. . 

OFFICK OF THE ATTORNEY GENERAL OF TKXAS 

‘, a. 

AUKTIN 

ior tha uko 

thir do~rtment, rhloh 

0 l # r 0u0ms 

06 br vlrtua of 

l r a eo r io n, wth 

h0 88i0 or r d0r 

8I a n6 IIwnl storer 

la d tho motor fuel 

naval rtorrr, in 

r k no wn l I the Buok 

rn-mrtwright Ireon Ai6 sot out below ruoh portlom o? our Motor .- 

or tha Ka~6oll-c8rtwrlght ~oarnl Aid Aot 

1 l ~ mmrhg your auertlonr. m880 lrotr 

“Zoxa* Kotor ?url hxfag Aot: 

“(arl’hero ahall ba aA im hornby 1ori.d and 

impor (oxaopt a horolndtrr protlded) 

the tlrnt #ale, dhtributlon, or wo OS 10 Y zg 

ru0i in thi8 atate aa oooupatioaal or alroi84 

tar or r0ur (4) 00th pat muon or rr~0ti0e.- 

‘r; ;he;r”’ 80 rold di8tribut8d. or Wed in 

tr8m drtributor who 88k88 0 

iir8t 8818'Or dlrtribution 0r utor ruqr ia 

I 
890 * 

Bon. Oeo. 8. Sh8gglrd, Fag8 8 

thi8 St&8 rOr My pUrpOa8 Wh8t808v8r Shdl, 

ai th8 th8 O? ‘UOh ‘Ill8 Or di‘trfbUtfOll, 001. 

1800 th8 said tax rroo thr puroharsr or rsolplent 0r 8aid motor fU81, in adtlltloa to hi‘ 

881lin6 prio8, ana shall r8port aad pay to tho 

St&O Or T8X88 th8 WX 80 OOfl88t8d at th8 

tlmo and in the mum8r her8lnaft8r prorl68d. 

tr8ry ruoh dlrtributor 8hall a180 br liabl8 to 

th8 Sk&t8 Or T8X1h8 rot th8 Mild t&X Of rOUr 

(4) 88nt‘ per pllon On 8aOh WllOn Of motor 

f~81 or rm0ti0d part therrof 118814 or oonrued b him nab r&all ropart and p87 ~16 tax 

8‘ h8r8 I Mrt8r prOtt686.‘ 

C8uok Ai88nbMt CO th8 IiapWkCartWrfght t8U8tcrl 

Ai6 A8tS 

“SOOtion 10. (8) That all tax88 18V18d by 

l lly stit8, T8rritory Or th8 Dl8triOt Of Coltmbla 

with r88jB8Ot t0 Or =MWUOd by, ‘(Lf8, ~tWOh8‘80, 

‘tong8 Or U88 Or y8OfiD8 Or Oth8r WtOr 78hiO18 

fU818 My bs 18Vi8d; ill th8 8a58 mbMIr 8od to th8 

‘aae eXt8at. with r88Q8Ot to Such furl8 when ‘old 

by Or thtoU&h Bolt eX0h8~8.r ‘hip 8tOl’88, 8hip 

88IViO8 StOr88, 808tw84rl88, riiiiag 8taiOM, 

ffO8D88d tl'&ddr‘, Uld other ‘idfar 8g8flO~88,1008t8d 

on United Stats8 Military or other r88orvatlona,wh8n 

l uoh tu818 ar8 Dot ior th8 8XO1W1?8 U88 Or th8 

United Stator. Suoh taxe8, 80 levi8d, l ball be paid 

to the proper taxing authOrltla8 d the Stat8, T8rrltory or 'th8 Dl8trlot Or Columbia, within 8ho88 bordrx-8 

th8 ?888matifJti8 afreoted My be loo&ted. (!?&#aBi‘ 

Our‘) c 

‘(b) ThS OrriOOr in Oha~g8 Or 8UOh ?88O?T#ItiOa 

‘hall, on or botorr the rlrte8nth day of eeoh mvllth, 

rubolt a written Skstement to th8 proper taxlag authOriti88 Of the Stat8 Territory Or th8 DirtriOt Of 

Columbia withia rbO88 krd8r8 the r888matiOn 18 

loonted, rhoring th8 arOUt Or ruoh motor fU@l with 

rerpaot to rhloh tax88 are payrrblo under rub-rsotlon 

(a) ror tb8 pr8oedlag month.” 

