r
Honorable Robert S. Calvert Opinion No. C-730
Comptroller of Public Accounts
Capitol Station Re: Whether gross receipts
Austin, Texas of Electr0n:i.c
Enterprises,
Inc. are subject to the
Gross Receipts Tax pro-
vided by Article 11.36,
Title 122A, Taxation-
General, Vernon's Civil
Dear Mr. Calvert: Statutes.
In connection with your request for an opinion of this
Office on the above captioned matter, we have checked the
charter of Electronic Enterprises, Inc. and find that It was
incorporated for the following purposes:
11
. . . to purchase and sell goods, wares
and merchandise; to transact any manufactur-
ing business; to service and repair goods,
wares and merchandise, to hold, use and
acquire licenses, patents or processes and
sell or otherwise dispose of the same; and
to render common carrier mob.lleradio com-
munications to the general public."
In your letter requesting this opinion, you have given
us the follow-lnginformation with regard to Electronic's
operations.
"Electronic Enterprises, Inc. is licensed
as a common carrier by the Federal Communi-
cations Commission and the company operates
as a central dispatch station with a hook
up with Southwestern Bell Telephone Company.
"If an individual desires to have a tele-
phone in his car, he applies to Electronic
Enterprises, Inc. for this service. The
company installs a telephone and he receives
the services of a dispatcher. If a subscriber
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Honorable Robert S. Calvert, Page 2 (C-733)
wants to make a telephone call, he calls
the dispatcher and the number i.sdialed by
the dispatcher, regardless of the location."
You have furnished us with a copy of a letter from your
Regj~onalManager in San Antonio, Texas, as well as a pamphlet
which describes a similar service provided by another company.
This letter states that Electronic rents car radios and collects
Federal Excise Tax as a telephone service. The following are
excerpts from the pamphlet.
"TI.!O-V!AY
MOBILE RADIOTELEPHOME
"Make telephone calls from your car . . . .
In addition to our telephone answering
service, we are able to equip your car
with a two-way mobile radiotelephone.
Through our switchboard you can talk
direct to any telephone anywhere. Our
mobile radiotelephone operators act as
secretaries too. They take messages,
give information and, if you desire,
keep track of your whereabouts. If you
are on the move, stay in touch with a
mobile radiotelephone.
1.
. . . .
"NO MILEAGE CHARGES!
"Only $3.00 per month telephone company
charges when using our special eq:ip-
ment which serves most exchanges.
Section (1) of Article 11.36 reads, in part, as follows:
"(1) Each individual, company, corpora-
tion, orXZoclation owning, operating,
Zi%ing,. or controllin.7any telephone line
iis
or lyne8; or any telephones-within this State
1,
,
resent, treasurer, or suaerin-
tendent of-such company, corporation, or
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Honorable Robert S. Calvert, Page 3 (C- 739)
We think that Electronic is within the olain language
of the statute. It controls some telephones within th!,sstate
in that it directs telephone calls through the dispatcher and
charges for same. It therefore should make the required reports
to the Comptroller showing the gross amount received from all
business within this state during the preceding quarter in the
payment of charges for the use of telephone and telephones,
and from the lease or use of any wires or equipment within
this state during said quarter.
Even if there be deemed to be some doubt as to whether
Electronic's operations fall within the provisions of the
statute. we think that proper construction thereof leads to
statute,
the conclusion that they do. San Antonio & A. P. Ry. Co. v.
Southwestern Telegraph and Telephone Company, 93 Tex. 313,
55 S.W. 117 (1900).
S U M.M A RY
Corporations created for the purpose of
providing radiotelephone service ,are sub,ject
to the Gross Receipts Tax provided by Article
11.06, Title 122A, V.C.S.
Yours very truly,
WAGGONER CARR
Assistant
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Honorable Robert S. Calvert, Page 4 (C- 735)
MMP,'fb
APPROVED:
OPINION COMMITTEE
l$J.
0. Shultz, Chairman
12.E. Allen
Harry Gee
John Reeves
APPROVED FOR THE ATTORNEY GENERAL
nY: T. A. k!right
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