**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN**  **Q-C.MANN m.ieuuv.-** Ronorabla Cleorgo x. Sheppard,pa&r P

aal oompaay, oorpontion of esroaiation, 

### at the tir oi makiag se14 raport for an7 saoh lnoorporatrd

town or olty ot aoro than ow thousand (1,000) inhabitanteend lerr than two thoumAn rite 

### huahrod (6,600) **habitantr,** 

### aooordfn& to the la8t TadorallacOlA8U8

next preoedlng th@ filing of reia report, #hall pe to the Trrartwer of thir @tuta 8n oooupet Ion tax for the quarter brginnl~ on 8aid date 

### l quel to forty-four huaaraathr (,44) or one (1) per aent 0r 8tIid go88 reOOipt8, 88 8hOwa by 88ia rOport1 eta.@ "%lOr0 I8 nOT 801b t0 the OODlW.%3T wlthln the lnoorporated town8 a liqaeilsdpetrolowngns. Thl8. ga8, a8 a rule, 18 aellrared to,thr aon

### 8umer In liquid form and in ordrr to 

### ntaln it8 1iqUid 8t8t8, it aU8t be k8pt WidOr high prbr8ur8 but when mleaaed iOr the 

### barnar tip, it tWI.I8 to 8 gar vapor. There era lnstanoerwhere l tank 18 lnrtalledon a lot from whloh l nunher of auotomerrare taken ean of by the ga8 brfng plprd to thr ho3148) in thlr oaae, a8 In 

### the inaitiaual0880 e8 80011. a8 the praaenm ir rolaasrdat th8 task the gar rapor 18 fox-reed 

### and piped from hOU8. to house. " tilea tall QI if the gros8 raoalpt8tax, unaer tbo above rrtirlo,wIL1 wham ?a848

within the a ply toruoh ralrr % laoorporaod tona8,*

ft 

### IQB~ be 88on 

### that the artiole JOU quote la rour letter oontainrtwo rrquirementr

### betorr an lndlrldual beam08 liable for thr tax dilOU8S@d therein. tn the flrrt plaoo, In nlation M the question8asked, the lnalrlauelmuat operatowithin aa lnoorporatod olt -any gar p1ant.R Also thr same must be umd *ior looa I la10 snd d~rtrlbutloa of gall.*The tax is based upon the gros8 amount reosived from the burlns88 dono in ths papant of oharger for thr galra 

### fou havs iurairhtipr with the l

ddltlOn81iaOt8 that the llguld la8 in 'qtI@Stlon 18 a aomponeatp8rt or ~orltrtitoof naturalaa8 a.hiOhir liquefiedby pressure and teaperaturo. In itr natural 8tate it i8 a gba. It la ml6 to the oonsuaer 

## ‘h

.,*. 

### 786

Honarablr Ceorgo fl. Shepperd,pago 8

either e8 l liquid or a8 a ear* Prior to it8 ocummption it roturnrto it0 **@S.OU@** state. rho fir8t queatlon arlroo a8 to whet&m ot not tho ooeeodltfyou inquire tbaut 18 gas titbln t& waning 0r the **above quoted**  **8 ttItUt8,**  **YOU** hW 6aVi8Od U8 that tk OCWtiit~ i@ 3itih8r a prOpQll8 Or 8 bltM0,

Fro~ano 18 **dofinod 8)f**  XOb8t6r **a8 fOllOW8:** 

.

-ithOr sf tu;o

iaowrio, mhi6bh, 

### gaseoaa 

### bydrooarbaona, Cd Hlg, of the iwthna rerier; l c l .- 20th 0f the abOV@ dbfinftioo6MOO@LO th# 00~1 aoalty to bc a fe.?ecus I%b8t.WIOO.It i8 our uder6%bllbg that tD6 E0;;:O

i8 li~USfi3db'y

p.36~r a&d taXp.iIMXI% 

### ror pu~oaee or trene,norting and handling. fn this oonmotion tts Amtic Couxt af Civil A~;,tialr in the oasa of bALLA CA6 CO?.PAHY v. 8TATE reruned by ttie

