The Attorney General of Texas
December 21, 1981
MARK WHITE
Attorney General
Eonorable Bob Bullock opinion No. km-413
supremecoull BulldIng
P. 0. Box 12548
Comptroller of Public Accounts
AUSlkl. TX. 79711 L.B.J. State Office Building Re: Interpretation of House
5121475.2501 Austin, Texas 70774 Bill No. 3 relating to regula-
Telex 91018711397 tion and taxation of bingo
1ehcoplar 512147tx259 games
1907 Main St.. Suite 1400 Dear Mr. Bullock:
Dallas, TX. 75201
214l7428944 You have requested our opinion regarding certain provisions of
House Bill No. 3, recently enacted by the Sixty-seventh Legislature.
4S24 AltatS Ave.. mte Is0
V.T.C.S. art. 179d. Acts 1981, 67th Leg., 1st C.S.. ch. 11, at 85.
El Pasc.0.TX. 79995 The statute authorizes various local jurisdictions to legalize bingo
91563344W games for charitable purposes and to impose a two percent gross
receipts tax thereon. You first inquire about an apparent conflict
between sections 11 and 13, which provide, in pertinent part:
1220 Dallas Ave.. Suite 202
Houston, TX. 77002
71- Sec. 11. (a) The conduct of bingo games
authorized under this Act is subject to the
restrictions prescribed by this section regardless
905 Broadway. Suite 312 of ~whether the restrictions are contained in a
Lubbock. TX. 79491
eml747.5239 local ordinance.
. . . .
Uoo N. Tenth. Suite S
MeAllen, TX. 7&X1
(e) A prize may not exceed the sum or value
512i8924547
of $500 in any single game of bingo.
200 M&l Plaza. suite 400 (f) A series of prizes on any one bingo
San Antonio. TX. 79295 occasion may not aggregate more than $2.500.
512l22!H191
. . . .
An Equal OpportunItyI
Atflrmatlve Actlon Employer Sec. 13. . . . .
(b) The comptroller of public accounts shall
issue to an applicant a license for the conduct of
bingo, on payment of a $50 license fee, if the
comptroller determines that:
. . . .
p. 1408
Honorable Bob Bullock - Page 2 (Mu-413)
(5) no prize will be offered or given in
excess of the sum or value of $1.000 in any single
game and that the aggregate of all prizes offered
and given In all of the games conducted on a
single occasion under the license will not exceed
the sum or value of $5,000.
Id. at 90. 92. You ask whether section 11 governs the limits under
which a license may be issued.
Section 11 imposes restrictions on the actual conduct of bingo
games. among which are that a prize may not exceed the value of $500
in any single game and that a series of prizes “on any one bingo
occasion” may not exceed the value of $2500. Failure to comply with
such restrictions is made an offense by section 36(a)(S) of the
statute. Id.
- at 98-99.
Section 13. on the other hand. controls the.issuance bf a license
for the conduct of bingo games. The comptroller is required to issue
a license to an applscant. on payment of a $50 fee. If the comptroller
determines, inter alla, that “the games are to be. conducted in
accordance with this Act” and “no prize will be offered or given in
excess~ of the sum or value of $1.000 in any single gamesand that the
aggregate of all prizes... on a single occasion” will not exceed
$5000. Section 13(b).(3), (5).
Since section 11 controls the actual conduct of bingo games, and
section 13 controls ,the Issuance of licenses, It is clear that the two
sections serve different purposea. As a result, we do not believe
that ~their provisions are necessarily In conflict. The comptroller
should issue a license to any applicant whom he has determined has
complied with the requirements of section 13. We note, moreover, that
section 13(b)(3) requires the comptroller to determine that the games
will be conducted in accordance with the act, including the section 11
prize limitations. Games which comply with the section 11 limits will
necessarily be within the limits stated in section 13(b)(5).
