Case Information
*1 OFFICE OF THE AITORNEY GENERAL OF TEXAS AIJSTIN
Hon. Gee. H. Sheppard
Comptroller OS Pub110 Aocotmto of Texas. Texe?l Autia,
DeerSIr: -,*
a mbsequcnt o,onthly raymnt for wtor traatote 00~morce to e cuatomr for the ortation rhea seld thereafter exportad .
r rather then by the .- any perscn shall. export or lose by fire or
other accideat any olctor fuel in c?uantlties 02 one hundred (100) i9llons or nor%, so that the 3~318 my never be rzade use of within this 3tate, aftor the tax has been paid on such motor fuel, or ahall sell motor fuel upon which the .
,
Eon. oeo. B. Sheppard, pace 2
tax has~boen paid, in any Quantities, to the Ubiteb States Covammnt, for the exolusive use of said Covernmnt, c1al.m for refund of the tax so pald xaay be mde in the mnner herein ,nrovided, au the Co~ptrollor 53~ dlroot. E'roviricd,.however, that sbow- in: mat be cad@ that safd tax wss paid or accounted . for by a lloensed and bonded distributor, and tho
Coxptrollor shall deduct fro3 such refund the one (1) por oent allowed to dis*txibutors Baking the first sale, fuel in Tcxae. Frovldcd, distribution or use of notor thRt n bond& and licmncd Eiatributor me, f-urthor. In lieu or: filinr &lain for xSur.d of %:!a tax raid on notor T'uol thcreaftor ssoorted, or sold to t'ic? Unite& :;tntrs Cmcmr?e3t for the oxclu:3lve u3e 0:' asid CGZ- mcnt. taim credit on any nonthly ramrt and tax papen r.aBo to till0 CocHirollor within air (6) monthsot the t-Into ot saiii oalc or exuortaCI.03, ior t!:o mount of tnx so Jxi? . '
*'3cveral Texas distributors with places of business looated along the border lines oi adjolninlr atate and, Old
~xixlcio sol1 30tor fuel.to out of state tank truck operator3 who 00.110 into the.:;tate and puroha30 the motor fuel tron ._ said'~oxas distributors and .then transport the motor fuel
back irtto thoLv own state or into Xexloo. Your opinion No.
O-24243, written prior.to the above ar.ondr%mt, held that suoh
sales were ot intrastate character and :'~ero thus sub&sot to
the Ytnte tgx thou@ t?.e purchaser could obtain a refund of sala.taz ii am%wllen he esrmted the saze. :i i
*A3 a nnttar of'bus'lnsss convenience them Texas distributors deslro to relieve the out of state tmk truck ,1 purchasers ot the burder‘ of fil.lnE c1oit-s for rerun&of the I tax. The distributors propose to pay ttle tax themelves and then sell the tax,Iaid notor'fuol to t!re out of state :I . truckers and when they have been furnished with suffloient proof OS export by tho task truckers ths distributors will
taka credit oh their next or a-subaoquant tax~roport snd
rmlttance the tax originally paid to the State by thorn.
T!:a Can;; tmcker will.then be p,von or&it lor the tax paid to the distributor upon his next gI.rohase from said distri- butor,
TWO of 'the z&or distributors have construed the jj underscored rmograph of the above quoted amndment to authorize I ,: 3~01:,procedure ana have requested an opinion as whether their _ construotlon harncnizes tith.our view of the anenUment.* j,
1.
Eon. Coo. 8, -jhsppnr.rd, page 3
And you rocuest our opinion as followo: *~,~ll you therefore ploese advioe us whether or net, wder t.ix emnd~e3t ns Ouotet herclnabove, a bcr,deC on% licens~ii distributor .%a7 take aredit on a subsequent 1~.onthly rs>ort and tax paymnt for motor rue1 sold in Intrastate cozmrce to an out or oustmer rbl: tfie jzmponc or exportation’ when said p;otor tuel is thereattcr exported by the ousto=roz rathex than by the distributor.”
Se answer your Questior , no. The gotor Fuel Tax Law in ei?oct at the elm or thl,s amendGent did not ~=ovlUe for a refbnd of the tax pal6 on notor rue1 sold to the ??nited Setes Covermeht ior its
exolnsive use, The above quoted Snendnent was paS33d t0 In the law, and also to allow “beaded correct t3.s defeat
md 1icon~aJ Aiatclbutoj:s* to take credit on their nonthly
reports .uade to the Conptrolior far :.ha ammt of tho taxes
paid on li;otox ?a4 cxpor:cd by thorn or said to tho iJrItad
States Covera:.lent‘ for its emlusive use. In ar’ePfo?t to
aons5rve tha trmapoitation raoilisies durinq the mr e::rGr- genoy, t2e Co-mrment roquiror~ eaoh distributor to scpgly
xotor furl froiz the marest ~ouroe of aupglg to the dellvery point, regardless of whether suoh somce or supply v:as a of the ciatributor or belongs to ahother. Ir the
refinery ,zotor fuel suI~plieb by a distributor for emortation OF sale to the fjnltcd Sates Goverment o,em fron a ref‘inery not
omod bg the distributor naklnfl the sele, there ~8s no Iro- vision $n ‘Uhe law the Uatributor to recover the taxco
paid cxccpt by riling a clain for refund. This created a uselcms burden upon the Comptroller and the distributors.
It ws hot contmzplated, however, that a bonded licsxsed distributor could take credit for the tax naid on motor fuel sold to out oi’ State truckers. Such a conhtruction would
authorize distributors to ascertain facts about exportation end sale to the United States Government for its exclusive
use, thoroby usmping the function or the Comptroller, who
is charged urith the duty, of colleotltq the notor fuel tax.
Yours very truly