Case Information
*1 . . ‘, a.
OFFICK OF THE ATTORNEY GENERAL OF TKXAS
AUKTIN
thir do~rtment, rhloh ior tha uko 0 l # r0u0ms
06 br vlrtua of l r aeo rion, wth h0 88i0 o r rd0r 8I an6 IIwnl storer la d tho motor fuel naval rtorrr, in sot r known l I the Buok Ireon Ai6 rn-mrtwright out below ruoh portlom o? our Motor .- or tha Ka~6oll-c8rtwrlght ~oarnl Aid Aot 1~ l mmrhg your auertlonr. m880 lrotr
“Zoxa* Kotor ?url hxfag Aot: “(arl’hero ahall ba aA im hornby 1ori.d and impor (oxaopt horolndtrr protlded) tlrnt #ale, dhtributlon, or wo OS 10 zg Y in thi8 atate aa oooupatioaal or alroi84 ru0i tar r0ur (4) 00th pat muon or rr~0ti0e.- 80 rold di8tribut8d. or Wed in ‘r; ;he;r”’ tr8m drtributor who 88k88 0
iir8t 8818'Or dlrtribution utor ruqr ia *2 * Bon. Oeo. 8. Sh8gglrd, Fag8 8
thi8 St&8 rOr My pUrpOa8 Wh8t808v8r Shdl, th8 th8 O? ‘UOh Or di‘trfbUtfOll, 001. ai ‘Ill8 1800 th8 said tax rroo thr puroharsr rsolp-
lent 8aid motor fU81, in adtlltloa to hi‘ 881lin6 prio8, ana shall r8port aad pay to tho th8 WX at th8 St&O Or T8X88 80 OOfl88t8d in the mum8r her8lnaft8r prorl68d. tlmo tr8ry ruoh dlrtributor 8hall a180 br liabl8 to th8 Sk&t8 Or T8X1h8 rot th8 Mild t&X Of rOUr (4) 88nt‘ per pllon On 8aOh WllOn Of motor part therrof 118814 or oon- f~81 or rm0ti0d b him nab r&all ropart and p87 ~16 tax rued 8‘ h8r8 Mrt8r prOtt686.‘ C8uok Ai88nbMt CO th8 IiapWkCartWrfght t8U8tcrl Ai6 A8tS
“SOOtion 10. (8) That all tax88 18V18d by lly stit8, T8rritory Or th8 Dl8triOt Of Coltmbla with r88jB8Ot t0 Or =MWUOd by, ‘(Lf8, ~tWOh8‘80, Or U88 Or y8OfiD8 Or Oth8r WtOr 78hiO18 ‘tong8 ill th8 8a58 mbMIr 8od to th8 fU818 My bs 18Vi8d; ‘aae eXt8at. with r88Q8Ot to Such furl8 when ‘old Or thtoU&h eX0h8~8.r ‘hip 8tOl’88, 8hip Bolt 88IViO8 StOr88, 808tw84rl88, riiiiag 8taiOM, ffO8D88d tl'&ddr‘, Uld other ‘idfar 8g8flO~88,1008t8d on United Stats8 Military or other r88orvatlona,wh8n uoh tu818 ar8 Dot ior th8 8XO1W1?8 U88 Or th8 United Stator. Suoh taxe8, 80 levi8d, ball be paid to the proper taxing authOrltla8 d the Stat8, T8rrl- tory or 'th8 Dl8trlot Or Columbia, within 8ho88 bordrx-8 th8 ?888matifJti8 afreoted My be loo&ted. (!?&#aBi‘ Our‘) c
‘(b) ThS OrriOOr in Oha~g8 Or 8UOh ?88O?T#ItiOa ‘hall, on or botorr the rlrte8nth day of eeoh mvllth, rubolt a written Skstement to th8 proper taxlag au- thOriti88 Of the Stat8 Territory Or th8 DirtriOt Of Columbia withia rbO88 krd8r8 the r888matiOn 18 loonted, rhoring th8 arOUt Or ruoh motor fU@l with rerpaot to rhloh tax88 are payrrblo under rub-rsotlon (a) ror tb8 pr8oedlag month.”
