OFFICE OF THE AmORNEY GENERAL OF TEXA8
AUSTIN
,oalamolay frnom
You8 r8Qtl8rt Mad8
t 8ltuatlon8
to tho appU-
cm80 all Ho. 8,
-88VOdih bgirla-
501
Honoroblo ffoorgoii. aheppiml, page a
"XS the Swogolng qwrtion ia anmrored in
the nogstivo, then 3.8auah aampany roQulrod to
pay the tax provided In Beqtion 8 of Artiolo
XI of the Omnlbw ‘faxLav?
.
‘I? thir 00rmpany r8Quil'Odto ~A'O&?O&
bnd
pSy thb~ta On th0 gOr &woduoed in bAi8iUl@?
?&no. 1. (1) There is hereby levied en
oooupajaon tax aO.tho bwinors or oooupatiari
of ~J~‘oduo~ gor:Within thl8 IWate, somputod
88 .fO~OU8~:
hbrd $U~Oduood and raved thillthi.8Statb,
and Of 8&l Ra8 80&d if Dl’OdUO4 d in .SnOther &i%te
and iamrtod .into this State. at tho a@rket
V&U. thWbO& '88 and lthenproduoed, w a8 and
.
;‘.
/ 502
Honorable Oeo~ge Ii.~sheppard,pagti3
800lrl¶8tural.88 #h&l IIOYW be &OW th8n blbYCu&
one hwdrbd ffi ftiethr (ll&O) of one (1) oont
pbr qae thoudad (1,000) oubio reet cm 'mot snd
#our a8tur8l gw -sold w produoed aad 8ared in
thlr 8tPatb, urd,not thbroaftor lawfully injeot-
ed into the oa~th ia the tat0 OS 'P&8, for
the touovips p oIe* 1 ta) rtor8go~thbrborl
~'. (b. noyol.%n& ,P~O88Ui'~j (d).U.@&
3 and not .thermftor~ (0) Uwfully vented w
&wed in oormootiozkwith the'poduotion cf
Oili
~. poduatr extpaatodi reprated and 8sYed from
8WbgMi
"b a&b ge is 8old.fw 088kthO t8X 8-1
bb Oolliput8d on~thwprodwerr* grorr reoeipt8 of
rush 8-j and in Q88e tho,uhale qz.6 part of
tho oowideration ror then8818 or &u is sng.
port%on of the prodwtr extmoted ~fiwm81mh g.88,
the tu.aha$l be craqputedon~tb -88 velue
of the pMduata reoelved pltu all other thing8
of value reoeivod by tho produoer, exohpt In
,awe of @So proaerred by roayolsng opecsciowi
“Xn ilet- the market value of gas
the tax due there
Of re8ldue &8 hW-
iQt0 qlb outh in the state or
tbxw fort&b folle pur 08e9: (8) storage
thbieof (b) repzetaruringjPo) lifting oili aud
,I: a80 (dJ aan la~f'ullyvented or flared In oon-
: .:. neotion vith tho produotion of oil; aavtu and
Eonwabh Qom&e H. 6hhoppara,pago 4
oxaept howovw, 3.fauy gu 80 injeoted Into ths
ssrrti&18aold~fex 8UO.b gurpoaoa, aen the aarkbt
Ytiti~,bf?tk&b 888 80 '8Old rball XiO$ b@ bIolUdbd
In oaaput* thb tu. All l+qtid hydrootibcw
th8t 8re rbaOvbrbdfwm ar*a%y mbdnq 0s a 80
bo.t8gbd at the .Mme rate a8 0l.la8 lbvled 68
AvtlOlb t or turn Aat.
"(2) The tsf heroby levied a&U bo 8
li8bllity of thb produoer 0s ga8 am~it8lxUl
be tb duty of'ewih auoh preduaer to'koop.aaou-
rote raowda ku 'Pexaaof 8lJ gee p&dwed,~aak-
ing mmhly rypwta under iiathI+ hweiwftor
providckd.
"(3) Pho pureh8aw org88ahtu+8ytho
tru,DP-8aa 888 pwohMed and deduot thb t;ar80
peid l'rm.;thep8ymmt dub the prodwbr ok other
intOs'O8thohl+'8, SJ8kU@ 8Wh w-t8 @d de-
duotod to tho OoiaptroUer Of FtablZO &?OOpnt8 by
pepa dub produaera rw .aha p8yuent 0s tuti
tu~bob416'bpthegttrr~a,intrlratror
thb we prtd bedat 0s the a8t? of 9~ w
shall not be oomalnglod with
h a l& b y
loid &W'Oh88Ol', Stud aiii%%?=d
to tha State Zrouuror in woord8we with thb
trrma 8nd pr0*;l*10na of tbi8 Art&bled* (Under-
oowing oura)
"600. 2.' (1) FOP thb pm8b Of thi8 bt
'produo0P,r( ahal meal My pbraon oluluq; oop-
trOlling, 8llW@h& 0s 1W8ing 8D$ &or YOU.
