OFFICE OF THE ATTORNEY GENERAL OF TEXAB
mor~blo oeor&e 8. Butler, Chalrlaan
urd of xnauraMo oomlrrlowra
mtln lk, Pa-8
,
~OplalonBO. 6-6539 '
&I collactlon of a gr
tax on one of the
welcknouladge rata
m on the above quartloo, m
47th b8-
ec oartain
ompany ovna ia to be
vea ment uuder the
1
toiora
given u8 a
and flxturaaare to be re-
et for purpoaea of determlnlng the
a aompany, 88 a base for comput-
la particular Company contends
ura and Sixturea are to be clasoed
the tax computation, ther should
rlao be regarded 08 an lnvaataent under Article
7065 for the purpoaa ol fLxi the prenhm tax
brrckot. This oolrteatlon la "gaaed upon the UW-
uage of Artlob 7064 in vhlch tax reducing inVe8t-
mnta are aet forth,partloularlythe OOirOlUd~w
p&am vhloh reada: ‘or other proport7 10 thlx
604 ,
.
‘1poorabla GOrp B. Butlar, paga P
Mate in vhioh b7 UV
*, ..vaat Iwura&e emlera may la-
their funda.*
"P16aae 8dvlae ii the Comp.saj~afurniture 6od
flxturaa, of th6 v6lua lt la uaed aa part OS the
rntlre 6886t8, 6167also beQ6aaed '686 t6.xr6duc-
I= lnVa8tJQOat Uudcr Artiola 7064,”
Artlola 7064, aa 8taanded by bate 1941, 47th Legia-
latrole, page e69, Chapter 184, Artiale XVIII, Section 1, pro-
rldr8 that 6t6r7 in8W6We oorporatlon, Lloyd~a, or reciprocal,
m4 every other organicatlonor concern tranaoctlug the busl-
0188 of f&6 h8wana6 vlthin thf8 atat6, 8hBll pa7 Cartatn
t&Is8 Upon the* groa8 promiua recelpta. S6id artiole provider
r&her that 66ch of luch.oompaaleaah611 file vlth the BoaM
of Iaaur6nce CommiaalOn6ra 4 lvoro raport shoving the amount
of auah premium8 ooll6ot6d b7 it during th6 preaedillg 7anre
?rovlaloala made for & reduatioa In tha amount of said t8x6s
u f6lloval
“If an7 luoh lnauraace carrier ahall:‘have aa
much aa 0128 fourth of it8 entlrs la a eta aa , ahow
b7 aald avora statement, invested la on7 or all of
the follovl~ aeaurltlca:~tate la this Stata,
bond8 of thla stat6 ore of any county,fnccrpmwted
oity or tom of this State, or other brmartY in
this State in vhlch br lev mu% Insurance carrierp’
WY invest their funddo, then the anruW tax of aw
auoh iwuropoe carriera aball be ona and bog hall
(1 l/2) par oent of It8 raid &roar premlluPreC6:Ptat
an& if an7 such iaauraace carrier”shal1 lavaat aa
aforeaatd aa much aa one halX (l/S) OS l-eta,
un ths annual tax of lwh la a ur mc aoerrim a&611
b6 three fourth8 (3/h) Of OW (1) per cant of it.8
oaa p r emluaraorlptaaa lbova datlnede . . .
our81
Tbp6 we tbr66 atbtutea vhloh deflw tha SeoWitlaa
rod propart which prat + ovwd and held bt auoh ocWWleal
..~ .-.
.: . 605
. :
,,
soPorable George 8. Butlrr, pga f
.
?. ArtlOb 4705, R.C.S., aa amended, definaa the
poperty aad laourltl6aof vhloh tha oapltal atook of bry
lnr~r6LiO6 OWpaW, Oth6P th6n life, haalth @ad b6O:dabt, mm7
coaalat.
3. Article 5706. R.C.S.. aa amended. defleaa the
nourltl68 allowed for the-investmint of funda-over and &~a.
tba gpld-up capital atook of auab compani6a and v6 bellan it
tootrole tha praaeat lnqukr7. Thla 6FtfCl6 raada la part a,
tallova I
“Ho oompatay, wtcept any vrltlng Life, Hoalth
aad Acoldent bCUP6UC6, organized und6r the pravl-
: alone of thlr Chaptar,ahall invest Ita funds over
. “L
..I and above It8 -id-up o6plt61 atoak ln any otbr
. manner than aa~ follova:
‘ia) In bond0 of th6 Unltad State8 or of rly .---A
Of the stat68 Of thr mtad Stat68 pJloVid6d au&
beada 6P6, bt the tlareof purchase, irrtereat-be&r- . i
lag or not lo dafoult. I
"(b) In bond8 or firat lieaa on unincumbered
real aotbte la this atate or lo any' other atate, . :
Ommtry, or prOVinCe in vhlab conrpsnyme7 be dul7
1106a88dt0 OOWlUOt a~ ln8UrbnCe bualnraa. . . .
