Honorable George I-I.
Sheppard
Comptroller of hblio Accounts
Austin, Texas
Dear Sir: Opinion No. O-3923
Rer Is the holder of a "oontraot oar-
rier" permit, issued under the
authority of the Railroad Commis-
sion of Texas, subject to the oc-
aupation tax on gross receipts
levied by Article ?066b, Vernon's
Texas Civil Statutes, despite the
fact that suah grose reoeipts are
derived exclusively from trens-
porting property for hire or oom-
pensation for the United 3tates
Army, on shipments originating and
terminating at srmy camps, posts,
depots and sites but passing through
two or more inaorporated cities,
tomns or villages?
Your letter of March 10, 1942 submits for our opinion the fol-
lowing question, which we quote therefrom;
%rtiale XIV of House Bill No. 8 of the Forty-seventh
Legislature provides for P quarterly gross receipts taxiof
2.2% on~bcsiats earned by Contract Carriers and such Con-
tra& Carrier being identified in Chapter 277, Acts of the
Regular Session of the Forty-seaond Legislature.
"This department has been holding that a Contract
Carrier, operating under a permit from the Railroad Com-
mission, rho makes hauls between one incorporated town
and another incorporated town within this State is subject
to the gross receipts tax.
"I now have an inquiry from Spears, Taylor & Spears of
San Antonio, Texas, copy of which I am enclosing, on behalf
of one of their clients who hauls commodities for the United
States Army. You will note they state that none of the mer-
chandise bs picked up or delivered in inoorporated towns or
cities, but it is my understanding that they may traverse
through tmo or more inoorporated toaas to reaoh their destination.
",Ploesctell me if, in your opinion. the faot that
the receipts are earned on hauls for the -UnitedStates
:~reywould exempt them from payment of gross receipts tax
es provided for in Article XIV of House Hill No. 6 of the
Torty-seventh Legislature."
You also attach copy of letter from Spsars, 'luylorend kjpoers,
Attorneys of Sen Antonio, l’exeS, pointing cut that the hauls made by
the contract carrier in question era not picked up or delivered in in-
corporated cities or towns but are exolusive~lyfor the IJnitedStates
Army, originating end terminating in army camps, depots, posts and sitos.
It is suggested therein that in view of such ciroumstances, said carrj,er
does not fall within the scope and purview of the taxing Aot.
Article 7066b, Vernon's Texas Civil Statutes, levies the fol-
lowing ocoupetion tax upon the gross receipts of each "motor bus company,"
"motor carrier" or "contreat carrier:"
"(a) Each individual, partnership, oompeny, assoc;ati,on,
or corporet$on doing business as e 'motor bus company' es defined
in Chapter 270, Acts Regular Session of the Fortieth Legislature,
as amended by the Acts of 1929, First Called Session of the
Forty-first Legislature, Chspter 78, or es 'motor c&wrier* or
'contract carrier' es defined in Chapter 277, Acts Regular Session
of the Forty-seoond Legislature, over end by use of the public
highways of this State, shell make quarterly on the first day of
January, April, July, and October of each year, a report to the
Comptroller, under oath, of the individual, partnership, company,
essocietion, or corporation by its president, treasurer, or
secretary. showing the gross amount received from intrastate
business done within this State in the payment of charges for
transporting parsons for compensation and any freight or commodity
for hire, or from other souroes of revenue reoeived from intre-
state business within this Stats during the quarternext preoeding.
Said individual, partnership, company, assoaietion, or corporation
et the time of making said report, shall pay to the State Treasurer
en oocupetion tax for the quarter beeinning on said date equal
to two and two tenths (2.2) per cent of said gross receipts, as
shown by said report. l'rovided,however, carriers of parsons or
property who era required to pay an intangihlc assets tax under
the laws of'this State, are here'byexempted from the'prcvisions
of this Article of this Act."
The above tax Act refers to Chapter 277, Ants, koeular Soss5.on.
42nd Legislature, Artj~cleSllb, Vernon's Texes i'ivil:itatutes,for tha
.
cic?initionOf a "contreot .ccirrierensub-lootto the tax ttierebylcvied.
ho quatc said definition from the stetuto edviscd to:
"(h) v)!e