Untitled Texas Attorney General Opinion ( 1949 )

EXAS
AU~TXN SI.-IL%XAS
PRICE DANIEL
ATTORNEYGENERAL
April 8; 1949
Senator A. M. Aikin, Jr., Chairman
&mete ~&ate Affairs Committee
Irifty-firstLegislature
Austin, Texas
Opinion No. V-806
Be: The constitutionality
of 9. B. 147 providing
that coo eratives and
fraternaE associations
or corporationsshall
pay the same liden
fees and taxes as oth-
er associationsor cor-
porations engaged in
the some or similar
business.
You have.requeated tha opinion of the At-
tornsyQeneral wdWlve tomthe constitutionalityof
Seaate Bill I& 147 with ~particularreference as to
whether or not it vjo.late,s
Se&ion 33 of Article III
of the Texas Constitution,which provides:
"All bills for raising revenue shall
.originatein ~theHouse of Representatives
but.the Senate may amend or reject them as
other bills.”
Seuate Bill No, 147 reads in part as fol-
lows:
“Section 10 Every co-operativeor
fraternal associationor ,corporationauth-
orised to do any business of any kind or
,mture whatsoever chartered by or having
a~pendt. OF ~mrtih.icateof authority to do
business, or.doing business, in the State
Senator A. M, Aikin,~Jr.~,Page 2 (V-806)
of Texas.,shall~,bes,ubjectto the payment
of~the same license~~fees'andtaxes as any
other associationor..corporation,either
dome.sticorforeign, engaged in doing the
same or simi1a.rbusines~sin and under the
laws of,,thisState. The license fees and
taxes herein referred to shall include all
fees and taxes,of any ~kindor description
whatsosver,which are now or may hereafter
be, impose.d,.
lev,ied.or provided for by
and under the.Co.ns&ution and laws of
this State in behalf of the State or any
political.subdivision thereof.
" * . .
"Section 4. The fact that there are
many co-operativeand fraternal associations
or..corpo.rations..now
engaged.in various kinds
of business in..Texas.andwhich pay no State
orlocal taxes, and which are in direct
competitionswith private.individualsand
corporations,engaged in the same or simi-
lar ~bu.siness
in this-State,and paying tax-
es fors.uch.privilege,and as a result such
tax-exempt.associationsor corporationsare
not.bearingtheirsshare,of the cost of gov-
ernment, creates an emergency and an impera-
tive~public.necessitythat the constitution-
al.rule requiring bills ta be read on three
several~daysin ea~chHouse be suspended,
and said.rule~ishereby suspended,and
that ~thisAct ~shall.,take:effect
and be in
force,from and aft.eritspassage, and it
is so enaoted."
law will unquea-
This bill if .enacted~,into
~tionably raise-revenue. However, since the early
case ofDay.Land &Cattle Company v. State, 68 Tex.
526~.41 S W 865 it has been settled that the pro-
visIona o).~ecti& 33, Article III of our Constitu-
tion,,should be..confinedto bills.to levy taxes in
not to bills for
the strict sense of,,thewords,~and.
~..,.other
purposes which may incidentallycreate reve-
nue.
Senator A. M, Aikin, Jr,, Page 3 (V-806)
The purpose of.Senate Bill No. 147 is set
forth in Section b,.thereof,wherein it states, "there
are many co-operative and,fraternalassociations or
corporationsnow ,engagad ..in
various kinds of business
in Texas and.which pay~na State or local taxes and
which are findirect competitionwith private indivi-
duals landcorporationsengaged,in the same or similar
business in this State. and Davine taxes for such Dri-
and as a result
i;ernalassociationsorMcorporations'tobe subject to
the payment of the same license fees and taxes as any
motherassociationor corporatl,on doing the same or
similar business,andthus..beartheir share of the
cast of gavernment, ~The.bill~.leviestaxes in the
strictsense of the words and shavingoriginated in
the.SenaW is inviolat~ionof Se.ction33, Article III,
Constitutionof Texas,
.....I&Opinion,No,..
V-860,~dated March 31, 1949,
the Attorney General held that Senate Bill No. 376,
relative to retaliatoryreserve and tax requirements
on foreign insurancescompanies,, was not a bill for
raising revenue within the meaning of Article III,
Section3,3of~.theTexas Constitution,and can there-
fore originate in...the..,Senate,
The primary purpose of
Senate Bill Ko.:.376~~isto~.retaliateagainst the laws
of other .States...if~
any.,which...put
a greater regula-
tory,andtax 'burden, oninsuranoe.companies domiciled
inthis.State and.doingbusinesain such other States,
than waehare heretofore put on insurance companies
domiciled in such other St.at.es,and doing business
in this .State. In~..carryingout its primary purpose
of retaliation., the bill may incidentallycreate rev-
enueQ It 1.stherefore clearly distinguishablefrom
..SenateBill No..ll+'?,~which~..has
for its primary pur-
.pose..thelevy.of,taxes,in order that CO-O erat,iveor
fraternalasso.ciatione or co,rporations~
wiE1 bear their
shareeof the.cost of government.
Senator A..M. Aikin, Jr., Page 4 (V-806)
SUMMARY
Senate Bill No. 147 providingthat
cooperativesand fraternal associat1on.s
.,orcorporationsshall pay the same li-
tense ~fees.and~taxasas other associa-
tionssor corporationsengaged in the same
or similar.businessis unconstitutional
as it is a Billsfor.raising revenue orig-
inatinginthe Se,nate. Section 33, Arti-
cle III,,.
.Constit,ution
of Texas.
Yours very truly,
ATTORNEY GENERAL OF TEXAS
APPROVED
?/b--J-
Gi+ RST ASSISTANT
ATTORNEY GENERAL
DMG/lg