Case Information
*1 4p
OFFICE OF THE ATTORNEY GENERAL OF TEXAS 0’ ;ir AUSTIN G
BoBorable’ffeorge 8. Sheppard
Comptroller of Publio Aooountr
Aurtf.B, Texas
Dear Sky
laotory to the de
the retail prioe
putlng tax
1noluder.t in
vehlole vhe
i8 ftrlanoed
8 the vhem tvo parties tramfor of title to the r on motor vehicles and olalm that they are of equal value no differqoe
. ha8 been paid by either party in the trade?
Sootion l(a) of Artiole 6, House Bill Xo. 8, afore- said, provideat
Honorable George 8. Shappard, 2
"Seotion 1. (a) There 18 hereby levied a tax upon every retail rale of every motor vehlole rold in th18 State, ruoh to be equal to one (1) per oont o? the total OOB- 8idOratiOB paid or to be paid to the seller by the buyer, which COB8ideratiOn 8hell in- clude the amoUnt paid to be paid for said motor vehicle and all aooe8sorle8 attached thereto at the time of the 8ale, vhether such oonsideratlon be in the nature of ca8h, credit, or 4xoh.snge of property, a oombination Of th484. XB the event the COB- sidoration reoelved by the seller includes any ta% lmpo84xl by the Foderal Government, then such Federal tax 8hall be deducted fro81 such oonaideration the purpose of oom- puting the amount of tax levied by this Ar- tlole upon 8uah retail rale." f’
Section 3(a) resdst "See. 3. (.a) The term t8a14t or '8ale8'
a8 herein u8ed 8hall include instalment and ore&it aale8, and the exthsnge of property, veil a8 the sale thereof for. money, every olosed tranaaotlon oonrtltuting 8ale. The tMn8aOtiOB whereby the pO88088iOn Of pl'Op- erty trawderred blithe seller retains title an security for the payment of the price shall be deemed wile."
It.18 our opinion th8t your fir8t qUe8tiOB =8t be aEsver4d in the negative. The t&X l8 OalOUht8d 011 the 'tOt41 consideration paid or to bo paid" for the VOhiel4 and to our mind8 irolght vhioh the doalor h8S b4OB Out vhiah 18 added to the charge vhleh he make8 his customer 18 unque8- tionebly a part or the *total aon8ideratioB" which the ou8tomer i8 to pay.
us an8ver your 8OOOBd qu48tlon in the negative.. Buoh "carrying charger," that 18, interest, lnsuranoe premium8 and perhaps other things, are not a part of the oon8ideratloa for the vehlole. Rather they are oon8iderationa for other thing8, suoh a8 the use of money and lneurance. Some of the language
BoAorable Oeorgo H. 2&4ppad, P8go 3
used in the flr8t 84BtOBCN Of 8eOtiOn l(S) A0 doubt proiqhd your qU48tiOA. Hovevbr, v8 bellevo such lenguege mally mean8 that 8UCh a ta* 18 levied 8~d payable in hrll, deeplte the faot that the trsnsaotlon m8y be OB credit in vhole or ia part.
Your third quertion 18 a80 anavered in tho negative. Seotlon 5 goes more to the remedy, or machinery iOr collection, than to ths subjeot matter of the tax. As ve construe Act, Section l(a) 14v148 a tax upon sales made after'the 42f8'ctlve date of the legL8lation, and Seotlon 5 merely provide8 how *the tares levied in t&i8 Artlole* sball be collected.
Ye now ad&ear our8elver to your fourth quertlon Ue have already quoted 8OotiOn8 l(a) and 3(a). Sections 1{b) and 3(b) rw8dt In all ca848 of retall 8al48 "W
illVdViIl&J the eXOh4Age Of motor YshiOlSO,
the party trlrn8ferriAg the title th8
motor vehicle haylAg the greeter value
shall be consider4d the 8eller, no
tax 18 fazposed upon the transfer of a
motor vehiole tr8ded in upon tba purchese
price of wme motar vehtcle.
"(b) The term ‘tietall sale' 'retail 8a14st aa herein wed shall include all mlea
of motor rehioler except fhO80 whereby the a motor vehiale for the
purchaser acquire8
4201U81V8 purgose of resale and not tor use:
A reading of S8Ctlon8 )(a) and 3(b) vould 444m t0 tidlcete that ru4h tmnsactlon thir conatltut48 a retail vithln the meaning of tho Act. Aov4~er, the Act does not say vhich party voulU be liable, nor that liability ths tax should be apport loned between them equally. Furthermore, noth- in& y$sln di80108e8 an intentlsn,that each of them should pay
We do not believe tax ~821 be charged against a nma statute vh:ch show8 by express lmguaae by n4ce8- wtthout’a nary imyllcation that he--the person sought to be ohargsd--18 liable the tax. It I8 not eutYlciont to be able to point to a statute vhich merely say8 that h4 or another 18 liable, vlthout apecttylng vhich. our ftn9wer to thi5 qu48tlon 14 that *4 Honorable Oeorge If. Shoppard, $
no tax [18] oolleotlble Yh8r4 the vahfcler are of equal valur and are actually exohanged without eny differems being paid.
ATTORKEY OENERAL OP TEXAS