Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN J <“.
Bonorablo 500. IL Sheppard Coa@roller of Publlo Aooounts
AU&in. ?!eXall (\ at for en op$lam
order ewtabllsh- suoh mttrohaadise, blank mailed to ths ~frlod, or ioh the Issrohendlae is ahipwd to the purohaasr's addrese. Or,
in so98 lnstano6s, t&e faerohantllee is shlp- peb twik to the subofrloe and the pur&aner
oalla, Sor the n@rohandfse and pay8 for it.
The urabaeer may pay for the fmrohandlso
at t rl e time he ~&&MI the order.~
*‘a have e number of 00n4erna oper6b ing dleglaay roenis in the State of Texas in
+hioh s8rohaadIao I8 dIrplay8d. Th8 ourtoaar an118 at thI# plaoo or btMnes8, n&88 a pur- ohaw irap the,m8rohaa4Iu on dirplay, and. later c~oneern deliver8 to the oustamer, 8ither by Its own truokr or by par001 port, tha mrohnndiee puroha8ed.
9oer either oi them tro plaoo8 ooy within the u0rinltion of a &ore 88 s8t.0ut In the Chain &ore Tu AotF
i ra your atdm8nt th8 raotr that indhate 80a8 of the plaore ham, and m do not v** mail order
oatalogr whIoh may be U8rd by ourtwnre in meking ~rohan- dir0 eol8OtiOil8. 910 d0 wt bOliet8 t-h&t difi%XWLo8 in th8 p&O08 h&TO i3XW l fi8Ot OZI th8 UI8WU t0 SOW C&UOiBtiO& w0 dl80 believe that the Man8r In which the morehwUi88 ir ror is ImaterIal in d*olding the an8w8r to your quo8- 8 ! . A8 nh8ther or not diqlay room in qumtlon j am 8tO2'88 Is d8tsZMi&8d by th8 deiinitioa of tarit "8toro" In the Tuaa Chain Store Tax law (Iiowo Ml1 18, Oh. 400, AOtt &th Z8giPl..aUVl COdifibd IiZSt wi8d 8088fO&, i@3& Ar9iole lllld, Penti cOd8), maid definition roadbig a8 fol- lowor "SO0 9. The tWY!A '8tOiO' 68 W8b it.3
thle Aot, rhall be aaastnud to man and are owned, oparatod, praiataiaad, of aoatml- 18d by the 8aae portion, agent, reoelror f%ma, aorperatlon, oopertnrr8hip
truteb, or aaoooiation, either domertla or iorelgn,
The part of the d8fhltIQn with whioh wo ere atan- oeimed eaym that *the tom ‘8tore’ * l * 3uJ.l * * * meai'~ +: * * any store or storre or any aeronntil8 88tab~bhment Or estab2i8hamte * * + in whIah 43OOd8, ware8 or t40r0hnaf08 0r If the88 display roofM Srs Thwefors, any kind tie 8old.” "aeroantlle establIehmoatsR and are [b) p]soe8 "In whIoh goods, ware8 or mrohandisa of any kind are 001d,~ th8y are
52; "8bOl'S8* within maning or the Qhaln store Tu kw,
iis will first dlaouaa whether 0r not they 8ZW ur oantlla l atabliabmanta. Th8 8tvtuta iaoltadv8 "any 8tvro * + * or WAY asrvantllo ertablI&amat.* By ah* ow of both term& w8tOr8m 8ad %vraantilv r8tablia&mantw, the &8&8bttU8 iII8Uld~d fOr th8n tv h8n alf- 8ppUnntly m8~nln68~ In otbor *or’&8 th8y do not mean tlw r8mat aam8 thin& but th. t8ZIN “MrOmti& @8tablhhmnt” YaO8 #OUhhing ahen a "8hl@*. IS thS Oa88 Of TOXS8 bifr8mnt Bela a m8t co:t. Austin, ll8 Tn* 201, tB0 8. Yy, 161, the 8upr8am Oourt. of T8raa uidt
