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F-R7
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7
0FFICE:OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
.,..
‘.
AeAt, or ttii uoAtr80-
tar bo lhblr.lorruoh
tax?
828
her+3 a8 a part of thlu roquo*a.
vi11 au p&ma. turgieb uo idtb your
wbwer to tE#I iOaiOWiAgWUtiOt48:
da De~utma$, us8 Oh#- W?ne$ .wor
The A;utincwpo.ay engaged
2 :: OOStr~Ott0 oOn8&XWOtt&O
ZOPt VOdh AiirOrEft d#8mhbfy l’tant 8t Fort
mrth, TaiI8’)
a. of y0u dim aif~~ti7~ay to ttm
8bOTO 4@AUtiOA,rho l&i1 b8 liabl. t0 '#OX-
u for the trt, the dlatributor aho ~860
th. iit.t 8810 iItTUU tti.T.lmitodBktO8
COT-At Who stWIhMd th. a0t.r fUd
to* gwernaen 4 we wd thuufoer aeli-
.TUOd ittt+ l 0.S~NW OOIltZ8QtW,OZth8
oe8t-plu8-a-flxou ru ooAtr8otor who a.-
wlro4 thomo0sr fwlfn mxaatithoutpy-
mea4 or tha tax and aed. tho flrrt uao oi
10 lA TOXW?'
$w rind attaohrd b your aotter or aulrtrislsloa a
oepy or the oantraat reforradto in yourletter and 8 lottor
frostthe c. se ~lnaa~ oC?ioo of the %ar be a&Mat 8% Da-
iron ~oxea,statlAg that under raM oontrao0 W.l gaaollno,
lbr~oatia~ 011, lto .subjaot to state Wq tu%o~@
wei?&pad4
for dlrhot~~by tha ~arwanent ead any apjrleablmNmk tax-
luworo ootor.&by 8-&W& ioI!S1084, ~~it%OA tio0 UU%ifl-
It 18 al80gObIte crubthsrolJ&,
in ad&it La
ii%;b p-at8 by S&o f$ovorruarrt
for maberlelr cr*:ti%
title to all nataxlalr dollrorod
to the altooi'tbo&k
~.~.~.a tho TXitsd3tatW u* ouoh.boll*uf, WdU tb.
.
AA U8hMthQ Oi tk0 hStWlt OOt4tl'8Ob, ti iu
lIr th O p~,
UWt3dO8
~8th &%a A0wun Ca p4 rUbOyfa TOm&
o h loo ,
o o upth
lue
a t& w
o fo nlAd0p oii nd.n
06nntr8storrl#I
831
EOAOr8blO
@orgo 8. shop&ad, F-u. 8
ror ta0 oo~atruouo~ of M aimraft888amb17 part, rathop
tbM bb8f Or UI WpAoY Or in8tZUWJIttity Of Uid flOYOm+
moat, ud +ortioro, undu our opinion
~0. 3049, dlmotod
to you, and Wdu the kro roooatdeol~lo~s of the 3ppr.q
Loud Ot tb0 uIkit& SwO8, WbOrt@Jd t0 by JOU, ia8
8QtU?O]J WIthla the ml@ ~f.ll~blll~ im St&# ulms UM
WO kXU, -088 fF tWloh tUU 18 OOAf.rUd b
ir r unitr
the oworament boaomlng W, dlroot purohaur ot tha natu 3:al
Wet& 8 rUtUP rQi0h ‘(Al Ma 5~08OAa ia the’ itUIbU8l8i$~A-
tiw before thio doprrtaat a116 lp p r o n~, b&ore the
suw Court Ia the o&aloa u+i the dooI8lon8 roforrod to.
In lA8tMO.8,
th# 1Ott.F it IV88 prOVid8d iA tb O@Atr8Ot
rob 0OAtaAd.d by th8 OOAtMOtOr and by the Qoternmaat, that
titla to thewtulal OF oam6ltle8 iAW0tT.d in ueh eon-
t?8Ot baoamo YO8t.d in th. UdtOd Stat.8 Of ABUWi.8U#W
dorir~ 60 A8 to aon8ti$uti the unltod St&U, th?o\yhit8
!ageAt OoAtrAotor, the rool ~PrOhMU of tho materlal8 Md
thoreforo, UAdO? COA8titUtlOA81 @AOl~lO8, U-pt h-
Uti.8 and WO bU.8 lotid by Stat.&. The 3upr.w CoWt
njootod thl8 ooatentlon8nd ho14 tfmt do8plto 8U8h aon-
?iE8Om p~#rid~ #St4 mftul 8itWtaOn, th@ ObalgdOJi
t. pv iOC tb 8&tOr1ti8 r..tOd urn the 008t-~1U8-a-f1#a-
roe oontraotor, to rrhor the vendor looked $00 %kmyd
that the oaroraaent*I) duty war that of wro M Lb
wdor th8 ooAtr8ot.