38 d8U it import&at t0 keep in mind th8 pUrpO88 Of there tW0 OUr St8t8 ‘ktUt8 18 a 8lld tunOtiOn ‘tatUt88. taxing aot by virtue of rhloh the tegirlatur8 wlthia l~,# oonStltut&Ollal power8 h8 lOtie O 8XOi8e t&X UDOD th8 fi?8t *3 Hon. oeo. a. Shs&Q&rd, Psge s
J S&18,-th8 first dlrtrlbutloa, 01 th8 rk8t WI I& this st‘t8, uhloh i‘ d8‘i&Mted 8 .a OaOUQatiO4l Or &XO&‘a Th8 ib~d8lI-C.tiWright t868r.l hid &t 18 8 p8r- tax. a18SlV8 Or OOIlgr8‘81OUi1 @Wit Or vU8r t0 th8 atat t0 18V7 th8 kX oa orrtaia yrn0188 or irutru88nt811- tt88 lld8r p868M jPritiiOt&Oll fOO.te6 00 t7dt8d 8t‘t.S Y
mllltam or MVal i888rVrtkmS, vhloh Oth8rWi88 might b8 8x-t under th8 ?rdaral Conitltutlon.
rh8 ObrfOw intOn% Or Our 8ktUt8 18 to 18~~ th8 kx a&net thr uaar or 80nmm8r or 8stor fu81, but the 6ts- tributor 1s Ooll8titUtrd th8 OOll8OtiEl@ r(leI%Oy Of th8 8kt8 iOr OOll8OtfOJt Or th8 taX. xt 18 OlUr th8t th8 tu 1‘ lmpo88d upon only on8 ulr or dirtrlbutloo not upon suo- 08881r8 or sub88qu8nt *a188 br dlrtrlbutloor. This 18 alrr rror th8 r0imitig pert 0r th8 rtatut8r
“Ia woh 8Ub88qU8lkt 8is18 Or di8tributloa Of #tot fU81 HpOn rhloh th8 tax Of your (4) oantr
8? ailOn h8‘ b88a OOlleOt.6, th8 Pid kX sh8ll 8 8 dad to the 881114 prior, 80 8uOh tat E x 18 paid titiMt817 by th8 psr8Oa U‘iIqJ Or OoaM- ily uld aotor ruei ror the purpose of ~snentlai5 power ror the propulsion oi any motor r8hlolr~ up- On th8 pub110 hi@iWa)r Oi thi‘ Stat8.-
wr drw it h8ipiul as u8 prooerd to not8 oortaln OontafA8d in Art1018 9055b-1, Just a8 th8 oourt 68rfkdtfOM did in the consld8ratloa 0r th8 0850 0r st8t8 ** city 0r 151 -80 (Suprem Court), 143 S. 11. ted) 368, in aonrtrulng our rotor tu81 t&X StatUtO 88 it th8a ut8tod Olid b8iOr8 it -8 Mach mid iA thf8 Oar8'f‘ not iMppropriat8 in -8lld8d. OOlUid8r14 ‘Ut pr888Ut Statute. Th8 OOUrt d88m8d it heJpfu1 AOt8 the derblftiOJl‘ th8 .Ot, 88~8Oi.lly th8 OOl+iWd drfinltlon or the tax, which was the sea8 a8 sontalnrd In th8 pr88ent aot, 8nd 18 aa r0iiw8:
*An oo8upatlon or 8x0188 tax 0r 40 prr gallon 0r rue1 tnotloaal part ther8oi.w
The tax, th8 8x~r.S‘ landuad8 Oi th8 #t#tuta, is Urtributlon, or rirst U8e d8rmS rir8t 8818 8utUt8 thwr *fret rale) shall a8aa th8 rir8t ma18 dlrtrlbutlon ia thlr Btat8 or motor fuel r8ila8d, bl8ndrd import& into, or la any othrr Itlnn8r, in, aoqulrad brought into this Stat8." produord