Soprem Ccur4,861 3,?i, lCa!J-wit oi error 

### nt.;tob in 

### ooh\eotlon with thr taxing rtatute tuxIsr OOn6id8r6aiOiI hero, 

### 80 follrmst

"In iti8

8eaOnd &ropOUibi0n, bawd upon NJ0f@!Snt8 7 

### Ma ii, app8lht 00~t(d?U thGt tL'.O t6nS ‘&18’ **83 U36a**  **b th0**  **#mUtO 388111**  **Otiy aE** 

a8 end **doen** not lnoludenature1 **aor***

era Oar'

Trust Co., (Vndrr8aorlng:

ourr)
**T!UUI** the court **or** Civil Appsela ladioctes**that** thr tam 998' i8 to be broad17 aanetrueaa8 to ~~37 typ of $bS. 20 believe that the 16llFWg8 Or the to% 3tltUtUxonorablb (korgo 8. 8hqqUd, pago 4



### la ~ur8~lOIl is bror4 waoughto Inuludo butaaa 884 propan0 pm whothrr a014 in llquld or grr*ow Itate, Tbm

A&a In theensrgonoy 

### olaasa of 

### th@ mborowotsd Aat, the teglrleturo Hated II 

### follwat

*ZSoo,6, The fret 

### tha%la the pert few - 

### nekr hundreds of lives ban be lort tm oauser rggarentl 

### latoa w rxp1011 dua to eroap 

### G& or ad-

~a#) rad that 

### mserou8 l 

### uoh,., 

### ‘788

Xonorablr QoorgaH. Sheppard,**Pa@** I;

anl mergena~ + l * .I
It la our opinion aa **anauer** to the rlr8t quaatioa that llquld p&roleun gas la 

### gaa within thr maanlng of Ar6lola 9060 as l **meaaaa** by

xourr Bill8,

**Aotr** or the **Forty-aarenth** 

### Laglrlature, 19U.

Ia answer to thr rrooad quo&ion, ua are adtla

### ed that the lndltlhala or 00 

### ‘s oration8that a&l thir transport thr nnm l tharby maana ot 

### plpa llna

mana sf fsuoka oarr~l.n& tamJt8 

### oi tlm atate, The quaatlon l 

### rlaa# aa to whether the oparatfonOS aueh wthod of transportation puts the Individualor 

### oorporatfoa within thr 

### oate6orT ot oparating a “gas plant= aa that term 

### is used In Artlola 7060, aupra. The Auatln Oourt oi OlrilAppaala in the aaao of WPILITI75S

NAlURAL CA3 00. ve STATIC, 118 S.W. (24) 299, in dloouealng the definitionof the term “gas plant” within tha meaning of Artlale 9060, **rtated** as folloua1

“The 801s 

### oontantlon of appellantir W&at It la not a ‘gar 

### hat@ within themaan t&a term as used % 9 the atatuta,baoauae owaa **and operates-**  ada& ~~1 t only Iii-. line anawla~- .-- ~-’ t;;,;o only one ouatomerwith the olty oi VloWe have raaohetf

the oonolualon that when tha **aixdute in**  **oonatmad ?ron**  its fopr **oornara** and ln the light of tha purpoaa of its enaotmnt, it oammot be so liaitabr
*It la true the atotuta designates the tax 

### as *en oooupatlontar’,but It alearlrappaara from the 

### language usad that the tar la an rxolss laid 

### on bualneaaea 'owning, operatlalt zr,y;finnor ooatroll.ln(t any gar I)* 1 plant any lmeorporated

town 

### or a tr l u for looal sale and 

### dlatrlbutloa * e + oi a.* Grog No, 

### 1 011 00 f* Sheppard,Tat. r U v* - App., 89 8.W. (e*)%fi1, 0-r rei,{ Trustwa of Oook’aNat&e 1. Sheppami,Ter. Oivr Qp., 89 3.~. (2d) 1026, error raf., affirmedbytho

