### 292

wanlfertly **the rtatute**  00~14 hsve easily beenmds rsore

a~4alflc in this retyard.E4 aenceive,bmneV4r, that a21 of the contentions here mde by appellents, whsther eatuell~mired in the atteok upon **tte** vmll418pcf tbe **ictt** or mt, were nrcersotilyinvclved in tbQ @ttIhoka mebe upon it8 aonrtitutlonality

in Burt T. Gaoper,aupre,rhloh follourdthe declriona in t& Jeo&eonend FiOrgrreld a&ems, rupra, en4 Ugeett Co. vr Lee, 488 0. 6. 819, 88 8. ct. 681, 97 L lKd. 989, 88 A. 1. **R. 6Wg**  **ia** all of *blob eaee8 the vaoli@itp tbcreof,notwithetendlng ruoh indefiniteoars in the rerpects rtrtod,vu6 auatdaed

. . . 5% 

### iaii~~ 0i tb s.wdbw25 

### 60

l pdrioaxg

pro- vide bar, and by whati tha tax 8e impcsodshould be paid, shouldnot, in view of t&e 4eolrioneupholdingthe hot l# Valid, be psrtitt84to d*feat **it8** pl-OVi$iOn&.

. * Tbr court **did** aat Haho to whet extm~t or in ***bet** proportion the taxpspre, to-wit, tha,mtorooperaton, WM l eoh liable, It act beini~

nr0semx-yto a00m that qwn6ion. lhwor4r, thn oourt oleerlyheld that the Aot ilr ml14 en4 that fail- of **tbti** f.egi8letW8**to sake**  thf8 pl'OVi6iciI sore s~eoif'io Will not ***br** grraltted**to d@ffmti**  **it*** (bheA86’8) ~rovisioa&" llhlrr hol4lag alberlp indiaa8ob**ktmt** the sour6 bellwed t&fit thr Aat rbauldand could be **enforaed** an hbe baeir thet ell oi the stare8 in II0888 of this **kind** cdnstituteoae **ehaia.** If it lr valia end is to be 

### l **nicrcea,** e tar is due on 6 ebein oi airtrsn etorsr (in ths actme you **eek** &bout) end **the** operaDormof those storermust pap it.

51oction

B af the AQt piovldes **that** %eaah epplloatlon l hall be 

### l

oomptmled **by** a ifliag fee of fifty (SO) osn68 for seoh utore." ?fn

thiak that fee rhauld bs p&I by the person
or oorpomtLan ogsratiatg the 6tcre and 6bsnton 6to ootgorntionr in guertlonshouldper the ffllng fee pmwrlbed in f3eotion 8 a8 foll~~e:Gcrporntion A, $1.00 for its two rtorao~Corporation B, $a.00 tar **ltn** four ntoreo) en4 Ccrpora6ton C, &.OO ior lte tea mtcrtss.

Bootian 8 of the Aot provideea aaalr of lioenee t4rr 48 follart

*Ths lloenms ieer harrln g~~sorltmleke11 be urn folloue:Boaomble Oebrge H. she&?prd,page 0

'1. Upon ona (1) atom the li6easefee ehall be On6 Dollar (81); "4. Upoa eeoh eddltlonelstore in I on~a(1) but not to oromd **two** (a), the 1 fcm8 of den@,

US. Upon aeob ad~aItIonal sto rein l xoeme of two (a) but not to exased flte (8) thr liewee

rw #hall be T%ventpilve Dollar8 ($St!J).; "4. npon eaoh adUltIcimdrtoro In 0x00~~ or tlve (a) but not to etoeod ten (10) the lioense fee ehell be fittr Doll- ($5O)j "8. U&n saoh eddltional#tore in l xeesa of ten (10) but not I*O~.,+oWd tWelaty (80), the lieenmo iw ahallbo Oh8 Xun4red Arty Y&l&era ($180) 1 w~eaoh additionalston in l r@wa ot but"not to cutore thli'ty-ii,ve ($8) the lloenw t4e ehall $0 Two Xuadred **Fitly** Doll l4r6 (ItWO)

t A9. Vpoa~.awb rddltiawl atom in ww8* 6f ttlrty-five (38) bu8 not ta l xooed P:Stj (80) the lloenea fie ehall be Inca kIundr@d Dallera (96oo)r W. Up on lcroh

edditlona2store in l xoem at fifty (SO), tha liams* fee shallbe Setron Xundrod Flfby Dollerr (#WOll