O&O? w &3OP8W YhO ~0dUOO8 &Ii w SMUW
my g88 by t&lag it from thb eaoth or oator
%n thUBtate, utd ah8ll inoluda any pb'ion
ovn%hg8uy royttltyor othw intereat in any garr
or ita,vdlue whbthbr pwduoed by him, or by 801~
other person onhi8 beh8lf, elthorbylotue,
contrmt, or othwviao.
"(2) 'Firrt purohuor ahal mean any per-
ronpur0liaa*g08 framthbprodwer.
,
504
Eonorrble @eorgo.8. $heppsrd, page 5
“(3) ~8Ub8OQWJIt: &W@l880~' Shd& MM
ianypbra who purch8aea gu' for 8ny pup080
ThOn 88ld.ga8 $8 purahraod frrO~any
ThEttSOOYe.~,
%
por8on o+tr th8n the ~producw.~
"bbo. 28. (1) 2ho tu hokn impoaod On
thb ~OdU~~Ot; &jIUSh8ll b8 tbo ~prS.mWy;ua-
bXUty of the producer88 hbrblnboforo dbrbbd,
8Ud OYOPJ wP8OU 5XlFahcr8%llf4
g88 fPOE ~OdWOO
thweoi .8nd trLing dbUvery thoroof rt or aear
the prom%aea vhwb produood ah8ll oolloot 8ai.d
tax inpored by thir &%iCle fmm the produoor.
BYorypurch8aor lnCludIJq:thC fir8t@F@8OP~
u&d tha SubreQuent puroh88er, ~oqulawd to ool-~
~loot any tax under thi8 Ast1010, 8&&l mClKC lwh
oollootlon by deduot+lrgend vlthboZd@~ t.Iw
anounti0s awh tat rmm 8ny payi8aaa made by
8yh puroh8aw to the pmduo8r, and remit -8aaa
as herein plrovhlad. . e .*
giGa of aatd a88 w*thin thl8 St8te..* (bdbr-
row&q our*) :
Thla statute letio8,lUL oceup8tioa'tu op tho buai-
-88
I, 0s produclq fgma It i8 I 853OOia8Oi bXOi8b t8X knOTSI
.$aal oocqprtion tax. .A 8tcrtMMt In rbgurd to thb c~888ifio8- '.
:tbn Of tub8 i8 found in 2fi~IdiaigaMb, UT 34, 88 fOuQU8a
*'Pam8 r8.u n8twolly ~hto tar00 ol888e8,
-4, C8&9%t6tiOnOr POU. tlUe8, t&XC8 CR pro-
wl'tp, Md bXOi8~8."
~h~bX#M8tiOZl Of OXdEb taZe8 i8 iU%dOin tho S@lBOdiSOU88iOll
kr 26 Rullq Oeao L8v 34, 88 follwar
I... v bxcias incrlude8every r0m al? ohm60
%mpoled bTfPUbllC SUthOP%tJTfOl'the pWRO8e Of
rsia%ng risvonueupon thb perfarnranoe0s an act,
505
QoorgoIi.ahsppard, poee 6,'
the enJoy0ent of.8 poi~&loge, or the ongngi,zq
in an oootipWi%on~ The ob tion ,to pay 8n
., .
axoiao i8 b8abd upa the TO
=r UntMy 8otion 0s
the pOP8Ol3 taxed %n pb*fWmiX~g th8. 8Ot, en-
’ : joy3.q thb prLv%lego, w on$agine in the ~ao~u-
pcrtrlon *hiah $8 the 8UbjOOt O?.thO bXd80 and
the elOmOnt o? abrolute and~wuwoibable de-
gmymhnt of,tho tiaxevbm whbw the 8ot is pbrfwm-
od by ROMOSidOIlt8 Of th. SibtO Yith PerpOt
to property llhlohh88 MYW been Ylthln It8
bowdMt.8, prorid. t&b Ut Yhioh 18. 8LIbjOOt
to tho tar is potrormed wa.n the 8tste, and
oonYor8oly an oxoiae OauucA oon8tltutlonaly
be lmpo8ed upmthe pw?ormMe e of an 8ot out-
81d8 the UrnitS O?.thO ~oYOrW@Ikt~ Wit by.
uhbh the exwtse Uleviod. . . ."
1
by talcbq,lt fwea the us* OR v8tora %a this pt8ter . . ."
