OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AU8TlN
Maroh 13, 1939
Bonorebla Coo.
Cmptrollor Of
Ateln, Taxa
Noroe h&mm*poam
oa the aowa t
BftcrrWOAt3.
another draws next weok* Ii no one hold8
tho nubor OOTIWLIondlng to any other atub drawn,
than tha drawing with until a holdoz
- .
HCQ. Ccoe R. i?Qioppard, Pa
Xoroh 13, lB939, 8
Tou aak our oplnlon whathot radar tho above faatr
the to$ tax pralaod ln Artlolr, VOWi, Rovlwd Olvll Stat-
u?as, la duo on suoh traaraation8.
Artiolo7047f (a) and part of (b) roads aa follows:
9ivory
poreon, fira,:me oorpratlon 0maw-
ing a
thoatro,p la c 0 o f a mtumia oo nt,
r ly buminoar
uatoxquimoin oonnootioawith tho qm.ration of
whloh a prizkln .Wo form or money or acnaethlng
of talru ia offorod or glvon to one or ~OITOpatrms
ai mob thutro, pluoo & amusamant or bualnoss
cmtorprlra,and not ~iron to all p&as thueoi
paylnnp.tho uprs ohargs for ray o o r ta lla
orvioo,
oomwdlty, or lntertalnmant mhallaako l nrl-
fiod monthly report oa tho &rontpflfth day Of
oaoh month to tho Oargtrollarof Pub110Aooouatr
of tb 8tato of TUXA~, 8hodng the amount of money
80 glron in prizor, and tho mlm bf all prizes
or awards 110 gtvmn ia oonaootionwlth 8uoh bual-
#II dud- tho nort praoodS~&r~onth~"
'LPbrola herabg~laviad a tax aqual to twanty
p 0rlomt (80$) of thb wklue Of all moh llbllsy,prlro0,
and award8 ~.VWI in eoxuwotlonwith tho operationoi
oaoh and ad of the fcregolng bu8lnrssltorprlror,
aad at tho tlso of mdclq thb report to tbo amup-
troller of PublAo Aooount6the omar or operator of
any 8uoh bmlaesa shall pay to the State Trm~umr
Buob tar upon tho total 8nount of money, prism,
lwu-dr rq given during
and the next prooodlng mth
*.l”
Xt will be noted that for the tax to k 6110 the
rlzo amst ba &an in aonneotlonwith the oporstloaof a
+hraa 0, &ma of amasment Or bu82nem entorprlao.Meni-
foatly,tha aat of glrln6away the Friar ocimot omtltuto
its own pleoo cf munemcnt or businasslntarprlso. Hsrmo,
lt 18 oloar enoughthat tho Chembarof Ommeror, baiag
noltbr the owner nor operator or a pleO0 of businorrr, is
not Pablo Sor tho tax. The #fawchantBoffer a difiorant
not
anmor
. glvolimay in Oon-
antorprho~ The
mm&ants pooled gift fund, and ia
ano *low of the given away ln oan-
aootlonwith the opcsrmtion of thalr bwlno88wr Howotar
wo 4 0
.not b a lia luoh
te to & true in the 8oa6o oontWp&~ob
by the mtetite.
KS beliom that ~rtiole7047rwas iatandod to lrrf
a hoary tax upon the g%rlngof l.prlzoam tha orcwnlng
- .
lion.Coo. R. 8happmd, Yaroh 13, 1939, Page 8
eohiovameat ol UI rdrortirin~ lohome intended to multiply
the swtollar8 of the partloular place oonductl~ th6 awn-
pa&F* That it war not intsadoato a ply to Orory lnstanos
of the award of a ,lftor prize la quPte oloarlyrhum br
fro provleloner(1f enly whoa eivon ewe7 &n eonnaotlonwith
the oparatlon of a theatn, plaoo of amuwnt or bueinoee
entrrprleola tho.tar~dm, and (8) only an tieretorlr
lltsbla for the t-a%
When a marohant ekply dallkorr tho maoy to a
thlra party to bo wea not to bring tho people Into tlu
aoaor*e partloularplao0 of bueidese,but to elmplygot them
t0 oome to tOwn WhOi thoy are a6 llkalyt0 g0 intO 0n1Yplaoe
of bualnses aa another, this ICI not gIring the prlzo my.in
wameotlon with the oporotlonof hie ltoro eny more than in
loanootlonwith the opsretlonof ate plaoo of bu6hloee la
town, whothor oontrlbutlngto tha Stan'E OT not.
Pmzn tta Opirlonof sub 0 EcalthIn 8taW f. 9an
?atrlaloCannlagaOo, 17 so WR.(8e;160, wo quote le follms~
CThs rule lrrt!xatthe ecurts mayaotertmd
ep give epooial eignlflotmaeor a0 wmeo4oear
paoullar or etralnsdoonmtruotlon of ruab pla L”
term8 aa thoao -ployed ln c;rder to eubjoot a par-
tloulisr oamnodlt to a tax lmpO8ea by the gmcm-
rent. Tho rule f a, rather, that in the lntorpra-
t&Ion of etatutca i.2~oeing taxes their prwl8lane
will not k+ extended iIy implioatlon beyond tha
plain import of tho language used, nor will their
Operstion bo anlar d to ap’;ly to sub&iota not
~ealfieally ino& r ad therein, and ‘in oa8a of
bcubt tby are oonstrued moet etrongly agalnnrt
the gotekrm3entana in favor of the oltleon.*85
R, C. L. pp. l&L2 1093 35 Cyo 1laQ~ 86 Ano a
me6 -8 O* LOW (ix Ea.1 660;
~otid, 845 &Pi Y*
Il. 3. 15P 3s s. ct. 53 68 L. Ed. 8lli una0noob
‘Im S~hOOl’Diat. (Tar. U~V. As.) 149 8.79.'773."
In this aonnaotIon
SO We Otto tho Oa6Q Gf y$lbW
Cab Uo. t. Penglllp, ll 9. W. S) St50 l~~vol+lng tho oon-
etruotlon of a tai etstuto, an& wherein ;luCgo Conner rcrfer~
to mthe Samlllar rub that tax lewa lra to bo lo nstr ueb
etriatly,*
Our opinlo~la that tkrrr 18 no liability on tho
part OS the merohente~
. .
,
* .
Bon. Coo. H. Shappud, Maroh 19, X$959,
Paso 4
Whrtharor not the iaotr rrt forth rbow dir-
rlost 8 1otter ir lmmtarliilto all8 inquiryuid need not
ho hero art+3
bLa.
Tours wry truly
ATl’ORl;Ey =‘RAL OF TEXAS