[00:00.000 --> 00:11.980] Members of Congress have been briefed to expect a clash with Israel's new Netanyahu-led government [00:11.980 --> 00:17.820] over the Palestinian peace process. Israeli Foreign Minister Avigdor Lieberman has declared [00:17.820 --> 00:24.160] the peace process had reached a dead end. Somali pirates hijacked a US-flagged Danish-owned [00:24.160 --> 00:29.960] container ship Wednesday with 20 American crew on board. It was the fifth hijacking [00:29.960 --> 00:37.680] since Sunday. Among the ship's cargo were 400 containers of food, including 232 containers [00:37.680 --> 00:44.760] belonging to the UN World Food Program, destined for Somalia and Uganda. Former Cuban President [00:44.760 --> 00:50.080] Fidel Castro had talks with US politicians in Havana, the first such meeting since he [00:50.080 --> 00:56.380] stepped down in 2006. Three members of the Congressional Black Caucus were on a visit [00:56.380 --> 01:07.440] to examine ways to normalize relations between the two countries. The UK Guardian reports [01:07.440 --> 01:13.040] Israeli companies are feeling the impact of boycott moves in Europe following Israel's [01:13.040 --> 01:19.880] recent attack on Gaza. Last week, the Israel Manufacturers Association reported 21 percent [01:19.880 --> 01:27.640] of 90 local exporters had felt a drop in demand due to boycotts, mostly from the UK and Scandinavian [01:27.640 --> 01:33.560] countries. Writing in the daily finance paper The Marker, economics journalist Nehemiah [01:33.560 --> 01:40.280] Stresla berated then Trade and Industry Minister Eli Yishai for telling the Israeli army to [01:40.280 --> 01:47.440] quote destroy 100 homes in Gaza for every rocket fired into Israel. Stresla said the [01:47.440 --> 01:53.320] minister did not understand how much the operation in Gaza was hurting the economy, adding the [01:53.320 --> 01:59.080] horrific images on TV and the statements of politicians in Europe and Turkey are changing [01:59.080 --> 02:05.360] the behavior of consumers, businessmen and potential investors. Pakistan Foreign Minister [02:05.360 --> 02:12.160] Shah Maymoud Qureshi says US drone attacks on Pakistan are working to the advantage of [02:12.160 --> 02:18.480] Al Qaeda and Taliban extremists. Qureshi spoke after talks with US Special Envoy Richard [02:18.480 --> 02:25.360] Holbrook and Joint Chiefs Chairman Admiral Mike Mullen saying we have agreed to disagree. [02:25.360 --> 02:30.320] Barack Obama has stated he intends to step up missile strikes on Taliban insurgents in [02:30.320 --> 02:36.800] Pakistan's tribal areas. Islamabad has repeatedly condemned such strikes, saying they threaten [02:36.800 --> 02:42.560] the country's sovereignty and fuel public anger. Over 500 people, including a large [02:42.560 --> 02:48.760] number of civilians, have been killed in drone attacks, which started under the Bush administration. [02:48.760 --> 02:54.080] Islamabad says it has paid dearly for its alliance with the US in its war on terror. [02:54.080 --> 02:59.680] ANN World Report will be on spring break until April 20th. Thank you for listening to ANN [02:59.680 --> 03:00.680] World Report. [03:00.680 --> 03:07.680] You are listening to the Rule of Law Radio Network at ruleoflawradio.com, live free speech [03:07.680 --> 03:30.680] talk radio at its best. [03:37.680 --> 04:06.680] This is the Rule of Law, Randy Kelton and Deborah Stevens, April 9th, 2009. [04:07.680 --> 04:14.680] Wow, Randy, we've been on the air almost two years now, so this is kind of exciting [04:16.000 --> 04:23.000] coming into this month of April. And tonight we have a special guest, Eddie from Nacogdoches [04:24.160 --> 04:30.760] again, Eddie Craig, and he gave a great overview of the transportation code the other night, [04:30.760 --> 04:37.640] and tonight he's going to be discussing the sales tax code, Chapter 151 and 111. [04:37.640 --> 04:40.240] Randy, thank you for joining the show again this evening. [04:40.240 --> 04:42.320] Yes, ma'am. Thank you all for having me. [04:42.320 --> 04:43.320] Excellent. [04:43.320 --> 04:45.760] It's a real pleasure when I get to be on the talk with you folks. [04:45.760 --> 04:51.160] Oh, it's awesome for us too. You've done a lot of homework. You've been really working [04:51.160 --> 04:52.160] hard here. [04:52.160 --> 04:56.240] Actually, yes, I have. After Randy and I talked about the possibility of doing this on the [04:56.240 --> 05:00.560] show tonight, which was, what, Randy, about two or three o'clock yesterday afternoon or [05:00.560 --> 05:06.160] so, and I was up till five o'clock this morning going through my details again, then I got [05:06.160 --> 05:10.720] up at 8.30 this morning and started all over going through it a second time to make sure [05:10.720 --> 05:12.720] that tonight went the way it was supposed to. [05:12.720 --> 05:13.720] Yeah, now you're keeping... [05:13.720 --> 05:15.720] Now about halfway through the show, you're going to fall asleep. [05:15.720 --> 05:16.720] Now, now, now, Eddie... [05:16.720 --> 05:21.520] No, I've got one of these five gallon monsters sitting in front of me. I'm not going anywhere. [05:21.520 --> 05:28.520] Eddie's keeping my hours now. All right, excellent. Well, go ahead, Eddie. What do you got for [05:28.840 --> 05:29.840] us tonight? [05:29.840 --> 05:33.840] All right. Well, because of the situation I've got with the Texas Comptroller, I have [05:33.840 --> 05:39.360] been motivated, highly motivated, to thoroughly investigate their actions and the law that [05:39.360 --> 05:43.640] they say gives them the authority to do what they're doing to small businesses such as [05:43.640 --> 05:50.640] mine. After extensive study over this, they are lying through their teeth. [05:51.680 --> 05:56.560] But the nice thing about all this preparation I did last night and today was that I found [05:56.560 --> 06:01.160] several breadcrumbs that I have been missing and I picked them up. The last one I picked [06:01.160 --> 06:05.680] up today, Randy, you would have liked because when I picked it up, it had a log chain attached [06:05.680 --> 06:10.840] to it. I followed that log chain all the way to the end and it made me grin so big I felt [06:10.840 --> 06:17.000] like I had a flip top head. We're going to hopefully get to that part of it tonight where [06:17.000 --> 06:22.640] we can actually show who we're going to bury these people for massive, massive fraud against [06:22.640 --> 06:25.680] the people of Texas with this sales tax. [06:25.680 --> 06:30.760] So what I'd really like to get into is just starting discussing exactly what they're doing [06:30.760 --> 06:37.080] and how they're doing it. So what I've noticed is that we're getting double-dealed on the [06:37.080 --> 06:42.120] sales tax here. One of the problems I'm having here with them is that I paid sales tax on [06:42.120 --> 06:46.240] all the things that I bought for my business and for my customers and then they want me [06:46.240 --> 06:51.360] to turn around and charge sales tax on it a second time and pay them a second time which [06:51.360 --> 06:57.800] of course I refused to do and that's where I'm at now. But the key to all of this is [06:57.800 --> 07:03.840] in two specific chapters. 151 is the, or I'm sorry, 111 is the section that they use to [07:03.840 --> 07:10.040] say give them all of their enforcement power and chapter 151 is where the sales tax is [07:10.040 --> 07:19.040] actually imposed upon items, people and where it's to be paid and by who and we'll get to [07:19.040 --> 07:25.800] all of that shortly. But the sections that they like to use to get into people's pockets [07:25.800 --> 07:39.360] is a chapter 111, section 111.017, 111.019 and 111.021. Now these particular sections [07:39.360 --> 07:46.920] deal with three separate things. 017 deals with the seizure of property, 019 deals with [07:46.920 --> 07:52.560] the selling and public auction of that property and 021 deals with the seizing of people's [07:52.560 --> 07:59.200] financial accounts at their banks. Okay, specifically what code? The tax code. This is all the tax [07:59.200 --> 08:07.560] code. Okay. All right. Okay, keep going. Now just like we talked about on the transportation [08:07.560 --> 08:12.840] code, the sales tax code is subject to the parameters of general construction that the [08:12.840 --> 08:18.880] Code Construction Act has outlined in chapter 311 of the government code. Now we can see [08:18.880 --> 08:25.120] this if we look in the tax code at section 1.03, it specifically tells us, as I said [08:25.120 --> 08:30.240] the other night, it will either say construction of title or construction of code. This one [08:30.240 --> 08:36.240] says construction of title. The Code Construction Act, chapter 311 government code applies to [08:36.240 --> 08:41.320] the construction of each provision of this title except as otherwise expressly provided [08:41.320 --> 08:48.000] by this title. Now that's standard language for all of the codes in Texas that have this [08:48.000 --> 08:54.680] header in them. Now the pertinent sections of chapter 311 government code is what we're [08:54.680 --> 08:57.840] going to talk about here for a minute. This is what gives us some of those definitions [08:57.840 --> 09:03.440] like we touched on in the transportation code, including the definition of person, which [09:03.440 --> 09:13.240] in section 311.005, subsection 2, person includes corporation, organization, governmental or [09:13.240 --> 09:21.200] government or governmental subdivision or agency, business trust, estate, trust, partnership, [09:21.200 --> 09:27.960] association and any other legal entity. It does not matter what code in Texas you are [09:27.960 --> 09:34.080] reading, remember what a person is and what it includes because that is going to be one [09:34.080 --> 09:40.960] of the keys to understanding what they're trying to say. Now when we go through this, [09:40.960 --> 09:46.160] we're going to look at some of the things they do and how they misuse a particular term [09:46.160 --> 09:50.760] constantly and that's includes. I know a lot of people have studied the law on what includes [09:50.760 --> 09:57.920] actually means, how the statutes try to say that it's a term of expansion, not limitation, [09:57.920 --> 10:07.720] but I mean literally since the 1500s when Lord Coke did common law counsel in England [10:07.720 --> 10:14.320] and wrote the rules that most of these people used for 150 years, that has not been the [10:14.320 --> 10:20.360] case and it is still not the case today according to the courts. So the term includes, despite [10:20.360 --> 10:26.360] what the statute is going to be telling us here in a minute, is not a term of expansion. [10:26.360 --> 10:32.760] It is a term of strict limitation. Now what that means is, and Dr. Graves actually addresses [10:32.760 --> 10:39.720] this in a document that he has dealing with how to read the law, and what you need to [10:39.720 --> 10:46.800] consider is that when you're trying to make the term includes, including, or include expansive, [10:46.800 --> 10:51.920] there's only two ways that it can be worded to make that happen. And it can be person [10:51.920 --> 10:58.600] includes doctors, lawyers, construction workers, and other people, or it can say something [10:58.600 --> 11:05.800] like person includes but is not limited to doctors, lawyers, and construction workers. [11:05.800 --> 11:09.080] So that's something to keep in mind about includes, and I'm going to give you a couple [11:09.080 --> 11:17.640] of things that deal with that specifically here. Let's see, in chapter 311.005 of the [11:17.640 --> 11:24.520] government code, item 13, includes and including are terms of enlargement and not of limitation [11:24.520 --> 11:30.200] or exclusive enumeration, and use of the terms does not create a presumption that components [11:30.200 --> 11:36.600] not expressed are excluded. Now what's wrong with this picture? Randy, have you ever gone [11:36.600 --> 11:41.240] to the store and bought like a prepackaged flashlight that had a bunch of parts and everything [11:41.240 --> 11:46.640] in it? Yes. And have you ever flipped it over and read what it says about the contents of [11:46.640 --> 11:53.240] the package? Not that I recall. Well, on almost anything like that, it'll say something to [11:53.240 --> 12:00.280] the effect that the contents include a flashlight, lanyard, bell holder, and two D cell batteries. [12:00.280 --> 12:04.720] So just think about how stupid you'd sound to the manufacturer of this flashlight if [12:04.720 --> 12:10.600] you went around and told them, you know, hey, includes is an expansive term, so I want a [12:10.600 --> 12:17.160] camp stove too. Or I want an unlimited lifetime supply of batteries to go with this flashlight [12:17.160 --> 12:22.800] because includes is more than what's listed in the package. It would be ridiculous to [12:22.800 --> 12:27.240] tell them that, wouldn't it? Yes, it would. So that's exactly what this is setting here [12:27.240 --> 12:34.960] trying to tell us in the statute. That includes means something it can't possibly do. And [12:34.960 --> 12:40.640] out of Dr. Gray's reference there, it's got another rule of statutory interpretation is [12:40.640 --> 12:47.880] inclusio unius exclusio alterius, which is Latin for include one, exclude others. If a [12:47.880 --> 12:53.440] statute specifically refers to lemons and does not mention limes or grapefruit or other [12:53.440 --> 12:59.360] fruit, courts should obey this rule and not expand the legislative intent to include limes [12:59.360 --> 13:04.120] and grapefruit. It is not the domain of our courts to expand what the legislature says [13:04.120 --> 13:12.040] beyond what the legislator or legislature specifically says. And we can go even further [13:12.040 --> 13:19.960] with that down here. Lord Coke himself, the inclusion of one is the exclusion of another. [13:19.960 --> 13:27.320] The certain designation of one person is an absolute exclusion of all others. Black's [13:27.320 --> 13:34.000] law, expressio unius exclusio alterius, a maximum statutory interpretation, meaning [13:34.000 --> 13:40.880] that the expression