Thw, *I au an inapprl~tc)pay In the statute. '31v*tue of tho
I8atth8t&6tlan~fqpaa*a upontru~%mdu6br thoaeta.ma
hued Qp w ~Ofhl@ti~~ WiO#L@?St&t&, Y&i.& FkOtiOIb 2 ut8
8“p r o du4 plrpUpty~whoprodwb8
’to -8 la thi8 ml8tPO. xf
+668&6~ 4 18 6onaPuod to.mtlplirCt,~$+ t8U 08 th6,'BNdWbr,'
&&d thb ~2WBdUOW,-i8 dbbMd th&@Wty +ha t#kM.thb gor, Hera
the eurth or thb puty ,* owns w bontr618 thb egos wel3 rb-
gbrdlua 0s tb def2.nlti~~'-*o da not aw~hov-t;lu tax bared Q~L
Usd lawortbd g8a 08n bo bafaobd, ~bboawo the prodwer might
J&Ot bb YfthfEl thb jWf#diatiW Ot'thf8 8t8tOr %W @S ni&h$
h8ve -8Od through the hands Ot.UYWr;l 8waaa.8lve oIw]pI by
thWthOitFOWhO8 %X6SMd8ifl'8t~b 06OWS fIifbX88..
FOP th.~OMOM &Y&tn thb tWb WtOf t#L%8'Opini~tOt,h0
eff*ot th8t .a state oauna$ imps* a tas on 86t8~ beyood it*
bound8vloa, ro:do~wt~aie hov tha mwda of tmtion 1, b.aorsr
i8 It Qonoeraa g88 predwbd la ""thy 'rtatq,,
oas,be given or-‘
f$a~~,Uo~otrwdabe~th8tthetox &8llbe@dbytho
%hOYWdS Of 8bOtiOB 1 d0.I.WtjWJ~iEQ08iIl&
on,uhyaab.0th~ than the 'prodwor" the t8x beied on gar pro-
dwed outride of the Btato. We do.-not800 hov Baotlon 1 rill
8U&QMXt th8 1Oty Of 8 t&X hued On 688 produord bbyond the
bOWdWib8 Of thb 8t8tb Of tOXB8,
‘!&o 8&y 08hW oplrt Of th0 8tatUta~ that d&8 rith
.@a prodwed outaldo of TU8a la ~&otlon 8, qoo$ed ebove.
Bobs it levy 8 tar th8t oen b0 en?oMod? If0chlqlrit doer
not. &laidSbotloa 8 povldor th8t in thb oreat ‘the bssir
to be-urrdlna8loill8ting 8t8x onpa importodlnto thla
Btato be dooWod top soy re88on to be . . .lr&Ud' then there
ah8ll bb glk~Wl on all @a fmpwtod into this Stat0 8 tax of
fir0 (5~)per 0-t of th, mukot v8lw of aisfd688 upon the
ffF8t sole 0s raid g88 dthfa this st8to.’ Fh8t la 8ll 0s thy
provision,,, - it d0O8~IWk 88y MJtbing 818,O. im0 (Uh8t m80Il)
18 E;hi8 t~.2O~iOdO+Mt?. yho 18 8uOporOd t0 pm it, thO
.‘rrl?crr or tho buyor? The statute do08 aot 8aj. Uo think
aud aeotlon 8 la ?rtUy defootlve, and thw8fQre vholly ln-
operatim, beomne 0s meld roflure on the prt 0s the laglrla-
turetopreroribevho -pay 8ridtu.
our 8Mvbr to YOU' first quertlon 18 th8t tho oca-
psn~ you Mk 8bOut i8 not X'bQUfUd by YirtUb Of said &tiol8
7047, VJ.C.&, to oolleot '8 tw on, or by rirtue or, the ga8
ltbUy8thatW8piOdUOOdin&VU%ri8W%0l'in~OthO~ 8t8tO
OUt8ldO 0s Tox88j mhd 2lkwl80 rud 00mpsny is not rowirbd
w virtue of l8ld statute to pay awh 4 W&x l? the gra m8 pro-
dwed outllde Of 'feu8. BOUeYOF, 88fd w 18 requlrod to
508
xonorf4bleQeorgb FL Bhommrd, p8ge 9
oolloot 8Wh 8 tar if the gSs rci8 produoed in Pezsa, by deduot-
ingthe slpoupt~o?the tcU ?rom the purahero prloo sndpaylng
8eld tar to th0 &SU@SO=Or in the Mnuer grO8Oribed by 8t8t-
ute, ii the 8aabhab not alrea@ been paid;
our anavor to your aotoond QW8tiOU i8 that the ooa-
pany yiiu88k about Is not reqalr~sdby Virtue Of said 8t8tute to
rb&mrtMd~~t8XOm, OrbyY%S'tue OfgOr podwedin bUi8-
f8m 0~ in MY othw 8trte 6iitaido0s Texa8.
Your8 very truly
ATTORHXYQ-Qf~-
.-