Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAa AUSTIN ~onoreblo Oeor8r 8. 8hrppar4 Coaptrollor ol Fubllo Aooountr hurth, T.xar ted x8) %6 1*4I!ro- rptloned rdj.ot. Se16 NO. 6 or the iarr tor 8 tax d by oontraot hapter 899, r so8rlori ot the hrty-rre- Can, dolly burinrar aa A. 1. oapany, Ylrrhal~, fexm, epenter Edo&Ra oontraot motor orrrlor*a pormlt, NO. Thlo aoaoern lr under a oontrrot with JOin &r*ll t compnny, Omlmn, Ietr, to ao11+or their Pe8t produota to ourtfx4arr in Narrhall and ldjaoent tarrltorl. 682 nonorablo Ooorgo 5. !?hopprd, Pace 2 *ft lo cy understanding thtt John !:orroll k cwprny prepare shlp3ents 0r meat produoto Mrklq oaaa to thr indlrl4url ourtouirr UM plealag the shipaonts in :-no wld oar destined for l'nrehall,Tore@. These chlpmnte r0r ln- dlrldunl ourtoniem are marked ln obro or A, :i. Dunn Tranrrer coapany. The h. iv.ounn Tmnsrer openr the oar bna askes dollrsriss 0r Corfipany thr limdwntr to lsch of the oustomerr to whom the meet prodUOt8 ere aerkd. l.... *I‘hdii a p p 2-80i.m it it YOU ~~1 1 & iv0 mm your opinion ai to tbs tax llabillty or k. X. Dunn Transfer Cowany ln thlr matter.” x8 uadrrrtand that %OrrOll h. Conpan~ lraueo It8 bill of lsdlne dlroot to its ouatomerr in the ~arstmll area and rhfpr tha mmohandlre In oarr of A. %. runn Tranofer Company with inctruotlono to dell+or the rr,erchandieo in ec- oordsnoo rlth the bill‘ or lading. hn inopeotloo 0r thr rii00 or tha RailrOad com6iio- olon raoerle that the A. 2. DuM Trrncfar company hso a oon- traot orrrler*r permit to tmnrport the morohrndlro in question. Nothing in the pomit lndioatsr that the tmnrportatlon In qurrtion lo laterrtate ooaaoro~. To tbo oontrary, it appears thot thr r,allroadCozmlarlon tmated it ae intrartstr oomaroe. ‘:ohave been recently adrlr;d that thr A. F. Dunn Trantrsr Com- pany ho160 osrtlflcatr ao. 14,611!froa the Interetato Commaroo copude~lon to traarport the very aerohandlrr in question. ..: 8 are furthrr adrlred tbst the Interstate Cozasrce Comr;Lari~nhas approved tlioratrs for thlo tranrportatlon. l%era 18 no queotian but rhst a through rhlpaient of the partloular aerohandlsr in s.uestionwas intended when 8ald mrohondlre ML rhipped by the l hlpper to the urohsrsr thereof. 8.number 0r aeolaioar of the supro~~ocourt 0r the Fnlted stotos, typifl6d by thr oate of Faltlaore and 6. s. +. 2. Co. v. Fettle, Ed0 t'. 2. 166, 6r'c to the sftsct that the shl@?.entrin question , 68 xfoaonblo Ooorgr I(.8hoppor4, ago 8 are ia fatOrotat8 omoroo. Bert&y 4Otemia@4 that th@ tmnoportotl0a in qumrtlon lo int*rotato *omncuoo 80 look te 000 rbother or aot thr ~rooo r~oolpto ~rrlto4 Gunfr,orr am to be lnolta~o~ ia roapatl~ tk kr &a. Arti‘ 14, f!rOtiOB 1 a), 8. B. IO. 0, AOt‘ 49th Lu8, Regular Sasoioa, Smpoorr tha tollowlng tax: ~8rotloa 1. Eaob ladltlblaul, prtdw- ohi "2 ltloa, O0olpaOr,l0*00 0? Ootp0ratl0O 4014 buo P'a081 ao a *rotor 8uo oompanp oo 4otlno4 im l? t90, Aotr Re&ular eesrloa ot tho lortloth 81oture aa naoado6 by th0 AOtOof 1988, ?irrt lo4 8ooofon ot the Fortpilrat x,o&olrtura Ohnptor T6, or 80 bootor oarrlor~ or #oontrqoC Oorri~t~ 00 btiao4 la chapter 879, Aoto Rogulor sooolon ot, the Forty-oeooad Lo~olaton, over an4 by ~08 ot’tho pub118 hi hrayo ot thlo Eitoto, elm11 8ako qrur%orly oa tho t t at day of fuuary’, A 11, tol& lnl Ootobor ot oaoh oar, a report to t f? l Comptroller, u&or oath o$ the ls4lrldoa1, patnor- o h lp o o mpla ny, ooool~tfon or ootporotloa br it8 greof4ont troaounr or aiorrturg #howfag tho ~000 uoh ruohlre4 rraa fat?aot:to bu8laeoo donlr withla tuo etato Ln the p4ymmt o tlhorgoo tor tranoportily ooapanortloa oa6 any porooao tm inight a? omo4lt~ or froa othor ior hln, wuroo~ et roy~oau rooolrod tram 18tnotate