'(0) rr&bonda or other intercat-baaring 6vi-
dence of lndebtedneaa o? bay OOUut7, mad dlatrlot,
vater dlatrlat, munlclpallty, any aubdlvlslon of a
County, iLWXpOrbt6d olty, tom, achosl tlI8trict,
lanIt6ry or aever ayatem bonda OT varrauta, vh6n
apaclal revenue8 to meat the principal aed inter-
eat pqncnta of such munlolpally owned revenua
vater ayateo lmd aevar ay8t6mbonda or varranta
ah611 have bean appropriated, pledged or OtherVl86
provided for by auah mualalpAllty. . . .
‘(a) 1. In the ltoclca, bonda, dab6atUr68,
bill8 of lxohbbge or oth6r oommaro~l not68 or
bill8 end 866LW:t:68 Of a07 88b6et d&V&&at rim
oorpo?atlOrr, lwaporat6d undar the la*8 Of tET8
.tat6, uhlah ha lyt Qfmlkd in thr m7-at o?
606
,:
noaorabla Oaorga 8. Butler, p6g6 ~4
‘any of it6 obllgatlona fas a period of flv6 (5)
year8 icuaedlate~~ preaadw the d&t6 of the & *
v68tfII6at; . . .
"(a) In loaaa upon the pladge of ~7 nor+
g&&i, .8tO6k, OF boeda, Or Oth6r 6Vid6M6 Of la-
deb ta dealuoeptabl6
r m, 48 ~aveatmeota uadar the
t6rM Of thi8 hI, . . .
8. . . .' (Bawhaala oura)
The tarn glnve8tm6at~a
b88 been dafinad many M&68
ty varloua oourta,and thoae da?leltlona are ramrltably aoa-
tlttoet . t?Ot6th8 ?OllOV:~l
“An ~lavaatmanc~oauall7 mama tb6 mm Ia-
I68thd OC th6 FOpaFt pWOb8SSd by th6 107iIl8 06%
of moea or oapitrl lo 66996 agaalea of wogwt
. for laoo~8‘or dfit*" Zlppott I. Tipgett, & I .
la., 7 A (26) EL ..
g~Iav6ataerrta* usually *ad8 th6 putting out
Of 1110aayon lnter68t 6lth6C b:r 108~8 or by ths
purehare of fnaome-produeleg raparty.” Drove va
Cuml~a Dlatlll6rleaCorp., 5-5 F. bum. 659.
"~favaatment~ aa aomonl7 used and under-
rtood, mcaaa the pl601~ of capital or laying out ,.
of mock67 in a va7 lntffndea to 6eoure laaama or
.* profit icon It8 6mployrusat."- In r6 &van, 49 1.
’ 9. (Pd) 753B 141 Ohlo St. 603.
aAn @l.avestmeat’* Im geearally daflaad 48 th6
aonv6raloe of rm4y or eirau&tlng capital late
aoma lp a o lea of proparty Prom vhloh an luecm6 or
profit la axp6otod to br dorived in the ordlMrt
comae at trad -0 bua100aa~” In r6 Peneeuka
ma, 35 x.a. ? 36 1 1n, a35 XrYr 875.
*ro ~InwW’ ma-7 earrlea ths id60 Of 80
la y la g
it l to p o @ mo a ?o twn. To 1nvmrt la
.
_
r,4* ‘.
I- .. :
..
.i
fPoorabla Oeorga 8. Batlar, pago 5
not to erpead ia aa uaprbduotlm thing.” D&r%8
q, BulUngtoa, 47 83. (W) 555, 164 man. 272.
It i8 awent, therefore, that the term8 lla ve8t’
& %weetment’ are urob in Articles 7064 aad 4706 :a thdr
0rdlWFJ oonnotatloay, and that money pale out for furniture
md fixture818 not iavrrted.', Although &tiole 7064 as
umaed requlrer that the value of such furniture an4 fir-
tar.8 be inoluded in the repwt of “entire a88et8,’ the pl&U
@ton&eat of that art1018 18 to lrolude them from t&e li8t
of tu rodwing lare8tmeatr.
We u-8 aot unalndful of theprorlrloar oi Artlale
., vhloh deal rlth the goner81 power8 o? piv8k
1
@argoratloar, prt1ouur17 the f011001ng~ :
?Evw7 p&vat@ oorpomtloa u rwh hai powor;
a .!
. , . .
-“4. To purohue, hold, loll, modgag;;
or
otherwiri oonvey rush real eltate 8n4 perroael
88tat8 98 t& plU'~O808 Of th0 COl'~ONLtiOll 8h811
require. ;a . .
f
Thl8 srtlele generally lutho~lrar all corporatloor
topurchase and own ruch property, but the p~ovlrlon8 of the
utloles pertalnlng to then8 pwtloular corporatlonr, .i.e.,
ln8ur8nce oompcmle8 other thba life, health and 8cOldeq,
mp3r8oee ruch general OVl8lOPr 1ll8OfEW 48 iWOll8i8tellt
tlwrev1th. Article 706r lo aot 811 eunbllng rtatute. It i8
OtU 8tbtUto 8rrd mU8t b0 8brlOtlJ OOartrUed. PliFtitllW Ud
Iixturu8 are not vlthla t& rtrtutory deflaltloo of tu Fe-
~UOlng iavalt~at8.
lhutlng that
ttmtoegolng Sally ln8ver 8
7our la-
/
,
.