-. ~-763

PRICE DANIEL ATTORNEY GENERAL September 12, 1947

**Hon. George**  **X**

**.** Comptrollerof **Austin,** Texas Elhemard OpinionX0. V-373

Pubtic Accounts -

Re: Whether I.4

covered hopper cem belonging to H~ellibu&m 011 Well Ceaentlng Co. are sub cot to ad valorem I(ixea and if so, the taxable sltus **under** facts stated
Deer Mr. Sheppard

P
You Fequest our oplnloa %.a *eferenoe to 6h* ~~above oeptionedumtter,baaed “p on the facts 68 out& lined in .letters

to you from 8s LiburtonOL1 Well-Ccmentlng C,ompeny,

whloh iacts are aa follows: “TheRalllburtonOil Well Cementing CompatUr

ia primarily engaged In-the servlcing-

ot oil and gas wella end In counec - tlon, therewlth,sells some 011 field aupplfea. One of the item8 which~we sell is cement. Thla Company haa reoentlypurcheeed severe1 LO covered hopper cara which ere opeclflcally

designed to haul dry **bulk** cement over or on rallroadtracks. The c8rs are hauled on the railroad tr@oks by the rellroadcompaELb.# and the railroad oompsnias eey us on a mileage barie for the use Or he care. The aara which we own el% used exclusivelyto heul cement for ua.

**"At the**  **presetit time,**  this Compeng esslgw rellroedcards to a aertala. lwetlon In muoh tb a.118

saner as we eralgn our trualrr

. **As** on exeII)p10,

ve hove a bulk see rdbnt abomge plant at Xwklns, !Fex86, end there are no%?

two rlatlroad

Carl aaalgned to that planta By the em3 of the yee~~, however,. . .- ‘

.

Hon. **G4orge** Ii.

Sheppard - P4ge 2 (Ho.V-373)

there may be uone or e4 sang 08 five or allx osrs ssslgnedto thls pl4nt dependingup&u the amount of business in that psrtioulsr areso If the cement bualtiesa increasesst Eavklna, It la poasfblethat on4 or mom railroada4ra whfah sr4 now aaaigtied to oti Odesss.plant

may be trmuiarred to llrwkins,. and by the **44m4 token**  **aue or**  **more 02**  the cam nov ssrigaedto the~Havklm~pl4nt rsy be trsiasferred

to our Lev4llmd plant in case the aement busiaeasfacreesss st Lerellrnd and decreasesat Hawkfns.

‘~.

. 'We use these rall~oadc,ara as storage **bins** to a 14rgge

extent. I do not belleve that ve have **4ny,** rsilrsadcam whioh sre not in tie unless, of eourae, they am in aeid of repsir. Zisllroad oars which sro ststloaed er hesdquartersd **at** Hawkins are loadedwith oeaont at Dsllaa, Ft. Worth, Houston, **Ada,** Oklshoma, **end la**  the State **of Arkrneaa.**  Xn the paat it hss beea lmpoaaibleto get emnagh aement at Xbllrs and Irt;~. Worth to supply QOJ? bulk ceaent.planta in the Dal188 and Ft; **Worh area.**  **Rsllroad** cars saalgnedto our Odessa plant sro leadedwith cement St ltl Ps~o end Sm Aatonio r'hd

at **40~4** loaatlonain Kswss and Ilebraska.A8 **4** ritter of pr4atlce,the comeat is purahSSed et the most aontenlent cement ranufsaturlng plant If thst plant asa rupply ua. **‘**

**. ,.** 

. . ,. . "In cam4 our bualneaa should fill oii to

ruch sn extent that **prrt** of our rsllraadasrs would beoom Idle, I bellevs It would be ssfe to say that the idle csrs would be kept .st the loostioa whe2-0

~they are 4srignea. I aQ not belle+re.that

he7 vould **be** brought into our bore oflioe here .st

Dunmn, ualesa oimmmst4~cces ohsage In the future. "Whenyou submit this quoatiouto the **At** toruq Qeaersl,ve shall appreaiateit IS you will sdvlse him th4t we are required to **~47** mileage tsxos In the St&es of Konsrs, **Okls** home and **Hew Mexico,**  on cars nhich travel ttiough thoae atatea. These aileege taxes are la lieu of **property** taxea 4nd rpply to sll

‘.~., , :Hon. George H. Sheppard - Page 3 (No.V-373)

miles traveledregardlessof the location to vhioh the co??8

heve been permanentlyor temporerllgaaslgned. Property taxea are levied In the States of Arksnsa8,Colorado, Loulsiene,M.fsslasippi, etc., on 8 mileage baaia and the permanent or temporary lcoa: tlon of the car Ii not taken Into conalderatian In errlvlw Bt the ad valorem tax. The mlles traveled in those states ELIcompared with the a&lea traveledwergwhare is thb ordinarybasis wetI for arrivingat the valuationupon vhioh the ad velorw tax is levled. You will race11 our letter of August 15 in wh&ch rerstated that the cara whiah are esaigned to our **vartoue** locationaor let&s in Texas are used snd travel lo the xt&es of Arkansea, **Kawaa.,** Oklahoma,Aebradka, LouIslens,low Mexloo end Texas." The aommon low maxim of "mobilieaequinttwpep**uowa ”**  **(rcmbles** iollov the pereoa), that la, that perSo0rl pswpwty h*s Ita Jeaetl situ8 for taxatl,on purposes *t t&e p&roe of the ovaezwdomicile, la the general @e

