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OFFICE OF THE ATTORNILY GENERAL OF TEXAS

AUSTIN

iionorrbls O4Or&4 ii. 3m~,p8r4, 7864 2

8r.A Cotobrr~of reoh /44r, a ral;ort to the Coaptrollrr und4'~ oath of ths in2lrldua1, :ar of the prrridrnt, trosaarer, or rup~r?ntandrnt of suoh eaapaay, or 4-rpor8tioa, or‘ 444ooi8ti.n shnw?n(( tha gr oss l a.uv.6 rooo:rai! rm.. 4uoh b-i,- ~8s aan@ 1.1 raoh a)uc:.~ lacorporutrt? city cr toaa within thllc 7tata la th8 paymoat of oh*rp,48 ror lipOh aas, rlrctrlo lbht8, rlrctrlc powar 62 v8t6r ior the :;urrtrr nut prroadi~f. :a 4 la- i 4lri4us1, oospaay, 4orp5ratba, or ~r8o4lotloa, at t?rcl of uatlnd 8old for any raoh r8port lrraarporrtod town or eltf of more t.h?n on4 tkou- sand (l,COO+) Izhabttatitr, snd lrar than two thou88cid, flri hundrrd (7,500) inhbltcrntr, 80- uordlng to th le8t Fo46t81 Cbnau8 n4at preeed- lng th4 fll:uu ct 8ai.i report, 4hall pnf ti'ths TnaWr4r of LhZs ::t*te an booupofl,rn tst for th ty-four hon4r4dths 8414 e;raas rscslpta; a8 ahom by 8aid raport. . . * quartw b&Mi&$ (.u) of me (1.) vr wat of l 8id deta 4;uml to for- Th4 only qnertirn praseJit4c! ie uhotker tb6 dI8trIbutor I4 oporotlnq Y “gaiwtorka” or I 348 *phiat* 'within 8n fnoorpor4tat tom cr o%ty* within thr ~88~. iq3 o? art2016 7050. . :a 6184U88iaq this 8tatut4 thr Wm,l8r;lOG Qf':.pp8818, Ir th4 0880 sf C'tlllta~s *WI- ral Oa* Ceapsny T. COatr, 126 3.Z. (24) 1153, in 8n oplnlon 84opte5 by thr Supr4ma Cart, e4t6.d

-Th6 6i6ia Obj64t Of thI8 8ktUt6 ia tbr laplirg of ar. rooapeti:.a t4x l gdart thocrr rho 4wrp4 in a bu81~1488 or tb4 oh8trot4r dafln44 In th6 8trtotr. ?hr l ubjoot ntt4r In rddp44t to which the tax is lmpo884 18 a bwln488 b88?- laq thr 4.8?4at4ri4tlO mark8 rprolflrd in tho "Ith roirrmo6 to thr buslnrra of li rtatutr. 648 oomp8a), th6rr oh4r8~ot4rirtio scrrks in- ala44 8-q other4 uhloh mod nat b4 notiod at tat8 t1.w 8 eoo-vorka looatsd in says la- oh* La this State whidh lr '0144 ootporatrd tar looal 8414 6nd 418tribatla* OS 468 in aiu 41tr or LOWll.’ fn the rbmr Oar* the court sakes further atrtraaat thetr

%Ina4, th4retor4, thr~wr ot *8oa-work8’ in a 4Ity 'r town I?. thlr ::tsrta, far the dir- trlbutlon 09 gsn In mid alty or towi is, bf *3 statute, aMe dli es8entlal obaracterlatia of it tallowa tlxc t t&e bus;- tb8 btuinoss toxe3, naae-in *Iah Ma pleintirr In aw:+gaa, aa 4loclo~rtl. by the undl#putud Snots, Ic mt rub- &at Co the taz whloh thie rwtuta ~ro~ld~e~.~ It the ~i~Iext~Oo of %Geth-

‘WI court had beiorr l r a ua a ~dtrtcibntor wbors pipe l.ine l xtenCd fate ths aits, KIWI which 68% mn tbrra delivered to n sin,& cua- tomr utir 1ieb.k SOr thu tar. As will be saw srom the d0v8 quottbtLons, thr aetmt in holbinq tbt onoh distrlb- utor wa8 not 1IaRle For the tax cnmtrtm? ths atrtutr to 16Vy thr tax UFGG the OOOU~~tiO~'Whleh hno the follciu- lag oharmotariatie mnrksr 1. The gat! plant aaat ~bc lo- orbed within the IAQOQO~-: ted otty and 2. It ,must be wad for thr *loc31 ro',e *ml dfatr¶butloa* of es* ln *uOt. xltp or. town.

The uo.cd 300ttt4a- “has born r.+rl~msly detlned ae Slrrc; Sired in ~1s~: plrord)‘sltc:ntad.* )@ C.J. 132. Tar various QefInItionr'arr eyztonpa us, if not IdektIoel, In maanlng. f'bey oertrinly ornvoy alowly tt*a ord!nary Si(illiriO&Itit.?A Of word -.LOCYta”.” ThuB, we My l ny t:i:1t in o rdax to perapnraslw tbs stntuts, broom rubJr& to the tex lovkd by &rticls 7060, VA. C.S. @an .dlstributor must (I.1 own, opew-a, aaan~ge Or OOlIt~Ol 0 @BO Dbttt i~~DltQO0. PlROd Or 8itU- rlthil WI hmorporatra Oity or town nnd (2) must atrd iGYkb pL*at ror tha loas1 ralr ana dlatributian or a@# ill SUOC Oitf 01 tOhA.

*:a think .that, under the faatr eub,slttsd, waars ia no -go8 9hAt”~ Lha lAoorpora- by truck ta t&e to4 oitr. arhrxr the izeo in tSe citr, cad shoe t&la In true one l6- austaaaii Cml8aqurr:tly * we hold sent of lirblll ty ID lacking. t:at Oh. dimtributar dru~uribad by you $a rrf-t aubJaot to t& t’a. Tblr holdiog, hmatar, in limitad to tba i&t oltwtlen rtatrd in your iap~~irg, via: where tba die- aqll!cosnt or'ap- owla no maobfnocy, trihltar tixtursa, pllsaeer used for ths loos2 eale 8w.l 6IstrIbutIon or gar and Joaeted nittta ttre citr. *4 Eoaonblo Ooorge H. Sheppard, Paga 4

Our opinion NO. O-3776 rtatas that,: *'It IB the oplniun or thla drpartmnt in 111~ aith above quoted oeeoe that any lndl- tldaal cr corporation eellily or dletrlbutlng liquid petroleur gee to mom than one coneumer in zany incorporated city within the population brackots atetad in Artlela 7060, *P amndrd by Fauea 8111 8,, Aote of the lorty-eoarnth hgie- lattlre, 1941, would br rubjaot to the gross ro- oaipte tex lavlrd therrln.*

pia wore than diecussing a feat situation when the plant or the distributor was loaatsd wlthln tha lnoorpcratad city. To the rxtont .that euoh date-, tint Is pplloabla to dIstrlbubor8 whoas plant6 are not. loaetrd In the Incorporatrd oltv It ir diotua, and it Is not epplloebls to the ract bltoatlon here uadm oon- sidrratlon.

Vor)- truly p:-.urr, &A&

Powlrr Roberta Asslmtant APPROVEDOCT 15, ;1942

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