T~AEA~ORNEY GENERAL 

OF TEXAS 

Aus-. We, 78711 

April 5, 1974 

The Honorable Robert S. Calvert 

Comptroller of Public Accounts 

State of Texas 

Austin, Texas 78774 

Dear Mr. Calvert: 

Opinion No, H- 274 

Re: Authority of cities to 

collect taxes due under 

Article 1066c, V. T. C. S., 

the Local Sales and Use 

Tax Act 

You have requested an opinion on the following questions: 

“Whether any city has authority under Vernon’s 

Ann. Civ. Stat. Art. 1066~. common law, or otherwise 

to engage in any collection activities, including collection on a judgment, for tax liabilities that arise under 

Vernon’s Ann. Civ. Stat. Art. 1066c, other than joining 

as a party plaintiff with the Attorney General in a suit 

for collection as provided in Vernon’s Ann. Civ. Stat. 

Art. 1066~. Sec. 12, subsequent to a certification of a 

tax liability by the Comptroller to the Attorney General 

for collection? ” 

“In the event any amounts due under Vernon’s 

Ann. Civ. Stat. Art. 1066~ are in fact received by a 

city, either legally or illegally, is that city required 

to either remit the total amount collected, exclusive 

of court costs, if any, to the Comptroller or to submit 

an accounting to the Comptroller of all amounts so collected? ” 

The Limited Sales, Excise and Use Tax Act (Chapter 20. TaxationGeneral, V. T. C.S.) was enacted in 1961. The Local Sales and Use Tax Act, 

Article 1066c, V. T. C. S., became effective in 1967. It authorizes cities, 

towns and villages to adopt a local sales and use tax which is superimposed 

on the state sales tax in local, taxable transactions. 

p. 1280 
, 

The Honorable Robert S. Calvert. page 2 (H-274) 

We believe that the State Comptroller is the sole party authorized 

to collect these local taxes on behalf of the city. Our opinion is based 

upon the many provisions in Article 1066~ which contemplate collection 

of the local taxes by the Comptroller. The caption to the Act sets out 

that it is an act “providing for the administration and collection and 

enforcement of such tax by the State of Texas. ” (Acts 1967, 60th Log., 

KS., ch. 36. p. 62). Section 5 of the act provides that “the Comptroller 

shall perform all functions incident to the administration, collection, 

enforcement, and operation of the tax, and the Comptroller shall collect 

. . . an additional tax under the authority of this Act of one percent (1%) 

. . . . ” It further states that the local tax and state tax will be “collected together and reported upon such forms . . . . as may be prescribed 

by the Comptroller. . . . ” Section 6 establishes provisions which “shall 

govern the collection by the Comptroller of the tax imposed by this Act” 

and Section 4, establishing an excise tax, states that “the tax imposed 

by this Section of this Act shall be collected by the Comptroller on behalf 

of and for the benefit of such city. ” (emphasis added) 

These provisions clearly show that the Legislature intended that the 

State Comptroller be the central collector of these taxes. 

The answer to your second question is dictated by our answer to the 

first and is governed by the same statutory provisions as those quoted 

above. Since the Comptroller is the sole agent authorized to collect the 

Local Sales, Excise and Use tax, any such tax collected by a city in any 

manner must be paid over to the Comptroller to be deposited in the State 

Treasury for the city’s benefit. 

In connection with your first question you have referred to $12 of 

Article 1066~. V. T. C. S., which provides a convenient procedure enabling 

a city to join as a “party plaintiff” in suits brought by the Attorney General 

to collect delinquent state taxes when a city tax is also delinquent. However, this procedure is not exclusive and a city also has a general common 

law right to file suit to recover delinquent taxes. Brummer v. City of Galveston, 76 S. W. 428 (Tex. 1903); City of Henrietta v. Eustis, 26 S. W. 619 

(Tex. 1894). See also Article 11, 5 $4 and 5 of the Texas Constitution and 

Article 962, V. T. C. S. 

p. 1281 
-- 

, . 

. 

The Honorable Robert S. Calvert, page 3 (H-274) 

SUMMARY 

The State Comptroller is the sole collector 

of taxes under Article 1066c, V. T. C. S., although 

cities may independently file suit therefor, and 

any such tax moneys received by cities should be 

remitted to the State Comptroller for deposit in 

the State Treasury for the cities’ benefit. 

APPeCjVED: 

DAVID M. KJSNJJAJ 

Opinion Committee 

p. 1282