Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
Ronorsble Marvin H. B~ovn, Jr.
0rlmMl Dlatplot Attorney
mrt Worth, Texas
RatIonal Red enter and thePe ry day. Under tPatn# in movo- ey are sealed.
88 together tith the Wnited service laming to establish a canteen ser- ad.yards and to saPve 00ffee and do- r5 free ohawe and sell them olg- ~HU& c,s&Ies at aotual ood If they .
“We are familiar vlth Artlolo 70470-3, V6rnonte supplement to Revised Statutes of 194, ktmm as L%ma~ Bill lo. 91, passed by the Forty-seventh Legls- Xe Interpret the trains aa be- a part of ntilita& reservation and ve oerts%nly Wow that the Rfad Croea and United Service Organiration are under the direct aontrol of the United Btstss &mwmmnt.
g&crab16 Marvin H. Brovn, Jr., Page 2
"The8e Organlsationr desire to know vhether they gsn roll olgarotteo through this canteen retioe vlth- out the payment of the 8tats tax. Thir offioe is of the opinion that under the law afted above that ruch waler oan be made free of the tax.
"You must underetand that the8e sales vi11 be entirely vithin the railroad yards and the trains vi11 not oome to or neaa- the rail station and the 8ale8 vi.11 be amde entirely on these Army train8." An examinstion of Artiole 70470-3, Vermnls Texan Civil St&utes, cited by you a8 affording immunity from the olgarette mi: under the fact8 before you, ~onvhos8 urn that It doe8 not wepate to oreate suoh ,exemption. A troop train, reSardle88 of its 8ta$us as a part of the Vn%tad States Amy, Savy or Yrrrine Oorp8 on l ~f&oriaed military maneuvera, 18 alearly not 8 'pat, camp, or m%t exchange" within the purview and oontmplatlon of the esempt- &g hot, from vhioh ve quote the follovWg pertinent portiomt
"suctloll 1. Port, Gfmp, or unit Eschan@8 es- tabll8hed and operated within the State of Texas, by OP in con&motion with the U&ted State8 Wllftary, Naval or &mine fopce8, on Wlllta~, lava1 0~ Marine Po8t8, Caapr, Station8 or Re8emtion8, lnolndlng any leoalltf vlthin thi8 State where a 6antonmnt e8mp LB located and erected, vhere offiomr, soldier8, 8ailor8, aur8e8, or mariner of the lhatrited State8 Army, WIvy or lfar5.m Go~ps are being trained, we heroby declared to be, and are reoogaired for such tax purpoeo8 a8 are &me- inafter met out to be fnrtrumentalltloa and agemaLe of the United State8 Government.
"section 2. It ia further provided that the pro- vicdons of this law 8hall extend to and apply to my branch of a poat, oamp or unit exchange authorized vhich akay be ertabllshed for the exoluslvs- baaefit of the officers, soldiera, sailors, nurse8 or marinea in of the United State8 at the Army, Rang or lhr%ne Oorps any time that said officepr, soldbra, 8aoilon, me8 or marines shall be on author&s+ m&M.targ maneuver. It being the express intent the Legielatme by thin Act to allow soldiers, sailor%, nume8 an& marine8 in the Army, RaYy end Uarine Gorpr of the States, to purchase cigarettes, from the camp, unit, po8t *3 -j ; ~odle Xarvin S. Brown, Jr., Page 3
-ame without 9ayiag the state st8mp tax thereon. 16 18 al80 eX9IW881~ pmvplded that this bV ah411 not be oim8tPUed 88 aUthWiCil.@ w p9FSOSl or persons whatsoever, other than those persons authorlred by feral Law and Army, Bavy or Xarlne Corps rcrgulations to purohase oigarettes from a oamp, unit, or post ex- change, or on authorlred mllltaPy maneuvers vlthout paying the state StaE9 tax a8 9rovFdad by law themon. %eatlon 4. It 18 further reeogalxea, deolamd and provided that the 9rovlslon8 of seatloo 2, Chapter 241, Aotr of the Regular der8lOn of the 44th Legl8latu~e, with amendamsnts, nlating to tflrst #lee of algaretter dOea XiOt apPlr t0 SIl1.8 bf SU0h part;, 08lQ OF UXkit &Xx- ohonge8 UZldOl' the OOl?iditiQnS 89tbSifiOd in ti 9FtWding SaOtiOZkS this hV QP t0 Sale8 in aWWdaa&Ce with 8uoh SpWified klOnditiOli8 to rush port, 0uDp or unit exohanges by a llawed algamtte distributor ln Texas.’ Ths puPpQ118, natum end plan of operation of "port, oam9, or ualt OxUhaS5@8," e~P.SSlj aSdO the SIlb,jOQt Of the abQV0 10&B- btiOn, IS fully &soPibed in OUP 09lalon So. O-4392, octpy vhlah ve 8W1080 for yotlP infomatlcm. Us balleve you wfll aosrolude therofr,a that neither a troop tM&a 9~ooe*dlng under Ooverawat ~gulatlon and duly s-led during movemeat, POP say part of the tk&tOd state8 Amy,, Xavy or B&&W COX'98 On autherlssd mlllta~ m4aeavers, nor the Amerloan Iatloml Red Cross nor th8 United StakS 3enloe Organlzrtlon i8 or 6OIlStitUtOS a *pOSt, @am9 or rulft emhange eStabll8hOd and OpePatbd vlthln the State of Texas, by eP In oonjaumtion vlth the State8 Ibllltary, IVaval or Xarlae forc3e)13," etc. under cantrollIng oouct deolalans and war De- 9al'tEWt mgUbXtiOll8, SO a8 to b8 brought SqUalWly Vithb ths 8@09e utd operation of th8 statute exempting the latter organllratlon8 frorm the cigarette tax. ma2g conceivable 800let~68 arganizationa, 6r ooa~e88Ional~e8 might pPOperly sad under dw autborication, se11 O%@WettaS and Other taxable CraamtOdltles Vithin tha conii&%e8 Of OS- kbllahed allitarg poats or rsservatloae OP in oennacticui vith a portion of the regular Army, Ravy OF Xarlne aOPp8 on authorized ManWe* or on movement by tFoep train, without eanJoylng the lm- lualty from state taxation socoPd.ed reaogx%lred agenoles or lnatru- WtalitieS Of the F@deP?Ll CZQVePnIIIent ruoh II8 *pOSt, oaap Wilt =m?J8.n It van the plain Intent of the let undar oonrldaratlon,
m ~ree84d in its WbptiOn, “to declam md reoognise for crertaln ta8 9ur908811, post, oam9 or unit ex&atiger establl8h4d and apmted &&in the State of Texas, by or ln soajumtlon with the United St,&48 Mllltary, naval or l&w+4 foraes to b4 instra4nt4llti48 uul Of the United Stat48j and the instant fnotual situation -148 oat falling Uithb suoh O~88ifiOatiOn8~ w% J%U%t d%t%rEIin%, ilkd4- p&ent of said Statute, whether or not the org.gsnleatlons Involved SPY in8trmmentalitle8 or agsnoies of the Oovermmnt 80 as to b4 a%& fPcan state taurtion under gewral oo~tltutlonal prinoiples,
We have no dlffioulty in hold- the Amerioam llatlonal $44 Croat, or any duly organized exlstlng chapter Umwof, to m nn agency or lnrtrmnrsntallty of the TJnited States Qov4Pmmnt. It8 national status is so 48tabliBh4d by Title 36, Chapter 1, Seo- t@au 1-12 Of th4 Stat48 Cod4 Annotated. Eiy th% statutes dverted to "The Ameriosn 88tional Red 0~088" is oreated a body %%rpoiUt4 and 9OlitiO in th% DintPlot of Columbia, With the U8uel oorpOMte inCid%ntS, for the puPpOll Of furni8hing VObtJte%P aid t0 th, alelc aad wounded of 8r81iea In time of W&P, In oooordaade with the spirit and conditions of the Conte~enca of Oemva of Obtober, 1863, Md al80 the Beaty of the Bed CP088, or the 'Flusty of @eaeVe Of August 22, l&k, to vhlah th4 IJnlted States Am4Plas mV0 it8 adh98iOJl On Haroh 1, 1882. Momover, the Sesmtsry of Llt8t.4, the W~P Department, the T~%asu~y Department and t-4 PP%s~-, de&S Of t&8 Tlhit%d Stat48 have aSSUll4d and reoognlz4d th4 g%YOPlI- m&al 9ur908%, Il4tUlW and St8tUS Of th4 hlSriO&Ll !?atiOndt m Cl’OSS. 0oolapui38, in adclitiC8.U t0 4MGting E34aSIlP48 fOP it8 OP&iaal ilX%OPp- Or'atiOII end subsequent ZWinCOrpOr8tiOn, h&IS, frop August 3, 1882, uuttl e recent date, 8uocsrsaivel~ and repeatedly srpproprirted fund8 fQl' it8 furtheranoe pnd UV&int%llau%e &I 8-O P48pbOtS. And the OOUl?tS b8v% joined in this Congreessional, %xe%utlv% and and administretlv4 ~~gnitlon of the national or gov%Pnmental etatue of th% orgrai~a-
. Orangov vs. Unltsd States, 261 Fed. 172~ kuerionn liatlonal RIc\ &?osS Vs. Fel.mer Post, 159 f. E. '7'71.'