. . . * The H. I. Bu3ubt Orooery Uwpaay 0010 robe1 language that t&m* store8 obein for tax purpoea~~,~ That belag how 16uoh

ie due under 3eatlon Is for the oporstionof aixtoon Btorem. The 8um lr Bl,iiS&OO,anivod sit as tollowrr1 stox4 $ 1.00 1 sOd~tlontl1

etors (In 8X4886 Of 1) 5.00 3 o4altional**4tnres** (In 6XOa3d of 2) 715.00 S aCdft.ional

stoma (In 4X4.865 Of 5) PS0.00 S aauitionalstorer, (In 4x0445 of 10) Tbrrtorem ThI8 atm ef &e3&GG I8 **the** aus owoa for the **opra Elan**  of thfe ohala. As utatad in the **forepert** of thlr OpInloll, the p,erscnr

Or ccrporotioaa

who al.0

nqulmd to pay ar4 those who vqerate, mlntoln, o en or erwablIshw them l toxw. There ers aixtnen utoroa, that sa, unit*, In the ehaln. CorporationA opwtitsa two of the aixtaen,Gargoxation B opentm four of the aixtaan,an4 COrpOratI~ G 0per8te8 10 0i the *lxteen. In cth4rwards, Cnrporatlon **A** OpOl%It8~

l/&h or *ha ahaln, Corporation**0 aparater**  l/&h **ct the**  **diniD, and**  **Oorpon** tion G operatea S/i?thr af the ohaln; on4 aooordIW, G-orgoratlan A Iu liable tcr l/stb of the tare6 duo under W6tion S, to-it, lJ8th of $1,immo, pna Garpcwetlon D is Ilob fox l/&h of asid tllX88, to-wit, l/&h of #l,SSSLOG; tic&n **G** i5 litable **inr 5/8tha**  **ai** Sal4 **taxes,tO-Wit,** a $l,ti3fk.O0.

Therefore,said outW4Iary oorporstlonr era liable under Section 5 aa followst CarporatIon A, #lst.GG far Ita twe atcns$ CorporationC, orcrtion B, $3C&OO for **Itr** tour atone; and 770.00 tar **lta** ten **8toras.** 54Paotii.m

7 af the @O#$ ffr$ini0Chain St0x.a T&ix A00 is i(hntloa1

with &ofIon 6 of 8ha T4x4rr Act. R3so 3eotIoa 5 Of eaoh or tb:a

sata 61888448the tax Ill daOSt idOUt:Otrlly t!a mm4 longuhgs. The Enita4 Gtetss mistrIctGourC of ths **Fauthm Mstriot**  **of %'8Ut**  **vir&ia aOlldWu44**  %eotion **7** Of the ITant ViZ@nia k4t in eh8 Oat8 O? &iii ReflnIn$CO. V. lbcr, 11 Pe4. SUQQ. UiS, and atate a6 folMws~ *Rafmame fm aim a Of the f4d8Td 4Ourbm in vialo~a ol asctions &?4O(b lQL% (40 ,Btat.

1081 108&l the R4VMUO AOt Of i%il ( it was 4naOt8u tbet two 0 tlona ahall bs a4en4a sir on4 **corporation** owu9 aha tially all of the atoak a id8to tha 4solaIoaa .ntsrpnting tlr4 pro1 Of the hV9nW it& Of I,8na asotlcm 2HO(o) of **I Hat.**  **860) aGereby**  **’ IQW8**  at%C8et **I** 0 %OrpOra- .im8a, lnt*r alla, ii it1.y or **oontmls** sub8tan- ' tb4 Others.

