HE ~T~RNEY GENERAL OFTEXAS
Hon. Robert S. Calvert OpinionNo. ~~-146 Comptrollerof Public Accounts CapitolStation Re: Whetherthe CigaretteTax Law allows Austin,Texas the use of certainnew type stamp and the use of a machine to transferthe Dear Mr. Calvert: stampsto the cigarettepackages.
Your letter requestingour opinionin referenceto the captioned matter reads as follows:
"Sec. l(e) of the CigaretteTax Law definesa 'Stamp'. Section3 providesfor a 'Cigarette Tax Stsmp Board'and outlinesthe duties of the Boa@ with respectto securingcigarettetax stamps.
"The manufacturerthat has our present cigarettetax stamp contractcontemplatesin the near futureperfectinga machinethat will trans- fer stampsto packagesof cigarettes. The present stamp is a water stsmp and has to be transferred by hand. The new stampwill be a heat stamp and transferredby the new machine. The new stamp is similarin appearanceto our present stomp and will be seriallynumbered.
"Wouldthe provisionsof our CigaretteTax Law allow the use of the new type stsmp and the use of the machineto transferthe stamps?"
Sectionl(e) of Article7047~2-1, Vernon'sCivil Statutes,defines "Stamp"as follows:
"'Stamp shallmean the stamp or stamps printed,manufacturedor made by authorityof the Board as hereinafterdefined,and issued, sold or circulatedby the Treasurerand by the use of which the tax leviedhereunderis paid."
Section3(a) of Article7047c-1,V.C.S.,provides:
"A 'CigaretteTax Stamp Board' composed of the Board of Controlof this State, desig- nated hereafteras the 'Board'is hereby - L
Hon. Robert S. Calvert,page 2 (~~-146)
createdand the said Board shall be and is hereby requiredto design and have printed or manufacturednsw cigarettetax stampsof such size and denominationsand in such quantitiesas may be determinedby the said Board. The stamps shsJ.1 be so manufactured as to renderthem easy to be securelyat- tached to each individualpackageof cigar- ettes;providedthat a differentand sepa- rate serialnumber or combinationletter and numbermay by assignedto and printed on the margin of each sheet of stamps,or other methods of identification be adopted as the hoard may decide. The printingor manufacturingof the stampsshall be award- ed by competitivebid and the contractshall be awardedto the person submittingthe low- est and best bid that will affordthe greatestand best protectionto the State in the enforcementiof the provisionsof this Act."
In additionto the above quoted sections,we have a-l.soconsidered the other provisionsof the CigaretteTax Law and we have been unable to find any provisionsthereinwhich, as a matter of law, will conflictwith the use of the "new type stsmp"or the use of the machine to transferthe stampsto the cigarettepackages. Sec. j(a) of said articleprovidesthat the "CigaretteTax Stsmp Board" shall award contractsfor the printingor manufacturingof stampsto the person submittingthe lowest and best bid that will affordthe greatestand best protectionto the State in the en- forcementof the provisionsof the Act. Whetherthe new type stamp and machinewill or will not affordthe greatestand best protectionto the State in the enforcementof the Act, is a fact questionto be determined by said Board.
SUMMARY
The provisionsof Article7047c-1, The CigaretteTsx Law does not pro- hibit the use of a new type heat stamp to be transferredto packages of cigarettesby a machineto Hon. Robert S. Calvert,page 3 (~-146)
evidencethe paymentof the cigarettetax.
Yours very truly,
WILL WIISON AttorneyGeneral
W. V. Geppert Assistant