Txm Am- GENERAL
OF TEXAS
Aus~ ii. TEXAS
GERALD C. MANN
Y3xwx-
ATTORNEY GLCNERAL
Honorable George H. Sheppard Opinion No. O-441 5
Comptroller of Public Accounts
Re: The exemption of motor vehicles
purchased by Defense Plant Corp-
oration from the 1% retail sales
Dear Sir: tax.
In your letter of February 10, 1942, you direct our attention to
our Opinion No. O-3797, holding that motor vehicles purchased and owned
by instrumentalities of the Federal Government are not subject to the 1%
tax levied on the retail sales of motor vehicles by Article VI, House Bill 8,
47th Legislature, and request our opinion as to whether or not the Defense
Plant Corporation is an instrumentality of the Federal Government, such
that motor vehicles purchased by it will not be subject to said tax. You~also
advise that in some cases the motor vehicles are registered in the name of
a contractor who is building a defense or army plant and that the contractor
claims that the vehicles are actually owned by the Federal Government, and
you ask us what evidence we think,should be submitted to the Tax Assessor-
Collector in order for .him to determine whether or not the tax should be paid.
Defense Plant Corporation apparently was organized under Section
606b, 15 U.S.C.A., and clearly is an agency of the Federal Government, created
“in order to aid the Government of the United States in its national defense
program.” Section 610, 15 U.S.C.A., reads in part:
“Any and all notes, debentures, bonds, or other such obli-
gations issued by the corporation shall be exempt both as to
principal and interest from all taxation (except surtaxes, estate,
inheritance, and gifts taxes) now or hereafter imposed by the
United States, by any Territory, dependency, or possession
thereof, or by any State, county, municipality, or local taxing
authority, except as provided in Section 742a (a) .of Title 31.
The corporation, including its franchise, its capital, reserves,
and surplus, and its income shall be exempt from all taxation
now or hereafter imposed by the United States, by any Territory,
dependency, or possession thereof, or by any State, county,
Honorable George H.,, Sheppard, Page 2 (O-4415)
municipality, or local taxing authority; except that any
real property of the corporation shall be subject to State,
Territorial, county, municipal, or local taxation to the
same extent according to its value as other real property
la taxed. The exemptions provlded for in the preceding
sentence with respect to taxation (which shall, for all pur-
poaea, be deemed to include sales, use, storage, and purchase
taxes) shall be construed to be applicable not only with respect
to the Reconstruction Finance Corporation but also with respect
to (1) The.Defense Plant Corporation, . . .*
From the above it is e.vident that Defense Pi& Corporation may
not be required to pay the tax levied by Article VI of House Bill 8. 47th Legis-
lature, on motor vehicles purchased by it.
We now direct our attention to your second question., Attached to
your opinion request is a letter fr,om an auditor of De~fensa Plant Corporation,
Mr. M. R. Burson, in which he plainly states that ail automotive equipment of
the Defense Plant Corporation is held and registered in its own proper name..
If such be true, it would follow as a matter of course that no vehicle standing
in the personal name of the contractor is entitled to registration witbout pay-
.. ment of this tax. At least until and unless advised by Defense Plant, Corpora-
tion that it actually owns such automobiles and asserts the exemption. we think
tbat these claims for exemption made by contractors should be denied. In case
Defense Plant Corporation hereafter does assert such ownership and exemption
you may so advise us and we will then be glad to render our opinion on the
question as to whether exemption from the tax may be allowed.
Yours very truly
APPROVED MAR 6. 1942 ATTORNEY GENERAL OF TEXAS
/s/~&rover Sellers
BY
FIRS.T ASSISTANT /s/ Glenn R. Lewis
ATTORNEY GENERAL Assistant
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APPROVED OPINION COMMITTEE BY BWB CHAD&AN
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