OFFICE OF.THE AITORNEY GENERAL OF TEXAS
AUSTIN
Honorable George H. ,‘heppard, i?age a
0r tit18 law tha Comptroller bad rurnished ay
olient with nsoersary for&a to use when sell-
ing exempt rsotor ruol,* aa rar as tklrr depart-
ment haa knowledge Other atatawnts In the let-
ter are true anO oorrsct, but the above quoted.
ototement Is Incorrect Insofar as It amarts,
9 the Corptrollrr had furnished ky ollent
&ii k*rs.ry rorm. FrIOr to -et;tezbof’ 1,
1929, the Comptroller preaorlbetl the form for
we In alelslng refund or the rotor fuel tax
but did not furr.Ish 8-e. The Comptroller has
8lwapa rurnlshed the 0lal.a r0m.e
The &ore 6rtaIletl iaotual situation whIOh pto;;igt-
eb your inqulrp Is oopied from the attaoheU oorreepondonae
roforrod to aa roii0m:
%y olleot, EoNutt oil
ik P,csfIaIng Coapany,
wh6w prinelpl plant at Briokland,
$8 sltuatbd
?i~w ~Lulaoa Just aoroos the border rroo 91 Pam,
has beon oil r~rlntu-6, wholesale dIstrIbutora
a&d rotallers or motor fuel, as well as mmafao-
Curers of motor fuel, end throughout the ymrs
have paid taxes to the Comptroller of Fublio
AocoMt8. srtlole 706Sa-13, regarding exenip-
tiOa ZUId fOfUUdSs WMit intO eifbOt 011 ~.:OFt#3ber
1, 1939, and ror a long tl.ae prior to the mb0-
tivo date of thI8 law the Co&ptroller had iur-
tiehe np olient with meetmary fonm to IKW
ovcen 0sUIzig oreapt aotor ml. ?ning a rprtaed
by circular or ot:i(tnviae that under the proposed
new law It would be neceesary to amwe a Ii-
oenae to sell exesPpt motor fuel, although no
ohargo would be nade for the lfoenae, lajr client,
on July 27, 1939, In 8 letter to the Comptrollsr
or Publlo hacounta, Awtln, Texas, requested
‘two appltcations tor Texar State lfoense in
conneotioa with the noently enaoted mtor fuel
law partainfng to’refuna exemgtlow.~ I have
in tho file a oarbon aopy of the letter. TbIr
later was duly zi~ilsd et the United Sate8 fost
mice.
“Arter July 27th and up to 00t0ber 19, 1939,
my olient, in aooordaaoo with what they had oun-
tomrlly done theretofore, paid taxes to the
Comptroller in ap;~rOtitOly the uu of S25.00
On tax uerpt mtSOr fuel; that Is t0 say, tho
PUrakasers thereof would be entitled to a reiund
ia a;groxleatal- the SW, or $lZS.OO, an4 In laah
Rmorablo charge H. Shopprd, Page 3
lnatanoo melled direotly arkr oaah transaotlon
to tbo Conptroller 0r Fublla Socounts oopios of
th e lnr o loo ea flro5qt~oonoa sa108, la aocord-
anae rlth lnvoloo~ oustonarlly used prior to
the 0rmtir0 tit0 of tho new law in rorersnoo
thereto. It is 4 undarrtandlng that there la
no matsrlal dlrfsrenoo in tho lnvolcos of ot
axptlon used beroro and slaae tho eiiectlre date
of tho new law.
*On Catober 9, 1939, not hating rooalte&
an anmmr to tho applioation nra40 for lloennem
.mado oa July 37th. my client aealn nquortdl
nooeasary form, eta. and this ~8 rlnauf so-
0tvsd on 00t0b0f 19 1939. On OOtObor 7 1939,
the Comptroller wrole to PIJollent, in oifoot,
t&t Involoos of rxeisption lssuod by them on
201% 7065-B had boon oolningto tho Coaptrollor~r
orfloe) that there fonnr wore obaoloto as shown
by a pbuaphlst o? tho lau enoloard with the lot-
ter. 5omo of tho puroharors o? exempt motor
ruol xoqusstod tax rofwds, an6 in answer there-
to tho Coagtrollor uroto thorn thet their dealer
had not used the now form of ln~olco of, oxotap
tlon and doollned to mko the rbSund, and in
tho letter to ths porohasers they wore a&on-
ished thst in tho rut&are thor should be aare-
ful to OH that the;1 booght ima liosnrad deal-
eru.