Althou@ the Owzstitutlcaof Texas (Art. !IZII,

"012 property,uhether avned by pb2wbna or i3tmwretLoaa.ahaU be essesaed for taxation, (lnd faxes pa

IL-$0’ the oount~ held write rfme c0urt of "it 'hasbeen provision i# no i$oPs~t&~~r,ddolersthm of the oomwa lew rule in &hat %bUs LC h8d aef’erbwoe ta Cke tixltag power, it evl* dant aaent propertyVhwe !!jituated for the purposss of ~~~tia$br the geaexalgringlplba of law as then

city of Fort. erth v. SouthlandGreyhound Warr 67 i. W. (26) 361; #, C. & 8. Fb my. CO. v. City rb B&r, 16 8. W. (2d) 292; Great SouthernLife Ins: Co. v. Olty of Austin, 243,.8. W. 778; Cltr of Galvestoa**0. Haden,**  t?lb 8. li. 7663 Fbrrls v. mable, 12 S.W. 689. Ibid itiwprbtetlon Is lrald rl8.0 to apply to Artiole

‘7lS3, Xbvl8bd Cl.vLl 8t@tut'b(l

of Toxaa, aa amended, earated pwrabnt

to tbb l

lrovb ooartltutlonal

provision (See OWbU rwl'b), t?i!&toh~o*idba:

"All pmperty, Foul and personal,except rush es ir ra@rbd to be listed and rasessed othezwlss,ahell ba llmted rid assessed In the ooklatg where it $9 

## 8itUdadIsad all personal property, subject to taxation and temporarily raaovcrtl,

trou the Stete OF aounty, shell be llutad **aad asae**  **’ tmd**  **tn &he**  oounty of the reairez-81’8 Oplnlon Ilo.

O-3702 it vsa held that where resd -1w. “f.

alpmbatwus situ&ad la 8 aooatf other thsn that bf 

### the redo,

deuce of the **maer** on’ 8 pbmsmllt ~)Dlsls

la bel8tlonto the taxing f4iar In question, it was taxable in tb oouatf where rotuall3 situated.

**The Sact**  that **ilCtOl ’** **8f#te** 28Ot **8ti th8t**  A- elowdo, **Iti~rluslgpf~8a4** 16vied

## l gainst:them

@a 6 mfl~(~oboifs dobs I& affect **tbrir,** :tUX+bility **IO TbXSS.**  It haa 1~ be98 settled by theY..

-

BOIL oeolyp H. Bh8pp.3rd - Page **5 (Ho.**  **v-373)**

U. S. Supreme Court that prop8rtyhaving its sltus within the tsX%ilg

3tbt8S IS QOt 8X8Prpt fl'OtU 8 QOQdi8Ul'i3fQ8- toPy Property tax merely beceuse the moperty is used 1~ interstatecommerct. Virglnlev. Imperia.1 Coal Bales Co., InC., 293 **0. 9.**  **15, 55**  aup. ct. 12. The supreme colmt of the United States in First **Bank** Stock Corp. v. 8tet8 of Minnesota, **301 U.**  **9. 234,**  **57** S. Ct. **677,** held that propelrtp

owned by a Delawarecorporationdoing bwluesa in #lmesote, seld propertybeing loceted end used in Hlnnesota in connection with the corporation's bueinesa ectlvities,acquired 8 "commercial daulclle" end tsxeble **situa In**  Bbnesotr. The court furtherwl;d it WBB **lm** meteriel thet such propertywas 8180 subject to taxation la another 3t8te.

Based upon the f8ctaas glvea us,, it **aeoma** clear, aads* the euthorltiercited, that i%hs ~82-8 ita questlou l rfe rubject to ad vslomla tsxetloala Tex88, sad that they hav8 8 bWia888 situs for taxationp14rposes ia the county to which they ara raslgued. It clppetim that these car8 Y8Pe %?cently purohesed"by HelliburtonCoDp&ng, Of course if th8y Wp8 not Wn8d by Ihll%bUrta~8nd located in %x88 oa lrrt iF=uer) lat.thersvou1d.M QO CaXes due there& fop thicr

jeer. The cbusrty

to whloh the cam umg be esdgnwt end located on Jeaaem &, 1948, de%emiaes their trxeble sltaa far next ~y-eer. ~Thef'sct

t&& the ok or car8 8by be temporsrilyoat of the,coantf of its aittas **on Jehurrf**  lat 0% refillingor other pua?pose;r would mot sffeot either it8 ,texabllity or Cax6ble 8ltu8.

I& cov8red hopper tieflroed cera owned by **B8lliburton** Oir. well COQleatl,

7 CO., Snd 888lgned to varloum count188 la exaa and there wed **88 8tc+8gp**  blor SOP oeaenti,rlnbez- the facto 8trtad,,

ore aubjaot to l

d vrlor68 **t;uetierl** in Teame; ad the taxable ritlu **of 08ob**  **oar 18**  **la the**  **county to**  **whioh i** * **is** 

### l raigned. **Art. 7153**  V.C.8.3 **0it.g of**  **Ft.** worth v. I)oathlend We@muad Llneu, **67 8.**  **If.**.. . --. _,

Ron. CfeO~~ B. llheposrd - Pegs 6 MO. v-373)

24) %36r;

tiPgild@ **V.** 1 Ol'181 CO.1 S8188 CO., tic., 293 0. 8. 15; Fire?I beak **8tcck** Carp., W. 8ttrtO oi llilrn.,

301v. 8. 234. V8Z7t3'UlytOW
**ATTOWRY OlNBHAL**  OFt’BU$

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