S. ,CalveFt,'l56Tei.,&&~'.S.W;.2d~ 93 (1957) In an opinion ~byJustice Walker,,'~the Texas~Supreme Court hela that the'tew.*gas works", as uaed:.Zn~,Alrt~.'7060~* V.A.C.S.;-meant(1) an es'ttabllshnient In which-gas Id manufacturedi: producedorprocessed, or (3).a~distrlbutlon~~~~y~tem~~,~nsi~tlng ~.' *of plpes through whic&.the gas flows.,and~ls.$el$ver&dto the premisesof consumer8. In lightof these'two cases, It Is submittedthat~"dlstrib~tlob"means transfer or possesslon~of gas to various consumer,ln&l@duals or concerns +an in- corporatedcity or town...merefore; 'you.a~e~:advised that the tern %harges'for such gas?k which modlfle~s."@?oss::,amount re+dyhJ from such buelnesr.',which inturn refers:'to"local s+le aid dlstrlbutlori,"- does not Include the"ie&lpts from.the sale of the gas.to the City of Houston's Magnolia DistributionSystem. i L
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Honorable Robert S. Calvert, Page.3 Opinion No. WW-810 .~ ... This conclusion 16 rcllnforcedby an examinationof the . mesklng and lntent.~ofsection (2) of Article 11.03. In reference to the same provision in Art. 060 V.A.C.S., the. Court in the Eddlns-Walchercase atated T p. 45): "It ie expressly provided that the tax shall be levied only once on the same commodity,and that where the commodity :. ;, Is produced by one.person and distributed
. The City of Houston Is the actual dlstrlbutor'of~thegas in question. The fact that the city Is expressly exempted by the Act oannot operate to shift the legal Incidence of the tax. SUMMARY The IndustrialGas Supply Corporation lb not,iequlred'toInclude receipts from the sale oi gas to the.Clty of Houston for distributionby the cl$y's Magnblla P-k Gas DistributionSystem In calculatinggross receipts taxable uwler ArtXcle 11.03, Title 122A, Tax&Ion-General, Tex.Rev.Clv.Stat. (1925)* '.,' Yours very trulg,~ i. WILL WILSON _~~
Bv..96 APPROVED: OPINIblP.coHMITTsB: ~ Y. y: Geppt,r't, C~lxmti ~Marlet tr., McGre&r Payne Howard.Slays 3era H; Roberta RBBfEwBD FCR~THE AT'I'OEWRY GENERAL By: &eona$dPawnore
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