OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AU8TlN 

Maroh 13, 1939 

Bonorebla Coo. 

Cmptrollor Of 

Ateln, Taxa 

Noroe h&m m*poam 

oa the aowa t 

BftcrrWOAt3. 

another draws next weok* Ii no one hold8 

tho nubor OOTIWLI 

than tha drawing 

ondlng to any other atub drawn, 

with until a holdoz 
- . 

HCQ. Ccoe R. i?Qioppard, Xoroh 13, lB939, Pa 8 

Tou aak our oplnlon whathot radar tho above faatr 

the to$ tax pralaod ln Artlolr, VOWi, Rovlwd Olvll Statu?as, la duo on suoh traaraation8. 

Artiolo 7047f (a) and part of (b) roads aa follows: 

9ivory poreon, fira,:me oorpratlon 0mawing a thoatro, p la c 0 o f a mtumia oor ntl , y buminoar 

uatoxquimo in oonnootioa with tho qm.ration of 

whloh a prizkln .Wo form or money or acnaethlng 

of talru ia offorod or glvon to one or ~OITO patrms 

ai mob thutro, pluoo & amusamant or bualnoss 

cmtorprlra, and not ~iron to all p&as thueoi 

paylnnp. tho uprs ohargs for ray oor ta l lorvioo, a 

oomwdlty, or l ntertalnmant mhall aako l nrlfiod monthly report oa tho &rontpflfth day Of 

oaoh month to tho Oargtrollar of Pub110 Aooouatr 

of tb 8tato of TUXA~, 8hodng the amount of money 

80 glron in prizor, and tho mlm bf all prizes 

or awards 110 gtvmn ia oonaootion wlth 8uoh bual- 

#II dud- tho nort praoodS~& r~onth~" 

'LPbro la herabg~laviad atax aqual to twanty 

p 0r l omt (80$) of thb wklue Of all moh llbllsy, prlro0, 

and award8 

oaoh and a d 

~.VWI in eoxuwotlon with tho operation oi 

of the fcregolng bu8lnrss l torprlror, 

aad at tho tlso of mdclq thb report to tbo amuptroller of PublAo Aooount6 the omar or operator of 

any 8uoh bmlaesa shall pay to the State Trm~umr 

Buob tar upon tho total 8nount of money, prism, 

and l wu-dr rq given during the next prooodlng mth 

* . l î 

Xt will be noted that for the tax to k 6110 the 

rlzo amst 

+hr 

ba &an in aonneotlon with the oporstloa of a 

aa 0, &ma of amasment Or bu82nem entorprlao. Menifoatly, tha aat of glrln6 away the Friar ocimot omtltuto 

its own pleoo cf munemcnt or businass l ntarprlso. Hsrmo, 

lt 18 oloar enough that tho Chembar of Ommeror, baiag 

noltbr the owner nor operator or a pleO0 of businorrr, is 

not Pablo Sor tho tax. The #fawchantB offer a difiorant 

not anmor 

. glvoli may in Oonantorprho~ The 

mm&ants pooled gift fund, and ia 

ano *low of the given away ln oanaootlon with the opcsrmtion of thalr bwlno88wr Howotar 

wo 4 0 .not b a lial uoh te to & true in the 8oa6o oontWp&~ob 

by the mtetite. 

KS beliom that ~rtiole 7047r was iatandod to lrrf 

a hoary tax upon the g%rlng of l .prlzo am tha orcwnlng 
- . 

lion. Coo. R. 8happmd, Yaroh 13, 1939, Page 8 

eohiovameat ol UI rdrortirin~ l ohome intended to multiply 

the swtollar8 of the partloular place oonductl~ th6 awnpa&F* That it war not intsadoa to a 

of the award of a P 

ply to Orory lnstanos 

fro provleloner (1 

,lft or prize la qu te oloarly rhum br 

f enly whoa eivon ewe7 &n eonnaotlon with 

the oparatlon of a theatn, plaoo of amuwnt or bueinoee 

entrrprleo la tho.tar~dm, and (8) only an tieretor lr 

lltsbla for the t-a% 

When a marohant ekply dallkorr tho maoy to a 

thlra party to bo wea not to bring tho people Into tlu 

aoaor*e partloular plao0 of bueidese, but to elmply got them 

t0 oome to tOwn WhOi thoy are a6 llkaly t0 g0 intO 0n1Y plaoe 

of bualnses aa another, this ICI not gIring the prlzo my.in 

wameotlon with the oporotlon of hie l toro eny more than in 

l oanootlon with the opsretlon of ate 

'E 

plaoo of bu6hloee la 

town, whothor oontrlbutlng to tha Stan OT not. 

Pmzn tta Opirlon of sub 0 Ecalth In 8taW f. 9an 

?atrlalo Cannlag aOo, 17 so WR. (8 e; 160, wo quote l e follms~ 

CThs rule lrrt!xat the ecurts mayaotertmd 

ep give epooial eignlflotmae or a0 wmeo4oear 

paoullar or etralnsd oonmtruotlon of ruab pla L” 

term8 aa thoao -ployed ln c;rder to eubjoot a partloulisr oamnodlt 

rent. Tho rule f 

to a tax lmpO8ea by the gmcma, rather, that in the lntorprat&Ion of etatutca i.2~ oeing taxes their prwl8lane 

will not k+ extended iI y implioatlon beyond tha 

plain import of tho language used, nor will their 

Operstion bo anlar 

~ealfieally 

d to ap’;ly to sub&iota not 

ino& r ad therein, and ‘in oa8a of 

bcubt tby are oonstrued moet etrongly agalnnrt 

the gotekrm3ent ana in favor of the oltleon.* 85 

R, C. L. pp. l&L2 1093 35 Cyo 1laQ~ 86 Ano a 

me6 -8 O* LOW (ix Ea.1 660; &Pi Y* ~otid, 845 

Il. 3. 15 P 3s s. ct. 53 68 L. Ed. 8lli una0noob 

‘Im S~hOOl’Diat. (Tar. U~V. As.) 149 8.79. '773." 

In this aonnaotIon SO We Otto tho Oa6Q Gf y$lbW 

Cab Uo. t. Penglllp, ll 9. W. S) St50 

etruotlon of a tai etstuto, an& where i 

l~~vol+lng tho oonn ;luCgo Conner rcrfer~ 

to mthe Samlllar rub that tax lewa l ra to bo l o nstr ueb 

etriatly,* 

Our opinlo~ la that tkrrr 18 no liability on tho 

part OS the merohente~ 
. . 

, 

* . 

Bon. Coo. H. Shappud, Maroh 19, X$959, Paso 4 

Whrthar or not the iaotr rrt forth rbow dirrlost 8 1otter ir lmmtarliil to all8 inquiry uid need not 

ho hero art+3 bLa. 

Tours wry truly 

ATl’ORl;Ey =‘RAL OF TEXAS