of one thing is the exclusion of another. Mention of one thing implies exclusion [13:40.880 --> 13:47.880] of another. When certain persons or things are specified in a law, contract, or will, [13:47.880 --> 13:54.360] an intention to exclude all others from its operation may be inferred. Under this maximum, [13:54.360 --> 14:00.480] if statute specifies one exception to a general rule or assumes to specify the effects of [14:00.480 --> 14:07.040] a certain provision, other exceptions or effects are excluded. That's out of Black's law, sixth [14:07.040 --> 14:14.240] edition, page 581. Now, Black's law has another couple of terms that go right along hand in [14:14.240 --> 14:21.720] hand with that that proves this point concrete. Inclusio unius ex exclusio alterius. The exclusion [14:21.720 --> 14:27.880] or the inclusion of one is the exclusion of another. The certain designation of one person [14:27.880 --> 14:33.040] is an absolute exclusion of all others. This doctrine decrees that where law expressly [14:33.040 --> 14:38.880] describes a particular situation to which it shall apply, an irrefutable inference must [14:38.880 --> 14:47.440] be drawn that what is omitted or excluded was intended to be omitted or excluded. Now, [14:47.440 --> 14:55.120] here's one that they hate for you to figure out. Ejusdom generis of the same kind, class, [14:55.120 --> 15:01.400] or nature. In the construction of laws, wills, or other instruments, the ejusdom generis [15:01.400 --> 15:07.600] rule is that where general words follow an enumeration of persons or things by words [15:07.600 --> 15:13.280] of a particular and specific meaning, such general words are not to be construed in their [15:13.280 --> 15:20.200] widest extent, but are to be held as applying only to persons or things of the same general [15:20.200 --> 15:26.460] kind or class as those specifically mentioned. Now, that's going to become very important [15:26.460 --> 15:33.420] when we start seeing the term individual in the definition of person, because immediately [15:33.420 --> 15:40.540] following the term individual in every single case, you are going to see nothing but statutory [15:40.540 --> 15:48.040] legal fiction. What this doctrine right here is telling you is that if these following [15:48.040 --> 15:55.700] things are all statutory legal fiction, then the individual by reference is a statutory [15:55.700 --> 16:03.480] legal fiction. So, keep that part very much in mind. Now, under this canon of statutory [16:03.480 --> 16:08.680] construction where general words follow the enumeration of particular classes of things, [16:08.680 --> 16:14.440] the general words will be construed as applying only to things of the same general class as [16:14.440 --> 16:23.060] those that are enumerated. Now, last one. Nausicaa associae. It is known from its associate. [16:23.060 --> 16:29.400] The meaning of a word is or may be known from the accompanying words. Under this doctrine, [16:29.400 --> 16:34.820] the meaning of questionable or doubtful words or phrases in a statute may be ascertained [16:34.820 --> 16:40.300] by reference to the meaning of other words or phrases associated with it. That's Black's [16:40.300 --> 16:47.660] Law, sixth edition, page 1060. Okay, listen, Eddie, hold on to that thought. We're going [16:47.660 --> 16:51.620] to pick this up on the other side. This is a rule of law. And callers, if you could hold [16:51.620 --> 16:55.820] off on your calls for a while because we want Eddie to be able to present his material. [16:55.820 --> 17:03.860] We'll be right back. Are you looking for an investment that has no stock market risk? [17:03.860 --> 17:10.740] Has a 100% track record of returning profits? Is not affected by fluctuations in oil prices [17:10.740 --> 17:16.620] and interest rates? Is publicly traded and SEC regulated? If this kind of peace of mind [17:16.620 --> 17:21.580] is what you have been looking for in an investment, then life settlements is the investment for [17:21.580 --> 17:29.300] you. Our annual rate of return has been 15.83% for the last 17 years. Our investments are [17:29.300 --> 17:34.820] insurance and banking commission regulated. Our returns are assured by the largest insurance [17:34.820 --> 17:42.180] companies. Even qualified retirement plans such as 401Ks and IRAs are eligible for transfer. [17:42.180 --> 17:47.900] We charge absolutely no commissions. 100% of your investment goes to work for you. Please [17:47.900 --> 17:59.980] visit sleepwellinvestment.com or call Bill Schober at 817-975-2431. That's sleepwellinvestment.com [17:59.980 --> 18:27.820] or call 817-975-2431. [18:27.820 --> 18:34.380] Okay we are back. This is the rule of law, Randy Kelton and Deborah Stevens. We are here [18:34.380 --> 18:41.740] with Eddie Craig, Eddie from Texas, talking about the sales tax code. And callers, if [18:41.740 --> 18:46.660] you would please hold off on your calls. We may start taking calls next hour, but we want [18:46.660 --> 18:50.460] Eddie to be able to walk through the code. So we're going to hold off on taking calls [18:50.460 --> 18:58.260] for a while. Okay Eddie, please continue. You were mentioning those citations. [18:58.260 --> 19:07.020] Yes ma'am. All right. Now we need to go into government code chapter 311.011. Item A tells [19:07.020 --> 19:11.500] us that words and phrases shall be read in context and construed according to the rules [19:11.500 --> 19:16.980] of grammar and common usage. Item B tells us words and phrases that have acquired a [19:16.980 --> 19:22.260] technical or particular meaning, whether by legislative definition or otherwise, shall [19:22.260 --> 19:27.580] be construed accordingly. Now I'm just going to give you the highlights of what I've put [19:27.580 --> 19:35.980] on here. Now there are several words that you will see in any statute. These words determine [19:35.980 --> 19:42.420] whether there is a requirement, an option, or a duty to actually do what that statute [19:42.420 --> 19:47.300] says. And this is where it goes to what Randy likes to use when they don't take you straight [19:47.300 --> 19:52.420] to a magistrate, because one of the terms that is used in the description of that particular [19:52.420 --> 19:57.940] statute under the transportation code is the word shall. And according to this section [19:57.940 --> 20:06.580] of code, which is 311.016 in the government code, shall imposes a duty, meaning it's not [20:06.580 --> 20:13.620] an optional thing. Do it or you're in trouble. May creates discretionary authority or grants [20:13.620 --> 20:20.940] permission or power. You can do it or you can opt not to do it. Must creates or recognizes [20:20.940 --> 20:26.340] a condition precedent. In other words, this must be done before anything that comes after [20:26.340 --> 20:35.340] it can be allowed. Is entitled to creates or recognizes a right. May not imposes a prohibition [20:35.340 --> 20:43.780] and is synonymous with shall not. Now shall is going to be very, very important in much [20:43.780 --> 20:52.060] of this that we're going to see. Also down in 311.021, intention and enactment of statutes. [20:52.060 --> 20:56.580] In enacting a statute, it is presumed that compliance with the constitutions of this [20:56.580 --> 21:03.060] state and the United States is intended. See, they are supposed to obey the constitution. [21:03.060 --> 21:07.540] The entire statute is intended to be effective. This is what we talked about on Monday night [21:07.540 --> 21:12.500] show where the guys like to quote just small excerpts of the statute and make it sound [21:12.500 --> 21:18.540] like they want it to rather than how the entire thing actually reads. A just and reasonable [21:18.540 --> 21:25.500] result is intended. A result feasible of execution is intended. And public interest is favored [21:25.500 --> 21:33.260] over any private interest. Now in 311.023, we have some more statute construction aid. [21:33.260 --> 21:37.660] In construing a statute, whether or not the statute is considered ambiguous on its face, [21:37.660 --> 21:42.980] a court may consider among other things, the object sought to be attained, circumstances [21:42.980 --> 21:49.780] under which the statute was enacted, legislative history, common law or formal statutory provisions [21:49.780 --> 21:56.460] including laws on the same or similar subjects, consequences of a particular construction, [21:56.460 --> 22:02.340] administrative construction of the statute, and the title, preamble, and emergency provision. [22:02.340 --> 22:06.260] This is what I messed up on the other night, Randy, when I meant that the court can take [22:06.260 --> 22:11.300] notice about what's in those particular sections of the code rather than just in the language [22:11.300 --> 22:20.580] of the statute as well. Now if we go and we look, starting in Chapter 111 of the tax code, [22:20.580 --> 22:25.500] we're going to see some interesting things here that they like to throw out at us. In [22:25.500 --> 22:33.860] Title II, Section 111.002, it's headed Comptroller's Rules, Compliance, and Forfeiture. In Item [22:33.860 --> 22:39.500] A, the Comptroller may adopt rules that do not conflict with the laws of this state or [22:39.500 --> 22:44.940] the Constitution of this state or the United States or the enforcement of the provisions [22:44.940 --> 22:51.260] of this title and the collection of taxes and other revenue under this title. Now why [22:51.260 --> 22:56.260] that right there is important is that if any of you have ever had a small or even medium-sized [22:56.260 --> 23:01.780] business, especially if you're a sole proprietorship, and you have had to deal with Comptroller's [23:01.780 --> 23:07.380] enforcement people, they tell you all kinds of horror stories about what they're going [23:07.380 --> 23:12.260] to do to you and how they're going to do it. Usually the first word out of their mouth [23:12.260 --> 23:16.100] is if you don't like it, we're going to come shut you down and take your business and we'll [23:16.100 --> 23:22.020] sell it at public auction. Unfortunately for them, they can't do that when they're following [23:22.020 --> 23:29.980] a set set of procedures, but they do it. What I'm doing tonight is trying to arm you so [23:29.980 --> 23:36.420] that you stand a better chance of beating them over the head with their own stick. If [23:36.420 --> 23:43.100] we go to item B, a person who does not comply with a rule made under this section forfeits [23:43.100 --> 23:50.620] to the state an amount of not less than $25 or more than $500. Each day of which a failure [23:50.620 --> 23:57.580] to comply occurs or continues is a separate violation. And if a forfeiture is not paid [23:57.580 --> 24:03.380] at per item C, the Attorney General shall file suit to recover the forfeiture in a court [24:03.380 --> 24:09.060] of competent jurisdiction in Travis County or in any other county where venue lies. Now [24:09.060 --> 24:14.420] in just a moment, this section is going to become very important, especially B. If you [24:14.420 --> 24:19.740] read this carefully, the term person here can only be used to describe what's mentioned [24:19.740 --> 24:27.580] in this entire section, and that is either comptroller personnel or the Attorney General. [24:27.580 --> 24:33.140] In B, when it says a person who does not comply with a rule made under this section, will [24:33.140 --> 24:37.820] the only rules made in this particular section apply to the comptroller personnel and the [24:37.820 --> 24:43.780] Attorney General? So they're the ones that could wind up being liable for this fine that's [24:43.780 --> 24:45.020] listed in section B. [24:45.020 --> 24:49.260] That is great. I love that. [24:49.260 --> 24:55.420] Now, but I have actually literally had the enforcement people try to tell me that section [24:55.420 --> 25:02.060] B was going to be used to fine me. And I pointed out that I'm afraid you might find that a [25:02.060 --> 25:08.580] tad bit more difficult than you think. And that section right there is exactly why, because [25:08.580 --> 25:15.180] it doesn't apply to anyone except those personnel. [25:15.180 --> 25:20.340] Now in accordance with section 111.02A, where it talks about they have to obey the laws [25:20.340 --> 25:25.140] and the constitutions and the tax code, the actions that are currently being perpetrated [25:25.140 --> 25:29.980] against me or anyone else by these people that's ever been similarly situated and said [25:29.980 --> 25:36.580] no, they are being perpetrated without authority of a warrant or a court order in most cases. [25:36.580 --> 25:43.020] Therefore, they are automatically unlawful because they are in direct conflict with the [25:43.020 --> 25:46.700] Constitution and that particular section of law. [25:46.700 --> 25:53.700] Now, we can also show that based on the definition of person in section 311.0052 of the government [25:53.700 --> 26:00.500] code, where person is defined, a person working for the state of Texas and or the comptroller [26:00.500 --> 26:05.660] of public accounts as those are the only persons mentioned or described in the language of [26:05.660 --> 26:11.420] the section that we just talked about. These are the only ones this fine and the term person [26:11.420 --> 26:18.420] in this particular set of sections can apply to. They are the only ones that are mentioned. [26:18.620 --> 26:22.100] So that's also going to play out important when we get down here a little further. [26:22.100 --> 26:26.300] And that goes to your treatment of expansion. [26:26.300 --> 26:28.420] Correct. [26:28.420 --> 26:34.540] That this statute may not be expanded to include persons not specifically listed in this particular [26:34.540 --> 26:35.180] statute. [26:35.180 --> 26:38.100] There you go. That's exactly what we're dealing with. [26:38.100 --> 26:44.460] Now, what we can also consider as another screw in the coffin lid form is that by acting [26:44.460 --> 26:49.140] in violation of that simple statement where they can't violate the Constitution or the [26:49.140 --> 26:56.140] laws of this state, these public servants have now run afoul of penal code section 3902 [26:56.540 --> 27:03.540] and 