TEE ATrO?a?tNEY GENERAL
OF TEXAS
August 21, 1951
Hon. Robert S. Calvert
Comptroller of Public Accounts
Austin, Texas Opinion No. V-1247
Re: Taxation of motor bus com-
panies during July, August
and September when the law
requiring quarterly payments
in advance has been amended
to require payments at the
close of the quarter at a high-
Dear Mr. Calvert: er rate.
We refer to your recent letter from which we quote:
“Section 1 (a) of Article XIV, House Bill No. 8,
Chapter 184, Acts of the 47th Legislature codified as
Article 7066b of Vernon’s Annotated Civil Statutes of
Texas, reads as follows:
l‘Each individual, partnership, company, associa-
tion, or corporation doing business as a “motor bus
company” as defined in Chapter 270, Acts Regular Ses-
sion of the Fortieth Legislature, as amended by the Acts
of 1929, First Called Session of the Forty-first Legis-
lature, Chapter 78, or as “motor carrier” or *contract
carrier” as defined in Chapter 277, Acts Regular Session
of the Forty-second Legislature, over and by use of the
public highways of this State, shall make quarterly on
the first day of January, April, July, and October of each
year, a report to the-Comptroller, under oath, of the in-
dividual, partnership, company, association, or corpora-
tion by its president, treasurer, or secretary, showing
the gross amount received from intrastate business done
within this State in the payment of charges for trans-
porting persons for compensation and any freight or com-
modity for hire, or from other sources of revenue .re-
ceived from intrastate business within this State during
Hon. Robert S. Calvert. Page 2 (V-1247)
the quarter next preceding. Said individual, partner-
ship, company. association, br corporation at the time
of making said reports, shall pay to the State Treasurer
an occupation tax for the quarter beginning on said date
equal to two and two-tenths 2.2 per cent’of said gross
receipts, as shown by said report. Provided, however,
carriers of persons or property who are required to
pay an intangible assets tax under the laws of this State,
are hereby exempted from the provisions of this Arti-
cle of this. Act.’ (Underscoring ours)
*House Bill 3. of the First Called Session of the
Slst Legislature levied an additional 10% tax making the
overall rate 2.42% of the gross receipts.
‘House Bill No. 285 of the Stnd Legislature. Sec-
tion XIB amends Article XIV as follows:
* ‘Section 1 (a) of Article XIV of kouse Bill No. 8.
Chapter 184. Acts; Forty-seventh Legislature. which is
codified as Article 7066b of Vernon’s’ Annotated Civil
Statutes of Texas, is hereby amended, so as to here-
after read ,as follows: :
* ’ “Section 1 (a) Each individual. partnership, com-
pany, association, or corporation doing business as a
‘motor bus company’ as defined in Chapter 270. Acts,
Regular Session of the Fortieth Legislature,, as amended
by the Acts of 1929, First Called Session of the Forty-
first Legislature, Chapter 78, or as ‘motor carrier’ or
‘contract carrier’ as defined’ in Chapter 277, Acts, Reg-
ular Session of the Forty-second Legislature, over and
by use of the public highways of this State, shall make
quarterly on the first days of January, April, July, and
October of each year, a report to the Comptroller, un-
der oath. of the individual, partnership, company, as-
sociation, or corporation by its president, treasurer,
or secretary.. showing the gross amount received from
intrastate business done within this State in the payment
of charges for transporting persons for compensation
and any freight or commodity for hire, or from other
sources of revenue received from intrastate business
within this State during the quarter next preceding.
Said individual, partnership, company, association, or
Hon. Robert S. Calvert, Page 3 (V-1247)
corporation at the time of making said report, shall
pay to the State Treasurer an occupation tax for the
quarter next preceding said date equal to 2.42% of
said’gross ‘receipts, as shown by said report. Pro-
vided, however, carriers of persons or property who
are required to pay anyintangible assets tax under the
laws of this State, are hereby exempted from the pro-
visions of this Article of this Act.” ‘(Underscoring
ours.)
*The effect of the amendment is to provide for the
tax to be paid at the end of tbe preceding quarter in-
stead of being paid in advance based on the preceding
quarter’s gross receipts.
