Case Information
*1 OFFICE OF THE A’ITORNEY GENERAL OF TEXAS
AUSTIN
Dear Sirr
epeciilaally ax- c4areiowmJd,~p-' oostrolled b~%br~' trll4tu fhm, Qeirer, u&b or •*46*14~i0Q, 6raiga. lii rbieb soM4, 0f sly 4zaQ 4Te mul, *2 Q19. .
Hono~bl8 Ceo II. Sheppard, pago 8
of any kind, exaept those exempted, are
eold le a store and lo taxable as suah,
and this even though lt may olsa be a
amtribntiag point.*
hs beer dlstrlbutlrq sta~eu do not aaaa wltb@ tb oxeuptlona met out ln Seotion 5 of tho *at. wo mast moeuul.ly atmalobe that they sre 8abj88tto the payment of tha.tar.
He have cxamlned alosolf the brief submlttod by the Attorney ror the-Beer Co-y conoemod hue, but WD are anable to agree with either his raasanlng or-hlo result. Ee basoatho aontentlon that these beer dfstrlbutiw stoma uo not subbjeat to the4 ch4l.eatore tax on tmo gxxnuub..
Piret, he statoa that beaaasothe BQqr Aat, &tie& 669 or the Penti Code, aots tap a tax sahadalsfor beordia- tribattlng plsaos, that these otaras ue thorofws not oabjwet tu paymat of the ah4l.n-0tora tax.
Thlo Departnrent has pruious&y ruled in .opl&?u x0. O-999, aUmm~od to Honor4blo J. C, ‘Patteram, %ount~ httaraey 0r xh0x county, that tb tax 80t4p s.nth0 ~iq~or-Obnfrol mt is s llaonsa tee and not sn aaaupatian tax. T&U opmon ral.%od 0ntho oases dr Br4dley ta* Texas JAQuor Co&r01 Basrd, ~I00 8. W. (M) soo, ad city or Ftq worth T6. 00lf Refi3dg CW* la5 Tex. 5X3.@ 5. W. (2d) 610. For additional aathorlty ass m Liqaor Cantrol'Smrd vs? Blaahar, ll6 8. W. (ed) lOSO,.Toar Lipuamr Ooatral Board~rfl. Wsrftield, lJ0 8; II. (Zd) 646, l ind Texas Llquar Gantrol Bo4rd vs. Jonerr LZS ST W. (ZQ) tS9.
On the other hsnd. the tax sot ant 3.n tho‘Tourr Cl&a and not 4 llaotim Store Aat ia an oceupationwtu lb. Comt of Texas 60 held in t& muse of Hurt ~8. Supreme maQra :
*It is m,rpstlaes dlffiault ti’deterainq whether a gi~%n 8tatuto mkmld b& alassoda a rOg4.l4t4ry.m0kO4r0 or u atarneasum. The prlnalple of dlstlnotlon geneml1.t rea-
ogniaod ia that when, trea a aanlrlder&tlon 0r ths statute as a wlaslo, tho prlWsry par- poao of the isee pmldod therein is #a
rolaimg of,rwenue,'then saah fobs sre ia' faot oaaupst~on taxes, and this ri#gaTfioss *3 mnorsble Gee. B. Sheppard, Page 8
of the nanw by which they era designated.
On the other hand, If its prImmy purpou appears to be that of regulation, then the foes leafed ore lioenea reoo and not torso " . . . . .
wApply~g thie pTb3iple t0 tb aOt in &e&on, no oxparlenoe no dlffloult~ in reaahlng the oonclu8lon that the 804allod Ucenee feea levied thereby ore prinrllp ocoupotlou tares
. . . . . w A license fee and on ocoupatlon tax nr both bo ~eried agdnst the sane'baelness.
Where the rw la hp040a
for t~e*pk~o~e.of regulation and tho compl&ane~ 4th sorta% statutoiequlres aondltiono in addition to tho poygont of the proaarlbod sum, noa4 aam 1s a llooaoo proper, imposed by rlrtaa of tho Hlioe pouori but w4oro it is onoted ,mlelr for zwonao purposes and Its paymnt give8 tba right to oarrydatho bulmsa withoat w furWmr oondltlon4, lt la a tax . . . Y .+ A tax does not Imply a lioense. Sien lo a0 noaesoarp aonnoutIon whatover betwun thm. A bwlness any be llaensod aad yet not taxed, or it may bo taxed and yet mot llconood. bndrc3tari~tbrkurroPbaig
neosssirlly a &vmse that provision $8 frequently made by law for thetsration of a business that 1s aarrled on under a lloonoo e xlstllr g lndependont of th e tax . . . . . . l 19 Bul. Caee Law 499480.
