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## TTORNEY 

# GENERAL OF TEXAS
Auwrmr. TEXAS 787ll

October 17, 1974
The Honorable Robert S. Calvert Comptroller ofPublic _Accounts State Finance Building Austin, Texas

Dear Mr. Calvert: Opinion No. H- 424 Re: Whether governmental bodies andprivate persons operating onfederal propertymust furnish bond required under Art. 20. 021(N)(l), Taxation-General, V. T.C.S. You have submitted the following questions tous 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 toArt. 20.021 (N)(l), Tax. -Gen., V:T.C.S.? 2. Are private individuals who sell taxable property from facilities located onfederal property andwhich are operated under contractual agreements with federal government entities required tofurnish abond or other security tothe Comptroller pursuant toArt. 20.021(N)(l), Tax. -Gen., V. T. C.S. ? The 63rd Legislature added tothe Limited Sales, Excise and Use Tax Act the requirement that a seller oftaxable items must furnish abond or other security tothe Comptroller to secure payment ofthe taxes thatmust be collected under the Act. Acts 1973, 63rd Leg., ch. 345, p.776. Article 20.02 1(N)(1)provides inpertinent part: .,I Every person who holds a sales tax permit under,

this Chapter as ofJanuary 1, 1974, andis delinquent inthe payment ofany taxes, penalties and/or interest onJanuary 1, 1974. and every applicant for a sales tax permit onor after January 1, 1974, shall furnish tothe Comptroller a cash bond, abond from a surety company chartered or authorized to dobusiness in

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

the State ofTexas, certificates ofdeposits, certificates ofSavings or U.S. Treasury bonds or, subject tothe discretion and approval ofthe Comptroller, an assignment ofnegotiable 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 thepenal sum named therein for each calendar year or aportion thereof while such bond is inforce. Such bond shall remain ineffect 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 ofmoney that has or is expected tobecome due from such person under this Chapter andunder the Local Sales and Use Tax Act.

. . . “Person” is broadly defined inArt. 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 ofthis State tothe extent engaged in the selling ofitems taxable under this Chapter. I’ In response toyour first question, then, it appears that the Legislature intended to require any governmental body making sa1~e.ssubject tothe Act tomeet the security requirements ofArt. 20.021(N)(l), Thus dny,~g.d,vernmental body~~wh~~h:is,:colle:cfin8rthe sales tax, as aholder 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 toyour second question is provided bythe 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 atax, onthe ground that the sale or use, with respect towhich such tax is levied, occurred in whole or inpart 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 toimpose 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 onfederal property are responsible for collecting the sales tax and, accordingly. would be required to furnish abond or other secui;ity tothe Comptroller under Art. 20. 021(N)(l). S UMMARY Governmental bodies which hold sales tax permits andwhich 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 tofurnish abond or other security tothe Comptoller under Art. 20. 021(N)(l). Very truly yours, 

# v Attorney General ofTexas

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

DAVID M. KENDALL. Chairman Opinion Committee

p. 1971