But our r%s%erch has not developed nor have ve b%ea fiwnishsd any authority or basis, alth%r &ng~%salpnal ad&nn?~~$- ;iwnr, j~d~,l& fog plding thab ty Uhlted $4Pv Se bP6 P a a US as a Fe 4~a Uzenalp or FnStrrPlsntallts SO as to enjoy $5lunlnitg froBa the burden iif Siat4 taxattikn. You% latter cioea not outllne the purpose, nature and plan of OperatilOIi Of the United Servloe Organlzatlon and it8 varioue unita. But a%- OOrding to Infonnetlon available from other BOIUJCBB, this omganira- tiSn i8 oomposed of the Y.lii.C.A., Y.W.C.A., Hjtional Catholio haoil, Jeviah Welfam, Travelers * Ald, and the Salvation Army - c
g@@rrrble llarvlll8. bwmJl* Jr., Pia&. 5 .1 1 o rganlcatfa ar ar l ooletler whlcrh are, vlthln themelves, 8xirtlng InaIdea~s of 01~11 or rel1glous life, vholly dlvaroed ;g Amy notion 6r.,i~us of Federal agenoisr or Inrtrmontali- The lmxdablo work and worth of the Uhitod Service O~anI- Sat&, of vhlcrh the&. -WiOU8 01~10 and ahurah organlsatIon8 •~ tNXIpOnOnt partll, ti fUrEi18hiagC the soalal and rWreatloM1 f~lllt1es and aativltier so neaersary to the rrustalned mopale of our fi@ting foroe8, 18 fully reaognlzed by this departments mt ab8ent 8O3SO hgi8bbtiVe , exeautlre or judlolal authorltj oon- ferrfng upon such OrganIsatlon the 8tatus 0r an agency or In- &4Bnentslity the WVemnnent, vo an oonrtraiaed, under the faotr at OUr disposal, to hold that 8Ueh OPganIsatlon 18 not of garermental abaraoter.
It 14 aooordlngly our opialtm that the AmQrioan g8tlonal Red cl'Q8S, 68 119 SgSnOy Or ili8tN~t~it~ Of the Federal @O?em- mt, IS, undex’ prblUiphB8 Of COn8tittltiO~l iBnaunfty e8tabtih.d br th8 00UrtS. exempt from rush skte kustion a8 Operates to place s dire& burden upon its aetlVitte8 and iuaotions, inclading the ml9 by It, of Qf&awttO8 on troop tralnsj but, on the other hand, the UnIted Service OrgM.i8atfon, a8 presently orgsnised azkd aon- dUoted, 18 not UI agenof or in.otZ'ImWtoli~ of the Ooverziment and d&9*8 llOt enjOy 8UOh taX iarnunit~.
Bovever. in holding that the American $ational Red Cro8s -J, under the fmturrl 8ltU*tiO%l, &smly sell otganttes, vlth- o\lt payment of the olgrrretto tu levied by Article 70k7a, Vemmn~8 Texas Clvll 8tatUte8, ve do not pas8 Upon the que8tion of whether Or !lOt auah taX XUay be 1aViul~ oolleeted QZt 8ale8 w 'd18trIbUtOrs" af cigarettes, a8 deftned by 8aid Aat, to the American Watlonal Red 0PO8S Within this 8tote.
Trusting the foregoIng f'dlly Bn8NWt3 your inquiry, ve am Youra very truly ATTORBEY - OF TZXAB