,

1.

.

.

.’ E 

## Y GENERAL, EXAS

**Urrcb 13,**  **1997**

, **Hoa, Robert**  **8, Gslvcrt**  **Oplakoa No.**  WW-50 **ComptmUer** of **Public Accouatr**  **Capltoor station**  **!** Re:, Whether or **not** the tag **provided Auetn.**  **Texua for**  **by Ahcticle** **7047m,, VAX.,**  **rccrks** *re all acts **in con**  noctlon wtth the transfer occur out#Ur the bounderies of Tcr~ except tha’r*cordln# of the ‘, t,ranrfer on the offlclal books Dear Mr. Calvsrt: of **tlkTe**a etqoratlon,** 

You:: ropwat **the** ,optnfon of tbfr of&x M to whether Article 7047m, Vernun’s Clvll St8tutes,, im.poser a ***tamp** tux **upon** the transfer of tbe stock of a corporation when every incident of the trtutofer **occurs** outride the Istate, ercapt **the** trwsfer upon the hooks of the cOrp0ratiOa

Firmt, it rbould be noted tbaf the @at&e **upoa which**  **frur t** **rlor** opinton. NQ, O-3713, wus bar4b no .longer **prevritr.** Article 1334, ,c&, upon wblt* **oar** prior opinion wbs rendered, bus become inoperative rod bar been rupeisadrd **by Article**  133~0-1, VA.&, of the Unfform lbeh Transfer Act.

ft Is no iotqer **required** tbot l tock be transferruble only on the books of the **Wtl#rMon ,in**  **r,uch**6aamer **AS**the by-luws nuy prsscrtbe to complets the rrle or trsnrfer. The Court bold k tkr cuse 199 S.W.Zd 792 (‘X%x. e’ 1358-i, VGB., ar followr: “Qn small pieces of pqtor are wrtttsn tbe 8vfUencc of foMmer, It is tborefore of great importance that **these titlas** **‘ qhould**  rest on l **mme**foundation; . . The m&r purpore of the **Oniform** Act tn to mate certificate6 of stock the 601~ represaatuttva of the shares which they represent. ... A transfer of stock certificate is made to

“The above section negstlves the necessity of a transfer on tbu books of the cornpuny. Such transfer‘m* Robert S. Calvcrt, **page** 2 (WW-58) ,,,, :

under the Act becomes no more than the recording of a deed to land. ,..* (Emphuio rupptied) Therefore, under theundisputed facts, es submitted. by you. transfer. of stock in a domestic corpordtion is speclfically exempt from the taxby th$ portion of Article 7047m, Sectton,,L, V.C&, rrrtilnq aa follows:

,,,~,’:, ,~ ,,’ **I. ,**  **.,;**xux In **reopact to**  ohwee **or** certificates of stock **or** certificates of rtghts to s,tock. or csrtt#ficatee of ~depooit reprerenttng certtftcmter of the character tared by this Article, in any domerrtic associ(L.tion, company, O,P corperatioo, Ifn&her the sble, nor the order’ for, nor’ ,agrecat& to buy, nor the agreement to sell, nor the memor*qdum of @ale, **aor** &e hlkety ir made In ti$fs’ r,tatep.. .” : 

## Yocr $. tIlor6rom

rmpedftbtip

i&l&d tbst, ii+ ‘*t&&i t&w,14due an tb treaofer of.certff4catra .of rtock of a douu&te corpor+tAon under the frets perented by you,

The’ tax statute exempted, and exempts, foom:~tbe & tax, transfers, the requisites are concluded without the State, “when no Act necessary to effect the sale or trrnsfer is done inthis State”

. Former Article 1334 required transfer oa the corporate books. That statute,was repealed and 1358-l was substituted which provides transfer is by andorrement and delivery and specifica!ty piovlde# trsnrfer on the booke is not a requisite, even though required by the corporate charter and by-laws. The Snyder Case holds the*transfer is effectuated ‘without regard to trrnsfer on the books of the company”. The LegSstature thereafter amended the tax statute with presumptive knowledge of the repeat of 1334, the enactment of 1358c1;, and the constru?- t&ongivtn the latter in theSnyder Case, yet it did not t&x“recorded transfers”

. Rtcording the transfersi **#o& Rokit**  **I, ,$4lvcrk,**  **pye 3** ‘IWW-58)

b mt ryu$eltc to the arle or trmefcr. Therefore, U 411 that LBto he doas LaToma i&**to mcord**  **t?w**trmofcr “m Act wcesaarj to effect the 041s or tranefer Le**done** lf~ thi6 Bt&e” **and**the tranrraction le tax **esem)t. Yourr**  **Ay,** WILL WILSON Attorney General

**APPsfovEb: OPINION**  COMMITTEE X. Gruly Chandler, Chairman LPL:cs