3903. Because 3902 is very specific. If a public servant violates any law of this [27:04.780 --> 27:11.780] state, they have breached their duty. Therefore, if they act in a manner that is not in compliance [27:11.780 --> 27:18.780] with the Constitution as that section 111.002A specifies, they have now violated 3902 of [27:20.820 --> 27:23.700] the penal code. [27:23.700 --> 27:28.700] And if in the process they deny you in the full and free access to enjoy infinity right, [27:28.700 --> 27:31.700] then they violate 3903. [27:31.700 --> 27:36.700] You got it. And now we get to hit them with every Tom, Dick and Harry piece of equipment, [27:36.700 --> 27:42.700] notepad, pad, pencil, you name it, that they were carrying or using to act against us. [27:42.700 --> 27:47.700] And the accumulated value of the use thereof can be used to determine just how severe a [27:47.700 --> 27:50.700] penalty they're going to have to suffer. [27:50.700 --> 27:53.700] It pleases me. [27:53.700 --> 27:56.700] The money can work for us too. [27:56.700 --> 28:03.700] That's the whole point that I try to make is this sharp edge sword of the laws that [28:03.700 --> 28:08.700] this sharp edge sword of the laws cuts from both sides. [28:08.700 --> 28:13.700] Yep. It is a double edged sword. We just need to learn how to wield it. [28:13.700 --> 28:15.700] Precisely. [28:15.700 --> 28:19.700] All right. Now at this point, this is where it's going to start get interesting because [28:19.700 --> 28:23.700] we're going to start getting into the various portions of the code that deals specifically [28:23.700 --> 28:25.700] with the tax itself. [28:25.700 --> 28:30.700] Now this may sound a little dry to you understand what I'm trying to put forth here, but the [28:30.700 --> 28:34.700] point of the matter is is what I'm about to read to you is going to prove beyond the shadow [28:34.700 --> 28:42.700] of a doubt that we are being victimized by a massive money collection fraud. [28:42.700 --> 28:46.700] And I mean when you actually look at the comprehensive annual financial reports that you [28:46.700 --> 28:52.700] could get online at the government website, Randy, we are talking literally billions of [28:52.700 --> 28:58.700] dollars that is being taken out of our economy and out of our pockets paying taxes we don't [28:58.700 --> 29:02.700] owe. [29:02.700 --> 29:09.700] Now we're going to see this. We're going to start in Chapter 151 at Section 151.601 of [29:09.700 --> 29:11.700] the tax code. [29:11.700 --> 29:15.700] And we're going to see that in order to proceed against someone for the collection of delinquent [29:15.700 --> 29:20.700] sales taxes, the comptroller has to file suit to initiate a collection action. [29:20.700 --> 29:25.700] Now notice I said the comptroller has to file suit. [29:25.700 --> 29:31.700] In Section 111, the attorney general must be the one that files suit. [29:31.700 --> 29:36.700] So right off the bat we're clued in that there are two different sets of collection procedures [29:36.700 --> 29:39.700] for these individual chapters. [29:39.700 --> 29:44.700] And we're going to find out that they are in very big violation of 151 because they [29:44.700 --> 29:48.700] are attempting to use 111 for the collection process. [29:48.700 --> 29:49.700] Apparently so. [29:49.700 --> 29:52.700] Okay, listen, Eddie, hold that thought. We're going to break. We'll be right back. [29:52.700 --> 29:57.700] This is the rule of law on ruleoflawradio.com. [30:22.700 --> 30:24.700] We'll be right back. [30:52.700 --> 31:15.700] Okay, we are back. [31:15.700 --> 31:17.700] When are they going to stop abusing their power? [31:17.700 --> 31:22.700] Right now they're abusing the code here, it would seem. Right, Eddie? [31:22.700 --> 31:23.700] Yes, ma'am, very much so. [31:23.700 --> 31:25.700] It's misapplying the code. [31:25.700 --> 31:28.700] So, Eddie, please continue with your explanation. [31:28.700 --> 31:30.700] This is really good stuff here. [31:30.700 --> 31:39.700] Okay, in Section 151.601 of the tax code, it's titled suit, the comptroller may bring [31:39.700 --> 31:43.700] an action in a court of this state, another state, or the United States to collect an [31:43.700 --> 31:48.700] amount of the taxes imposed by this chapter that is due and unpaid, including penalties [31:48.700 --> 31:49.700] and interest. [31:49.700 --> 31:54.700] The attorney or the action shall be prosecuted by the attorney general. [31:54.700 --> 31:56.700] Now, I want to draw your attention here. [31:56.700 --> 32:01.700] Do not let the term may, as it's used here, cause you any concern because all that's [32:01.700 --> 32:07.700] saying is that it gives the comptroller the discretionary option of not proceeding with [32:07.700 --> 32:10.700] collection actions for the taxes that's allegedly owed. [32:10.700 --> 32:15.700] It does not waive the necessity of filing an action and getting a favorable judgment [32:15.700 --> 32:20.700] from the court in order to proceed with any enforcement action. [32:20.700 --> 32:26.700] If it did do those things, this section of statute could be immediately declared unconstitutional [32:26.700 --> 32:30.700] because it would violate the people's fourth and fifth member protections and also [32:30.700 --> 32:35.700] Article 1, Section 9, 19, and 29 of the Texas Constitution. [32:35.700 --> 32:41.700] Wait a minute. This is where it says the comptroller may bring an action. [32:41.700 --> 32:42.700] Correct. [32:42.700 --> 32:47.700] This is an instance where the term may grants authority. [32:47.700 --> 32:48.700] Correct. [32:48.700 --> 32:50.700] Not necessarily discretion. [32:50.700 --> 32:54.700] Discretion will surely be dealt with somewhere else. [32:54.700 --> 32:58.700] His duty to act or not to act is surely going to be dealt with somewhere else. [32:58.700 --> 33:01.700] Actually, Randy, you're seeing it all right there. [33:01.700 --> 33:04.700] Cool. [33:04.700 --> 33:05.700] That's it. [33:05.700 --> 33:09.700] The comptroller may or they may not bother to bring an action in the court. [33:09.700 --> 33:12.700] It all depends on what they think the fight's worth and how much money they're going to [33:12.700 --> 33:15.700] get out of it. [33:15.700 --> 33:21.700] Is there not another place that tells the comptroller when he has a duty to act and [33:21.700 --> 33:22.700] when not to act? [33:22.700 --> 33:28.700] Because this appears simply to say that in this case the comptroller has the authority [33:28.700 --> 33:30.700] and that's what may. [33:30.700 --> 33:36.700] Under Chapter 151, you see the only place where the comptroller is authorized to [33:36.700 --> 33:38.700] bring suit. [33:38.700 --> 33:52.700] Is there no place where he's either directly or indirectly required to collect all [33:52.700 --> 33:57.700] monies owing to the state? [33:57.700 --> 33:59.700] There should be another place. [33:59.700 --> 34:05.700] Well, there is, but it's for a different type of tax, and that's in Chapter 111. [34:05.700 --> 34:09.700] See, that's why I'm saying they are mixing the collection procedures between the [34:09.700 --> 34:14.700] limited sales, excise, and use tax and the other taxes they're allowed to collect, [34:14.700 --> 34:19.700] and they can't do that, and I'll show you why in Chapter 111 itself here very [34:19.700 --> 34:21.700] shortly. [34:21.700 --> 34:26.700] Okay, so the answer to my question is there is no other place that addresses his [34:26.700 --> 34:32.700] duty to actually initiate a suit. [34:32.700 --> 34:34.700] Not for the sales tax. [34:34.700 --> 34:37.700] So it leaves him with total discretion. [34:37.700 --> 34:38.700] Correct. [34:38.700 --> 34:43.700] Now also, listeners, just for your information, when I say sales tax, I am [34:43.700 --> 34:49.700] referring to all of Chapter 151 in its entirety as far as the limited sales, [34:49.700 --> 34:51.700] excise, and use tax. [34:51.700 --> 34:55.700] So when I say sales tax, I'm actually referring to all three of them because [34:55.700 --> 35:00.700] each section of the code dealing with each one is in Chapter 151, and every one [35:00.700 --> 35:05.700] of them reads almost identical on what has to be done and where it has to be [35:05.700 --> 35:10.700] done and who has to do it and why and to what. [35:10.700 --> 35:13.700] So we're going to get to all of that if at all possible. [35:13.700 --> 35:17.700] Now, if the Comptroller does decide to proceed with a collection action, then [35:17.700 --> 35:22.700] it has to be filed, and it can be filed in one of three possible venues, and [35:22.700 --> 35:29.700] that is pursuant to Section 151.602 of the tax code, and it must be filed in [35:29.700 --> 35:35.700] the form of an action for debt pursuant to Section 151.604. [35:35.700 --> 35:41.700] Randy, that's that breadcrumb with the log chain I was telling you about. [35:41.700 --> 35:45.700] So let's go look at 151.602. [35:45.700 --> 35:49.700] Venue, a suit brought under this subchapter against a taxpayer. [35:49.700 --> 35:53.700] Now, notice they did not say person, they said a tax payer. [35:53.700 --> 35:58.700] In a court of this state, maybe filed and heard in the county where the person, [35:58.700 --> 36:01.700] now they've switched to person. [36:01.700 --> 36:07.700] Owing the tax resides or has a place of business or in Travis County. [36:07.700 --> 36:12.700] So you've got three possible venues for this suit. [36:12.700 --> 36:15.700] It's funny how they switch around these terms. [36:15.700 --> 36:16.700] That's exactly right. [36:16.700 --> 36:22.700] But this right here actually helps us because it proves that a taxpayer and a [36:22.700 --> 36:25.700] person mean the same thing. [36:25.700 --> 36:28.700] Because they are clearly juxtaposed here. [36:28.700 --> 36:29.700] Correct. [36:29.700 --> 36:32.700] And when we get to the definition of taxpayer in Chapter 111, you're going to [36:32.700 --> 36:36.700] see that this is exactly correct. [36:36.700 --> 36:43.700] Now, if we go to Section 151.604, form of action, a suit under this subchapter [36:43.700 --> 36:49.700] against any person for recovery of the tax is in the form of an action for debt. [36:49.700 --> 36:52.700] Randy, have you ever heard of an action for debt? [36:52.700 --> 36:54.700] It's a civil suit. [36:54.700 --> 36:58.700] Is it? [36:58.700 --> 37:01.700] Are you sure? [37:01.700 --> 37:02.700] Has to be. [37:02.700 --> 37:04.700] It can't be criminal. [37:04.700 --> 37:05.700] Okay. [37:05.700 --> 37:08.700] Who can file an action for debt civil suit? [37:08.700 --> 37:14.700] It has to be someone having specific standing to whom the debt is owed. [37:14.700 --> 37:18.700] And just by reading the term, who would you say that is? [37:18.700 --> 37:26.700] I would say it is the attorney general or the, okay, we're looking at 151. [37:26.700 --> 37:31.700] To go back to 151, I'd say the attorney general or the comptroller. [37:31.700 --> 37:32.700] Okay. [37:32.700 --> 37:34.700] Let's see what we got. [37:34.700 --> 37:39.700] So now we need to figure out what exactly is an action for debt. [37:39.700 --> 37:44.700] Action for debt is defined in exactly one place in all the codes of Texas, [37:44.700 --> 37:47.700] and it's in the local government code. [37:47.700 --> 37:52.700] It is in Section 62.163, action for debt. [37:52.700 --> 38:04.700] Item A, the holder of an indebtedness against a municipality to which Section 62.161 applies [38:04.700 --> 38:08.700] may bring a suit to establish the indebtedness in any court in this state [38:08.700 --> 38:15.700] with jurisdiction in the county in which the municipality is located. [38:15.700 --> 38:22.700] Now, Item B, the municipality may be served with process in the suit by serving the citation [38:22.700 --> 38:25.700] on a person who was or who acted as the mayor, the secretary, [38:25.700 --> 38:32.700] or the treasurer of the municipality at the time of the municipality's abolition. [38:32.700 --> 38:35.700] An action for debt, Randy, according to Texas law, [38:35.700 --> 38:43.700] is used strictly to collect indebtedness monies from a failed municipality. [38:43.700 --> 38:49.700] Okay, that brings a question of issue. [38:49.700 --> 39:00.700] The term collection of debt, because it is specifically defined under municipal code, [39:00.700 --> 39:08.700] does not necessarily make this particular definition exclusive [39:08.700 --> 39:10.700] as it refers to the rest of the code. [39:10.700 --> 39:11.700] It's only exclusive in this code. [39:11.700 --> 39:14.700] Now, why did I know you were going to say something like that? [39:14.700 --> 39:17.700] Let's go to the next section. [39:17.700 --> 39:23.700] Section 62.161, settlement by corporate officers. [39:23.700 --> 39:29.700] If a municipality or de facto municipality that has indebtedness outstanding is abolished, [39:29.700 --> 39:32.700] declared void by a court of competent jurisdiction, [39:32.700 --> 39:36.700] or ceases to operate and exercise municipal function, [39:36.700 --> 39:41.700] the municipality's officers at the time the municipality is dissolved or ceases to function [39:41.700 --> 39:47.700] shall take control of the property, sell the property, or settle the debt. [39:47.700 --> 39:50.700] For the purpose of settling the debts of the municipality, [39:50.700 --> 39:56.700] the former municipal officers may levy and collect a tax on the residents of the municipality [39:56.700 --> 40:04.700] in the same manner as the municipality could have done. [40:04.700 --> 40:07.700] Okay, go ahead. [40:07.700 --> 40:12.700] What is a resident? [40:12.700 --> 40:15.700] Good question. [40:15.700 --> 40:22.700] A resident by definition is a transient person. [40:22.700 --> 40:27.700] For instance, your legislator, when he has his office in multiple towns [40:27.700 --> 40:32.700] where his actual home does not exist and he has to go there and stay, [40:32.700 --> 40:40.700] he is a resident of that location, but he is domiciled where his home is. [40:40.700 --> 40:43.700] But as long as he's in that county and he owns property there, [40:43.700 --> 40:48.700] but that's not where his full-time domicile is, he's a resident. [40:48.700 --> 40:50.700] I love