n+ * + 110 l-Uh Of 8tcltUtVl-j’ OOWtX'UO- tloa J&ON uninmelly rooognlwd tbaa tkmt *hIoh aoapsla the oourtl to gIm (YI ureot to wary Sxpr~ar d8olaratloa or lay iatent. Th8 nil0 I8 olearly rQatad 18letIn in lL k, k T. 8yr Co* of 'Paxa r.~~ffoy, 105 Tax. $998, 150 8, We = Ott&& Z&&i88 Bd.Ui'8 vplaloa th8 u&m4 8@6tS8 w pram8 t3ourt In Xoa8olaIr *r -8u 3. sr 158 1L a* Qt. 896, er L. B&L 41,
WhSrS it 18 88&t:
*'X0 18 duty t&8 aourt tv @In otS8vb, if possible, t0 Wary OhU8S rad word of a 8tatut0, avoid* if 10 mky bo, say 8olUtZ’UotiOn rhioh &i&98 that tha
I#gI8latworaafgllonntorthommaingar
th8 lenmgv emp%oyed.~' 880~ Of B8Bk8 'Ir &%ktO, 88 ti. 6d6, th. ~p8liUrt ha bea Oorr*lOtOd Of viOlSt)ag the 8ttetUt8 ISSk@& kt II tO'8tUl "tllI~ hVr80, g8lbin8, MN, SOlt (US, Or fO* mlc~,~tnd 8he oourth8ldth8tbyaringthswarbr *hor88'* iatmdsd for thus to mvan bff- 8nd %nr8* thv la&blcdur8 fvrvz& things and thvt the HIP% "hvr88" LD. t&v 8ta8UtO dfd not Imltie Qarvw evaa though tha tewm *her8P ordinarily WS8 8 ~W8riO t8lTil th8t hlOlUd8b nI?)oa ~tk8tO8SS th8 0oux-t raid;
r+ * +* Xt 18 our,duty bs gin t6 ohs artlolo 8uoh a ovn8trvvtiva a8 will #TO 8i- foot end rParnIng to eaoh wvrd a8 nvarly a# 08n be conslataatly dons ulth the vbjeet ana purP$"r Of thS brgi8]atU?Or
l *4 Se Bate bean u?iablm fiad a6rin* th8 t8ra nneroMtilo 8tabli8hmeat,w 8 wXr8 dOflaf- or th8 ordinary maialag or th8 word vtorer~ I)0 tha tion 01108 or contInentnl Paper F&g CO* v* lkuwortih, 896 a* w. 100, th8 Coaaisalon of Appeal8 ToxaU aaid: 1 *Ia Aawrlona Q&8&&0, tha woti ‘8tOZ8, * to daaIgwte a plaoe of bual-
whu uployod
IWE8
room,butmay inaludr In ia8&%8
aoaa r8tablirbmont where Dare paraondty [18] $‘hU8 W8 800 th8 L8 th8t aold.” go baliate and kept fht h *a bUliar80 aStSbfir*luat whW0 a 8tOX’O l&urn intend& the tam *maraantIlo a8tnb~i8&am dlrrorurt thaa a storec 8~04 00 iokihbw
Th8 tanu mmmmaatilm s8tabli8h!B8ntw i8 68riaaa In 8l Oerpu8 Yuris 004, as rollorralr buyIa& aad 8.rflinn “A pleus wham
Of artlales 0x lWWdUlti8O~aS an fNqawma*
[18] owduotmd.” 2%~ MI derialtloa or I *'as~antIle edablialuaont~ WM usad laths oases or continental B8k$n& 00, V* Cawba&l, lT6 Ok&+ 818 5s P* LIpd 114. It will be aotlosd In Bhat dsfinition it that does llob 8tky that marohanblas 8nd 80ia la a MrSUItile .Stablf8hmSllt ha I8 thS OS88 (Coatlaaat- al %WF Bag Uo. I. Bmuorth mtpra) but It oaly says tha$ buyktig urd. 881w is that smrohandlas that OaDtilO izI the not k8pt P]aO1, 8old 08tabli8hmentr e5piOymMt na an believe Thmerore, we that tha raot 18 OOadUOtOd iI3 a SW- th&t only~ aampler axe kept therm dW8 not PreVOat it but fxva being a mSxaSatilo Srtab~i8hsaa~Ptr
Ke will now diaouae whrthmr Or not them dlrplar r00ma am plaoea "In whloh good8, war08 or mrohandlam of otilxmri4 P aalo takaa plaor nhora any kind ara aold.w pallSb8~. we 818 Of %hr OPbia b6RevOr~ tit10 t0 X6r0haE4180 t&t f?os a ScradIng of the dhain rtoro tar 8tatUte in it8 ontiraty, It is evident that the Lagi8latura was 8tt8 th&?g "9c to tax a plSoS of butxlnass at whIoh n8mhondla6 war, so d,