WGnSoven;ber 9, 1939, the Coffiptroller wrote
to zy allent am folluear
~1 am In feoelpt of your letter of Oo-
tobar 25th la rofrronoo to Lioonse to 3011 Ro-
rund Eotor -busl, rhioh was dtsouassil with yaou
rrorntly by a supervisor aor- out a? this
daparbnent. I oall your rttantion to tbs OX-
cergt oi the luu at the bottom of pa~o ?f4of
tho paniphlat sent you at t&O tlBko A~pllOatlOn
ror Liornse to roll Rofunb rotor Fuel was sent,
whloh prohibits thl8 dopartaeat aakin r8fWUl
oa anp motor fuel unless suoh imtor Sue1 has
been purohasod ?mn or umd by a llcansed dls-
txibutor. For thl8 row00 the lnroloea of OI-
omption lmued, ~‘bathe old form by you aftor
:?eptember 1st oannot be protaotsd.
*‘This may appaar to bo a llttla bareh
houover, you had knouledgo of the ahango and
th4ttyou niuot ha70 a lioea80. You failed to
fionorablo Gsorgo !i. Thepc,ard, Page 4
tollow up any roquaste whioh might hare been
nab by you as rtatsd in you? latter or Oatobor
25th. which roads as tollornr 9. . . thl8 let-
ter was illed an4 the proper follow-up was not
sade. q
-‘I hate -do a thorough search and rail
to flml any record of a roqueet hating beon ra-
oolred iroa you on or about Jrily 27th, and this
ras nom than 30 days prior to the time tho
ohango was uado.
** I mgrot that this ovorslght oocurre4
mad that x aa not in a posltlon to asnlst rur-
ther .’ *
s’poa tho t0mmng taots the oontootiw or tar
lWund olaimaot, by hlqattorney, is aa follows:
*In view of the taat thst ti Coarptroller is
pmsuwb, under t&o law, to have reoelrod the ap-
plloatlon ior tho lisenso, although his reoords
do not show the spplioatloa; snd la +lew ot the
taat that thop had been prosilnont doalors in aotor
fuel for years, and had been oontlauously sell-
lag lx@pt motor tuol aad had bean ooatinuously
wrklag reports lo aoootianoonith tons presorib-
ed by the Comptroller; and in +$*a of the raot
ttuat tho Coacptrollsr*s ozlloe had been reoelring
these touchrlrs SIV~ the saloir as they wura mado
and no not100 was glrea to l4aiutt Cl1 .!i Eofining
Goqmay thst they had not yot beon lloease4; and
in tiew of the faot thet unless the Comptroller
mkss thrso refunds to tha purohslrsers of exeicgt
motor tuel ay clloxt is honor-bound to stake m-
rtltutioa out or tholr own pocket thersot; an4
In view of the faot that the Stata will bs UD-
duly sarlched to the oxtsnt of the wont them-
of, 4 OLlent foolr that fn jastico sad oquftt
the pumhassra of this orospt uotor fuel should
hare tho taxos refunded to them rhea they make
proper apFlioatloa.*
Although tba above taotual atatwnt prosant
Osrtaln oonfliots, such a8 whether or not ths applioatlon
of 4Loxutt oil a wining Company for a lloense a8 a dir-
trlbutar of uotor fuel, tsros 00 which are aubjaot to n-
fund, was reooived by tuo Co&ptrollerc8 dspartzant prior
Emlorablo ceorge I!. mQqxwi, ?age 5
t0 th4 6ff6atiV6 d8t6 Oi tbs XYigUhtOrJl WtUt46 in 6UQh