how they switch up the terms again. [40:50.700 --> 40:54.700] A resident is a transient. [40:54.700 --> 41:01.700] That term was actually implemented specifically for our legislators. [41:01.700 --> 41:03.700] Well, I'd like to see him transient all right. [41:03.700 --> 41:05.700] Yeah, you and me both. [41:05.700 --> 41:09.700] Now, if I'm reading this correctly, [41:09.700 --> 41:14.700] the debt says that the only legal entity that can be named as a defendant [41:14.700 --> 41:19.700] and an action for debt is a municipality. [41:19.700 --> 41:22.700] Now, isn't that what the language of that statute said, Randy? [41:22.700 --> 41:29.700] Well, we go back to the fact that that particular definition [41:29.700 --> 41:34.700] falls under organizations of municipal government. [41:34.700 --> 41:41.700] So I would tend to restrict this particular definition to this particular title. [41:41.700 --> 41:43.700] Right, but it's not. [41:43.700 --> 41:44.700] See, that's what I'm saying. [41:44.700 --> 41:46.700] This is not a definition, Randy. [41:46.700 --> 41:50.700] This is a section. [41:50.700 --> 41:54.700] It is not a definition of action for debt. [41:54.700 --> 42:00.700] It is the section that says what you do for an action of debt. [42:00.700 --> 42:02.700] But this only refers to municipalities. [42:02.700 --> 42:04.700] It doesn't refer to the state. [42:04.700 --> 42:05.700] You're right. [42:05.700 --> 42:08.700] You're right, and you're going to see why that is when we get a little further down. [42:08.700 --> 42:09.700] Okay. [42:09.700 --> 42:12.700] But trust me when I tell you that from what I've read, [42:12.700 --> 42:15.700] that's exactly how it's supposed to work. [42:15.700 --> 42:20.700] And I'll see if I can convince you that as we get further down in this. [42:20.700 --> 42:22.700] Okay. [42:22.700 --> 42:27.700] Now, as I was saying before, the comptroller's enforcement officers like to claim that [42:27.700 --> 42:34.700] sections 111.017, 111.019, and 111.021 of the tax code [42:34.700 --> 42:40.700] are the only places they're required to look for their authority to take your property. [42:40.700 --> 42:45.700] Unfortunately for them, those three sections are not self-implementing, [42:45.700 --> 42:49.700] and they are not isolated from the other statutory requirements. [42:49.700 --> 42:53.700] The enforcement code tells us that the whole law is meant to be applicable [42:53.700 --> 42:58.700] and have effect, and the whole law must be read and applied in the context it's made. [42:58.700 --> 43:01.700] Imperamateria. [43:01.700 --> 43:03.700] That's what that means. [43:03.700 --> 43:05.700] Yes. [43:05.700 --> 43:07.700] All right. [43:07.700 --> 43:10.700] Now, these sections deal with the seizure of property [43:10.700 --> 43:14.700] only after a suit has been filed by the attorney general [43:14.700 --> 43:21.700] that a favorable judicial order has been obtained pursuant to section 111.010 [43:21.700 --> 43:23.700] of the tax code. [43:23.700 --> 43:28.700] There are no other sections of law that I can find that allows these three sections [43:28.700 --> 43:35.700] to be used as the enforcement method when it comes to the collection of sales tax. [43:35.700 --> 43:42.700] And the reason I say that is because pursuant to section 111.001, [43:42.700 --> 43:47.700] chapter 151 of the tax code contains its own procedures and methods [43:47.700 --> 43:49.700] for the collection of sales tax. [43:49.700 --> 43:50.700] How about that? [43:50.700 --> 43:52.700] Okay, listen, we're going to break again, Eddie. [43:52.700 --> 43:54.700] When we get back on the other side, we'll pick that up. [43:54.700 --> 43:55.700] All right. [43:55.700 --> 43:59.700] We'll be right back. [43:59.700 --> 44:02.700] Stock markets are taking hit after hit. [44:02.700 --> 44:05.700] Corrupt bankers are choking on subprime debt. [44:05.700 --> 44:09.700] The Fed is busy printing dollars, dollars, and more dollars [44:09.700 --> 44:13.700] to bail out Wall Street, banks, and the U.S. car industry. [44:13.700 --> 44:16.700] As investors scramble for safety in the metals, [44:16.700 --> 44:19.700] in the face of a further devaluation of the dollar, [44:19.700 --> 44:22.700] the price of silver will only increase. [44:22.700 --> 44:26.700] Some of the world's leading financial analysts believe that silver [44:26.700 --> 44:29.700] is one of the world's most important commodities [44:29.700 --> 44:32.700] with unparalleled investment opportunity for the future. [44:32.700 --> 44:38.700] Now is the time to buy silver before it heads for $75 an ounce [44:38.700 --> 44:44.700] and the yellow metal roars back past $1,000 an ounce to new highs. [44:44.700 --> 44:51.700] Call Maximus Holdings now at 407-608-5430 to find out [44:51.700 --> 44:56.700] how you can turn your IRA and 401K into a solid investment, [44:56.700 --> 44:59.700] silver, without any penalties for early withdrawal. [44:59.700 --> 45:02.700] Even if you don't have a retirement account yet, [45:02.700 --> 45:05.700] we have fantastic investment opportunities for you. [45:05.700 --> 45:31.700] Call Maximus Holdings at 407-608-5430 for more information. [45:31.700 --> 45:35.700] All right, watching the sparks fly, that's the song here, [45:35.700 --> 45:38.700] some Route 1 music for you. [45:38.700 --> 45:42.700] Okay, so there's something specifically written in the code [45:42.700 --> 45:48.700] that has to do with enforcement, and it's not what they're claiming, [45:48.700 --> 45:49.700] that's not what they're using. [45:49.700 --> 45:51.700] Is that what I'm understanding, Eddie? [45:51.700 --> 45:52.700] That is it. [45:52.700 --> 45:56.700] They're applying the enforcement procedures from one section of the law [45:56.700 --> 46:02.700] to cover every section of the law when that is forbidden by the law itself. [46:02.700 --> 46:05.700] Here we go again. [46:05.700 --> 46:10.700] Now, what we were going on to was in that section 111.001, [46:10.700 --> 46:15.700] it specifically tells us that if other parts of the code have their procedures, [46:15.700 --> 46:20.700] that's what you follow, and we'll get to that section in just a second. [46:20.700 --> 46:26.700] But what that's telling us is that Chapter 111.001 simply does not apply [46:26.700 --> 46:28.700] to the collection of sales tax. [46:28.700 --> 46:33.700] And even if it did apply, there are still a set of rules that must be followed [46:33.700 --> 46:37.700] before you can jump to those three enforcement sections. [46:37.700 --> 46:39.700] And they're completely ignoring those. [46:39.700 --> 46:43.700] They're completely ignoring everyone's right to due process [46:43.700 --> 46:46.700] before they start taking their property and hocking it. [46:46.700 --> 46:49.700] So they can be attacked personally. [46:49.700 --> 46:53.700] That's exactly what they're going to be, too, because at last count, [46:53.700 --> 46:59.700] I'm up to what, 100-and-something charges total so far? [46:59.700 --> 47:04.700] And I suspect by the nature of what you're talking about [47:04.700 --> 47:11.700] and considering the nature of grand juries that I've looked at, [47:11.700 --> 47:16.700] you're going to get people who have been paying a lot of sales tax, [47:16.700 --> 47:19.700] and they're not going to be happy campers. [47:19.700 --> 47:23.700] That is what I am hoping for. [47:23.700 --> 47:26.700] What I want on the grand jury, hopefully when I go in there, [47:26.700 --> 47:31.700] is a bunch of small business owners that have been raked over the coals by these guys. [47:31.700 --> 47:36.700] And that's generally the ones the judge likes to put in there. [47:36.700 --> 47:41.700] I would like to see the result of that, too. [47:41.700 --> 47:44.700] Now, when that recovery suit that we were talking about [47:44.700 --> 47:47.700] that has to be styled as an action for debt has been handed down [47:47.700 --> 47:49.700] from a court of proper jurisdiction, [47:49.700 --> 47:58.700] that has to be pursuant to Section 151.608 alpha and 151.608 echo. [47:58.700 --> 48:03.700] And that's under Subchapter K in Chapter 151. [48:03.700 --> 48:09.700] But I can't find any provision for these particular sections of law in Chapter 111 [48:09.700 --> 48:12.700] that in any way, shape, or form apply to the collection of the sales tax [48:12.700 --> 48:17.700] against a private business, whether they are delinquent or otherwise. [48:17.700 --> 48:23.700] Subchapter K of Chapter 151 in the tax code appears to be the only statutory provisions [48:23.700 --> 48:26.700] regarding the collection of methods for the sales tax. [48:26.700 --> 48:30.700] And the property seizure for sale at public auction is not an option [48:30.700 --> 48:37.700] unless and until the procedure mandated by Section 151.608E is followed. [48:37.700 --> 48:42.700] Now, here in 151.608, we see judgment. [48:42.700 --> 48:46.700] A judgment in favor of the state obtained in an action under this chapter [48:46.700 --> 48:50.700] may be filed for the record with the county clerk or any county in the state, [48:50.700 --> 48:55.700] and when filed constitutes a lien on all the real property located in the county [48:55.700 --> 48:59.700] and belonging to the person named in the judgment as a defendant. [48:59.700 --> 49:03.700] Randy, if you'll recall, I told you I got a notice of tax lien in the mail [49:03.700 --> 49:07.700] from the comptroller. There is no court order attached. [49:07.700 --> 49:10.700] I've never gone to court. I've never been invited to court. [49:10.700 --> 49:15.700] I've never been notified that a court door ever got open for this case. [49:15.700 --> 49:17.700] So we seem to be missing a step here. [49:17.700 --> 49:18.700] That seems pretty clear. [49:18.700 --> 49:23.700] And I was just talking to someone about how when the Republic of Texas was filing, [49:23.700 --> 49:30.700] were filing all of these notices of lien, and people with IRS were going to the IRS [49:30.700 --> 49:34.700] and say, show me the lien. And I tried to explain to them, [49:34.700 --> 49:37.700] the lien is not something you can touch or feel or see or hear. [49:37.700 --> 49:44.700] It doesn't have physical existence. It's a legal maxim. [49:44.700 --> 49:48.700] I'm a carpenter. You hire me to work on your house. I bring materials. [49:48.700 --> 49:53.700] I invest the materials into your property. I invest my time. [49:53.700 --> 49:58.700] That investment creates a lien as a matter of law. [49:58.700 --> 50:04.700] And then I go and file a notice of that lien if you don't pay me. [50:04.700 --> 50:11.700] Or there's another way a lien is created. It's by a court order. [50:11.700 --> 50:18.700] And then I would go to the clerk and file a notice of the lien created by the court order, [50:18.700 --> 50:20.700] by the judgment. [50:20.700 --> 50:22.700] Right. But now the difference between those two, Randy, [50:22.700 --> 50:25.700] is the one that you go down and file the lien on, [50:25.700 --> 50:28.700] that does not give you the authority to go to that person [50:28.700 --> 50:31.700] and start yanking material out of their house, does it? [50:31.700 --> 50:35.700] Precisely. I have to petition the court for an enforcement order. [50:35.700 --> 50:40.700] There you go. That's the step they're not doing, even if this lien was valid, [50:40.700 --> 50:43.700] which it's not because it's forged. [50:43.700 --> 50:47.700] This is the one that says it's signed by the hand of Susan Combs, the comptroller, [50:47.700 --> 50:50.700] and sealed with the seal of her office. [50:50.700 --> 50:53.700] And those two things are glaringly missing from this document. [50:53.700 --> 50:58.700] Well, even if they weren't missing, that's not a lien that's filed. [50:58.700 --> 50:59.700] Right. [50:59.700 --> 51:00.700] That's a notice of lien. [51:00.700 --> 51:01.700] Correct. [51:01.700 --> 51:06.700] So the only way a lien can exist is either mechanics lien, [51:06.700 --> 51:11.700] which is created as a matter of law and is created in statute, [51:11.700 --> 51:13.700] or a judgment. [51:13.700 --> 51:19.700] They came in and stole my business and sealed the doors [51:19.700 --> 51:24.700] three weeks before this ever showed up. [51:24.700 --> 51:27.700] So they acted with, well, even once it showed up, [51:27.700 --> 51:30.700] it may as well not have showed up, according to the law, [51:30.700 --> 51:35.700] because a notice of lien only notices a lien that actually exists, [51:35.700 --> 51:38.700] and a lien exists as a matter of law. [51:38.700 --> 51:40.700] Yeah, but actually I misspoke. [51:40.700 --> 51:41.700] This is not a notice of lien. [51:41.700 --> 51:44.700] This is a notice of tax sale at public auction. [51:44.700 --> 51:47.700] I have been given a notice of lien. [51:47.700 --> 51:49.700] This just deals with the auction. [51:49.700 --> 51:51.700] So they just bypassed the whole works. [51:51.700 --> 51:54.700] You got it. [51:54.700 --> 51:57.700] It appears they have a subject matter jurisdiction problem. [51:57.700 --> 52:00.700] And tomorrow I'm going to try to go down to the county clerk, [52:00.700 --> 52:06.700] and I'm going to see if there is an actual lien filed with the county clerk, [52:06.700 --> 52:11.700] in which case they're in trouble when it's not. [52:11.700 --> 52:14.700] And even if it is, they're in trouble because they tried to enforce a lien [52:14.700 --> 52:15.700] that's not valid. [52:15.700 --> 52:22.700] And then you need to file a requirement for them to remove the lien. [52:22.700 --> 52:24.700] Well, that's what that injunction asks for also. [52:24.700 --> 52:27.700] Yeah, if you demand they remove the lien [52:27.700 --> 52:32.700] and they don't remove the lien within 20 days, it's a felony in Texas. [52:32.700 --> 52:35.700] Well, I'll keep that part in mind too. [52:35.700 --> 52:36.700] All right. [52:36.700 --> 52:38.700] Now, anyway, in that section it tells us that when we get to that lien, [52:38.700 --> 52:42.700] the lien has a force and effect of a judgment lien for 10 years [52:42.700 --> 52:43.700] after the date of the judgment. [52:43.700 --> 52:46.700] They have up to 10 years to try to collect on it. [52:46.700 --> 