x0,
Z&eraSoro, ay thd thir maa toaturo OS t&o
touting of title on dollvow OWUAWAt,
, in th. *hiOh 18
urbobid iA th. iA.t@lAt OOAtl'8OtMI6 p0int.dOut
A8 th8 w8i-
410~ or the uar Dopartmtmt, will not avail to romwo th8
~.8OAt 8itudiOA iror the ..Atroljfng dO0iUi.A8 ?OfO-d
to. l’h. oe tutur. to be OOAPidOUb b W iA dotormla-
hg whether or not the iMtMt Caotu& 8i tIUtlOA My be
80 dlfforontlated from thatttpon whlah tha tit.6 MthOE-
ltlu turned, &a to roqulro a Qfft8rOAt ooaoluoton by UN
18 the RrUOAt ~Ol~~'urd ~UOtiOO Of thr WrS-t of
l~a~.ng: that eleum of the eoatraet dllowlng Woob y-
moda to tha vendor of tha BRtWiti8,br the Qcsvma P
rather than,by the oontr8otor.
ThqtDh18f.attu.*UEotboforo tho~~rm,
Courtof thi wt.4 &ate8 in th. 108diAg(We of filaburi
V8.ICiag yd BooWr, 66 L8we Zd. 1, 18 IndloakQ by the
Sollaulng la8guqo of the ccurt,upon the rooord before ltr
*A~motlonof the aontraotdoalgnuted
UU OAO Of 80~0?8% *85+0&18i rO&-W,*
diF\il&O& th8t OOntraOtOZ'8 8h.tlfd ‘re&UOy
t0WR ittAgOw OWtr8d in lXO@8. O? tW
th0u8aad dOw8 ($8,m rad0 by hk iOr .
- pItrpolr0 Of th. WPh k U#UU&? fOP IUV-
10.8, Q8tWi&,~ 8pP &OS. , . ls iA.OPt
e hat
therolaa protirloa m8R oootraot16
..8ilp\.b~. Do tie cJ.v.ra&clab~, m.k. oil moh
o.ntraot, iJI h18 mm M&W, sad Aot blml or
.gotprrttobiadthoGomrnamtor t&o @a-
trro8lng offlfwr thuotuMor.*~ Sirhilothla
88OtiO!l'Z'OfOl'~ t0 WIlttaOt8 tA @TOW8Of
'$8,000, w. ttbk .ll the 5WOV181Oll~whlsh
r884 togothor,
wo h8ront3ntlono4, plain4
OaPrtWSQ18tUtha% th. OOatl'rOtnr8 WUO t0
purohwo in tholrow name8aad 611tholr
mm oredltmll thasatorlaUrcpulrrll,ua-
1~8 the o.vommQt 8WZld 8t.04 t. m=-
Ala UAW uaauuw vorlm 8ww t
94 P m&U by their&dmu~oontra%
but :*. obXlgrt.4 on4 to r~lwburro the'
oomtrao%ra whoa the nraterlal8 peohuoad
8houl4 bo aellwm4, lappoote4 an4 aa-
ooptod ad the 6lt0.
"‘31. oouru ot bunin tol%orub tn
the ~Oh.8. of the hQb.P oOntorru(l iJ4
,
!
It diie-ete4 oldpunt to the f$onrWuotlon qmr-
omtraotoro by- imntraot truaka
to the elk cu direstsd, \her* lt u4a uoe6 la
performan or tho oontraot. The mollerr be-
livemU to the ooatrnoton the lnroioe of tho
lumber, rtetlly the6 16 *u '8Old to tlm tBlt4d
oithor bsaatmo the ia- 4- loose an6
eraJ44n84wr4 aotim(h for thomwrnaent
f-n peroba8in& the ltnabor of, au tha Alabtama
mprm aout 8eem8 to b$vo thmght, boaeuso
tbo eaonamio buden of th4 Mx Sapoaad upoa the
purohuer wttld be sbll!So& to *ho Ckrwmranwit
by
re4oon ar It8 oontr4at to remurao tho OOD-
tr4otcm.* (lrgqha814 aura)
xonorablo aeqigo n. shoppar&, pago 8
..
xa ocna4otioa wlththo rootaote appearln(~ ln
tho abets quotation, w copy thla rlgnlflcant statement
appeulng undu oald iootnoto No. Z.