0686s prOTbi6d, W6 6Wt WJ that it iS not the pl-OFIr &WOW
iaoo or tbi6 d6~Z'tWUt to r08olve such iaot 168Ue6, but
Otiy t0 add66 if thi6 iaOtw1 DitWitiOn, 4v4D ?iOwOd lEOSt
faVorabLy to rotund alainaat, shall be allow4d to alter,
~odif'y or ovsrrldo tba plain and unaabiguour tar&s and pro-
Vi0iOW Or Arti 70658-13(b), Vblp00'0 AWOt8t6d ciYii
sxatutoe, providing, in part, a6 follOw6:
Vi0 rofwd of ths tax 6h611 b4 gnnkrd on
any motor fuel to w&y $eraOn, o1alilL4nt, ilxm,
OOrJWatitXI, Or otharuriaa, UQl4S6 6uoh n&Or
rwl haa been ~wah4645 ima or wad by 8 li-
aana6d dlstrlbutor 66 prOVi44d ior iB this Aot:
6nU th4 Coaptroll4r 16 h4rrbr prohfbitdd froPr
issuing warrrnt la paymat of any wtitid 0r th4
tax on any a&or rnsl not prmhawd rrom a II-
oonaod d6al4r, lx wp tr4ftm4 on aotor rue1 4x1
QOrt6d or Lost by aoaidwt, or a668 by dirtrib-
UtOr iW ZOhrnd &Xll’gO846.*
Tho instant oa8a ialla 6quaroly within th4 ab074
otatutory prohfbIt$On In ragax. to th6 tseuaaor by th4 Camp-
troller of fublio Aooowto O? refund W8?l'Wt6), bboau64 it
16 ablttod bJr all parties to this COrhrOVOrsythat aal
Of laotor f~41 by Miutt Oil k Rafinfag Cooapay dwiag the
period bsgirming 24ptm&6r I, 1939, and ending Ootobsr 19,
1939, UpOnahloh olafau r0r izOtor ti4l.tax rm8.a an ln-
volrod, vmr~ inmaebefor maid ooaigaq b6Owe a lioaneod
distributor for thie Qurp0.s4 Uxidor cmbdtrlalon (b) of the
abow oltrd retund motion 0r ths Eotor Fuel Tar Len pro-
viding 80 rOilOn,:
-Any person or alatributor dbslrlng to
approprlats or sellnotor fuel OQrrhloh R refund
of the tax is authorlzad by thta AOt shall, be
tom rcakiag 6uoh appropriation or Yal6, u&c43a*
plloatloa t.0 the Cosqtroller or FublIo Aooounts,
upon ior- to be preaoribed by th6 COc.ptr0114r
and oontainlng suah tnforzattoa as tlu Coarptrollor
aay mqulra, for a lloowe to ~11 0uch motor rut+it
and it ahall ba unlawful for any ~er&OBto 86Lf
or apymgriate any amtor ru4L upon rhloh u mSond
of the tax will be GA&O,or A8 intends6 to bo aadb,
without first hq+iQ;:, obtalned rrom thm cwptroller
Oi t&o Stat0 Of "i6xao a liO4n64 to 8.11 or appro-
~prhte suoh aotor fuel,
-A separate aapliaation shall be made to
the Conptrollar by ouch pstt+oa or dlatrlbutor
for 6aoh plaoa or boalness rroa which midi
xonorablo Ceorzo 8. 2&2prd, Fag% 6
aotor fwl io to bs sold or diatrIbut4d by 6uoh
per606 or dlltributor, and th4 Canptroll4r rhall
muJIrp664pm!e4 1104il6. r o r laoh 6UOh El806 or
The Co#iptXoll4r 6h811 4~aml~e eaoh ap
iWatlo~ for lioens4 reoeiv4d br hla, and ii
found iQ du6 tom, and if within tho dlsoretloa
0f th6 Coqtroller tho applloant 16 entItl4d to
6UOhliOen64, the la66 shall b4 i6sWd. Wbn
6uoh applioatlon $a lp p r o rbyr d th0 co6ptroller
tb applioant for lioe~se shall b4 required to
file 06th with th4 Conptroll6r th6t ha dll
faithrul1y rronr 8nd 00aply with th4 8tatute
making &WOVr 610Q for th4 6614 65d d16tribUtiOQ
0r ziotor fuel 6ubj4ot to a ama 0r the nrator