892 &I. 080. 8. Shrpwtb, Pad8 d
uho und8r th8 8tatUte laltlat88 a ffr8t 8.18, a dl8trlbutlon or we 0r motor furl upon whloh #8 tax 1s 18Vf86? The statute l n8w8rsl (a) "di8trlbutor*. aho 18 *418trlbutor"9 Adala thr statute amr8rs 88 r0lidwt Dl8trlbutor shall m8aa 8nd lnOlu48 8~817
p8rron in this stat8 uhe f8ffn88, di8tfii8, maauu- $8OtU?8‘, prOdUO blend‘, Or OO~~Ound‘ furl or bl8nd86 rCerlal8, or in any other msnaer l o qulr r r or p08808888 rue1 or bl8nd8d mt8?- or fmortr any mtor turl or 8hlpsr trsn8portr thi8 sat8 8nd mk88 #8 bl8nd8d Ilot8rial ht0 ~8. or df8tribUtfOa
iiVA.id r88fdU8nt Or MtuiOi 88, OOm8Oay m as drip lp8olfne, or rho 18 r88pOllSibl8 for tb produotlon r08386tf0a or raid drip ga8olln8, lAtcllltiOM1.4 Or Othorri.8, WA1888 88id p?OdUOt 18 tOta.kly d88trOy8d Or r8adsr8d lleUtFa1 8‘ motor rue1 or a8 produot o&p&b18 0r w8 as Potor furl in thf‘ 8tat8." (m@B818 -8)
In order that th,rr b8 DO lOOph818 for 8‘oape in thorn8 ln8tanoe8 wherr th8 tax rallr upon rir8t un8 or dl8trlbutlon notor ru0i a8 di8tingul8h8d from a ri t W8 &gain loo& to Oarkin d8iinftiOM OOntainO&kthr tnhrs8 ar8 as roii0w88 w
Thr trra *user* shall br OoMtrued to moaa any perron who us88 OOMwe8 *liqUeff86 68888" and wOthW liquid tu81“ within this stat8 in int8rMl oomburtloa 8fl&88 iOr th8 68Il8lWtiOll Of pOW8r to prop81 motor Vrhi- Or this stat8. 018‘ UpOn th8 publio hi&W~y‘
~~Dirtrlbutlon~ shall me&a and fno1rsd8 my tran8aotlon8, other than a 8818, In whioh ora8rshfp or tit18 to motor fU81, or any 48riratlt8 0r 8iud8 011 artural gas, p8808 rma on0 prr8on aaoth8r.m
**peraon~ ah811 m8an and lnolud8 every lndlvfdual, if&-m, ,a88oolatlon, joint #took oompaay, ndioat8, Oogmtner- #hfp;oorpor&tion (publlo, prlvatr or mun alpal), truULlt88, genOy.or ro08fV8rs' (gmphaSi8 OUr8)
"bSh?w 4hSll m@UA Sad iAOlUd4 4V4ry p4r4OA other-than a Uatributor who ,~~ea in the bualneaa iA this stata of dlatributiog adlily aotor fuel within this State.’ To vita AU?. 06rtSiA tsrO8 Wad iA this t&t
a6t ba uniformly Pndrratood 8Ad unlfo?ml~ applied, the 8laOteU to defA4 them, and to tit880 drfini- La~lalAtUra tioaa IV. mat l d ho r o.
8umarirlng further, what vm ham mdeutorod to l u y la l r p ra a ae6 by Juatior Crltr fA the aaaa of Sktr t.
