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Hoa. Qeo. He Sheppard Comptrollerof PublicAmounts Austin, Texas
Dear sin OpiaionHo. 04656 Be: Whothsr lea~orwould bs subjeot to gram receiptstax onthe m&al reosivadfrom 1esPae using motor trucksfor haulingbetweertwo,or more iaoorporatedtowna.
Could lossordeduot driver'8salary, iaeuramo, or other mainteaamooox- parse befor. ocmlpnting the tax?
Your letterof FeW.~arg7, 1944, submitafor our opiaioaqueatioa thereiaooatainedwhich we quote as follows:
"Article7066b(a),V.A.C.S.,hpot?eaa grosr recoiph tu ad is u fol- lows:
wQaoh iadividnal,partnership,aompany,asroaiatioa,or oorporatioado- iag businessas a %otor bus oompeay"as definedin Chapter270, Aot8 Ramla~ Sessioaof.theFortiethLegislaturs,as amendedbyiho Aots of 1929, First Called Sessioaof the Forty-firstLegislature,Chapter70, or as "motoroarrier"or *aoatraotoarrler"as dofimsdin Chapter277, Aots Regular6espioaof the Ebrty-secomibgislature, over and by use of the publiohi ys of this,State,shall-m&o quarterlyon the first day of January,P pril, July, amd Ootoberof eeoh year, a nporb to the Comptml- ler, under oath, of the iadividual,partaorship,aompfmy,assooiation,or oorporationly its preeideat,treasurer,or secretary,ehowiagthe gross amountreceivedfrom intrastatelmiaess doao withim this State in thm paymentof ohargeafor transportingpersona for compem8atio8and uy freightor conmodii;g for hire, or from other 8o~ro.aof rwemm reooivod from iatrastatelusi~esswithin this State during the nuarter wxt pry- ceding. Said individual,partnership,ampsry, aelbiatioa, or aorpora- tion at the time of making said report, shall pay to the State Treasurer an ocoupatioa~SX for the quarterbegimimg oa said date equal to tm aad two&snths (2.2) per oat of said gross reooipts,a8 shm w said report. Provided,however,carriersof parsoasor propertywho are requiredto pay aa intangibleassetstax under the laws of this Stat., are hereby ax- emptedfrom the provisionsof this kticle of this ALat.1 Hon. Geo. H. Sheppati,page 2 (0-6865)
*Int%d whers truok o%aers how been making contraat with large traaafersad freightoompaniesby lersi8gtheir trucks,furni8hingdriver,payingvorkmen*s compensationinsuranceon said driver, and ppyillgall ooats aad expensesof operations,maintelp&loeaad upkeep of said equimt, eto. See oopy of ooxtraot form betweenLessee and Lessor.
"The Lessee operatesunder a oomon carrier'spetit and is subjecttothe intarr- gible tax.
"Pleasetell me if the Lessorwould be subjeotto the gross reoeipbstax oaths rental reoeivvedfrom Lessee where hauls are made betweu two or mor4 incorporated towns within this State. Also, would the Lessorbe permittedto deduct the driv- or's salary,insuraaceor othermaintenanceexpeasebefore computingthe tax?"
You also attach copy of a lease agreementheaded at the top "Exhibit A," to be ooasideredin connectionnith your letter in answeringyour questioa. Porthe sake of brevi%y,thie leame agreementis not copiedher&a, but retained by us, as we assumeyou have a oopy or oaa seoure anotherif you deem it necessa- rg. The taxing aot here involvedrsfers to Chapter277, Acts RegularSes- sion, 42ad Lapslature, V.R.C.S.,for a definitioaof *motor oarrier"and "con- tract carrier subjectto the tax.
It thereforebsoo~~saeoessaryto lay Article 7066b(a),V.R.C.S., aloagsidethe statutorydefiritioar,thereinreferredto to see if a lessor of motor equipmentunderthe ooaditionsaatiaaedia your letter and the lease agreementsuhuittedby you is a "motorcarrier".or"oontraotmarrier,"aad thus subjectto the tax. Chapter 277, supra,definesa Tmotorcarrier"as.follows:
*The term 'motoroerisr' means aq person,firm, oorporation,caupamy,copart- nership,assooiatioaor joint stock assooiation,and their lessees,reoeivars or trusteesappointedby any courtwhatsoeverowaiag,ooi&r mama i operatingor causingto be operatedany motor-propells ?i--d%e*S- ve portingpropertyfor compensationor hire war my publio highmy iathis State, where in the oourse o? suoh Craasportationa highwaybetween two or more incor- porated cities,towns or villagesis the tow 'motor aarrier' as used in this Aot