:
‘%h. lk to ma ntthat tho lumbar wao 'ooldc
to the conrtruotlok cwtrtermoter appear8to
hue bran lnadtukat. on t&o wgtmat the
tJcrernm*nt oonoeded th4t this wo not tho
uotlol Qr4otloo. The laroiooo apgmaring ot
rooord ia No. 603, curry v# waited 3tateo
(--as-, pert, 6, 68 3 at--) issued to the
awe ooatraotero for supplies orderedby
them and delivered rt thc~oaw slta 6tated
that the uppllao were sold to the conlx40-
toro.*
In holding the aoat-plur-a-fixed-tar ooatraotor -
llablo for state .8roioo taxa8 on material8 purohaoed dlroot-
1~ by luah ooatraotor, the Cotrrt did not state or lntlmate
what Its doololon would bs, wlth rofuonoe to onoh taxabil-
lty, li tho oawxnmmb ohould eleot, under a olaum of tho .~.
ceatraot bofon It, ldeutloal to oae ooatainad la the la-
8-t oontraot, to proha aad pay :llrootly for m4tarhlo ; .,
aooeoouy to pufoxmanoe of the JO) aad ri ue not at
llbufq to opwulato upoa what suob rullnd will bo or to
oxtoad the rule or taxation anaounoed in this ease, undu
the iaota appearing iron the aboro quotation therefrom,
to the dltferent raatuel oituetloa befors us and herela-
above pointedout.
Mowing then that the ootumsent IO. hero eleot-
lng to exrrolam lto ooatraotual right of purohaolag, la It8
,011 aamo and dlrootly,all motor fuel, eta. uerodtqm thlr
job, paying the rondos dlreotly and not nersly on behalf of
tha ooatraotor, ft 3.8 our opinion that ao taxable oalo of
motor fuol traneplmd betweenth distributor-vmdor end
the pedersl ~wmment, by and through lta dulr acnstltuted
puroh4olng pW3ona*l. wr ruoh this c~naluolon b404uso of
tho legal lnoidenoe or the m&Or fuel tax upon tho UltlJUatiO
usox or ooasumr of the mosor fuel for the propulsion of
actor oehloloo upon the highmy OS the Stat9 of TeX40e
fi this tax wrm laid by tha Leglolature aa a teuc upon the
xonorabloMorgo JL dheppud, mge 9
sellor or-thevendor;oaoh setor fuel dioQlbutar &
Tuul
?lling a&&r idolMIllu the f44%4 #@on and tm-
mimed,woetdbo llablofor this tax under tk prl.noipl40
4nnotanaod ,$a the oaooo of JmO vs. m4vo co4tr4otS12g
awlpony,
30s C*9m 134,08 Law zd. 155, t)Balp* ct. 906,
OUrw v. United gteteo, 04 Law Ed. and !,labama ~8. &$qg
and Boos&r, otapra, drpl?iothe toot that luoh Croreowro
mado dlroo k, the F4dU4l Oo*Unmont its egeaoloo 446
laotrlmont4l Y ties. Fh. logaltnoldon@. Of tho tu would
thea ialloa the veadocrat&w thanthe purobeoer, al-
thoryhthe maouatoftho tual*tbo boludod intbo
oh4u pi00 00 a0 to laoraoo tbo oeotof tho
r at to the purohaoet. That ouoh 44o4acliO rothore30- bra
losalbtwdur of a tar I* tao remote and ladirootto
aonatituto an unootutltutiwml burden tapan the iredual
Goverment, has Peon reaO@tisedaad ooaoedod by 4 do-
ololoaui t&o coaptrollua*noral of the tmite4 3t4to0,
releasedoa mroh 6, 1949,and the progeoltloa is on4
matloaedhero to avoid aonrwlon In future ml- or :
tU0 doprmaunt oa othu roveme a4aouroo.
