No. V-0036 (1947).

Case DateFebruary 21, 1947
CourtTexas
Texas Attorney General Opinions 1947. No. V-0036 (1947). 1February 21, 1947Honorable George H. SheppardComptroller of Public AccountsAustin, TexasOpinion No. V-36Re: Liability for the one (1) per cent Motor Vehicle Retail Sales Tax levied by Art. 7047k, V.A.C.S., where motor vehicles owned by a partnership are transferred to the corporation.Dear Sir:You have requested the opinion of this Department on the above-captioned question based upon the following factual situations: (1) W. B. Kline and his wife as partners have formed a corporation known as Pridgen-Kline Company, Inc. with a capital stock of $100,000, of which W. B. Kline owns 499 shares, his wife Louella P. Kline, owns 499 shares, and W. H. Carruthe and L. O. Jenkins each own one share, the latter two stockholders not being members of the former partnership. Motor vehicles formerly owned by the partnership of a book cost of $25,990.40 and of a depreciated value of $7,699.22 have been transferred by the partnership members to the corporation for a consideration paid or exchanged by the corporation of $7,669.22. (2) In the second situation E. C. Morrison and F. D. Breedlove, a partnership, have formed a corporation known as Morrison Bros. Construction Company with a capital stock of $50,000.00 of which E. G. Morrison owns 74 shares, F. D. Breedlove owns 24 shares, and Mr. Morrison's wife and Mr. Kline's wife each own one share, the respective wives not being members of the former partnership. The partnership owned varjous motor vehicles of the book value of $53,607.04 with an original cost value of $80,075.92. The corporation purchased from the partnership all fixed assets, except real estate for a cash down2payment and a chattel mortgage note for the balance of the book value of the fixed assets. No stock was issued for the value of any vehicles. The pertinent parts of Article 7047k, V.A.C.S., being Acts 1941, 47th Legislature, Page 269, Chapter 184, Article VI, are as follows:
"Section 1. (a) There is hereby levied a tax upon every retail sale of every motor vehicle sold in this State, such tax to be equal to one (1) per cent of the total consideration paid or to be paid to the seller by the buyer, which consideration shall include the amount paid or to be paid for said motor vehicle and all accessories attached thereto at the time of the sale, whether such
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