OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
G-O.MIww
A-~m-
Bonorablo Coorgr H. Sheppard
Comptroller of Fublle Aaoountr
Au8tf.q Texa#
j
1*&&4*, 8upplrmaatod
you rque8t the oplalan
&wotirioam ot Subdirlrioa
od by Aot8 1.951,Forty-
e, Seo. 1, and of Sub-
ad, Aotr 1951,
Ah8 l@S*, Forty-
rtion pnrentr l rltaatlon rhen
orotrtoolmd or tiuhrs~ to market
rohandlab on the floor o? tbr plror
or or rholeaaler, with the under-
aerohandlrr nil1 be paid for Ron rold,
hln a l peolfled time muoh merohndlrr
my k returned to the aanufeoturer. You inquin whather
or not Eubdlrlrlon U, Artlolr 7047, aa amrndrb, rubjrotr
such wholtre1.r or retail merchant to the oooupatlon tax
levied by ruoh subdltlslon on aoanmitrlonmerahants. t
Sub4lrlrlon 12, artlclr 7047, R.C.E., as amended,
reads as follow ;
Honorable Gaargs R. Shrppud, ?si%o 2
Y%4Mtere. - Yuohaadlrr 8~6
ohsnts. - lcrola every ~eraon, flmt, a8aool.atlonoi
,%l-klOM, Or CtO~Ol%tiOA, fo~owing thS bUSiU.~S
or oaou~stlan ol qwshfmdlro broker awl/or oom-
slssloa sswohsnt, dither at wholeaslo er retail.,
ia oitier or totma 0r twuepfira thousad fi3,ooo)
or leas papulotlorr, aA snnusl tax cU Piftoon tol-
lars (~lE.00)~ and in oltis8 of noto thsn twenty-
rivm thousaw (8s 000) pulatbm 88 8~~81 tax
or ?hAtpiiV* E&err r 4rJa.ool. d OlYmraiSSiQn
mrohant fn the meanin8 of MJJ Aot 5.0 errrjr par-
son, flrn, aasoolation 0r parsons, or corporation,
rsoeldng oouatry prohoe, horses, mttlc, sheep,
hogs, Grwin, oora,hap, l\ncber, rhln@s, ~004,
ooal, goods, vssres sad cerohsndirs or anything
sloe for sale, to be oooounted for to the oulns~
vhen sold.aatlc.har&ns s oas~~M~len thmetor.
The provision ot this Sootion shall not be ooa-
strued 8s tsxiolf the trawling sslesczan."
Tltlc 30, i3ivlwtlCivil ttatctes,~deflnaa snd
roguletes ooiwlsaial EOl'OhtUltS. Art101e 1274, q. c. 3.
deilAC8 8 *~arimlssicA JaorOhMt* aa foll0msz
*Ant por6oa. fim or oorporatlon pursuJing,
Ol' UhO IShUll ~lllSll9tk bUSiae68 Ct tJ6lifIh!$
pro-
duoa, or qoods, wares or msrahhtirs a? aA) kind
upon oonslgxmnt for a ookDLIsslon,shall be held
merohMt* *
to 50 a ccexiitsslon
Art~ole U!81, R.C.S., dCfiEct8 a %lveotook cam-
oiasion Ijeruhant*thus t
hey person, tlr~ or corporation who ohs11
pursue tile busineos or selli.ng 11~0 dook, OsttLs,
oorsa;oulvae, bulla, steers, hogs; ~lrepp, gOat8,
mulss, horaoo, jack:s,end jotmete or eng ot them,
upon acnslgnwnt for a com5lsalo~ or other ohsrges,
or who shall solioit ccnnl@~~snt of 117s 8tsOk
as a OaEmlssi0A ro&m.At or es8At, Or WkiO 13kAll
aavcrtles or ho18 hlnistliout ia bs suoh, -11
be dawted and halh to bs a llve stook oo~.~ie8ion
o.erohElntwithin the a6iml~ oi this sutdivlsicm
nti.~~bjbct to all the protlsfcns a&G pemltles
h:ereln ?rosoribsU..*
Koaombfr Clogs H. 9happerd. Page S
It till br mea that ?ubdivldloa 12, nrtlalr 7017,
ls breed eaOa2h to laolude both Roommlssloa aarobaats* ead
"livestock 000aisriOn awchaats* aa they are esoh de&d
la Title 30.
fn the oale of Stoln Doable Cuehioa %re co. v.
