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1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS
t AUSTIN
“llO”CR PLu.LII
‘-v?wt*cr o&ma
I&xl. aeo. B. saeppems
comptrollerof F’ublloAooounts
mstin, ‘fexm
ttor of FibruaG 16, 1944,
in vhloh you as tmtultoonaeml.ng tbx-
08 on 011 lost lstor after aame has
beon run to the
1 me Ii the produotlon ta% ao-
that may be lent (through no
operator) aftfm 88110ha6 been run
to the lease tank.’
Qplnlon Ho. O-182 ln part in related to the quecltion
here involved.
Eon. oeo. 8. shepperd, Page 2
The tax levied by Art. 7057a, V.A.C.S., Is an oo-
~pntlgn lxx on oil produced. Se&Ion 2(l) providee that
*~her6'lshereby levled an occupatlorr tax on 011 produaed
vithln this State l. . Said tax shall be oomputed upon the
or ralvaged frcm the earth or
n9 deduotlons and shall be
of produotion and ouot nea6urema
rilloum)
~Seation l(6) deflne8 "produotlon'or "total produo-
'tlim"am “the total moaa lowxt of 011 moduced lnoludiag
all royalty or other Lnterest; that i the amount Sor the
purpose of the tax 3mpor.d by thlcrA&ale rball be waaumd
or.detemlned~by tank table6 oomplled to rhov one hundred
seotlon 2(2) provIderI "The tnx hereby levied
rhall be a 1%8bl$lty of the producer of oil and It #hell be
the duty Or SUOh prodUOer t0 hep .~WUIVbtOIWOOFdS Of &ii
$#pg&#m~~galon~Yo~~tilJ under oath 88 heaii-
&oup Ro. 1 011 Corp. 0. sheppsrd, 89 8.W. (26)
1021 (vrlt~of on-or refumd), held that the tax under the
rtatute In quertlon is levied on the burlaers or oaaupatlau
of prodwing the 011.
State v. Eum hrey, 159 S.W. (26) 162 (Beaumont
court of Civil Appeislm
Y, held that the produoer vea liable
ior the tax on illegallyproduoed oil vhlah vas oonflsoated
by the State. The Court midr
"The tax levied by Artlole 70578 18 an oa-
cumtlon tex on oil produoed. 800. 2, Id. The
moment the oil vad pmuoed the tax soormed -
that Is the moment o%l ICItaken from the ground,
a tax measured by the ntw&er of barrelb of oil
taken aocrues, and under the statute I6 payable
c
..
the 15th of the iuxt mmth. Thb tax do.8 not
dimad on v4t beamem OS the*- r
‘ir rold. #tolo& OF dortrormd, beoauro.tha tax
:t Pot a gl-088Pl'QOOOdStU , 0 ale8 tax, or a
L~tren8fertax, blltI8 8a oo~tioa tax, 80 de-
aumsaated $ rt (1) of 8ootlea2 of Utiolo
?osm* -It;&
0r the operator,8ftor it h8r lit= t0 thO1-80 tUlk.
.’