38 d8U it import&at t0 keep in mind th8 pUrpO88 

8lld tunOtiOn Of there tW0 ‘tatUt88. OUr St8t8 ‘ktUt8 18 a 

taxing aot by virtue of rhloh the tegirlatur8 wlthia l~,# 

oonStltut&Ollal power8 h8 lOtie l O 8XOi8e t&X UDOD th8 fi?8t 
891 

Hon. oeo. a. Shs&Q&rd, Psge s 

J 

S&18,-th8 first dlrtrlbutloa, 01 th8 rk8t WI I& this 

st‘t8, uhloh i‘ d8‘i&Mted l 8 .a OaOUQatiO4l Or &XO&‘a 

tax. Th8 ib~d8lI-C.tiWright t868r.l hid &t 18 8 p8ra18SlV8 Or OOIlgr8‘81OUi1 @Wit Or vU8r t0 th8 atat 

t0 18V7 th8 kX oa orrtaia yrn0188 or irutru88nt811- 

tt88 lld8r p868M Y jPritiiOt&Oll fOO.te6 00 t7dt8d 8t‘t.S 

mllltam or MVal i888rVrtkmS, vhloh Oth8rWi88 might b8 

8x-t under th8 ?rdaral Conitltutlon. 

rh8 ObrfOw intOn% Or Our 8ktUt8 18 to 18~~ th8 

kx a&net thr uaar or 80nmm8r or 8stor fu81, but the 6tstributor 1s Ooll8titUtrd th8 OOll8OtiEl@ r(leI%Oy Of th8 8kt8 

iOr the OOll8OtfOJt Or th8 taX. xt 18 OlUr th8t th8 tu 1‘ 

lmpo88d upon only on8 ulr or dirtrlbutloo and not upon suo08881r8 or sub88qu8nt *a188 br dlrtrlbutloor. This 18 alrr 

rror th8 r0imitig pert 0r th8 rtatut8r 

“Ia woh 8Ub88qU8lkt 8is18 Or di8tributloa Of 

#tot fU81 HpOn rhloh th8 tax Of your (4) oantr 

8? 

E x 

ailOn h8‘ b88a OOlleOt.6, th8 Pid kX sh8ll 

8 8 dad to the 881114 prior, 80 that 8uOh tat 

18 paid titiMt817 by th8 psr8Oa U‘iIqJ Or OoaMily uld aotor ruei ror the purpose of ~snentlai5 

power ror the propulsion oi any motor r8hlolr~ upOn th8 pub110 hi@iWa)r Oi thi‘ Stat8.- 

wr drw it h8ipiul as u8 prooerd to not8 oortaln 

68rfkdtfOM OontafA8d in Art1018 9055b-1, Just a8 th8 oourt 

did in the consld8ratloa 0r th8 0850 0r st8t8 ** city 0r 151 

-80 (Suprem Court), 143 S. 11. ted) 368, in aonrtrulng our 

rotor tu81 t&X StatUtO 88 it th8a ut8tod Olid b8iOr8 it -8 

-8lld8d. Mach mid iA thf8 Oar8'f‘ not iMppropriat8 in 

OOlUid8r14 ‘Ut pr888Ut Statute. Th8 OOUrt d88m8d it heJpfu1 

to AOt8 the derblftiOJl‘ OOl+iWd in th8 .Ot, 88~8Oi.lly th8 

drfinltlon or the tax, which was the sea8 a8 sontalnrd In th8 

pr88ent aot, 8nd 18 aa r0iiw8: 

