HE ~T~RNEY GENERAL
OFTEXAS
Hon. Robert S. Calvert OpinionNo. ~~-146
Comptrollerof Public Accounts
CapitolStation Re: Whetherthe CigaretteTax Law allows
Austin,Texas the use of certainnew type stamp and
the use of a machine to transferthe
Dear Mr. Calvert: stampsto the cigarettepackages.
Your letter requestingour opinionin referenceto the captioned
matter reads as follows:
"Sec. l(e) of the CigaretteTax Law definesa
'Stamp'. Section3 providesfor a 'Cigarette Tax
Stsmp Board'and outlinesthe duties of the Boa@
with respectto securingcigarettetax stamps.
"The manufacturerthat has our present
cigarettetax stamp contractcontemplatesin the
near futureperfectinga machinethat will trans-
fer stampsto packagesof cigarettes. The present
stamp is a water stsmp and has to be transferred
by hand. The new stampwill be a heat stamp and
transferredby the new machine. The new stamp
is similarin appearanceto our present stomp and
will be seriallynumbered.
"Wouldthe provisionsof our CigaretteTax Law
allow the use of the new type stsmp and the use of
the machineto transferthe stamps?"
Sectionl(e) of Article7047~2-1,
Vernon'sCivil Statutes,defines
"Stamp"as follows:
"'Stamp shallmean the stamp or stamps
printed,manufacturedor made by authorityof
the Board as hereinafterdefined,and issued,
sold or circulatedby the Treasurerand by the
use of which the tax leviedhereunderis paid."
Section3(a) of Article7047c-1,V.C.S.,provides:
"A 'CigaretteTax Stamp Board' composed
of the Board of Controlof this State, desig-
nated hereafteras the 'Board'is hereby
- L
Hon. Robert S. Calvert,page 2 (~~-146)
createdand the said Board shall be and is
hereby requiredto design and have printed
or manufacturednsw cigarettetax stampsof
such size and denominationsand in such
quantitiesas may be determinedby the said
Board. The stamps shsJ.1 be so manufactured
as to renderthem easy to be securelyat-
tached to each individualpackageof cigar-
ettes;providedthat a differentand sepa-
rate serialnumber or combinationletter
and numbermay by assignedto and printed
on the margin of each sheet of stamps,or
other methods of identification be adopted
as the hoard may decide. The printingor
manufacturingof the stampsshall be award-
ed by competitivebid and the contractshall
be awardedto the person submittingthe low-
est and best bid that will affordthe
greatestand best protectionto the State
in the enforcementiof the provisionsof this
Act."
In additionto the above quoted sections,we have a-l.soconsidered
the other provisionsof the CigaretteTax Law and we have been unable to
find any provisionsthereinwhich, as a matter of law, will conflictwith
the use of the "new type stsmp"or the use of the machine to transferthe
stampsto the cigarettepackages. Sec. j(a) of said articleprovidesthat
the "CigaretteTax Stsmp Board" shall award contractsfor the printingor
manufacturingof stampsto the person submittingthe lowest and best bid
that will affordthe greatestand best protectionto the State in the en-
forcementof the provisionsof the Act. Whetherthe new type stamp and
machinewill or will not affordthe greatestand best protectionto the
State in the enforcementof the Act, is a fact questionto be determined
by said Board.
SUMMARY
The provisionsof Article7047c-1,
The CigaretteTsx Law does not pro-
hibit the use of a new type heat
stamp to be transferredto packages
of cigarettesby a machineto
Hon. Robert S. Calvert,page 3 (~-146)
evidencethe paymentof the
cigarettetax.
Yours very truly,
WILL WIISON
AttorneyGeneral
W. V. Geppert
Assistant
WVG:&s
APPROVED:
OPINIONCcZ.KLTpEE
H. Gmdy Chandler,Chairmsn
Robert 0. Smith
Edward Cazares
Will Davis
IiEVIEWEDFOR'IKEATl'ORNEYGENERAL
BY:
Gee. P. Blackburn
Untitled Texas Attorney General Opinion
Combined Opinion