52:49.700] And it can be released on the payment [52:49.700 --> 52:54.700] or in full payment of the judgment obtained under this chapter. [52:54.700 --> 52:57.700] Now, execution on a judgment obtained under this chapter, [52:57.700 --> 53:03.700] which again we are in section 151.608, item E, [53:03.700 --> 53:07.700] execution on a judgment obtained under this chapter may issue in the same manner [53:07.700 --> 53:10.700] as an execution under other judgments. [53:10.700 --> 53:14.700] And the sale under an execution is held as provided by the rules of civil procedure [53:14.700 --> 53:16.700] and the statutes of this state. [53:16.700 --> 53:22.700] So they have a different complete set of civil procedure rules they have to follow [53:22.700 --> 53:25.700] in order to deal with the sale of this property. [53:25.700 --> 53:31.700] And the execution is also the seizure of the property. [53:31.700 --> 53:34.700] They haven't done any of that. [53:34.700 --> 53:42.700] Yeah, you can only execute a lien after you have to file with the court [53:42.700 --> 53:45.700] and the court issues an order of execution. [53:45.700 --> 53:46.700] Right. [53:46.700 --> 53:50.700] And that's the rule of civil procedure they're talking about. [53:50.700 --> 53:55.700] Yeah, none of that's been done. [53:55.700 --> 54:05.700] So if we go down a little further, this is where section 111.001 tells us [54:05.700 --> 54:12.700] that they can't use this chapter to collect taxes under 151. [54:12.700 --> 54:14.700] Comptroller to collect taxes. [54:14.700 --> 54:17.700] The comptroller shall collect the taxes imposed by this title [54:17.700 --> 54:23.700] except as otherwise provided by this title. [54:23.700 --> 54:27.700] So 151 provides its own procedure. [54:27.700 --> 54:32.700] Section or Chapter 111 cannot be used. [54:32.700 --> 54:34.700] So it can't preempt. [54:34.700 --> 54:35.700] Correct. [54:35.700 --> 54:36.700] Okay. [54:36.700 --> 54:42.700] Now, we're going to get a couple of real quick rundowns on how they're using person [54:42.700 --> 54:46.700] in Chapter 111 of these statutes so we can get a grasp of it real quick. [54:46.700 --> 54:51.700] In Section 111.004, power to examine records and persons. [54:51.700 --> 54:55.700] In Item A, for the purpose of carrying out the terms of this title, [54:55.700 --> 54:59.700] the comptroller may examine at the principal or any other office in the United States [54:59.700 --> 55:06.700] of any person, firm, agent, or corporation permitted to do business in this state, [55:06.700 --> 55:14.700] all books, records, and papers, and also any of their officers or employees under oath. [55:14.700 --> 55:17.700] Now, remember what we said about lock items being listed together [55:17.700 --> 55:23.700] and the inference of all these being one type and it infers it back to the other type? [55:23.700 --> 55:28.700] Person included with firm, agent, corporation. [55:28.700 --> 55:31.700] You got it. [55:31.700 --> 55:34.700] And that is the way it's used all the way through. [55:34.700 --> 55:40.700] Now, if any person refuses to permit an examination or answer any question [55:40.700 --> 55:43.700] authorized by Subsection A of this section, [55:43.700 --> 55:47.700] the comptroller may certify the fact of the refusal to the Secretary of State [55:47.700 --> 55:52.700] who shall immediately forfeit the charter or the permit to do business [55:52.700 --> 55:57.700] of the person until the examination, as required, is completed. [55:57.700 --> 56:05.700] Yes, and that goes to, that has to go to an entity, [56:05.700 --> 56:10.700] otherwise it would violate the constitutional rights of an individual. [56:10.700 --> 56:13.700] You got it. Now you're cooking with gas. [56:13.700 --> 56:17.700] See, because this tells us specifically that the person is someone [56:17.700 --> 56:23.700] that can be chartered or they are permitted to do business in this state. [56:23.700 --> 56:27.700] Now, you're going to see that some of these terms are actually phrases, [56:27.700 --> 56:32.700] and these phrases have very specific meanings in the law. [56:32.700 --> 56:37.700] We're not going to deal all the time with just a single word term. [56:37.700 --> 56:40.700] Some of the terms have multiple words in them. [56:40.700 --> 56:45.700] Doing business, to do business, those have specific connotations [56:45.700 --> 56:47.700] that they're not telling you about. [56:47.700 --> 56:49.700] So they're terms of art. [56:49.700 --> 56:51.700] Correct. [56:51.700 --> 56:53.700] All right. [56:53.700 --> 56:59.700] Now, let's go down to Section 111.0041 of the tax code. [56:59.700 --> 57:03.700] We can again see its application is opposed on a taxpayer, [57:03.700 --> 57:05.700] not to the people in general. [57:05.700 --> 57:08.700] We're going to see this because this is the section that tells us [57:08.700 --> 57:11.700] that a taxpayer is really synonymous with the term person [57:11.700 --> 57:16.700] like we saw before when they were swapping them around. [57:16.700 --> 57:20.700] Section 111.0041, record. [57:20.700 --> 57:24.700] Any taxpayer who is required by this title to keep records [57:24.700 --> 57:29.700] shall keep those records open to inspection by the comptroller, [57:29.700 --> 57:32.700] the attorney general, or the authorized representatives [57:32.700 --> 57:35.700] of either of them for four years. [57:35.700 --> 57:40.700] Now, correct me if I'm wrong, but for us to be forced to keep records open [57:40.700 --> 57:43.700] to the inspection of any public official without a warrant [57:43.700 --> 57:46.700] or a court order would be violated with what? [57:46.700 --> 57:48.700] Fourth Amendment. [57:48.700 --> 57:49.700] There you go. [57:49.700 --> 57:57.700] So obviously, this taxpayer that we're talking about here can't be us. [57:57.700 --> 58:00.700] Now, let's see what the meaning of the word taxpayer is [58:00.700 --> 58:05.700] as it applies to Section 111.0041. [58:05.700 --> 58:07.700] Now, listeners, this is another thing. [58:07.700 --> 58:12.700] Remember to always determine the proper scope of a term in a statute, [58:12.700 --> 58:14.700] just as it's defined. [58:14.700 --> 58:18.700] What this goes toward is determining if the meaning of a term has changed [58:18.700 --> 58:23.700] between a subsection, section, subchapter, chapter, subtitle, or title, [58:23.700 --> 58:26.700] and they do. [58:26.700 --> 58:28.700] So make sure of what you're referencing. [58:28.700 --> 58:30.700] In the case of the term taxpayer, [58:30.700 --> 58:34.700] we can see that the scope is declared to be applicable to all of Title II [58:34.700 --> 58:40.700] because Section 101.003 shows it to have that scope. [58:40.700 --> 58:41.700] Okay, Eddie, hold on. [58:41.700 --> 58:43.700] Section 101.003, definition. [58:43.700 --> 58:45.700] Okay, Eddie, Eddie, Eddie, hold on. [58:45.700 --> 58:46.700] We're going to break. [58:46.700 --> 58:48.700] We need to get to break. [58:48.700 --> 58:51.700] All right, definition of terms, we need to understand these terms [58:51.700 --> 58:54.700] because they're not always going to be what we think they are. [58:54.700 --> 58:58.700] And they purposely use words that we... [59:55.700 --> 59:59.700] You are listening to the Rule of Law Radio Network [59:59.700 --> 01:00:01.700] at ruleoflawradio.com, [01:00:01.700 --> 01:00:27.700] live free speech talk radio at its best. [01:00:27.700 --> 01:00:28.700] Okay, we are back. [01:00:28.700 --> 01:00:31.700] Shatting down Babylon here. [01:00:31.700 --> 01:00:33.700] This is the Rule of Law, [01:00:33.700 --> 01:00:37.700] Randy Kelton and Deborah Stevens on Rule of Law Radio. [01:00:37.700 --> 01:00:41.700] We're here talking with Eddie Craig from Nacogdoches, [01:00:41.700 --> 01:00:44.700] talking about the sales tax code, [01:00:44.700 --> 01:00:47.700] and, man, there's just as much corruption going on as due process, [01:00:47.700 --> 01:00:49.700] and maybe even more. [01:00:49.700 --> 01:00:51.700] And I just want to make a quick announcement. [01:00:51.700 --> 01:00:54.700] Tomorrow night, we're going to have a very special guest, [01:00:54.700 --> 01:00:57.700] Brian Michaels, attorney from The Rainbow. [01:00:57.700 --> 01:00:59.700] He's going to be joining us. [01:00:59.700 --> 01:01:01.700] He's recovered from his accident, [01:01:01.700 --> 01:01:05.700] and he will be with us tomorrow night to discuss the situation [01:01:05.700 --> 01:01:08.700] with the feds and the Rainbow and the pepper spraying, [01:01:08.700 --> 01:01:11.700] tear-gassing the kids and all this kind of stuff, [01:01:11.700 --> 01:01:14.700] what happened last year, what we can do about it to... [01:01:14.700 --> 01:01:16.700] In case they try to pull something like this next year, [01:01:16.700 --> 01:01:20.700] what we're doing about it now concerning the incident [01:01:20.700 --> 01:01:22.700] that happened last year. [01:01:22.700 --> 01:01:24.700] So that's tomorrow night, 8 p.m. [01:01:24.700 --> 01:01:26.700] Okay, go ahead, Eddie, please continue. [01:01:26.700 --> 01:01:29.700] They're obviously abusing words here, abusing terms. [01:01:29.700 --> 01:01:35.700] They're using terms that normally we would think mean one thing [01:01:35.700 --> 01:01:39.700] in our normal course of conversation on street talk, so to speak, [01:01:39.700 --> 01:01:43.700] but they mean something totally different when it comes to legalese, [01:01:43.700 --> 01:01:46.700] and they do that on purpose to confuse people. [01:01:46.700 --> 01:01:47.700] Yes, they do. [01:01:47.700 --> 01:01:49.700] There's a common rule of thumb that I think [01:01:49.700 --> 01:01:51.700] that even Dr. Graves would agree with, [01:01:51.700 --> 01:01:54.700] and that is that when the law defines a term, [01:01:54.700 --> 01:01:58.700] it is being used in a manner other than what is common. [01:01:58.700 --> 01:02:00.700] Otherwise, there'd be no reason to define it. [01:02:00.700 --> 01:02:02.700] Absolutely. [01:02:02.700 --> 01:02:06.700] Now, when we go to Section 101.003, definitions, [01:02:06.700 --> 01:02:10.700] it specifically tells us that in this title, [01:02:10.700 --> 01:02:12.700] these definitions mean this. [01:02:12.700 --> 01:02:17.700] So our scope for the definitions we're about to have is the entire Title II. [01:02:17.700 --> 01:02:19.700] It doesn't say subtitle, it doesn't say subsection. [01:02:19.700 --> 01:02:21.700] It says the title. [01:02:21.700 --> 01:02:25.700] So these definitions apply all over Title II. [01:02:25.700 --> 01:02:33.700] If we look down at 003.6, Randy, we talked one night about who is an officer. [01:02:33.700 --> 01:02:37.700] In the tax code, officer means a state officer, [01:02:37.700 --> 01:02:42.700] so that can be anybody that's a state officer. [01:02:42.700 --> 01:02:49.700] Now, item number 8, taxpayer, means a person liable for a tax, [01:02:49.700 --> 01:02:52.700] fee, assessment, or other amount imposed by a statute [01:02:52.700 --> 01:02:58.700] or under the authority of a statutory function administered by the comptroller. [01:02:58.700 --> 01:03:03.700] Tax means, down in item 13, a tax, fee, assessment, charge, [01:03:03.700 --> 01:03:08.700] or other amount that the comptroller is authorized to administer. [01:03:08.700 --> 01:03:11.700] So there's two very important terms for all of Title II, [01:03:11.700 --> 01:03:16.700] taxpayer, which is a person, and a tax. [01:03:16.700 --> 01:03:19.700] Now, if we want to talk about scope for just a second, [01:03:19.700 --> 01:03:21.700] we're going to see real quick how it changes. [01:03:21.700 --> 01:03:29.700] If we went down to section 111.0043, item A, in this section, [01:03:29.700 --> 01:03:34.700] person includes an individual, corporation, partner, partnership, [01:03:34.700 --> 01:03:41.700] officer, or director of a corporation, joint venture, trust, trustee, agent, or association. [01:03:41.700 --> 01:03:44.700] There's that relativity thing again. [01:03:44.700 --> 01:03:47.700] Now, number 2, taxpayer. [01:03:47.700 --> 01:03:54.700] Taxpayer means the person whose tax obligation the comptroller is seeking to determine. [01:03:54.700 --> 01:03:56.700] It still says the taxpayer is a person, [01:03:56.700 --> 01:04:00.700] but the overall definition for its application right here is different. [01:04:00.700 --> 01:04:06.700] Here, the taxpayer, we're just trying to determine what his obligation is under the tax code. [01:04:06.700 --> 01:04:12.700] Up there, it's telling us who it is and what makes up the individual that's a taxpayer. [01:04:12.700 --> 01:04:15.700] Okay, individual. [01:04:15.700 --> 01:04:18.700] What is an individual? [01:04:18.700 --> 01:04:23.700] Well, if we're going by the rules we read earlier on includes, [01:04:23.700 --> 01:04:29.700] an individual would have to be some way related to a corporation, partner, partnership, or officer. [01:04:29.700 --> 01:04:33.700] And this is a theory that I've been working on for a long time regarding an individual. [01:04:33.700 --> 01:04:37.700] Can an individual incorporate themselves? [01:04:37.700 --> 01:04:39.700] Yes. [01:04:39.700 --> 01:04:45.700] In fact, can an individual work as an agent, employee, officer, [01:04:45.700 --> 01:04:50.700] or some other manner represent a legal entity? [01:04:50.700 --> 01:04:51.700] Yes. [01:04:51.700 --> 01:04:52.700] Yes. [01:04:52.700 --> 01:04:55.700] There's your relationship between individual and these legal entities. [01:04:55.700 --> 01:05:02.700] Yes, but when an individual, see, that would be a person. [01:05:02.700 --> 01:05:05.700] A person could do these things. [01:05:05.700 --> 01:05:09.700] So it doesn't exclude a person from doing these. [01:05:09.700 --> 01:05:18.700] I mean, a human being, a private citizen under the common law definition. [01:05:18.700 --> 01:05:19.700] You're right. [01:05:19.700 --> 01:05:26.700] It doesn't exclude them except for the fact that person, by definition, can't contain them. [01:05:26.700 --> 01:05:31.700] Because as we talked before, the word person comes from persona. [01:05:31.700 --> 01:05:38.700] Persona means the actor's mask, in other words, not the real person. [01:05:38.700 --> 01:05:41.700] It's from the Latin