.I- OFFICE OF THE :ATTORNEY GENERAL OF TEXAS
I,:
AUSTIN
Gmu.DG-
-00111u.
Yaunlrhomw lmpo80duk&le~.d8at~~x&..-
Qlaiter pro*lded
on 811 rslsi, osrscrawn
rpgpolarzdaof 8alo~, and all dellvrrfsr or tmuufA of
8&U'88, Or OePtifiOI%ttt8Of 8tOOk, OF oertifiOia88 POP
right8 t0 BtOOka Or WrtifiwtoB Of dqwrit repm8UAt-
Fag LD krtOlW8t in Or XWplV8lSlting OWtifiO8bt~8 =de
taxable under thlu Ssotlon in rrnydow8tlo or Torel&m
~8Wi,l&ti~, Om, OF OOPpORtiO& Or aWtifiWLt~8
of intewrt in any budxmrs eondwt8d by tnwtn or
t-t-8 8d.e ait0~ th0 8fmtiw d8k br00r, tfbhh00
aada UpaDl Or shavn by th8 booh Of the i88OOiatiOII,
Oompuky# aorporedaxL, 0rtru8tw, orbyrurys8slgmeat
in blank ov by w dsllv~ryot arrypapersor crgrwnont
OP y11oFiLtZdW 02' Ot.hW 8ddiV308J Of UdO & tWtl8fW' 03’
order Sor or agrowent to buy, vhethar lntowodiato or
fFacrl,tiVh&hW'intre8tiag thehold.rWiththebMm-
floialintonst in QI lo&al title to auah stoulc or other
oortlflaatohxeble hmmmder, or tit& the po8ser8ian
~~t%~7r%~~t~;*~o-
utook, or oerfdflwte, on eaah huadwd tlollaP8 or i*or
wlw or iraotlom. thomBof, thrw (3) oentll, soroept in
eaM8 vhsw the share, or oertlf1eatar aw lsmJo4 lrlth-
seotlon 1 of the Lot fwtbar provider the mode and aura
of paywrit cf rswh tam
"**~ThopsJwrntofmehtax~llkdowtsd
b y a a a dhesiveetmp or stantps a f?WOd l follows~ In
the OELB OS II wla or tram&m, vhew
thu evidenw of
ths tr@m%?tLIW Is 8hoW aatJ by th0 books Of th. 68~
, oorpowtloIl, OF truatee, the stamp
thy provided for by thi8 Artlole rpf be &ffixOd
to 8 dU@iCEt8 Of 8UUh bll2 OP EWOxWLdUE urd a~~18d,
and rooh dup'lioato of rush bill or macmamka~ 81~ be
kept by thm party wlcing muoh 8ale ln hi8 p~88ff88lon.
xoylded that la8 8h21 ater uptm tha lofmh
122 ormworadwed6to~nwb8r
ii thet 8uoh
bill or mea@- vu am&in dupli that the
. SWl?y 8Wh bill Ol'mOlttO~~ O!' 8610 Or
.S@WQMt t0 8OU1 8hEl2 BhOW t&O date Of tih tl%UIMCtioII
Vhioh it bYidO!Ia68, th8 arylDsOf the 8822W. tht3 EtOOk,
or other wrtifleeto, to vbbh it nlatar, and the orpp,
kroi 8ilSXW8 th8mr. All 8mhbl218 ormemorendaof
s8leuhallboer8nwh8rupcmthefeo~thmwofandno
~owthanems8trcrhbillor~~~OnndrrmofMlo~~
the 0022erc4heny lwrt day ahe2l beer thu memo nwbmr.