You next ask:
2. If a ‘justice precinct of a county
legalires bingo but the county commissioners court
does not impose the tax. may a municipality impose
a tax on a portion of the justice precinct within
the municipality?
3. If a county legalizes bingo but the
county cormmissioners court does not impose the
tax. may a municipality impose a tax on that
portion of the county within the municipality?
p. 1409
T
Honorable Bob Bullock - Page 3 (Mu-413)
4. If the answer to either 2 or 3 is ‘yes’,
must the municipality hold an election to impose
the tax?
5. If the municipality imposes the tax. may
the commissioners court thereafter impose the tax
in the county or justice precinct?
6. If the answer to (5) is ‘yes’. is the
county then entitled to receive the 2% tax to the
exclusion of the city?
Section 3 provides:
Sec. 3. (a) The commissioners court of a
county that has voted to legalize bingo or in
which a justice precinct has voted to legalize
bingo by order may impose a two percent gross
receipts tax on the conduct of bingo games within
the county.
(b) The governing body of a municipality
that has voted to legalize bingo by ordinance may
impose a two percent gross receipts tax on the
conduct of bingo~games within the municipality.
(c) Any municipality within which one or
more justice precincts have voted to legalize
bingo and which municipality has not voted to
prohibit bingo may impose a two percent gross
receipts tax on the conduct of bingo games within
the municipality.
(d) Any gross receipts otherwise subject to
tax by a county are exempt from the municipal tax
if a tax has been imposed on the gross receipts by
a county.
V.T.C.S. art..179d. )3. Acts 1981. 67th Leg., 1st C.S., ch. 11. at 87.
Section 3(c) permits a municipality to impose the gross receipts
tax In those justice precincts within the municipality that have voted
to legalfze bingo. provided the municipality itself has not voted to
prohibit bingo. If the county has legalized bingo but the
commissioners court has not imposed the tax, the municipality may
impose the tax in that portion of the county within the municipality,
provided again that the municipality has not voted to prohibit bingo.
The municipality is not required to hold an election to impose the tax
under these conditions.
If the municipality imposes the tax, the commissioners court may
later impose the tax In the entire county or within one or more
p. 1410
Honorable Bob Bullock - Page 4 (MW-413)
justice precincts. provided the county or the particular justice
precinct has acted to legalize bingo. Section 3(a). Under such
circumstances, all gross receipts are exempted from the municipal tax,
and the county is thus entitled to receive the tax to the exclusion of
the city. Section 3(d).
Your last question is whether an authorized organization located
outside an area which has legalized bingo csn qualify for a license
within the legalized area. Section 12 of the statute prescribes the
requirements for a license application and section 13 describes the
conditions under which the comptroller must issue a license. No
provision thereof would prevent an authorized organization which is
otherwise qualified from obtaining a license merely because it is
located outside an area which has legalized bingo.
SUMMARY
Prior to issuing a license to conduct bingo
games, the comptroller must determine that the
applicant will comply with the provisions of
section 11 of House Bill No. 3. If a justice
precinct of a county legalizes bingo but the
commissioners court does not impose the tax, the
municipality may impose a tax on the portion of
the precinct in the city without holding an
election. If the county legalizes bingo but does
not impose the tax, the city may impose the tax on
the portion of the county within the municipality
without holding an election. If the municipality
imposes the tax, the commissioners court may later
impose the tax in the entire county or within one
or more justice precincts. An authorized
organization located outside an area which is
legalized may obtain a license.
zg
MARK WHITE
Attorney General of Texas
JOHN W. FAINTER, JR.
First Assistant Attorney General
RICHARD E. GRAY III
Executive Assistant Attorney General
Prepared by Rick Gilpin
Assistant Attorney General
p. 1411
Honorable Bob Bullock - Page 5 (MU-413)
APPROVED:
OPINION COMMITTEE
Susan L. Garrison, Chairman
Jon Bible
Rick Gilpin
Sherrita Lee
. Jim Moellinger
p. 1412