The Beaumont Court of Clvll Appealo in the 0~6 or Clty~or Bsawnt ~8. swt~ Loan orrlae, Xna., 251 8. k. (tid) 8EQ, 'in aonstrulng a p;Unlalpel ordinance rMoh regulated auatfon sales rLthlathe alty of Beoumfmt, stat&d as follml
fl . The right to assom~sn of3atapatioh ;ai and the rl.ghtto rewta a business bynqa%rIngtjae psymeator II.
llaense reo liwoked two entirely dlffuw&t gfmenslluurtd powers. .That mnlelpal aorp- orations hats tho power to re@r0 tho pay- ~m4nt 0r both 4n ~aaapation t4x and a liou4e *4 *orable Gee. Ii. Shapard, Pago 4
tee by one In the same business was ilireot- ly hold by tha oourt In Xydlas Amusement Co.
v. City of Houston, supra, upoa an arvnt 40 coaolusIro tbt it 14 a4ao44firy only to cite tbstaa4e.a
This ease was later ravarsed by the CoxaaIsslcm of &qmal~, homer, on the ~OUZI~ that th4 mualclpsl Ordl~aO4 ~48 rage.
Ths exsot question lmolrsd here ootCrox%ted the mprsas Court of Florida in the 0448 of Dualop Tlro & Robber Co., ot al v. Leo, State Conptroll4r, 191 So. 531. fa cwn- stralag the ylorlda chain Stan Tsx dot (Chspter 16848), tho court eald as follous:
Yho alrauft court properly held t&t ths busfnoss of appollsat as the owaor aud operator of retail tire stores wss subjoot to the spsoI4lliaeass tsxos Imposed by ehsptsr'16fM0, aotdthstandiag it was al- roadp llaeneod and payIag taxes under ahap- tar 124lZ, Aet8 1!%39 Iaws of Florida, opo- olkllg 4pplylag'to rim ald tsas doslsrs,* Sea also Llggstt Drag 00. f. Lo8 (Fla.) 191 So. 936.~
Seaond, the attaney for the Beer Conqae~ aoatonds that the r0ii0wing seotioa from ths Beer Aat 4xolaaos th4 lm- position of the Chain Store Tsx upon these beer distributora:
TJnless 0thuv140 harofn 8peciri0my provided by the toras or this aot, the mum- faoture, sale, dlstributloa sad possssslcm 0r best, as herein d4fti04, shall bs (pjr4rti44 exoluslrely by ths prevXslon8 of this ArtIalo.a GertfkIn.Ly, net la the ahsIn Stars Tsx Aat or t'ho S8U Ad exp1W18ly 8XonWp l r 4lstrlb r rting stor48 frm the -to Chain Store Tax. Ii suoh stores are to bs sxeapt, saah oxemp- tloa oould be fouad only bg fBlpllostioa. A aloss aaslysI8 Of se&Ion, howovor, Indloatos thst the psrtlaular'aat in this qaostloa shall mera oxaluslrely oaly "the ~~~aufaett~o, sala dlstrJbutfoa sad ~4444sfon of bs4rW. tkrt4IaLy~ &@*:1* aothiog iat 8 laixigwg4 o4xaludotho right ofthek&l4tair* to t4x *5 Bjnorabls Ceo. H. SheppmU, Page 5
these beer-distrlbutting plaoee as they did In the Chain Sttxe ihr AOLat. Tha AttOrOby cited no. autharltlcs, and the qlter 1s wubla to iin& any to bear out his oontention that the section which he oltee would exolirde the Legislature from m taxin& thsn.
YOU are, thorefaro, advfsed that beer-distributing &ores are not exempt from payment of the Texae Chain Store Tex.
Youra very truly ATTOBBEY ~UESSAL OP T&TAB Ii&B APPROVEDSEP 9, 1939