c . 

TTORNEY GENERAL 

OF TEXAS 

Auwrmr. TEXAS 787ll 

October 17, 1974 

The Honorable Robert S. Calvert 

Comptroller of Public _Accounts 

State Finance Building 

Austin, Texas 

Dear Mr. Calvert: 

Opinion No. H- 424 

Re: Whether governmental 

bodies and private persons 

operating on federal property must furnish bond required 

under Art. 20. 021(N)(l), 

Taxation-General, V. T. C. S. 

You have submitted the following questions to us for an opinion: 

1. Are governmental bodies which must collect 

the sales and use tax also required to furnish a 

bond or other security to the Comptroller pursuant 

to Art. 20.021 (N)(l), Tax. -Gen., V:T.C.S.? 

2. Are private individuals who sell taxable 

property from facilities located on federal property 

and which are operated under contractual agreements with federal government entities required 

to furnish a bond or other security to the Comptroller 

pursuant to Art. 20.021(N)(l), Tax. -Gen., V. T. C.S. ? 

The 63rd Legislature added to the Limited Sales, Excise and Use Tax 

Act the requirement that a seller of taxable items must furnish a bond or 

other security to the Comptroller to secure payment of the taxes that must 

be collected under the Act. Acts 1973, 63rd Leg., ch. 345, p. 776. Article 

20.02 1 (N)( 1) provides in pertinent part: 

.,I Every person who holds a sales tax permit under, 

this Chapter as of January 1, 1974, and is delinquent 

in the payment of any taxes, penalties and/or interest 

on January 1, 1974. and every applicant for a sales 

tax permit on or after January 1, 1974, shall furnish 

to the Comptroller a cash bond, a bond from a surety 

company chartered or authorized to do business in 

p. 1968 
The Honorable Robert S. Calvert, page 2 (H-424) 

the State of Texas, certificates of deposits, certificates of Savings or U.S. Treasury bonds or, subject 

to the discretion and approval of the Comptroller, an 

assignment of negotiable stocks or bonds, or such 

other security as the Comptroller may deem sufficient 

to secure the payment of taxes under this Chapter. 

Any surety bond furnished under this Paragraph 

shall be a continuing instrument and shall constitute 

a new and separate obligation in the penal sum named 

therein for each calendar year or a portion thereof 

while such bond is in force. Such bond shall remain 

in effect until the surety or sureties are released 

and discharged. The Comptroller shall fix the 

amount of such bond or security in each case, taking 

into consideration the amount of money that has or is 

expected to become due from such person under this 

Chapter and under the Local Sales and Use Tax Act. 

. . . 

“Person” is broadly defined in Art. 20,01(A) and included within its scope 

is “the United States or any agency thereof, this State, or any agency 

hereof, or any city, county, special district, or other political subdivision of this State to the extent engaged in the selling of items taxable 

under this Chapter. I’ 

In response to your first question, then, it appears that the Legislature intended to require any governmental body making sa1~e.s subject 

to the Act to meet the security requirements of Art. 20.021(N)(l), Thus 

dny,~g.d,vernmental body~~wh~~h:is,:colle:cfin8rthe sales tax, as a holder of 

a sales tax permit, must, under Art. 20.201(N)(l), also furnish whatever 

bond or other security the Comptroller deems necessary: governmental 

bodies holding sales tax permits are not excused from meeting this 

requirement simply because they .are governmental bodies. 

The answer to your second question is provided by the Buck Act, 

4 U.S. C., Sets. 104-110, particularly Sec. 105: 

p. 1969 
. r 

The Honorable Robert S. Calvert, page 3 (H-424) 

(a) No person shall be relieved from liability 

for payment of, collection of, or accounting for 

any sales or use tax levied by any State, or by any 

duly constituted taxing authority therein, having 

jurisdiction to levy such a tax, on the ground 

that the sale or use, with respect to which such 

tax is levied, occurred in whole or in part within 

a Federal area; and such State or taxing authority 

shall have full jurisdiction and power to levy and 

collect any such tax in any Federal area within 

such State to the same extent and with the same 

effect as though such area was not a Federal area. 

/ 

This provision was passed by Congress to enable the states to impose 

sales taxes within federal enclaves. Humble Oil & Refining Company v. 

Calvert, 478 S. W. 2d 926 (Tex. 1972). Thus private individuals who 

sell taxable items from facilities located on federal property are responsible for collecting the sales tax and, accordingly. would be required to 

furnish a bond or other secui;ity to the Comptroller under Art. 20. 021(N)(l). 

S UMMARY 

Governmental bodies which hold sales tax permits 

and which collect the sales tax must also furnish a 

bond or other security to the Comptroller under 

Art. 20. 021(N)(l). Private individuals who sell taxable items from facilities located on governmental 

property are responsible for collecting the sales 

tax and, accordingly, also would be required to furnish a bond or other security to the Comptoller under 

Art. 20. 021(N)(l). 

Very truly yours, 

v Attorney General of Texas 

p. 1970 
The Honorable Robert S. Calvert. page 4 (H-424) 

DAVID M. KENDALL. Chairman 

Opinion Committee 

p. 1971