*An oo8upatlon or 8x0188 tax 0r 40 prr gallon 

0r motor rue1 or tnotloaal part ther8oi.w 

The tax, by th8 8x~r.S‘ landuad8 Oi th8 #t#tuta, is 

Urtributlon, or rirst U8e 0r motor 

8utUt8 d8rmS rir8t 8818 

thwr 

*fret rale) shall a8aa th8 rir8t ma18 or 

dlrtrlbutlon ia thlr Btat8 or motor fuel r8ila8d, 

bl8ndrd import& into, or la any othrr Itlnn8r, 

produord in, aoqulrad or brought into this Stat8." 
892 

&I. 080. 8. Shrpwtb, Pad8 d 

uho und8r th8 8tatUte laltlat88 a ffr8t 8.18, 

a dl8trlbutlon or we 0r motor furl upon whloh #8 tax 

1s 18Vf86? The sta tute l n8w8rsl (a) "di8trlbutor*. aho 

18 a *418trlbutor"9 Adala thr statute amr8rs 88 r0lidwt 

l Dl8trlbutor shall m8aa 8nd lnOlu48 8~817 

p8rron in this stat8 uhe f8ffn88, di8tfii8, maauu- 

$8OtU?8‘, prOdUO blend‘, Or OO~~Ound‘ motor 

furl or bl8nd86 rCerlal8, or in any other msnaer 

l o q ulrrr or p08808888 motor rue1 or bl8nd8d mt8?- 

8hlpsr trsn8portr or fmortr any mtor turl or 

bl8nd8d Ilot8rial ht0 thi8 sat8 8nd mk88 #8 

~8. or df8tribUtfOa 0 

iiVA.id r88fdU8nt Or MtuiOi 88, OOm8Oay m 

as drip lp8olfne, or rho 18 r88pOllSibl8 for tb 

produotlon or r08386tf0a or raid drip ga8olln8, 

lAtcllltiOM1.4 Or Othorri.8, WA1888 88id p?OdUOt 

18 tOta.kly d88trOy8d Or r8adsr8d lleUtFa1 8‘ motor 

rue1 or a8 a produot o&p&b18 0r w8 as Potor furl 

in thf‘ 8tat8." (m@B818 -8) 

In order that th,rr b8 DO lOOph818 for 8‘oape in 

thorn8 ln8tanoe8 wherr th8 tax rallr upon the rir8t un8 or 

dl8trlbutlon 0r notor ru0i a8 di8tingul8h8d from a ri t 

w 

W8 &gain loo& to Oarkin d8iinftiOM OOntainO&kthr 

tnhrs8 ar8 as roii0w88 

Thr trra *user* shall br OoMtrued to moaa any 

perron who us88 or OOMwe8 *liqUeff86 68888" and wOthW 

liquid tu81“ within this stat8 in int8rMl oomburtloa 

8fl&88 iOr th8 68Il8lWtiOll Of pOW8r to prop81 motor Vrhi018‘ UpOn th8 publio hi&W~y‘ Or this stat8. 

~~Dirtrlbutlon~ shall me&a and fno1rsd8 my 

tran8aotlon8, other than a 8818, In whioh ora8rshfp or 

tit18 to motor fU81, or any 48riratlt8 0r 8iud8 011 or 

artural gas, p8808 rma on0 prr8on to aaoth8r.m 

**peraon~ ah811 m8an and lnolud8 every lndlvfdual, 

if&-m, ,a88oolatlon, joint #took oompaay, 8 ndioat8, 

#hfp;oorpor&tion (publlo, prlvatr or mun I alpal), 

Oogmtnerl genOy.or ro08fV8rs' (gmphaSi8 OUr8) 

truULlt88, 
"bSh?w 4hSll m@UA Sad iAOlUd4 4V4ry p4r4OA 

other-than a Uatributor who ,~~ea in the bualneaa iA 

this stata of dlatributiog or adlily aotor fuel within 

this State.’ 

To vita AU?. t&t 06rtSiA tsrO8 Wad iA this 

a6t ba uniformly Pndrratood 8Ad unlfo?ml~ applied, the 

La~lalAtUra 8laOteU to defA4 them, and to tit880 drfinitioaa IV. mat l dhoro . 

8umarirlng further, what vm ham mdeutorod to 

l uy la l rpr aaaby e6 Juatior Crltr fA the aaaa of Sktr t. 

City Of a h80, APPZ’U, a4 iDfhW41 

Vroa the l araral l ta9utory prorialonr it la 

WfbOAt *bat th0 LO&4kU$iVr LAbAt, 44 4Xg44444d 

iA the abovr 4t4tuta4, 14 to impose a motor tual 

tUX Of tOUP WA%4 p4r @lOA OA the fir.% 4Uh Of 

motor ru41, wham l u6h furl la aotually aold lo 

Texw . 

iAt8nd4d 

xt la furthrr WtldaAt that the L*glalaturr 

to imp040 a four 84At4 p4r @llOA user 

tax 011 all rotor fuel Web OA thr publio highway8 

of this stat0 in IA~~uA~w$ whuro the user obtuha 

l ua h mo tor tUe1 UAbr l u4h O~rOUaatAAOaa that AO 

8otuul aalr theroot wuwpina in Twaa. 

