EXAS

AUSTIN ~~.TExas October 9, 1963

Honorable Robert S. Calvert Opinion No. C-155 Comptrollerof PublicAccounts Capitol Station FE: Constructionof ArtiAustin, Texas cles 13.02 and 13.03, Title 122A, TaxationGeneral,V.C.S., as to which coin-operated machines are taxable or exempt from taxation.
Dear Mr. Calvert:

You have requested an opinion from this department.construingArticle8713.02and Article 13.03,Title 122A.V.C.S., and more soecificallyyou have asked the following
"Irespectfullyrequest a formal

opinion Indicatingwhich coin-operated machines are made taxable'byArticle 13.02 and which coin-operatedmachines are exempt under ArtlcLe 13.03, as amended by Acts 1961, 57th Leg., 1st C.S., p. 71, ch. 24~,,Art'. III,, Sec. 1." The pertinent part of.Article 13.02 and Article 13.03 as amended are quoted as follows:

"Art. 13.02. Amount of Tax. ,"(l) Every 'owner'who owns, controls, possesses, exhibits, displays, or who permits to be exhibited or displayed In this State any 'coin-operatedmachine' shallpay, and there is hereby levied on each 'coin-operatedmachine,' as defined herein In Article 13.01, except as are exemptherein, an annual occupation tax of Ten Dollars ($lO)."
"Art.13.03. Exemption from tax. "Gasmeters,pay telephones,pay toilets,

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food vending machines, confectionvending machines,beverage vending machines, merchandisevending machines, and cigarettevendingmachineswhich are now subject to **an** occupation or gross receipt3 tax, atampvending machines, and 'servicecoin-operatedmachines,' as that term is defined, are expressly exempt from the tax leviedherein, and the other provisions of this Chapter." Article 13.01,Title 122A, Section 3, defines the term "coin-operatedmachines" as follow3, and we quote:

"(3)The term 'coin-operatedmachine' means every machine or device of any kind or characterwhich is operatedby or with coins, or metal slugs, token8 or checks,

. . .' Article 13.01 and Article 13.02, as enacted by the 56th Legislature, 3rd Called Session,p. 187, ch. 1, were both a part of the same act, and the definition3 in Article 13.01 applied to the provisions of Article 13.02. Since Article 13.02 and Article 13.03, as amended, Acts 1961, 57th Lag., 1st C.S.,p. 71, ch. 24, Article III, Sec. 1, is a different act of the Legislature from that above mentioned, It was necessary in Article 13.02, as amended, to refer to the definition in Article 13.01. This is the only differencebetween Section 1 of Article 13.02, as amended, and the origlnal,,Artlcle 13.02, except that the original act provided for occupation tax determ,ined as *us *an annual follows: Section 1 of Article 13.02 provides: :, and the amended

. . .an annual occupation tax of Ten Dollar8 ($lO)."

We are of the opinion that other than the exemptionsprovided In Article 13.03, there Is leviedby Article 13.02, a tax of $10 on all coin-operatedmachine8 as dafined in Article 13.01,which means every machine or device of any kind or characterwhich 13 operatedby or with coins, or metal slugs, tokens or checks.

The next question is "Whichcoin-operatedmachines are exempt under Article 13.03 as amended?"

The caption of House Bill 20, Acts of 1961, 57th Leg., 1st C.S., reads, in part, as follows:Honorable Robert S. Calvert, Page 3 (C-155

1, amending Article 13.02, Title 122A; Taxation-General,Revised Civil Statute8 of Texas, 1925, 30 as to Impose a uniform tax of Ten Dollars ($10)per year on machines subject to the coinoperatedmachines tax; amendingArticle 13.03,Title 122A, Taxation-General, Revised Civil Statutes of Texas, 1925, 30 as to add certain classes of vending machines to the list of machines exempt from the coin-operatedmachines tax;
. . This provision in the caption of the Bill makes it clear that the Legislature intended to add certain classes of vending machines to the list of exemptionsprovided in this Act.

Rules for Interpreting statutesare designed to aid the courts in ascertaining the legislative intent, in cases of doubt, and they may be applied and used only for that purpose. Accordingly,no particular rule will be followed if it leads to an illogical conclusionor a result at variance with the intent of the Legislature. In otherwords, the legislative Intent is not to be defeated by resort to technical rule8 or subleties. There is but one rule of construction,and that is~that the legislative intentmust govern. All other cannons of interpretation 30 called are but grounds of argument resorted to for the purpose of ascertaining the true meaning of the law. 39 Tex. Jur. 1.60,Statutes, Sec. 87.

The phrase "Whichare now subject to an occupation or gross receipt3 tax," only applies to cigarette vendingmachine8 and does not apply to the other coinoperated machine8 listedpreceding the cigarettevending machines. Article 13.03, as enacted by the 56th Legislature In 1959,provided for exempting gas meters, pay telephones, pay toilets, and cigarettevending machineswhich are now subject to an occupation or gross receipts tax. Before the 1961 amendment, under your departmental construction, gas meters, pay telephones and pay toiletswere tax exempt, although, theywere not subject to an occupation or gross receipt3 tax. The caption in House Bill No. 20, above mentioned, Indicates that the Legislature intended to add certain classes of vending machines to the list of machines exempt from the coin-operatedmachines tax. If the Legislaturedid not intend to exempt food vending

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machines, confectionvending machines,beverage vending machines, and merchandisevending machines, then therewas no reason for putting them in Article 13.03, as amended by the 57th Legislature in 1961. Had these machinesbeen left out of Article 13.03, theywould have been subject to a tax becauseArticle 13.02 levies a tax on all coin-operated machineswhich are not exempt by Article 13.03. It is, therefore, our opinion that all coin-operatedmachines listed in Article 13.03 are exempt from the tax leviedby Article 13.02.

SUMMARY

All coin-operatedmachines are subject to an annual occupation tax of $10.00, except those listed In Article 13.03, as amended, and all coin-operatedmachine8 listed in Article 13.03 are exempt from the coin-operatedmachine tax. Very truly yours, WAGGONER CARR Attorney General

APPROVED: OPINION COMMITTEE W. V. Geppert, Chairman Marietta Payne Pat Bailey Howard Fender Joseph Trlmble APPROVED FOR THE ATTORNEY GENERAL By: Stanton Stone

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