### 789

EonoreblaOsor@ lL Shappard,Page d



### in ray manner tha km *&a8~laa$* as indlaatlro 

### of the buai.naaa sought to 

### ba taxad. Paarloaa



### “‘In S BOW. LawDlot., Rawla~a Third Ravl

### elan Q. ?W9, the word or form 1 fined as balag ‘the 

### furalturaa a ailantl la datoolr

### aeeesear to aarrf on any trada or 

### xnaohanloal bualneaa.~ 

### A I 

### h ghlq oamplax SC llaborata **SYStSm** la not aaoaI

### aaq, but tha 

### moat 

# l .impypm wharaby the baalnoaa of 

### l

alllng **and** d 

### a 1 

### ding 668 to looal ~trada wlthin aufrloo 

### laaorporataa oltr or tow31 will n&or “y; t a taxing

l tat~ta q 

### ak~aa plaat. Under this ml8 the pip lina SyStM and a 

### parataa of appallantlooataa in tha oft7 of tlotpr 

### a, s * whrraby it aalla and d811?8~4 gas 

### to lull trade, aonatita$asits gas plant br aad thrcugh whlah it aarrlea on 

### ltr &as bualaaaa In said 

### olty, ana a~~,,“. tha 

### bualaaar intendedto ba temd br tha

. “lb**.

Tha 8our$ further stated that tha aala bl th@

### 790

%onorsblr oeorgrH. Sheppard,Page T

Vtllltler 

### ZJatonl Oar Gon~q by 

### pip, ISno to 0n.l~ OM oustonnr ln the olty of Yiotoria amounted to a dirtrlbutlon of the gal in raid oltf within th8 meaning of tk8 tax rtatuto. The 00nn~la010t1 0f bppeLil8rWer804 th8 Auotin Oourt O? 01~11 AppmlD in an 0pin10n mpOrfed in 12S 8.8. (26) 115% The Oomzairrion aid not qnunl with the definitionof *gaI plant* statedby the **Auotlu** Oaurt of 09.~11

hpgealr,but the Oommiralon of Appeal8 held that the 8alr to a 8ingle ouetomer ia ths olty of **viatoria** did not amowit to W8e for looal asle l b.dl8tributlonm of gas l.n

the city 58 the statutecontemplated. The Oommiroion of **Appsclls** aonoluderas fo~ow81

REut oonsfderodin the light of the prorl- #ions of tho statute,ar a whole,‘wohave no doubt that the slmplo fact that h del$ruryof gas is made In the olty, by meens of enid pipe llna to a alngle oustomor and to noboQ else, wea not lntended by the Legislatureto ke oomprehended by the term qdlstrlbutlonS a8 1.~66.This term a8 a6eQ doer BOt men the tranRfer, Of the ~0884!38iOn of gas, by mean8 of the plpa line, to a rlnglo purohasorwhefl 8uoh pwoilauer is the only ouatomer to whom the gas oomyany sellsear La the alty. It -3nr the tranofer0r p038ee0ion 0i .gea ti rarioua individuals or OOnOerB~ in th

. oity.,~ An7 other ooxattruotlon of the term would, In our opinion,involvo a 6.uprrtTjre Srom th* leglulntim Intent. SiEoqp therefore,the ~130

. of ‘ear-works,’

in c olty ,~r

to+n in thlr State, **for** the **distribctlon ci**  **giils in**  **Doid** oitr of tom is, **by** rtetute, ;nrde an, essentialoharaotarlrtle of the bueinerstax&l, it followa that the burlneeo $n which tho plaintiff in error i8 engagrl, 80 dlmO88d by the IUdlS,%te&ia#tE, 1s not aubjact to the trx nhtoh thi8 StatuteprOvib8~"
It ir tb.0

oginlon cf this Eepartmantin line with the above quoted oa8e8 that an7 lndlildualor oorporation srlllngor aistributln~liquidpetrolau gss to more than one oonhxzer in ay Loorgoratea alty rithti the populctiou brcrokete

stetec?

i,nArtlole 7000, $9 ameesnded **by**Honorablr OeOrga IL Shapperi, P8ge 8

Houe6 Bill 0 Aatr of thr Yorty-roronth tsglrlaturo 1941, would k aubjrotto bha gross rroolptr tar 1erf.d

Yours vary truly