4tUt.d. Wheo OUZ leotO? t&id tax 14~4 Or0 Tea v l Ad 

oOn8t~rU ~8 u WholQ. it l8 evident that the tax 

Xoriod ror use of motor fuel in thla state SoQ 

ha@ ~UX l.rvLed for aalr OZ plotor furl ara the 

aam. On&or t& u l xiwaar wo r d4 OS the 

GotOr heel With 

atatut 0, us* 

Out 8AtUai 441@ iA thla State 

ia still a statutory l alet that ia.‘to 4s~~ ‘firat 

uaaq la tha ~rirat aale’ for taxation ~urpoaiiTwhere tbrr4lia AO aotwl rlrat l ala.~ (mphaaia oura) 

kplii'yiag iurtbar, a *diatrlbutor* or %¶4aler* 

may ba sot OAly a. O@&laOtin# l & .AOiA y behuli Of thm Stata 

ror the oollrotion 0r a tax UpOA thr motor fusl diatrlbuted 

or aold by ft, bu8 a U4.P Of motor fud UPOA it8 OUA 4OoDUAt; 

in both inatanoaa, ltable to aooount tar and pay the tax 88 

provided fn the aMtut to thr Coaptroll4r ot Publie Aooounta. 

ll4 do sot oonatrw the oaa4 of Standard Oil Comp44y 

of Calliornf4 T. JO~ASOU (United Stutoa Suprrnw Court), 86 

I,. I@¶. 1611, ~8 holding tbt iA no atsat My the 8tate laty 4A 

l xoim~a wx OA tha l uh, dlatributloa, or we 0r motor fUal,but 

14ft th4 QUO4tiOA op4A if it l houl6 OOA. t0 tb4 OoUrb Upon 4 

oorrwt drterainutloa by the Suprsmr Court of Calltoml4 of thhr 

l t6tua of Poab hOhange4 aAd l?a~al StOPa ua yadaral iAat~- 

.uo5tulltl*a. YOr8OfaC, it do@4 AOt&&l@W hl t&i4 OU4e WhUt 
894 

Hon. 01~0 )I. Sheppard, P&JO 6 

raoognitlon, Ii u~y, *a s l coorded by the Court to the 

fiuydrn-cutwrlght todual Al4 not in rraohing its 

doolaicfn. 

WI, tbereforr, isal ju.ntlfied by the upreaa prorlalona of our motor fuel tax law and the Hayden-Cartwrlgit 

Tadrral &ld Act, and thr aUthOrltY of Stat@ v. City oi El 

P u SO, l upru, in holding that tha dellvery IA Tour to a post 

l xohango or naval sto r e by l ~biatrlbutor* aonatitutra a 

first sale upon whioh thr distributor should oolleot and remlt 

the motor tueil tax, l xoept upon auoh motor fuel us used bxolualraly by the United States Oorrrnmat. Aa we htwr noted, 

howore?, the l tattltr prorldra that in aaoh aubaaquant anla or 

dlatrlbutlon of motor f’url upon whioh ths tu of 4# par gallon 

baa been oollaeted, the as14 tax shall br l ddrd to the l alllag 

prloe, so that auah bar la paid ultiaratdy by the person using 

or conaumlag au14 tax for furl tar the propulsion of any motor 

+ehiolr upon the publio hl@nmya of this Sktr. In other words, 

a post exebanga or mm1 stare that ha& paid tha tax to the 

diatrlbutor aa4 subsequently rolls to tho user, other than to 

tha United Statra Qovernaont, la authorized un4er the law to 

reimburse ltsrli by oolleotln(l tha tax tron tha ultieste user, 

30 trust we bare ~48 plain our views. 

Vary truly yours 

ATTQR~XY WNERAL Gy TXSAS 

LPL: RT 

APPROVED 

O?INlON 0 WYYIITLR 

.1- olA*lu