQur Pirat lw~~lry, the railroad aaapsnierr 8cw demndii%j refund hate not aoaplied trlththe pr~~l~ltmi of &Mole 7057b eo rret0 entItle them to A refund. There have b06~ no ilndlngs on the follmis&$, ell of which %r6 

### eaeentlal toreoaresyr the DLi:ze of tlia

tnxpaye~~ mat t&I taxpayer p&I under PrQtUiit; thnt ~363

ta~~payQrf5

protestwas valid end stated m.efi0i~~t ~JUA~SJ tent ths crourtaati.05 , am *a eeoh swh taxpsgsr,WA% 1ttzt.i t,uted

within tha ninety day parlad$ tk amount duo it aa R refund.Th~rd~r~, you should not, mfumi the franahisr wea apaf~?

under proteat, to the railroad aofnpani~s %n quaston. t

. III. The Court of Cfrll Appaalo, fn Fleers; et al. f~*IWms ~~xiaan Ry. Co,, et al., 174 3. 6'.(Zd) 70, held thatrsilraaa oorporations,regludlsas of whether they r&ually yafd a tax upon fntan&ibla asIot6, were ontitled to the fom-JfZths trxenptlon on acrrporatioa

frwohise taxea granted by Artfale 7084, Slotion **b, V.**  **A, C.**  **S., to**  **eorpoms tions**  **wow required**  by law to pay annually a tax upon **igtaagible awets+.**  ***** 

### Atpiwe73 the oeurt eaiPr

***Tke** 

### erl&mt **purpose of**  **3ea. B**  **w-as ta**  **rrlleve those**  **aorpore.tlona Re**  **a oltwa**  **that were**  

### potler for 

### taxatfcsn&I1 of their pmprrrty **%%%&ble htangtblr.**  **‘ i?hhfs** **wea not**  

### aadedependent

### uponthe %%mt of swh lntmqible8, relatiroly or otherwise. A railroad tight imn ~hysfual pnt~erty that maa aotually tared at ~61~s of 8im.y&llione and yet ita ~tar&&fbles **(for a**  **given year)**  **mfght be**  **amisenod** at **only (I**  **few** hundred, **and** the tax thereon be asgligible, or et least rolativmly S0. How~vor. euah raflrmd wQuld Sal& within SSO, 

### B tho scme ao ane that gaid a rslativsly great fntangkble tax. The the&my of the 4/S axetnption 0lsarLy 16 ;i$;s~~poratloanwhom iatan&blee are FeuuireU to be a **under th**  **aat 81%**  **paying ptom**  ~6x1~ upon 4 full rendftlon basis than thallrs net wit&in the aoti and this wIrethor

Tktw, fn wswer to your third inquiry,you should rwlaeritjv auah raU.roadrr and ooiuputetheir tares hereafter under :ieotioa **b of**  **Artfolo XV&,**  **V. 3.**  **(7, S.** Trustlnr thrt tno foregoing rully ~11swer8 your inc,ui%so,b*)

nrc?
You!? vary truly

Arthur I..

Yeller hssiatant