fuel tu4s. Eaoh lIosn64 166u4d horeuad4r lMll
raaaln In full for04 and 6rf66t Until the flrat
&IT Or Earoh fO~Oti68 its da!0 Of i6sU4, alkd
annually on tha first day of mrsh 6aah 8ppl1-
oaut,*g#rson or distributor, dwiring to wll
or approprlat* upon whloh a r4rund
motor fU6f
of the tax is authorized inset obtain Tram tto
Cm troll4r a 1io4a64 or a r4n4wal 0r h26 6x-
1st Png llomoa*, to 6611 6uOh 6OtoF fuel as h4re-
In prorldad. Any kiO4U64 16Su6d hordfmdar 16
QOt t2mlsrsrabls unles6 auoh transrer~ls author-
lmd by the Comptrollsr. Any p4rson who 66116
ffiotor fuel own nhloh a refund of th6 tax 6~6~ b4
authoriwd, or $6 olaM, ander th4 prOYi6ioU6
of thlr Aot, without harln~ obtalnsd a 31061)60,
a6 provided for und4rthi6 Aot, 6hd3l br guilty
0r a nl6dowanor and upon oonvlotlon 6h811 b4
liable in any susi not to sxo6ed One Thousand
(gl,OOO.OO) Dollarr, or by a jail 86ntenoe not
to exoaod six (6) 6onth6 In Jail, or by both
such fine +nd jail s43tanC4."
xisutt oil br Roflnlng Canr&mnf,having fall& to
oolnly, in any roap6ot, with tha romgoing statutory ror-
&alPtiss, d%ri@ed to loor0 4ffeotIvel~ mlforo6 ma control
th@ aduinfstratlon of the rotund provl6Ion6 or th4 Xotor
Fu41 Tu Law and pnvrnt lbuw8 theroof, w err oowtrain-
rd, a8 a 5attor of law, to aphold In its rtii lnte6rlty
that exproesed prohibitton of tho sup0 6tatute that YIO
refund of the tax shall bo grantsd on any aotor fu4l to
anr FU~OB, olalreant, rfria, corporation, or otherwlae,
ualoss such motor rual has been purohwed from or us06
by a licensed di6tributOr a6 provided for in this dot;
and the Gxaptroller is hereby prohlbite~d fropr i6auing
Homrablo George H. Shtvpard, Page 7
w4rrae in paysent of any nruiid or the tax on any motor
fuel not purahased fro5 a Lloeaesd dealer.*
i’io are not unmirrdful of the hardshlpa and the
lhequlty to be visited In this ln8tanoe upn these refund
olaFrants beoaure 31 the fallme of the distributor with
whom they dealt to ooaiply with the plain @iandate of the
Legislature hereinabove set out, but the tegislature of
Texas b44 spokea in unmistakable term In prohibiting
reftmdr la these aaass, and thla Ceprtzent is not at
liberty to depart. from, alter or lcodlfy the pl4in lotter
or the statute to ffi44t the stress 8na ooatlngenoles of
Individual ofme 0r hardship uuoh as the Instant oaab.
moth pzemr.qtirely, an5 actually, xexutt Oil & Reilting
Ccmpanywas: apprlze5 OS the req~lsetontr and con5itlons
OS the ~tatutiwgorernlng the banlne8s in whleh they mre
engaged, an5 the law take6 a0 eq~l%anee and mk88 no lr-
a6ptfone of the reasons and exouuea rar not oo~plylng
thsrewlth. The terms of the statutk are naadatory rather
than pe~mlsslte, and the Comptroller of Fubllo hooaunt8
has no disoretlan in the matter ot allowIng and pasd.n((
td warrant, rsfun5 olalms for taotof robi t6xea on motor
fuel sol5 by unlloeased diotrlbutore, but Is required by
law to disa.llow such 014ims.