“Under the present law when the taxpayer’s re-
port is filed, based on receipts earned during the
months of April, May and June. his tax will be paid
through September 30, 1951. Inasmuch as House Bill
285 becomes effective September 1, 1951. I will ap-
preciate it if you will advise me on what basis tax
should be collected.”
As ,pointed out in your letter, the tax levied by Article
7066b. V,C.S., as presently ‘effective is collected in advance at
the beginning of each quarter. mnd gross receipts as reported for
the preceding quarter are used as a basis for the advance pay-
ment of the tax. Beginning September 1. 1951. this tax will be
paid at the end of the quarter rather than in advance, and the basis
for the tax will be the gross receipts during the quarter as shown
by the quarterly reports.
The tax which was paid on July 1, 1951 (based on the re-
ports for April, May and June) was an advance payment for the
quarter ending September 30, 1951. Since House Bill 285 amend-
ing Article 7066b becomes effective on September 1, 1951. it is
apparent that the month of September falls within the payment un-
der the present Act and also within the effective date of the amend-
ment and, as a result, the Acts overlap the month of September.
The ten per cent increase (.22$) in the tax levied under
Article 7066b by Article XIII of House Bill 3. Acts 51st Leg., 1st
C.S. 1950, ch. 2, p. 10, was effective only through August 31,1951.
Subdivision (d) of Section 1 of Article XIII,now codified as Article
Hon. Robert S. Calvert, Page 4 (V-1247)
7066c, V.C.S., reads as follows:
*This Article XIII shall cover, the period be-
ginning with the effective date of this Section and
terminating August 31, 1951; and the tax to be paid
on the report required to be filed as of July 1,195 1,
shall be for only two-thirds (2/3) of a quarter.”
Since Article 7066b levied the tax of only 2.2% while
House Bill 285 amending Article 706613 levies a tax of 2.42%
upon the gross receipts of the carrier, the question is pre-
sented by the conflict in the acts as to the rate of tax to be ap-
plied during the period from July 1. 1951, to September 30,
1951, both inclusive.
It is manifest that the tax already levied and collected
in advance for the period July 1, 1951, through September 30,
1951. under the provisions of Article 7066b and Article XIII,Hous
Bill 3, Acts 5lst Leg., 1st C.S. 1950. ch. 2, p. 10, is at the rate o
2.42% for the months of July and August, 1951, and 2.2% for the
month of September, 1951. If an additional tax were collected on
“the quarter next preceding” under the provisions of House Bill
285. it would result in the collection of a double tax for the month
of July and August at the rate of 4.84% and for the month of Sep-
tember. 1951. at the rate of 4.62%. We do not believe that the
Legislature intended zany such result.
Since the tax which was payable on July 1, 1951. for the
quarter ending September 30, 1951, was at the rate of 2.2% for
the entire quarter with an additional tax of .22% for the months
of July and August, 1951, it was the manifest intention of the Leg.
islature that an additional tax of .22% should be collected upon
the pros8 receipts received bv the carrier during the month of
Septlember. 1951. Mann v. Gulf States Utilities Clompany, 167 S.
W.2d 557 (Tex. Civ. App. 1942, error ref.). This construction
insures a continuity of the additional tax of 10% imposed by Hous
Bill 3, under the provisions of House Bill 285 from and after Sep.
tember 1, 1951, for the reasons stated in Opinion V-1246, dated
August 21, 1951, addressed to Hon. R. S. Calvert, Comptroller
of Public Accounts.
SUMMARY
Article 7066b, V.C.S., as amended by H.B. 285,
Hon. Robert S. Calve& Page 5 (V-1247)
.Acts 52nd Leg., imposes a gross receipts tax of
.22% upon the gross amounts received by carriers
during the month of September, 1951, which amount
shall be reported and the tax paid thereon on October
1, 1951.
APPROVED: Yours very truly,
Everett Hutchinson PRICE DANIEL
Executive Assistant
Charles D. Mathews
First Assistant
Price Daniel
Attorney General
BY
C. K. Richards
4
Attorney General Assistant
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