OFFICE OFTHEA170RNEY GENERALOFTEXAS
AUSTIN
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tionorebleM.11 L?%nniilah%rd%on
asrfrtant s%owtarp of State
Au&in, Texas
opinionHo. 04l37
201Am0m or ruingrS6SS~
?ranohise tax ta be pold by
a aorpcratlon.
Your rkqueat ror an opinion of thi% department
PUh:
“We h&we been'lkrnbhed with en ep~&18tlun
fop 4 charter or tb above nnmod qorpomtltion.
+31e
purpo8e etat%U.ln tha oharter lilt
-'The eupportor ala91itmw?y and eoiea-
tirla undertakln& to-wit: to rid in loakily .,
aroiluble to civfc and aultural erganlsations
the rervloie of lutholritiar
and groiipps in tar-
lolu govsrmentel, clvio *Q oultimal tlol(la.*
"sUbdiViei0116 Or the eDpiiUatiO&ii&d%8
that tbemels no oopital steak, no aaoet8 and
that the oorporatlon1% net organized for profit.
wThlo Departmenthaa raised the qwrtlon
a% to nh%ther the aorporatlon should be %x%mpt
rmm tmahise tax %nd pa9 only th% $tO;OO iii-
log see. You will note that tkm1at*er pest or.
the purposecl6ueesham that thi8~earpqrzktion~
.'
isgoing to rwnif+heivl.0
orgnnlsotlons withtha
eerviaoe of authorltlosinvarious fioldr. Thir
aejm*cntwasat Sli% opinion thet in no'doing,
the corporetlonWE% actually aatiw an a 'book-
ing a(;enoyror leoturers’ and should puy a $SO.OO
filing tee and %n annual ?raaohf~% tax, even
t$ough it wns not organized ior pyoflt.
"i:oshould bs pl%a%%d to~have en oplnloa.-
rm0 your Departmentaa to what riling ree should
Eonortrble
*ill &3mn Rleherdron,Page 4
ba ohargeci an6 whether tho eorporetion, la 8th
jest $0 the payment 0r an annual Sranohloo tax."
33% lnaorporatoro0rthe prop0004 oorporatlon
%m apparentlyraeekingto.incorporateunder i?oatlonS of
-iale 1308 of ths Revised CIvIl Statute8 r$lloh roador
*B-A*8upport orany lltsnry and malen-
' tirioundertaking;the melntonanae oi a library,
or praaotion of painting, muala and other Iino
art%.*
Ycu state in your letter tbet your dagaSi.mant
~1s of the opinion that the purpooe alma80 a8 okrto4 in the
charter applioetionwoUl.d ooaatituta' tlm orgprriutlonl
booking %g%nay ror l%atur%ro r%quIring th% paymutt of Q
mo.00 filing rec. If ouah lo 9ouv oplnloa, we rind w
appropriateoubdl7lsionor mtlala lSO8 under whloh a btmk-
Isg %g%noy oould be lnaorporat%d~ 8% do not in thlaopia-
ioa paoa .ugonthe question or whether the parpa 6lauo6
lubrittod appropriatelyco~oo u&or 6ubdlvIolon3, lup r e,
aa suah question ~:IJ not bcroro UI.
Ii yco should, In #lo %xer%loo 0r JO&j:dls6retbn;
detena ine
that luoh propored 66rporation lo in foot on% ior
6 11tor%r9 cm4 sofom.lsIopurpooo under luoh sobdlv~olons
then we aubmlt for JOLIZuuIdan66 tho rol.ltndnf& 4loou~8lon
or tho law applicable thereto.
mtiole 3914, Revlaoa Ciril Otututeo, providea In
gut that the 6eoreta:rg
of State %hall aolloot ae is081
Wpon llllng oaoh oharter, emendgent or
%uppl%lcsntthereto or a oorpontlon ror the lup-
port of pub110 worehip, any bmwvolenoo, ohm-i-
tablo, ebuaatlonal,mIseloJUrp, LItorarJ!or aaiM-
tiflo undertekfng, . a riiinrr fee of ElO.00 '.
. . .* (imiareaorl&f'ouro)
irrtiale7094, lievie Civil Gtatuteo, sxmpto
certain oorporstionarr0rn the paymentorfranohlmo taxoo.
It modrr:
-31% trenohiee tax Im~oeod by thlo ahaptor
&all not apply to eny ineuruiao compw, ewety,
Ronorsblr Will Kena Tiohardson,Paga 3
gumanty or fidelity cornyany, or any transpn-
tation company; or anyiilaeplng, palaae oar and
dinInn;oar orm::nnyahioh is now rerclred to pay
an annual tax m?&sured by their grose receipta,
or tc oorporstionehaving no oapital rt,ock end
organized for the axolualve purpose or promoting
ths publio~interest 9r my oitp or town, ear to
oorporatione org0niooU rorthe purpose or r*llg-
lous wcrahlp, or ror provldiag plaoas of burial
not ror p;ivata profit, or oorporationeorganizid
tar the purpose of holdlnu agriculturalfair8 and
enoouregiag agrioultural pursuita, or ror ltrlotlp
eduoationalpurz‘oses,or for purely publio charltg."
7here are several other rrtatuter, exempting ootnaln
60aigrratse.typeabr corporation8rmmthe papent or fran-
ohlsa taxes among nhioh am iutiolas 1407, Eilg, 28118an6
82309. Hone or thee0 8tatutaa. howover, 8pe0frfdsg mmatioa
a oorporat~on
orgaalsi3d ror the purpoua 0r sup~orfbg e4
litwary or solantlflo und*rtaklng.
It Is too r~ih~ntdl to requirethe.oltatloll
ot
that one alaiming an umption rror:
ruthorlt;fea thr raymeat
.. ortimes mum% oloarlp 0011,within the sxmptioas Wmrofrom
promha bythelaw. St is our opinion, therefore,that l?
suoh propored.ahartaria granted 8s a litarary and sQlantlfl0
undartakinga riling roe or $10.00 will be ohargrableand
that sush oorporationwill be liable ror iranchla tax.8 under
the provlsioar0r iu-tioh 1094, ~~~2x4.
-.
ATTORNEY GffN=-AT.