X. T. FUlton 00.. 159 3. r. 1013, la whioh writ of emor
was denied, whom the ooatmot otlpulatad thrt tire6 were
to be shipped by the SteiP Campany to ths Fultoa ~ompaay,
suoh nrrohandirr to be o? a 8peOltlrd quality ana to be
aid ior by hltoa Oowany at a lrea prior pnyusnt to
iil made taah nc?nthSor tire6 sol8 that aoath, end at the
expiration or the lq msma a t, tha Tultoa CompeAy to purohrna
all unsold tirea, the court held that suoh agreemeat wee
one of oonsignmeat for sale oa coumlsslon, end wee not e
snle to the Fultoa Company. .Theocurt said:
"These prorlslons of the ocatrsot, it oo-
ours to us, oleerly iadioatr that It wes the
purpo8e aad iatentloa or t&e martlee thereto
to ooaetltute the Falton Cmpanp cd Texas ap-
lileAt*r taotip or agent to sell the g00a8
Belirered to it oa oommiesloa: tha general prop-
erty in the goods remaining in the oonnigaor.m
Them was no'prorlsicn la the co&mot es to the
rrlce for which the tires were to be sold aor was there
any provision a8 to an oompensatlon to tt Fultoa Compo
for the sale of euoh t Ires. The oontreot.was entlroly slY eat
oa these matters. Later oaaea follow.the boldlnq $A the
Etein oasa. Ranfroe v. Hell, 202 fiix. 2l81 Falla Fhlbber
Co. v. 7% Foa, 228 5. 7. 577. IA the latter oaee, where
tires were shipped oa a oontmot by which tltla wau to re-
main fn the shipper until they were sold in the re@lar
ooursa or bueiaelia,to be aoaouated for to sh% per when
L aold et a etlpulcted prioe, the Ccu1zi5eio~ of R ppeals ia
a jud~at adopted by the Suprem Court held that the oon-
tract wee au agreesion ot oonslgamnt r0r salt oa oommln-
sloa, thoU;h the bolt 00mpcnsatioa reoelved by +A* C0aaii3aee
ior the sale of 6uoh mwohaadise COAalSted of the diff*rCAOt
between the prloe paid to the aoaolgaor and the r.rlOt re-
oelvtclby consignee on sale of the gcods.
This rule was first stated by our Cuprena Court
la the c&se ci JTmiltOa P. Yillla;r,78 ?sX. 603, 11 Z. :*
w3. ;het osse has been aoaelotoatly tcllowed slaoe, and
we tbl& it is deololve of your lAc\Uky. :'e, thcrefom,
I
Ranonbla Oscrge 8. 8hayprrtS.
Pans 4
aasuet )otwSlnt qwatlaa Ia,the a??imatlrm.
Yo urloooad que4atic.nm6a5 a8 r0ihet
*L. fa a member of. the flm or am mployee
of a eomlsaion aarohant, indivldunlly imb-
Jaot to the Audtiower*aoocupatloa tax, a8
levied by aubdltl~lon 6 of ltrtlolr7047, Rae-
llsea ia addition
Civil Statutaa, to the tax
bald br thr ocusia~slon’aemhant, If the Siar
msEber or the snployao auotlima ll~tatoak,
grain or other rsrehaadlsr at tha plaoa oi
bualnaaa cf the eamtisalon marchlot oaly?*
ma tlrnt paragraph of Artlole 7047, T?arl&d Clrll
Sktutoa, roads as follora;
*@ibare#hall be levied and oolleotad r-rav
every person, tlnn, aoarpantor aseoalation of
persons, pur&alo~ any of the oowpatlons named
in the rollowing numbered auMlvialona of Apia
artlolc, an annual ooou~atl~a tax, whiob shall
be paid anaanlly ia adianoe Qxaept wbtra hsmla
othenrlaeprorldd, oa every aUah ooonpa~lo~ 02
. sotubllahmat a6 follwsx
fubdlvis$oa 6, ;qtiale 7047, Mtlsed-Citll Stat
utaa, aa UDSAded, aou reads:
~huotioneera. Rxmi every huctlonecr, oa
aanual tnx or.Twunty-tire Doilara (Q251).n
hrtlale 121,. Foml Codr, ‘provldaa that nhoorar
ehall pursue or ?ollow any oooupatian,oslling or proSea-
olon or aa any aot t&ad by 18~1without havtng flrat ob-
tained a lioense thsrsiar shall be iincd aat leas tba~ the
smouat of tares dua nor p~orit
than doable auuchmount.
lb Word “OOOUpaflOa’~ as used in hrtlole 7047,
has keen deflmd by our oourta to tieen a vooatioa, trade
or b?5lacea lo which ova prinoipally engages to !nak6a
liviq or obtain ‘wealth. Johnson O. State, 138.'hr. Cr.
(2d) 8371 nobblns v, State,
ap. 370, 136 US. 'c'. 57 Ter.
HOnorsr-10George E. Shupp4Cd, Pas* s
Cr. R. 468, li?3 9. Z. 496.
In ths ebssnoe of l ls~islatlre dsfinltloa the
judlol6l eomtruation of ths tern -ooougatlon* oontrols.
To be sa wauotloaaer’*, thmn, within the maa~i~ of Brttolr
7047, aII ooastrurd lq our OOurt8, alo must saga&a $A the
?OMtiOA 61 WlOtiOAWr iA Or&r t0 mmks l li.*lAEOr t0
0btd.n wealth. CAuotloassrR is AOt u~ri~d by any statute
AOr d0 WO find My. %SR~SOaSOdOfiAt the word. :‘lobstsr*a
Xsu IatsrAational Dlotlonary (-4 Ed.Y dofines an auotionror
~~~t;~ApersoA who 80118 or auk@8 8 buslasss at ~slling at
.* ‘&at, uo think, 18 the meanink Ordinarily SSSlgA-
ad to the uord. Xi the prlaalpal rooatlon by oshioh on@
~~~ksrhis llvlng or.obtain8 wealth 18 that of solll~g at
auotloa, thea ws hold that he 1s pursue the OOOUpatiOA
or luotfoaoer, and lo SubjSs~ to the tax, under CUbdlvlsloa
.4 ) .&llols 7a47. TUs lo true AO nattsr where hs folloss
suoh ocoupatloa, bs it at his -bum or an7 other Poreoats
&~a. oi ttUSiA~88and irrSSpoOtlv8 Of the p0YTSOAOr ilra
{'"$,owhom.hr 18 employed.
.
JO trtm. that =ha above fully saswers four Ill-
qUl=.
very trialyyours