burl- baLIDIe rrth$n t&lo stoto &arln# us0 qorrtor nxt #PO- ooua& saf(. inairibu41, pwtnoroklp, lomg8nf, oo- oeol~tlon, or oorpomtlon at tbo the of mklry OSI& ro cut till par to the etato Tr*8rwurr oa ooowot P08 Lx the quartor be la&u on O81& ior lqaal to two da te two tontho t 8.8) pr oont rC aad ~14 yooo noolpto, 00 ahorn bf ula topofl. pro- tldod, howetor, oarrloro ot poroono or prepart~ who ore nquln4 to po an Intangible loooto tax un6or tha loro of thlo 0L k or0 horobr oxompto4 fror tho prorlolono at thlo dol. ot thl8 A‘t.. In er4or to o la r lty tha loopo ud mooniu of th0 above 886tloa, the ouo Logl818tUr8 laaOtti RI b. 110. 1OM whioh provl400 IO tellonr . Hoeonblo ooorgr 8. 8hOPgl?b, RUO 4 lwetiea 1. Tbr tea m ‘:Qtrrrtrta busia.m0* aa or04 ia Art&r10 XT. aootloa 1 (a) of muon Bill lo. 0, &otr of the R.(u&? Se~abe of the Fortr-•rrooth Id iolrttU0 rhall Rem red &DpLr Otir to thOt DOSfiOQ Of S'WMU.0 dOTiled fl-Oa tranrpertation oub~bot to tha ngulatlon of tlar Miltor 0omalooioe of Tens.. The term *motor oarriot* 8oaeo rey irn, 00rp0roti01), ooaIgwiy, oo-jmrtnar- 8hip :,OOOirtiOQ Or joint #tOOk lO@OOiRt;OQ an6 lhrir 10880~0, roooirorr or trumto*r l p p ~into d by oey aourt rhtoorror owning, ooetrollln((, aarirg- 1n6, o mtln OT arurin# to br opw'rtd my motor- prop41rlQ robfale ored In tlWQODOrtiQ6 property for ooapoaoatloa or hire a la l rer publio highway in thti Stata, whwo la the 60~~18 of luoh tr a nr p o r t~tlo nl hi(llmy brtno#e tmo o? mom inOO~~~~~~dO'~ie~,thr torn0 or tillraer io trarorro~~ tarn Wotor oorrirrt as or04 IQ tKi l AOt hi not ieOl\lbld, this Aot Obdl QOt l pply t0 ROtOr TO- hlolw opantd rxolurlroly within the inoorpomted 1iaito e oitlrr or wwur r(h) The term *oOntmot aarrirr* mano rey aotor orrrier lo hrrdmboir defined tnarporting r0~0a-Q tar oompewtioa or hire Owr ID hi&u&y Pe t&lo atrto other than aa l ooamoe oar lr rmoedrd A0t8 1831, 42n4 LQ., PO 480, ah. R97, rl l P ’l. ” muro Bill Ito.8 mu ra, ft lo appar’rnt that the eteandrdthat tha {IX 4e qumrtlon ohould bo Oorprrtd OQ intnrtatr &roe8 r0OOiptO 81000. ROKWrr, tt oleorlr rpperrr from orid Aat that lntrart*tr reodpto frcm . 685 ~oeoroblo oeorgo ?I. Stmpprrd, Pago S maroom other than the rotwl tnruportrtloa ran to k Inofudd In ooaptltu thr tax. A few uookm dter tho pee l& $O@ f UN lb OtO M QtiOM dAOt th 8~880 LOg iOh tUM lM OtOd HouorBillHo. 1089 whioh pro&6 in elirot that only tha rooelpto from tM lotuel traaoportatloe oi mrrohaedlo~ wore to bo ooeoIdere4 la oomputlw the tax. Eorerrr, the 18quage of mall bill doSin Intrrrtata buolneoo aa tbrt trmr orta- tloa rubjrot to the ngulntloa of thr Rallrod WsaIro Pon. It Ir roll settle4 thet tha Rdlrad oomaIrrIon has the power to ragulatm Iritwatrtcr aotw orrrlrro Ieroiar aa rod pnrerration rnd publlo 8rfrty are ooeoeree6. see mll- rod Commloolo~ ro. aouthuertma Orarhoued Lleor, OI!8. x. (Ed) ;I(;, rrrersed by au tram Court on other &rouaQI 99 13. lr. (Zd) lo do not be1Plw that this IO the type 0) retulatlon rhlih thr Laglrlduro he6 in taled when mnnotln&Eoorr El11 ao. lOS9. m do not brllrtr that tlm L*&ldure, ia prrrl Rouse Bill no. loII9Ietrndra that lntarrtata reoolptoohou"fa be Inoludr6 in ooaputIe# the tar 6~0. To thq OontM~, we bollorethot the only~urpooeor ~fotloe Bill lo. 102N we8 t6 limit th@ lppliootioe of RouseBlll lo. 8 to thr @ora MOhIptB dWiV@& tw t&t iQtMOtOt0 tl'Wi8~Wt~tlO8l lUbjOOtt0 tho -*‘ye- ulatloe 0r the mllmd coaaldm. lror the faoto glron us, wo aro oi the opinion that the ~rooo r*oolpfo rroolv~d by the A. w. cum Traeoror cowae7 for the troeoportetlon of the #roheadIo~ la qu~otlon 0,4mWt bm Inolude4 la oomputleg thr tax i*pOrd by Artlo~ IIt ti House Bill no. 8, ouwa. ,.. ,- YOQrOrory trulf