City Of h80, APPZ’U, a4 iDfhW41
Vroa th e l araral l ta9utory prorialonr it la th0 LO&4kU$iVr LAbAt, 44 4Xg44444d WfbOAt *bat iA the abovr 4t4tuta4, 14 to impose a tual OA the fir.% 4Uh Of tUX Of tOUP WA%4 p4r @lOA motor ru41, wham l u6h furl la aotually aold lo Texw . xt la furthrr WtldaAt that the L*glalaturr iAt8nd4d to imp040 a four 84At4 p4r @llOA user tax all rotor fuel Web OA thr publio highway8 of this in IA~~uA~w$ whuro user obtuha stat0 l uah moto r tUe1 UAbr l u4h O~rOUaatAAOaa that AO 8otuul aalr theroot wuwpina in Twaa.
4tUt.d. Wheo OUZ leotO? t&id tax 14~4 Or0 Tea l Ad v oOn8t~rU ~8 u WholQ. it l8 evident the tax thla state SoQ Xoriod ror use of motor fuel ha@ ~UX l.rvLed for aalr OZ plotor furl ara the aam. On&or t&u l xiwaar wo rd4 OS the atatut 0, us* GotOr Out 8AtUai 441@ iA thla State heel With ia still a statutory l alet that ia.‘to 4s~~ ‘firat uaaq la tha ~rirat aale’ for taxation ~urpoaiiT- where tbrr4lia AO aotwl rlrat l ala.~ (mphaaia oura)
kplii'yiag iurtbar, *diatrlbutor* or %¶4aler* may ba sot OAly a. O@&laOtin# l &.AOy iA behuli Of thm Stata ror the oollrotion 0r a tax UpOA thr motor fusl diatrlbuted or aold by ft, bu8 a U4.P Of motor fud UPOA it8 OUA 4OoDUAt; in both inatanoaa, ltable to aooount tar and pay the tax 88 provided fn the aMtut to thr Coaptroll4r ot Publie Aooounta.
ll4 do sot oonatrw the oaa4 of Standard Oil Comp44y of Calliornf4 T. JO~ASOU (United Stutoa Suprrnw Court), I,. I@¶. 1611, ~8 holding tbt iA no atsat My the 8tate laty 4A xoim~a wx OA tha uh, dlatributloa, we fUal,but 14ft th4 QUO4tiOA op4A if it houl6 OOA. t0 tb4 OoUrb Upon 4 oorrwt drterainutloa by the Suprsmr Court of Calltoml4 of thhr t6tua of Poab hOhange4 aAd l?a~al StOPa ua yadaral iAat~- .uo5tulltl*a. YOr8OfaC, it do@4 AOt&&l@W hl t&i4 OU4e WhUt *6 Hon. 01~0 )I. Sheppard, P&JO 6
raoognitlon, Ii u~y, *as l coorded by Court to the in rraohing its todual Al4 not fiuydrn-cutwrlght doolaicfn.
WI, tbereforr, isal ju.ntlfied by the upreaa pro- rlalona of our motor fuel tax law and the Hayden-Cartwrlgit Tadrral &ld Act, thr aUthOrltY of Stat@ v. City oi El tha dellvery IA Tour to post P uSO, l upru, in holding that l xohango or naval sto re by l ~biatrlbutor* aonatitutra a first sale upon whioh thr and remlt should oolleot distributor tax, xoept upon auoh motor fuel us used bx- the tueil olualraly by the United States Oorrrnmat. Aa we htwr noted, howore?, the tattltr prorldra aaoh aubaaquant anla that dlatrlbutlon of motor f’url upon whioh ths tu of 4# par gallon the as14 tax shall br ddrd the alllag baa been oollaeted, prloe, so auah bar la paid ultiaratdy by the person using conaumlag au14 tax for furl tar the propulsion of any +ehiolr upon the publio hl@nmya of this Sktr. In other words, post exebanga or mm1 stare that ha& paid tha tax to the to tho user, other than to aa4 subsequently rolls diatrlbutor tha United Statra Qovernaont, la authorized un4er the law to reimburse ltsrli oolleotln(l tha tax tron tha ultieste user,
30 trust we bare ~48 plain our views.
Vary truly yours ATTQR~XY WNERAL Gy TXSAS LPL: RT
O?INlON WYYIITLR APPROVED .1- olA*lu