that deals with the actor's mask, [01:05:41.700 --> 01:05:45.700] like when they used to do plays back in the Shakespearean days when they wore masks [01:05:45.700 --> 01:05:47.700] when they were on stage representing their character. [01:05:47.700 --> 01:05:50.700] You weren't seeing the face of the true actor. [01:05:50.700 --> 01:05:55.700] You were seeing the representation of his character. [01:05:55.700 --> 01:05:57.700] Yes. [01:05:57.700 --> 01:05:59.700] My concern is individual. [01:05:59.700 --> 01:06:03.700] Yes, I understand that concern. [01:06:03.700 --> 01:06:07.700] But as the term goes, if you actually go to black's law, [01:06:07.700 --> 01:06:16.700] the term individual is normally not used in relation to anything but a corporation in law. [01:06:16.700 --> 01:06:20.700] Then individual is not specifically defined here? [01:06:20.700 --> 01:06:22.700] Not in this particular section, no. [01:06:22.700 --> 01:06:26.700] It is defined in some of the codes, like in, for instance, the penal code [01:06:26.700 --> 01:06:37.700] and the code of criminal procedure, individual is defined as a human being that is born and is alive. [01:06:37.700 --> 01:06:44.700] Okay, this section 11.043, audit and pre-hearing powers. [01:06:44.700 --> 01:06:52.700] Okay, these are those who can be brought in for audit or for pre-hearing? [01:06:52.700 --> 01:06:55.700] Yeah. [01:06:55.700 --> 01:06:59.700] This goes to the comptroller's powers for auditing [01:06:59.700 --> 01:07:06.700] and pre-hearing of a person or a taxpayer or whatever. [01:07:06.700 --> 01:07:12.700] But now consider, Randy, that if an individual in this case is actually one of the people [01:07:12.700 --> 01:07:18.700] and not a corporate entity, you have an immediate Fourth and Fifth Amendment violation [01:07:18.700 --> 01:07:22.700] because you would then be susceptible to that mandate from before about [01:07:22.700 --> 01:07:26.700] give me your books and records because I said so. [01:07:26.700 --> 01:07:34.700] Okay, but yeah, in the section that defines who is liable to the tax, they don't use the term individual. [01:07:34.700 --> 01:07:37.700] They do, but you'll see why it doesn't matter. [01:07:37.700 --> 01:07:38.700] Oh, okay. [01:07:38.700 --> 01:07:40.700] You'll see exactly why it doesn't matter. [01:07:40.700 --> 01:07:47.700] The where is what matters there, not the who. [01:07:47.700 --> 01:07:55.700] All right, let's see, now let's go down and look. [01:07:55.700 --> 01:08:01.700] One of the things that I know is I have never been served with any type of collection action [01:08:01.700 --> 01:08:05.700] from the comptroller or from the attorney general regarding my situation, [01:08:05.700 --> 01:08:09.700] and they are required by law to do that. [01:08:09.700 --> 01:08:15.700] If we look at section 111.011, if it's the attorney general doing it, [01:08:15.700 --> 01:08:20.700] tax collections and reports by businesses, enforcement of duties. [01:08:20.700 --> 01:08:24.700] If a person engaged in a business, the operation of which involves a receipt, [01:08:24.700 --> 01:08:28.700] collection, or withholding of a tax imposed by this title, [01:08:28.700 --> 01:08:32.700] fails to file a report or pay the tax as required by this title, [01:08:32.700 --> 01:08:36.700] the attorney general may bring suit for an injunction prohibiting the person [01:08:36.700 --> 01:08:41.700] from continuing in that business until the report is filed and the tax is paid. [01:08:41.700 --> 01:08:45.700] So if we go down to item C, prior to filing suit for an injunction, [01:08:45.700 --> 01:08:50.700] the attorney general shall, now that is a duty, [01:08:50.700 --> 01:08:55.700] send written notice by a certified mail requesting that the person [01:08:55.700 --> 01:09:00.700] shall cease any wrongful collection of taxes allowing 15 days [01:09:00.700 --> 01:09:04.700] for the compliance from the date of notice. [01:09:04.700 --> 01:09:05.700] Okay. [01:09:05.700 --> 01:09:07.700] Now notice it doesn't come in and say that they're going to come in [01:09:07.700 --> 01:09:09.700] and shut the person down. [01:09:09.700 --> 01:09:16.700] He is going to file an injunction so that they cannot collect the tax. [01:09:16.700 --> 01:09:20.700] Now if we look over in chapter 151, [01:09:20.700 --> 01:09:23.700] where we're talking about the actual sales tax itself instead of just [01:09:23.700 --> 01:09:26.700] the collection procedures they're trying to use, [01:09:26.700 --> 01:09:32.700] in section 151.606, service of process, in a suit under this subchapter, [01:09:32.700 --> 01:09:37.700] a seller or retailer may be served with process as provided by the rules [01:09:37.700 --> 01:09:42.700] of civil procedure or by service on an agent or clerk in this state, [01:09:42.700 --> 01:09:48.700] employed by the retailer or seller in a place of business in this state, [01:09:48.700 --> 01:09:51.700] maintained by the seller or retailer. [01:09:51.700 --> 01:09:55.700] Now that's not all of that section, but before I go on I'm going to explain something. [01:09:55.700 --> 01:10:00.700] Remember I said before that sometimes it is the phrase that is the term. [01:10:00.700 --> 01:10:02.700] There are three words here that are very, [01:10:02.700 --> 01:10:05.700] very important to the construction of the sales tax code, [01:10:05.700 --> 01:10:09.700] and they are in this state. [01:10:09.700 --> 01:10:12.700] When we get to the definition of this, Randy, it's going to make you laugh, [01:10:12.700 --> 01:10:15.700] and then it's going to tick you off. [01:10:15.700 --> 01:10:19.700] If process is served on the agent or clerk of the retailer or seller, [01:10:19.700 --> 01:10:23.700] a copy of the process shall forthwith be sent by registered mail to the retailer [01:10:23.700 --> 01:10:28.700] or seller at his principal or home office. [01:10:28.700 --> 01:10:32.700] Now that's what they're required to do under 151 for service of process. [01:10:32.700 --> 01:10:38.700] Notice that it can only be served on a seller or retailer or an employee [01:10:38.700 --> 01:10:42.700] or a clerk of that seller or retailer, [01:10:42.700 --> 01:10:48.700] because they are specifically named as receiving the process in the statute. [01:10:48.700 --> 01:10:52.700] You got any disagreement with that assertion, Randy? [01:10:52.700 --> 01:10:53.700] No. [01:10:53.700 --> 01:10:54.700] Okay. [01:10:54.700 --> 01:10:59.700] I just want to make sure I'm not off on a tangent here for anybody. [01:10:59.700 --> 01:11:06.700] The sales tax itself is actually imposed in Section 151.051 of the tax code, [01:11:06.700 --> 01:11:10.700] and it states, sales tax imposed, item A, [01:11:10.700 --> 01:11:18.700] a tax is imposed on each sale of a taxable item in this state. [01:11:18.700 --> 01:11:20.700] Let's go down. [01:11:20.700 --> 01:11:28.700] Section 151.004, here is where we find out what in this state means. [01:11:28.700 --> 01:11:33.700] In this state means within the exterior limits of Texas [01:11:33.700 --> 01:11:45.700] and includes all territory within these limits ceded to or owned by the United States. [01:11:45.700 --> 01:11:47.700] That seems pretty clear. [01:11:47.700 --> 01:11:48.700] Doesn't it? [01:11:48.700 --> 01:11:52.700] Now just for the listeners that may not fully get what I'm deriving here, [01:11:52.700 --> 01:11:55.700] this is how I'll explain it to folks. [01:11:55.700 --> 01:11:59.700] The exterior limits as used in Section 151.004 [01:11:59.700 --> 01:12:03.700] has exactly the same meaning as the terms geographical boundaries [01:12:03.700 --> 01:12:09.700] or territorial boundaries, the borders of Texas. [01:12:09.700 --> 01:12:12.700] If you actually read the statute that way, [01:12:12.700 --> 01:12:17.700] it would not change the reading or meaning of it in any way. [01:12:17.700 --> 01:12:21.700] If we also go and we look at the term includes as being a term of limitation, [01:12:21.700 --> 01:12:28.700] as we've understood it to be, this term here specifically limits the territory in question [01:12:28.700 --> 01:12:35.700] where the sales tax may be collected to territory which is within the geographical borders of Texas [01:12:35.700 --> 01:12:39.700] and which has been specifically ceded to the United States. [01:12:39.700 --> 01:12:44.700] Now the term ceded as used in Section 151.004 [01:12:44.700 --> 01:12:51.700] has the same meanings as the terms granted, yielded, assigned, transferred, or surrendered. [01:12:51.700 --> 01:12:53.700] How do I know that? [01:12:53.700 --> 01:13:01.700] Because in Black's Law 6th edition it says seed to yield up, to assign, to grant, to surrender, to withdraw, [01:13:01.700 --> 01:13:10.700] generally used to designate the transfer of territory from one government to another. [01:13:10.700 --> 01:13:14.700] Now we get to one of the most ironclad meanings available to us [01:13:14.700 --> 01:13:19.700] that tells us exactly who is liable to collect or pay what, [01:13:19.700 --> 01:13:25.700] what is the sales tax imposed upon, when is it imposed, and where is it imposed. [01:13:25.700 --> 01:13:30.700] In this state handles every bit of that. [01:13:30.700 --> 01:13:34.700] And if you want to see what this comes up with, go to Google [01:13:34.700 --> 01:13:38.700] and in double quotes put in the term in this state a plus sign, [01:13:38.700 --> 01:13:46.700] exterior limits inside of double quotes, another plus sign, and Texas and see what you get. [01:13:46.700 --> 01:13:50.700] But hopefully you'll find what I found and one of the research results [01:13:50.700 --> 01:13:56.700] gave me two different Texas Attorney General's interpretation letters from the 70s and 80s. [01:13:56.700 --> 01:14:06.700] Both of them stated that this term was applicable to military installations for the sales tax. [01:14:06.700 --> 01:14:11.700] It almost seems backwards from what we normally experience. [01:14:11.700 --> 01:14:15.700] If I buy a product out of state, I'm normally not assessed sales tax. [01:14:15.700 --> 01:14:20.700] But according to this, that's when the sales tax applies. [01:14:20.700 --> 01:14:24.700] Well, not only though if you are in this state, Randy, [01:14:24.700 --> 01:14:27.700] and when you consider that in this state when you're looking at it [01:14:27.700 --> 01:14:30.700] has to be within the territorial borders of the state [01:14:30.700 --> 01:14:37.700] and it has to be property that belongs to the control and authority and jurisdiction of the United States, [01:14:37.700 --> 01:14:40.700] that only leaves certain properties. [01:14:40.700 --> 01:14:47.700] Post offices, federal buildings, shipyards, munitions dumps, military installations, that's all there is. [01:14:47.700 --> 01:14:53.700] That's all the Constitution allows them to use the land for. [01:14:53.700 --> 01:15:02.700] It's got to be federal property before the sales tax can even be charged on it. [01:15:02.700 --> 01:15:10.700] In this state means within the exterior limits of Texas [01:15:10.700 --> 01:15:16.700] and includes all territory within these limits ceded to. [01:15:16.700 --> 01:15:20.700] Now, Deborah, do you see how they tried to confuse that for you right there? [01:15:20.700 --> 01:15:23.700] They said within the exterior. [01:15:23.700 --> 01:15:24.700] Oh, yeah. [01:15:24.700 --> 01:15:27.700] Within the exterior, yeah. [01:15:27.700 --> 01:15:31.700] I mean, let's just see how jumbled a mess we can make out of the English language [01:15:31.700 --> 01:15:34.700] with that type of stupidity going on for construction of law. [01:15:34.700 --> 01:15:39.700] Yeah, here we go with the convoluted terms again. [01:15:39.700 --> 01:15:43.700] But it's astounding what they try to get away with in this. [01:15:43.700 --> 01:15:51.700] Wait a minute, in reading this carefully, in this state means within the exterior limits. [01:15:51.700 --> 01:15:59.700] That would include all of the property bounded by the exterior limits of the state of Texas [01:15:59.700 --> 01:16:04.700] to include those properties ceded to the United States. [01:16:04.700 --> 01:16:16.700] So all the property within the exterior limits without exception are considered in this state. [01:16:16.700 --> 01:16:20.700] Yeah, but notice it's a conjunctive and. [01:16:20.700 --> 01:16:25.700] And if we're still using includes as the limitation, it says it has to be. [01:16:25.700 --> 01:16:32.700] The only thing specified within that territory is says that all territory within these limits [01:16:32.700 --> 01:16:35.700] ceded to or owned by the United States. [01:16:35.700 --> 01:16:39.700] It says all territories within exterior limits of Texas [01:16:39.700 --> 01:16:45.700] and includes all territories within these limits ceded to or owned by the United States. [01:16:45.700 --> 01:16:47.700] So both are included. [01:16:47.700 --> 01:16:50.700] OK, listen, we've got to pick this up on the other side. [01:16:50.700 --> 01:16:51.700] We're going to break. [01:16:51.700 --> 01:16:52.700] We'll be right back. [01:16:52.700 --> 01:16:59.700] This is the rule of law, ruleoflawradio.com. [01:16:59.700 --> 01:17:03.700] Are you looking for an investment that has no stock market risk, [01:17:03.700 --> 01:17:06.700] has a 100 percent track record of returning profits, [01:17:06.700 --> 01:17:11.700] is not affected by fluctuations in oil prices and interest rates, [01:17:11.700 --> 01:17:14.700] is publicly traded and SEC regulated? [01:17:14.700 --> 01:17:18.700] If this kind of peace of mind is what you have been looking for in an investment, [01:17:18.700 --> 01:17:21.700] then Life Settlements is the investment for you. [01:17:21.700 --> 01:17:27.700] Our annual rate of return has been 15.83 percent for the last 17 years. [01:17:27.700 --> 01:17:31.700] Our investments are insurance and banking commission regulated. [01:17:31.700 --> 01:17:35.700] Our returns are assured by the largest insurance companies. [01:17:35.700 --> 01:17:41.700] Even qualified retirement plans such as 401Ks and IRAs are eligible for transfer. [01:17:41.700 --> 01:17:43.700] We charge absolutely no commissions. [01:17:43.700 --> 01:17:46.700] One hundred percent of your investment goes to work for you. [01:17:46.700 --> 01:17:50.700] Please visit sleepwellinvestment.com [01:17:50.700 --> 01:17:57.700] or call Bill Shelbur at 817-975-2431. [01:17:57.700 --> 01:18:08.700] That's sleepwellinvestment.com or call 817-975-2431. [01:18:08.700 --> 01:18:22.700] Okay, we're back. [01:18:22.700 --> 01:18:26.700] They're not going to fool us with the same old tricks again. [01:18:26.700 --> 01:18:29.700] Some threesies posse for you. [01:18:29.700 --> 01:18:35.700] Okay, so in this state means inside the exterior. [01:18:35.700 --> 01:18:39.700] Okay, yeah, here we go again with the convoluted terms. [01:18:39.700 --> 01:18:42.700] Okay, please continue, Randy. [01:18:42.700 --> 01:18:43.700] I'm sorry. [01:18:43.700 --> 01:18:45.700] Please continue, Eddie. [01:18:45.700 --> 01:18:48.700] Okay, now if we keep looking at the term in this state, [01:18:48.700 --> 01:18:55.700] it is consistent throughout Chapter 151 pursuant to Section 151.002 [01:18:55.700 --> 01:18:59.700] because it was set at chapter level for scope. [01:18:59.700 --> 01:19:02.700] It is not defined anywhere else within the entire tax code [01:19:02.700 --> 01:19:04.700] or any other code in all of Texas. [01:19:04.700 --> 01:19:06.700] It comes from only this one place, [01:19:06.700 --> 01:19:09.700] and its scope is defined right there in 151.002, [01:19:09.700 --> 01:19:13.700] where it says the definitions and other provisions of this chapter [01:19:13.700 --> 01:19:15.700] relating to the collection, administration, [01:19:15.700 --> 01:19:18.700] and enforcement of the taxes imposed by this chapter, [01:19:18.700 --> 01:19:21.700] including the requirements for sales tax permits, [01:19:21.700 --> 01:19:24.700] apply to the parties of the sale of a taxable item that is exempted. [01:19:24.700 --> 01:19:26.700] Now, you'll like this part, Randy. [01:19:26.700 --> 01:19:30.700] Apply to the parties to a sale of a taxable item [01:19:30.700 --> 01:19:35.700] that is exempted from the taxes imposed by this chapter, [01:19:35.700 --> 01:19:38.700] but that is subject to the taxes imposed by a city [01:19:38.700 --> 01:19:42.700] under Chapter 321 of this code. [01:19:42.700 --> 01:19:46.700] Now, here we're saying that the party to the sale of a taxable item [01:19:46.700 --> 01:19:52.700] that is not taxable, it's exempted from the tax, okay? [01:19:52.700 --> 01:19:55.700] That's the tax imposed by the state. [01:19:55.700 --> 01:20:03.700] By this chapter, which is the sales, excise, and use tax, okay? [01:20:03.700 --> 01:20:11.700] But that is the subject to the taxes imposed by a city under Chapter 321. [01:20:11.700 --> 01:20:16.700] Now, that's a very convoluted way of saying all that as well. [01:20:16.700 --> 01:20:20.700] Now, if we look at the last part of that up there where it says [01:20:20.700 --> 01:20:27.700] that is subject to the taxes imposed by a city under Chapter 321 of this code, [01:20:27.700 --> 01:20:30.700] you remember a while ago when we were talking about the abolition of the municipality? [01:20:30.700 --> 01:20:31.700] Yes. [01:20:31.700 --> 01:20:33.700] Okay. [01:20:33.700 --> 01:20:37.700] When we start talking about that, we can start looking to see, [01:20:37.700 --> 01:20:41.700] well, this is talking about taxes that a city can impose, [01:20:41.700 --> 01:20:48.700] and it applies only to the parties that are a part of a sale of a taxable item [01:20:48.700 --> 01:20:53.700] that is exempted from the taxes that are imposed in this chapter, [01:20:53.700 --> 01:21:01.700] but not if the taxes apply from the city. [01:21:01.700 --> 01:21:04.700] I'm confused. [01:21:04.700 --> 01:21:20.700] Can you go through that one more time? [01:21:20.700 --> 01:21:25.700] Did I lose you? [01:21:25.700 --> 01:21:26.700] Eddie, are you there? [01:21:26.700 --> 01:21:27.700] Did we lose Eddie? [01:21:27.700 --> 01:21:29.700] He's called back in. [01:21:29.700 --> 01:21:30.700] Okay, there he is. [01:21:30.700 --> 01:21:31.700] Yeah. [01:21:31.700 --> 01:21:32.700] Okay, Eddie, sorry. [01:21:32.700 --> 01:21:34.700] It went the busy signal on me again. [01:21:34.700 --> 01:21:37.700] All right, I guess the bad guys, they don't want us to talk about this. [01:21:37.700 --> 01:21:41.700] Okay, so, yeah, can you go through that one more time, please? [01:21:41.700 --> 01:21:47.700] Yeah, it's talking about that if you are a party to a sale of a taxable item [01:21:47.700 --> 01:21:55.700] that is exempted from the sales tax or use tax or excise tax here in Chapter 151, [01:21:55.700 --> 01:22:02.700] okay, then the definitions in this apply to you if your subject of the tax [01:22:02.700 --> 01:22:06.700] is imposed by a city under Chapter 321 of this Code. [01:22:06.700 --> 01:22:09.700] Oh, okay, that's making more sense. [01:22:09.700 --> 01:22:14.700] Okay, if you look at the last part of that where it says subject of the tax [01:22:14.700 --> 01:22:22.700] is imposed by a city under Chapter 321, if we go down and we read Section 321.002, [01:22:22.700 --> 01:22:26.700] we see that in this chapter, now this is all of 321, [01:22:26.700 --> 01:22:31.700] additional municipal sales and use tax means only the additional tax authorized [01:22:31.700 --> 01:22:34.700] by Section 321.01. [01:22:34.700 --> 01:22:40.700] Municipality includes any incorporated city, town, or village. [01:22:40.700 --> 01:22:43.700] Place of business of the retailer means an established outlet, [01:22:43.700 --> 01:22:46.700] and it's a real long definition. [01:22:46.700 --> 01:22:50.700] But now if we go down to the bottom of that in Section B of 321.001, [01:22:50.700 --> 01:22:56.700] it tells us words used in this chapter and defined by Chapter 151.00 have the [01:22:56.700 --> 01:23:00.700] meanings assigned by Chapter 151.00. [01:23:00.700 --> 01:23:06.700] So the term in this state in Chapter 321.00 is going to have the same definition [01:23:06.700 --> 01:23:11.700] as it did in 151.00, okay? [01:23:11.700 --> 01:23:12.700] Okay. [01:23:12.700 --> 01:23:17.700] Now let's talk about the imposition to keep records in relation to the sales tax [01:23:17.700 --> 01:23:20.700] and who it's applicable to. [01:23:20.700 --> 01:23:24.700] Section 151.025, records required to be kept. [01:23:24.700 --> 01:23:31.700] All sellers and all other persons storing, using, or consuming in this state [01:23:31.700 --> 01:23:35.700] a taxable item purchased from a retailer shall keep the following records [01:23:35.700 --> 01:23:38.700] in the form the comptroller requires. [01:23:38.700 --> 01:23:42.700] Records of gross receipts, blah, blah, blah, records in the form of receipts, [01:23:42.700 --> 01:23:45.700] blah, blah, blah, records in the form of receipt. [01:23:45.700 --> 01:23:49.700] And it just gives a whole list, basically anything you can buy, sell, trade, [01:23:49.700 --> 01:23:53.700] hold, or otherwise exchange for money, they want a receipt for it, [01:23:53.700 --> 01:23:56.700] and they want you to give it to them whenever they ask. [01:23:56.700 --> 01:24:02.700] Now please note once again in this state is used throughout this, [01:24:02.700 --> 01:24:06.700] and it is specific to storing, using, or consuming a taxable item [01:24:06.700 --> 01:24:08.700] while in this state. [01:24:08.700 --> 01:24:15.700] The collection of the sales tax by a retailer is imposed in section 151.052A [01:24:15.700 --> 01:24:18.700] in the tax code. [01:24:18.700 --> 01:24:24.700] Except as provided by subsection D, a seller who makes a sale subject to the sales tax [01:24:24.700 --> 01:24:28.700] imposed by this chapter shall add the amount of the tax to the sales price, [01:24:28.700 --> 01:24:32.700] and when the amount of the tax is added, it becomes a part of the price. [01:24:32.700 --> 01:24:34.700] And it goes on for a couple other things. [01:24:34.700 --> 01:24:36.700] Then we go to section B. [01:24:36.700 --> 01:24:40.700] The owner or former owner of a tangible personal property, [01:24:40.700 --> 01:24:44.700] a factor of the owner or former owner, or any agent of the owner, [01:24:44.700 --> 01:24:47.700] former owner, or factor, shall collect the sales tax [01:24:47.700 --> 01:24:51.700] and add the amount of the tax to the sales price of the tangible personal property [01:24:51.700 --> 01:24:56.700] if the person delivers the property to a consumer in this state [01:24:56.700 --> 01:25:01.700] or to another person for re-delivery to a consumer in this state [01:25:01.700 --> 01:25:06.700] under a sale of the property that is not a sale for resale [01:25:06.700 --> 01:25:10.700] and that is made by a seller not engaged in business in this state. [01:25:10.700 --> 01:25:12.700] Confusing enough for you? [01:25:12.700 --> 01:25:13.700] Yes. [01:25:13.700 --> 01:25:15.700] Exactly. [01:25:15.700 --> 01:25:20.700] They keep changing terms between seller, reseller, person, seller, reseller, person, [01:25:20.700 --> 01:25:22.700] and it goes on and on. [01:25:22.700 --> 01:25:26.700] And they'll do the same thing by bringing in the term taxpayer from time to time. [01:25:26.700 --> 01:25:31.700] But when you get right down to it, they're talking about the same thing all the time, [01:25:31.700 --> 01:25:35.700] person, person, person. [01:25:35.700 --> 01:25:41.700] Now, for the purpose of the printer's tax, again, it's something relative to in this state, [01:25:41.700 --> 01:25:44.700] where it's purchased and where it's sold. [01:25:44.700 --> 01:25:50.700] The imposition of the use tax is in section 151.01A. [01:25:50.700 --> 01:25:54.700] And it specifically states, use tax imposed. [01:25:54.700 --> 01:25:59.700] A tax is imposed on the storage, use, or other consumption in this state [01:25:59.700 --> 01:26:03.700] of a taxable item purchased from a retailer for storage, use, [01:26:03.700 --> 01:26:06.700] or other consumption in this state. [01:26:06.700 --> 01:26:13.700] The tax is at the same percentage rate as provided by section 151.051. [01:26:13.700 --> 01:26:17.700] Now, once again, we're confronted with the use of the term in this state. [01:26:17.700 --> 01:26:18.700] And it keeps going on. [01:26:18.700 --> 01:26:23.700] It is repeated continuously through 151 and 321 as well. [01:26:23.700 --> 01:26:27.700] The statute imposing the tax liability upon the person storing, using, [01:26:27.700 --> 01:26:34.700] or consuming a taxable item in this state is section 151.102A. [01:26:34.700 --> 01:26:38.700] And it specifically says, user liable for tax. [01:26:38.700 --> 01:26:43.700] The person storing, using, or consuming a taxable item in this state [01:26:43.700 --> 01:26:50.700] is liable for the tax imposed by section 151.01 of this code. [01:26:50.700 --> 01:26:54.700] The next step that's provided by subsection B of this section, [01:26:54.700 --> 01:26:58.700] the liability continues until a tax is paid to the state. [01:26:58.700 --> 01:27:01.700] Then it goes on to say the same thing about a person storing, using, [01:27:01.700 --> 01:27:05.700] or consuming a taxable item in this state is not further liable [01:27:05.700 --> 01:27:12.700] for the tax imposed by section 151.101 of this code if the person pays [01:27:12.700 --> 01:27:16.700] the tax to a retailer engaged in business in this state [01:27:16.700 --> 01:27:20.700] or a person authorized by the comptroller to collect the tax. [01:27:20.700 --> 01:27:27.700] Now, as I was saying before, I pay sales taxes already on what I buy. [01:27:27.700 --> 01:27:30.700] So if I was a person that this was susceptible to [01:27:30.700 --> 01:27:35.700] and I was under the impetus of having to do it, I've already paid the tax. [01:27:35.700 --> 01:27:39.700] So according to this section, I'm not required to pay it again. [01:27:39.700 --> 01:27:42.700] But that's exactly what they're trying to make me do. [01:27:42.700 --> 01:27:50.700] If you're buying for resale, you're exempted from paying the tax. [01:27:50.700 --> 01:27:58.700] If I have a sales tax certificate, which I do not, so I pay the sales tax. [01:27:58.700 --> 01:28:00.700] So then the tax is paid. [01:28:00.700 --> 01:28:02.700] Correct. [01:28:02.700 --> 01:28:08.700] And yet they're trying to say that they're here to collect sales tax that I haven't paid. [01:28:08.700 --> 01:28:12.700] Yet they can offer no proof I haven't paid it because they've never asked to see books or records [01:28:12.700 --> 01:28:17.700] or anything else or had me order to produce them or anything like that. [01:28:17.700 --> 01:28:22.700] They're making stuff up as they go along. [01:28:22.700 --> 01:28:28.700] Now, if we go to section 151.103, collection by retailer, purchaser's receipt, [01:28:28.700 --> 01:28:36.700] except it's provided by section 151.052D, a retailer engaged in business in this state [01:28:36.700 --> 01:28:41.700] who makes a sale of a taxable item for storage use or consumption in this state [01:28:41.700 --> 01:28:44.700] shall collect the use tax that is due from the purchaser [01:28:44.700 --> 01:28:52.700] and give the purchaser a receipt for the tax payment. [01:28:52.700 --> 01:28:56.700] As much as they like to repeat that term in this state, Randy, [01:28:56.700 --> 01:29:03.700] there is a definite significance to that. [01:29:03.700 --> 01:29:09.700] Now, if we go into 151.104, sale for storage use or consumption presumed, [01:29:09.700 --> 01:29:15.700] a sale of a taxable item by a person for delivery in this state is presumed to be a sale [01:29:15.700 --> 01:29:21.700] for storage use or consumption in this state unless a resale or exemption certificate [01:29:21.700 --> 01:29:23.700] is accepted by the seller. [01:29:23.700 --> 01:29:28.700] That's where the sales tax certificate comes in so you don't have to pay the tax. [01:29:28.700 --> 01:29:31.700] And so you didn't have that, so you just paid the tax. [01:29:31.700 --> 01:29:34.700] Exactly. [01:29:34.700 --> 01:29:35.700] Okay. [01:29:35.700 --> 01:29:38.700] Okay, they probably weren't aware that you were doing that. [01:29:38.700 --> 01:29:41.700] Oh, no, I've made it very well known to them that I'm doing that. [01:29:41.700 --> 01:29:44.700] They're thinking you still have to collect it a second time. [01:29:44.700 --> 01:29:45.700] This is interesting. [01:29:45.700 --> 01:29:47.700] Okay, listen, we're