### .-,. 295

%s@tion 7 b4ma 1?1m4 enslogy to the &Tcvi4lona Of V.4 **Tievanue** aotr. r8Rmaing thr effllletion of onrporation4 tla lkfS4ctin&

thclt(Px

on corDOTbt4 ~IlOOS?2IT;

. . . "

**!I%4** Gulf artlnlngC~.~.preay 0084, aupr4,we8 r4iem4 84 with epgrovalby the court In the R. X. Butt Urooory Co&- pany aa44r

It la of lntcrastto note the mumor of proportionate 4lstrlbutIcnof thota'~ CiS8cl444a

In tba **Bederr** **R*vanu*** Act8 rsferrsdto which BOtn wara wuparea to the controlpr0- +:sion of the Kaat VirginiaChain **Store %zAot.** 

tjeatlon

J%o Of th8 Fsderel ltevenua **Aot** af 1918 provfderIn part 4a fallowat

***(b)** For the purpom of th?a moatiantwo or more ilorjestlo

oorpo~t1o.m ehull ba dasgod **to** be arfiliated (11 ir one oorpor4tIon **maa** aimtlf or oontrolat:rau&h olooely **8frtiiatea** Int8r8ata or by a anarlnoe

or naprim sub4tantIcl~y all thti atook of th4 &her or othera, or (l?)~ If aubatantislly all tha otoak of two or aor oorporrtlonr I8 CWn8u or oontroll4a by th4 aamm intarssta.* said k4t fppth4r **p0viae4,** a: to th8 pa)r?.ent 0r tb4 tuxL,aa r0ii0w4 I *In any ant.0 In wbiah a tux 14 w4n44a upon the beair Of 4 OO!NOlidutbd T8tUA, th4 **tot31** t&X ahell **ba** ooqsited in the firat Ineatcrncs ~8 u ,Wit **an4 &ball**  **then be**  **8S49444a** upon the re$psotiVe af* riiiat4acorpor4tlone Lz au& proportionaa4 my **b8** agreed upon #non& thyn, or, in the abaeme of SAJ' auah 4$t48E4ctIth84 On Sha ;$44ia oi t:.4 n4t Incom properly 44el&mbl4 to 4&ch.

. ,@' 0~ oonoluolon in tkls opinion au to **tks** fnennar of **asesemsent Of**  **th4 %0X**  **ItW@ b?!**  **tOSQW8d tQ**  **the IURn** **’ (le~**  **0f &B64%48#83s**  **pFOlid8e** for In the Revanue Aot, auprc, just 48 the **imt4a** fitataaDletriot Court ot W44t Vl~trginla oompared ths West VirginiaChain &or4 mt to suoh R*tenuaAct.

Aa you ocly Inquire about tin4 llabilltp of the **sub- ’**  **siaiatp 0ap0mi0na,**  **A:, n**  **3na c,**  In the raot altu4htiQn you prsuant,thie opinion 14 ccnfinedto the qU84tlQnyQu esk, endi ii. 

### 296

& are not paming **upon** the extent of liability,if any, i of holdlra ooqany X. Our oona~usionend opinion on the **qusetion YOU**  **e8k my**  be auxmfirlzed an follows: The Texas **Ohafn** Tax 18 4rs4ss4d agelnet lnUlrlQualr, aorporatlonr, et4., rho 0p4n, emtabllsh,optwets and n:ainteln stores. &oh a pewon, **aorporatlon,** eto., 0~40 **the** tax on **the stor4s**  he or it 80 operate4slnd aaaintalns.TRe three subeidlary **sorporationo** here are liable for the taz as one oheln **under** Beation6 of the Texas **Aot.** it8 stores. Eaoh oorporation muat pay on The tax Is one whlah la based on the nuaber of rtorrr,and, therefore,eaoh corporation paya an wount proportionate

to the **number of**  **atom8 in**  the one **single** ohain that woh oorporatloa **operates.**
Yours wry tru3y

_

AWROVEDm 27, 1940

COMMIITEC