” -- 525 Eonorablo &o. H. Sheppard, e
meaning the plaoe where the tnxnaaotlon took place nthar than the plaae where the aotual title to raid merchandise paaaed. As ata$ed in 53 Corpus Juria S6, r[owever as used by the authorities, *sale* la not a word of fixed kvartable meaning but may be given a narrow or broad suenix& aooord- 1~ to tha ocntert or the aurroundlng oirouaahnaea and the oonduot of part1.a".
In many lnattmoea under the faota preaantod title to the merobandise did not soWally pass exoept upon dell~ery. laoe at tha display Wwever the tranaaotlon of the aale took or order room. The question then la whet i l r or aot the Legla- where tltla paaa- lature intended to tax the plaoe of delivary ed or rather on the other bend, intended to tar a plaoe of buaineaa at whloh the business tranaaotion to& plaoe. Fe bolleva it be the latter.
In thie oomeotlon isl important to noto the Ian- guage of the Cowmission of Appeale of Texee in the oeae of .Burt Vs COO~Q~‘, 130 Tax. 433, 110 S. V. (%d) 896.' ti OSaStl'UiX& thy exeagtion in Seotlon 5 of the Aot, whleh appUe8 to aanu?aotiur- ln$ oonomna distributing produota of thelr own mnufaoture; the oourts stated that buoh plaoee of buelneee do not ome with- operation of Aot r~ar&lrSS lnn~~afflraatlvyJ of the ex- . The oourt -aald that the "teat la whether sales ot goods, wares, or aerohandlse are made at the plaoe.” Sn polnt- lng to plaoaa of bualnaas at whlsh sales goo&a,.wqma or merobnndlre are not made at the plaoe, the Cour% anld:
*It nay be that ome manufaoturlrrg eon- oerna maintain bona fide 616trlbutlng points at whloh no relets era anda, but Prom whloh they merely dlatrlbutr at wholesale to their stores or at retail to purohaaara from their sales agents. If eo, auoh business would ap- pear to be within the tom8 thl8 p~0tisi0n.
Obviously they would not oome wltUn the af- flmative operation of the statute es we here construed it, end therefore no express exeap- tfon was required to relfeve them from the burden OZ' the tax."
The language of thr Supreme Court above n,uo8ed supports our oonolualon to effeot that 'the diatfnctlon fs between a ptioe of buslneaa on the one hand whloh amraly a dlatrlbut~ *6 Xionorable Oeo. 8. Sheppurd, Pago
point and a plaoe of buain~aa on the other hand at whloh aales of serohmliae are loado in the aenae th+t the tram- a&ions take place therein.
Under euoh oonstsuoti~on, la our opinion that all display room mentioned, inoluding those in whioh delivery not rmde thxoqgh auoh display rooaa to the purohaaer, are meroantlle eatabllahmnta at
wares and aerohanOiae are sold within the mean Texas Chain Store Tax Mt, aa4 ale therefore 0ax.
Yours very txuQ ATTCWitYOlX?EULOFTgLAb~