Case Information

*1 ENERAL AURTIN. Tsxaw W3-711 C. MARTIS CRAWFORD Ax-rORNEY GENERAL

January 17, 1972 Honorable Robert S. Calvert Opinion NO. M-1043 Comptroller of Public Accounts

State of Texas Re: Refund of portion of Austin, Texas Texas Motor Vehicle

Sales and Use Tax paid on amount of Federal Excise Tax calculated under re- pealed United States Dear Mr. Calvert: Statute.

Your recent letter asks the effect on certain taxes collected under the Texas Motor Vehicle Sales and Use Tax law by the recent Act of Congress. This Act repealed the 7% excise tax on new passenger automobiles as of August 16, 1971 and the 10% excise tax on light-duty trucks of gross weights of 10,000 pounds or less as of September 23, 1971, on these vehicles purchased on or after their respective dates. H.R. 10947 was approved by the President of the United States on December 10, 1971.

The specific question posed by you is quoted as follows: "Must the State Comptroller refund the State's portion of the 4% Texas Motor Vehicle Sales Tax paid on the amount of the Federal Excise Tax when a valid refund claim is filed by the purchaser of a motor vehicle?"

Chapter 6, Title 122A, Taxation-General,Vernon's Civil Statutes, is referred to as the Motor Vehicle Retail Sales and Use Tax law. Article 6.01 of this Chapter 6 levies a tax equal to four per cent (4%) of the total consideration paid or to be paid at retail sale for every motor vehicle sold in the State of Texas. Article 6.03 of this chapter defines the term "total consideration" as used therein to mean, insofar as per- tinent to your question, the amount paid or to be paid for every motor vehicle sold at retail in this State without s deduction for the amount of manufacturers' or importers' ex- else tax imposed upon the motor vehicle by the United States.

Although our State tax accrues on the amount of Federal excise tax imposed on a sale of a motor vehicle, in the pre- sent instance there is no Federal excise tax imposed on the vehicles in question because of the retroactive effect of the Congressional Act. This Act further provides for re- funds of any Federal excise tax paid during the periods in question on the applicable vehicles.

Therefore, your question is answered in the affirmative. SUMMARY

That portion of the Texas Motor Vehicle Sales Use Tax paid on the Federal excise tax collected on retail sales of vehicles since the beginning of the retroactive effect of the Congressional Act, H.R. 10947, is subject to,a valid claim for refund filed by purchasers of such vehicles with the State Comp- troller.

Verytruly yours, RD C. MARTIN General of Texas Prepared by S. J. Aronson

Assistant Attorney General

APPROVED:

OPINION COMMITTEE

Kerns Taylor, Chairman

W. E. Allen, Co-Chairman

John Banks

Harriet Burke

James Broadhurst

Bob Lattimore

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SAM MCDANIEL

Staff Legal Assistant

ALFRED WALKER

Executive Assistant

NOLA WHITE

First Assistant