f
Thoaioremidideniticrrtlonmakr~ftha bllla*raro-
ruldlm or Mao 8heal ln all oaror be eat&d uad rrooxd-
ed la 8 boa of aoaount." (E&3hEJIl8 cmw)
Ewn vlthoa tbo ~8818taRcP or fateocm~2ulBlrs eut2mrltlwJ
h8retqBrtrraltad aad dl8ouMod, w bellW~ the bun, tsxt of the
8trtUti 8bOWqU6hd ipgbl8 t0 thU oOaa2Wiosl thBt blar inS%dWMOOf
tb,kxfn~8tLaPII~trpoD~Mll*rort~~wrof~ror
#ertlilaater
of 8tOak end A, by no owooln*blr lnkrrpntetifm of tha
rtetute,upon the ciorp0xettonor8u8oo%etfostvhoao ato&% l02dor
tmrerrud. It I8 quite tnto that other portlong of thie tex mua-
#Ul'8p2MW 801wbttrdoaUpoR emO*rtiW OPMWWintlOWWhOt~ ~tOOk
i8 boll&t 8&t &Old w tbrr fsvelrtiag Ox 8~tiqg 23Ub210,Sl#h L8
the kseplng of moper moorda for Lru~otlon of the tex outherltle8,
w SffixLng Ot tSX 8-8, Ot8.1 b&St thi8 bW&& 18 inOidOIlf4hlt0
their right to do bu8ines13f.m tbr utute and 18 an oafweamnt f'ea-
tUreon2y,vhlch hs8 bsmnupholdlnthu 8~erh.rrr~krdi8aua8ed
a8 blwm27 oonstltutlvaa2, Theidut ofbuylnpt?~thateqmevldeneing
m;IJunt Of thi8 tsx i8 p 2ec #q edUa LyWIQIO thQs l
p b z?801
Orp o M% 021 8
M nngo rrffoctwtlng th e 8a 2.ea rtwQ8is~.* The tax b a rIs
a not
em ed ~alom81 or other dlrwt tax up0a stook ima& 01 ha2d by the
md cex&'iOx&ioE8 and 888O@ktiW8, but Hbtkwx ti Sn %ndlaw& Ox
OXUl80 tsX UpOa th6 PtiVii4Pg0 Of tWMfi* 8Wh 8hWS psb 2ti8
lg e lwtth e p r fxr B o n,5o r iwp o r 5tlc uts x o wla iQg to-
8awhpxlYil*~*
vit: the a mll*r ox tx-abxu~mrof thm 8tOdK. ml8 ooatwallug dla-
tlwtion, to oux end, Qekem the pos~tlw Of xr.
hi8 aUthOl’itiQ8 tnswOUih, vlth the
Psderel sgunoisa or lwt wy not w tuad by a 8tot0, w,
of aourw, do not dlffex,
~Q@xab16 Q6orgo R. shmppard, P&v 5
our Izlkl1pd5 or thU %tAtutb 18 fortified by the p0rEw8iVe
~ti$~X,rsbtiOR Up05 thLI. QUq8t:Oll rCrCOl’dUd th0 HCW York 8tOOk -S-
far % kCt, frOl2 StbiCh the %XiW Act iS ~ttGSFU8d. f&d.U.iOZJ HO. i?i?o
bf the Attornay Oenerbl of Xev York in 2939, prior to tha eumotwnt
of the laatsnt PBRUE~, holea t&&t tretrorara of the sto&k of l Pro-
&&%05 Credit Aoaccitrtion, %Vm.i thou& A F&era2 bstrww?W2ity,
‘&kim?ized bjj Podore bw, ime 8ubjout to tu. iah woh oppinion it
18 mid that %lB ia;pOSitiW Of 8Uilh 8 tax UpOIl UZ -0P IndiVidIW2
do88 not becom 0 burden ~05 the FeUora3. Ldotmaiteatelltle8, MB
dOa?8it In eny vay iatorfew with or lrmpdr Bay of the r&at8 and
&it%08 Of the hdOl'Ol .&$.llCi.8. "
!&? OR80 Of &W'OS Bt 61 YE. ?h.bS, (193) 257 np0. Dir.
889, H. Y. S. (24) 76, hold8 it to he the 6.Utr of the penan N&k-
12
ing or effeotwtlng A salo or trem.fder of 8toak to aff%x or 8ame2
thr StWPfD.
me uckae of wllle V8. Addcae et al, court of Appeex8, July
11 1935, El. Y. 160, 197 B. E. 280, aSfw
268 Uyl%e ~8. A&M,
2d R.Y. 9. lOQ,hol~ Wtthe fall~reto~r ltooktruwfer tax
w thB 8ell.P UpCn th@ 88x8 Of StOOk pFW1ubtS M 8OtiOB t0 WO0Y.P
0x1~ii;mrobese
money note.