Thuorore,llnaotho logallnoldmooof tbo
prlYlleg8 oti us8 tat foviod br tho prorent sotor pwl
Tumrof Tuao, oltedeborr,lo qwa t.!koultlmta u8u
or oo~mmer of suah metorfuel for cb propulolaa of
arotorwhlolos upon the publioblghway8, sad t&o ah&a-
tally dOfined *distributor*, making a virot 04l4* of
ouoh motor iwl la Texam,~I0 mere4 4 be&d& Pldooiaqor
wont oi tbo cJt4t43 r0r aolleotLon purposes (so0 300~ 8 (a),
(b) aad (0)of mtlol. PO659 V.x.w?.),It lo portlnoat
to Lqulro 5.f tho ooreramcat is the aler ar oanotmerof
this ador fuel upon the hl@mys lO M to 400~0 4 kr,
4lbelt It lo, fbr pwpeou QS thiooplaloa,iwm%ed to
be the first purohaoor of uuahmotor l'u61. t\dsrittsdly,
traot,tprasomr cmndd~llmro maohrpot&13~01to The
guotiaompeny ror ltm we la the ocastruotion
of tbo
aircraftasswb4 pIEtmde# omtraot. If saidAwtla
OoaplaJwro a mere ag4at or iaatruasnt4li~,w&r fU
oontraot, or tbe ated stats8 covornzmt, fan tho eon-
otruotion of tb plant in n,ueotion, w.of motor fuel b
said ccqmny upaa Oh. h1gh-w~ OS this 3tato wool4 be, L
.-
al8 resdaa~, mid, Ln tusa, by ouaorreive v~~hors S2oa
*air vaadss8, up to the ulslasteaonsubr, aa8 aado
airuatly to tnu iaderrl Gorrrrs#atg ad tho&aCoto acrid
dl8tributorcvandor, uadar pIala oaR8lltu&hml prlaolglu8
hSrdA~bOt+ diSOU8#~de Ora8 Wbk $0 UA~WOO OOu@OtiOR Of
suoh tax. ~~OC04vQr, tto uutb la polvwl888 oauor thu sea.
ooAstfcutloA*ltallaARlWO8, to nquiro t5 oolleotlsn0:
SWh t&by tha COVWAfE8&6~AAthe &OUAAd 6EAAAiOPOT do-
airory or tho aotior Luol by W18 ox drt ts MO O~9flOreOtat,
Tho Austl~Coepa~y. l3u8 whoa uid ntintln Cm-, roquln.8
or p40888808 woh aOtOr fuel U&AA rhioh nQ tax h88 booA
peltiaor ooold ti oollaotod, r~WdlO88 of ttw iaanadr la
at&Oh ~UC~.GOW duel $8 SO@~Obs A tAX f&l1 kZMdiPtO4
~00~~~1~ rarw af tae cjtotbU2oA its use opt the aiirs
waps, unhus arid oantraotor within 1t803.f, Omqlifa8
8OM 8wtUs UxeoptiOAor I iSIUUicy isO3 ti%acbAa, (If
Or
r8oC ahlah ii* how Curb sot t3 efirt lA CL8 aa8o.
30 thlak tklu rusUl6iA rquire4 br thb vsry par6iabat
protl8ionaof Art1018 706$%4?,(a) i'NAaA'8%XAd Cirll
Statutuc I.
"Go tax &tall k lqmod U>OA the 55&o, t&88*
or dlatrlbutlon 0r my sobor id, the lapon*
of whlob would ooaaitltatoiw ualrrwfulburden AA
&temtclte o-ao and *tiiohia not subjsof to
h t8xed U&W ths conutltwon 0r the stow~0r
Md thu %X:aLtab
'L'OL98 &9ta8. it3 t?& UVbAtthi8
xrtiolo 14 in oonilhl with t&o Conatttutionor
my law. OS the .Ualtad 3fetaa vlth se&mat tu
the 2.e~ ~&rVfed U2.;A t&to ftS4t 8&l*, dtotrlbu-
Lloq or tloe0r aotor alo1 in tur imat., th4&
it fa hrrobp dralar'csdto bo the ince~tlo~0s
tub ;*riclo to fspa8e the tax IrriedAdreLn oton
thu Elrxt ~~b*eqWAt sale, bt$tributi@A,Ar U8e
gf8yf8;: *tar fGe1 tirlat iiw bs aubjootto ba4
IA SUWI~~OA,~ WSaaaaor paw rirrt c;ubotioa
ln the effim18tiv8,4Ad ror aaimr do four OOUOAa qm86to11,
hold t&at “uC.eaoat-phs-rlxtnWoa crontr8otor in t&i wattsot
uader wasideru%i5&,L* CLIu:ll baoo+m lloble tA thb Skto
for tho 8t@tLtO~~ tax OR611 ;sotOA-fuf31 wed by it &gCtKith0
h~&$~~12~.4
.Ofc5iS iici&OiA WAOO~~UU with the 8Ub$Mt
4OAWSOt) bUt fti0dl#trlbUtOr,OCr1u&3!BUOhZXOtOffUO1
k tha UAitbd i&at08 gOVOrnsDAt 8Andth0 gOT8XRo;?slht,
in
moh aotor iuof to srld ooatrrotor, ullL
turn, bellrarln(:
AAS bo ro$dNd, U&GA the iinst: Or PuboOqwAt 883.0 Or
git6 of ruoh aotor tuel, to o@llIot&oh tax Upon 8alU
oantrsQt?C, aa t&o ultl.aa6b aaar and tax parera
inqu.lrsI we or0
FIRST ASSISTANT
ATTORNEYGm
COMMlT-rLL