How
dlxectly b6ar upaathe*rgwoQt*edwnoedbythB
lble oounoel for the Peaa Cwd
""Bt Mmlairtratloa, we pokrt to tie%-
liOW w.th. 8Upl'.l!lO&UPt 0fthr~~ed5totO&U@W~db5 St&b St4t-
uter deilgned to QLP(LID
national bmakiag oorpo&utlmw,k~r(Bitted
Fe&m2 ag6nc~e8, to collocL and wmit taumB letird opan the sham-
holders of mid banZcrr. First Ratlozllal Bank V+ Xmmttwky, 9 Well. 35 ,
29 L. R%. 7015 Citl8eam Bietlmml Bank Y. Xentwky, 217 U. 8. 013, 3,.'
21.Ed. 632 30 9. Ct. 532~ First Itntiond. Wak vr 6h8h6u.8 Oouaty,
166 T3. 9. 4&O, 41 L. B?d. 1069, 1 S. Ot. 629; ~aehentm & I. Ret.
BAY& Y. Fuula~2rsnia, 167 Il. 9. L I, 42 L. ~4. 236, 17 8. 0t. 829.
Klth mfelmlos to the czantentian that tb* lnawl%t tax
~SUl’8 gbO0O Oil UQOCllX8titUtiCUd tO% OP btW&BXi UJWXS 0$@UOi.S 01
iMtl’UUl~trlit~.S Of thQ FOd4F81 &W8Pnmont, VU thillk ohs 668. Of
aelOPAa0 x.mC43d %I& VI. hdmd, 32o WI 8. 41, 84 ]t. Bd. w67,
ikrnlshw acampleteansvsrr In t&phcadLdiag:
the aanstitatlonal2ity of
a state l.Ev FQqULrfng rLstiolwb1bankl.ng 0oryarrtLans to aolleot md
PBQit to the st”te, A tt3Xlevied 1@02I W8tWOP8 Of the bank, ba8.d
Upon the ~81~4 of safcreg dbposit box utwti4e6, the m3mme Court 8816
s9h4 person lM32ta lor eha tax, prbbsrilg, wn-
not alwys be ssld to be the real taxpqor. The tax-
papr 2s th4 peruon u1tlnlRtely u5lmB l-orth4 tax
itseli” The fbd8 vhlah vere ru*ivod by the stat.
O(IPDOfru8 theig6etu of the u8er, not fm8 thoao of t&e
f66eral l.wtrumerltallty, the bank. The c010md0 su-
pmwae Court holds the wer ie tha taxpayer. The doter-
ml.wt1on of the ststte Qotlrt &a to the lncidenoe of the
tax has grut veight vith w and, VheA it fellow log-
luuJ.the lanigmge OS tha Aot,u hare, lr oontrallLnC;.
As the u8er dinotly iunsinh~ the f’t~idmSoa’ the tax,
notu multimate cowwrvitha tranafamsdbwden
but by 1 l? of the Act ir the moponrlble obliger, yo
oosclude the tale upcmhianotupon thebmk. '&a
OWU&tUZ Or bva Of the Thited Skrtu do AOt forbid
.
%he tu ai.ng 8 p8wi~ibb tu 03i 8-m 0r
the bank, it is mttlod by our prior daolriona that th@
8ktutory provirioa8 lwquirllagoolleationand aumzm*lexI
of the taxer do not Lqpoae M tsnaonr~itutianal burdaa
QD 0 fedO=l iA6tF lEUAt8li~. l l l
UpoA these ooosidentl~andau~~t~~0400rd~ly
a dvis peo uth e th elllc r o r tr a Asfo r oo f
r th ea la r esw mer tffl-
o & u OS atook o r th eso r p o r a tii?w
uldu*8etrtimla Aued inp o ur
letterir,llablo for the exaiae or wvilqp tax l.vSad w thm
Tex uteo o Trk wder Ia r , lwg u d l4 ra r ta u rktw o ilwh a o r p o r a -
tiotu or a~aooiatlexu aa Pa&ml q4n81** o* LnrtrlarnWitiu, a
qwrtioA vhloh ve mad uAAeac8~ to Ilen pare UpoA.
Yeum very tawly