going to break. [01:29:47.700 --> 01:29:48.700] We'll be right back. [01:29:48.700 --> 01:29:50.700] They're trying to double-dip. [01:29:50.700 --> 01:29:53.700] They are double-dipping. [01:29:53.700 --> 01:29:54.700] Yes, they are. [01:29:54.700 --> 01:29:55.700] We've got to stop it. [01:29:55.700 --> 01:29:57.700] We'll be right back. [01:29:57.700 --> 01:30:02.700] Gold prices are at historic highs, and with the recent pullback, this is a great time to buy. [01:30:02.700 --> 01:30:06.700] With the value of the dollar, risks of inflation, geopolitical uncertainties, [01:30:06.700 --> 01:30:11.700] and instability in world financial systems, I see gold going up much higher. [01:30:11.700 --> 01:30:14.700] Hi, I'm Tim Fry at Roberts & Roberts Brokerage. [01:30:14.700 --> 01:30:18.700] Everybody should have some of their assets in investment-grade precious metals. [01:30:18.700 --> 01:30:22.700] At Roberts & Roberts Brokerage, you can buy gold, silver, and platinum with confidence [01:30:22.700 --> 01:30:26.700] from a brokerage that's specialized in the precious metals market since 1977. [01:30:26.700 --> 01:30:30.700] If you are new to precious metals, we will happily provide you with the information [01:30:30.700 --> 01:30:34.700] you need to make an informed decision whether or not you choose to purchase from us. [01:30:34.700 --> 01:30:39.700] Also, Roberts & Roberts Brokerage values your privacy and will always advise you [01:30:39.700 --> 01:30:42.700] in the event that we would be required to report any transaction. [01:30:42.700 --> 01:30:45.700] If you have gold, silver, or platinum you'd like to sell, [01:30:45.700 --> 01:30:47.700] we can convert it for immediate payment. [01:30:47.700 --> 01:30:51.700] Call us at 800-874-9760. [01:30:51.700 --> 01:30:57.700] We're at Roberts & Roberts Brokerage, 800-874-9760. [01:31:21.700 --> 01:31:26.700] All right. [01:31:26.700 --> 01:31:28.700] We are back. [01:31:28.700 --> 01:31:31.700] Rule of Law Radio, ruleoflawradio.com. [01:31:31.700 --> 01:31:37.700] We're here with Eddie Craig from Nacogdoches dissecting the sales tax code tonight [01:31:37.700 --> 01:31:40.700] here in Texas, and boy, are they ever double-dipping. [01:31:40.700 --> 01:31:42.700] This is just horrendous. [01:31:42.700 --> 01:31:43.700] Okay. [01:31:43.700 --> 01:31:45.700] Please continue, Eddie. [01:31:45.700 --> 01:31:46.700] All right. [01:31:46.700 --> 01:31:50.700] Now, notice that it keeps giving us sellers and retailers and taxpayers [01:31:50.700 --> 01:31:52.700] and persons and all this. [01:31:52.700 --> 01:31:56.700] Section 151.106, Registration of Retailers. [01:31:56.700 --> 01:32:01.700] A retailer who sells a taxable item for storage use or consumption in this state [01:32:01.700 --> 01:32:04.700] shall register with the Comptroller. [01:32:04.700 --> 01:32:08.700] The registration must include the name and address of each agent of the retailer [01:32:08.700 --> 01:32:13.700] operating in the state, the location of all distribution or sales houses or offices [01:32:13.700 --> 01:32:16.700] or other places of business in the state, [01:32:16.700 --> 01:32:20.700] and other information that the Comptroller requires. [01:32:20.700 --> 01:32:27.700] Now, item B3, that kind of would leave them an open pickpocket access [01:32:27.700 --> 01:32:29.700] to your information, would it not? [01:32:29.700 --> 01:32:32.700] That would be overly broad and unconstitutional on its own. [01:32:32.700 --> 01:32:33.700] Exactly. [01:32:33.700 --> 01:32:40.700] Now, however, if this refers strictly to someone that the state created [01:32:40.700 --> 01:32:47.700] and has total authority over, such as a statutory legal entity known as a corporation, [01:32:47.700 --> 01:32:52.700] business, trust, or anything like that, then they can mandate that [01:32:52.700 --> 01:32:54.700] and there's nothing anyone could do about it. [01:32:54.700 --> 01:32:57.700] Because those entities don't enjoy a Fourth Amendment right. [01:32:57.700 --> 01:32:58.700] Right. [01:32:58.700 --> 01:33:00.700] They don't actually have rights. [01:33:00.700 --> 01:33:04.700] They have government-granted powers and privileges, just like we gave to the government. [01:33:04.700 --> 01:33:07.700] Yes. [01:33:07.700 --> 01:33:13.700] So right there is another key that if you can request any information and demand it, [01:33:13.700 --> 01:33:18.700] then obviously you're not talking about me. [01:33:18.700 --> 01:33:25.700] Now, a retailer required to register under this section must comply with subchapter G of this chapter. [01:33:25.700 --> 01:33:31.700] If you went and looked at subchapter G, it doesn't mean a whole lot for what it can do for you. [01:33:31.700 --> 01:33:37.700] Section 151.107A, tax code limits the classification of a retailer [01:33:37.700 --> 01:33:41.700] as one being engaged in business in this state. [01:33:41.700 --> 01:33:45.700] Now, there's another one of those three-word terms. [01:33:45.700 --> 01:33:51.700] And this retailer is specifically situated for the purpose of regularly selling [01:33:51.700 --> 01:33:56.700] or affecting the sale of taxable items in this state. [01:33:56.700 --> 01:34:03.700] Section 151.107, retailer engaged in business in this state. [01:34:03.700 --> 01:34:06.700] For the purpose of this subchapter and in relation to the use tax, [01:34:06.700 --> 01:34:14.700] a retailer is engaged in business in this state if the retailer maintains, occupies, or uses in this state [01:34:14.700 --> 01:34:21.700] permanently, temporarily, directly, or indirectly, or through a subsidiary or agent by whatever name and office, [01:34:21.700 --> 01:34:28.700] place of distribution, sales or sample room or place, warehouse, storage place, or any other place of business. [01:34:28.700 --> 01:34:34.700] Two, has a representative, agent, salesman, canvasser, or solicitor operating in this state [01:34:34.700 --> 01:34:38.700] under the authority of the retailer or subsidiary for the purpose of selling or delivering [01:34:38.700 --> 01:34:42.700] or the taking of orders for a taxable item. [01:34:42.700 --> 01:34:48.700] And three, derives rentals from a lease of tangible personal property situated in this state. [01:34:48.700 --> 01:34:54.700] And four, engages in regular or systematic solicitation of sales of taxable items in this state [01:34:54.700 --> 01:35:00.700] by the distribution of catalogs, periodicals, and any other thing to advertise the sale. [01:35:00.700 --> 01:35:03.700] I sort of paraphrased that one. [01:35:03.700 --> 01:35:09.700] And seven, if we'll skip down a little, otherwise does business in this state. [01:35:09.700 --> 01:35:15.700] Now, notwithstanding any provision in subitem B, any other provision of law, [01:35:15.700 --> 01:35:20.700] a broadcaster, printer, outdoor advertising firm, advertising distributor, or publisher that broadcasts, [01:35:20.700 --> 01:35:25.700] publishes, displays, or distributes paid commercial advertising in this state [01:35:25.700 --> 01:35:30.700] that is intended to be disseminated primarily to customers located in this state, [01:35:30.700 --> 01:35:32.700] and it just continues on. [01:35:32.700 --> 01:35:35.700] And it's in this state, in this state, in this state all the way down. [01:35:35.700 --> 01:35:37.700] It just is never ending. [01:35:37.700 --> 01:35:40.700] Now, let's skip ahead just a little bit here. [01:35:40.700 --> 01:35:44.700] We're going to talk now, Randy, about the sales tax permit itself. [01:35:44.700 --> 01:35:53.700] In section 151.201, sales tax permits, item A, the comptroller shall issue to an applicant. [01:35:53.700 --> 01:35:56.700] What is an applicant? [01:35:56.700 --> 01:35:58.700] Someone who applies. [01:35:58.700 --> 01:35:59.700] Right. [01:35:59.700 --> 01:36:06.700] Can you be made to apply against your will? [01:36:06.700 --> 01:36:10.700] I think you can be required to apply. [01:36:10.700 --> 01:36:14.700] But that would be against your will if you didn't wish to apply, right? [01:36:14.700 --> 01:36:16.700] Yes. [01:36:16.700 --> 01:36:22.700] Because basically the term application has always been used as something that is voluntary. [01:36:22.700 --> 01:36:26.700] You don't have to do this thing, but if you do do it, [01:36:26.700 --> 01:36:30.700] you have to submit this application in order to get it done. [01:36:30.700 --> 01:36:32.700] It's just like having a driver's license. [01:36:32.700 --> 01:36:38.700] You don't have to have one, but if you want one, you've got to go apply for it. [01:36:38.700 --> 01:36:40.700] Same thing with a self-security card. [01:36:40.700 --> 01:36:44.700] You don't have to have one, but if you want one, you've got to go apply for it. [01:36:44.700 --> 01:36:51.700] But in order to participate in certain businesses in the state, [01:36:51.700 --> 01:36:55.700] you have to apply for the license. [01:36:55.700 --> 01:36:57.700] But let's see if that's completely true. [01:36:57.700 --> 01:37:02.700] If we go to section 151.202, application for permit, [01:37:02.700 --> 01:37:10.700] a person desiring to be a seller in this state shall file with the comptroller [01:37:10.700 --> 01:37:18.700] an application for a permit for each place of business. [01:37:18.700 --> 01:37:20.700] Seller. [01:37:20.700 --> 01:37:22.700] Right. [01:37:22.700 --> 01:37:30.700] And we're going to try to get to the definition of that if we have time. [01:37:30.700 --> 01:37:34.700] And then it tells you what the application must be on and so on and so forth. [01:37:34.700 --> 01:37:40.700] Now, if we go to section 151.0 or 403A and B and C, [01:37:40.700 --> 01:37:44.700] that's where it imposes the duty to prepare and file a tax report [01:37:44.700 --> 01:37:49.700] only on a person or a retailer that is subject to the sales tax [01:37:49.700 --> 01:37:55.700] and is engaged in selling, storing, or using taxable items in this state. [01:37:55.700 --> 01:37:58.700] And it specifically states who must file a report. [01:37:58.700 --> 01:38:02.700] A person subject to the sales tax shall file a report. [01:38:02.700 --> 01:38:08.700] A retailer engaged in business in this state as provided by section 151.107 [01:38:08.700 --> 01:38:13.700] of this code shall file a tax report with respect to the use tax. [01:38:13.700 --> 01:38:18.700] A person who acquires a taxable item, the storage, use, or consumption of which, [01:38:18.700 --> 01:38:21.700] is subject to the use tax, shall file a tax report [01:38:21.700 --> 01:38:26.700] if the person did not pay the use tax to a retailer. [01:38:26.700 --> 01:38:31.700] Now, 151.708 imposes a criminal penalty on a retailer [01:38:31.700 --> 01:38:35.700] who fails to obtain and display a sales tax permit. [01:38:35.700 --> 01:38:40.700] And the penalty is completely dependent on the accused being person [01:38:40.700 --> 01:38:47.700] or officer of a corporation that engages in business as a retailer [01:38:47.700 --> 01:38:51.700] in this state without a permit. [01:38:51.700 --> 01:38:57.700] Now, if that applies to me, it is very odd that as long as I have refused [01:38:57.700 --> 01:39:03.700] to use a sales tax permit and as long as I have refused to collect the sales tax for them, [01:39:03.700 --> 01:39:09.700] they have made no attempt whatsoever to charge me under this section of the code. [01:39:09.700 --> 01:39:12.700] And I have thrown it right in their face. [01:39:12.700 --> 01:39:16.700] And they still won't charge me under this section of the code. [01:39:16.700 --> 01:39:18.700] Let's see if we can see why. [01:39:18.700 --> 01:39:24.700] Selling without permit, criminal penalty, section 151.708. [01:39:24.700 --> 01:39:28.700] A person or officer of a corporation commits an offense [01:39:28.700 --> 01:39:33.700] if the person or corporation engages in business as a retailer in this state [01:39:33.700 --> 01:39:38.700] without a permit required by this chapter or after the permit is suspended. [01:39:38.700 --> 01:39:44.700] A first offense under this section is a Class C misdemeanor. [01:39:44.700 --> 01:39:46.700] And it keeps going up from there. [01:39:46.700 --> 01:39:50.700] If you keep getting convicted, then it goes up and they charge you more in fines, [01:39:50.700 --> 01:39:54.700] $2,000, $4,000, and so on, all the way up the line. [01:39:54.700 --> 01:40:00.700] They've never even bothered to hint that they could charge me under that section. [01:40:00.700 --> 01:40:04.700] And you're going to tell us why? [01:40:04.700 --> 01:40:10.700] Well, what I'm getting to is that when it specifically says a person [01:40:10.700 --> 01:40:15.700] or officer of a corporation, that's one and the same thing. [01:40:15.700 --> 01:40:21.700] It's a person that is subordinate or an agent or working for that corporation [01:40:21.700 --> 01:40:24.700] or it's an actual officer of that corporation. [01:40:24.700 --> 01:40:30.700] Those are the ones that are required to have that permit, the corporate entity, [01:40:30.700 --> 01:40:33.700] not the natural man or woman. [01:40:33.700 --> 01:40:39.700] I'm still concerned with that term individual being included in person. [01:40:39.700 --> 01:40:42.700] Yeah, I agree. [01:40:42.700 --> 01:40:48.700] And I think I'd deal with that a little further down, but let's see if we can get to it. [01:40:48.700 --> 01:40:53.700] Now, we see in 708 that it specifically limits the applicability of that section to a person [01:40:53.700 --> 01:40:57.700] or an officer of a corporation. [01:40:57.700 --> 01:41:01.700] And the offense can only be committed by the person or corporation, [01:41:01.700 --> 01:41:06.700] as it's stated right there in there. [01:41:06.700 --> 01:41:08.700] The comptroller and the enforcement officers, [01:41:08.700 --> 01:41:13.700] they will routinely falsify facts and figures on the tax statements that they send out [01:41:13.700 --> 01:41:16.700] when they send you what they call an assessment. [01:41:16.700 --> 01:41:22.700] They mail out a bunch of numbers to facilitate the appearance of a tax delinquency [01:41:22.700 --> 01:41:25.700] by certain types of business owners like they've done to me. [01:41:25.700 --> 01:41:28.700] They just make numbers up out of thin air on these statements [01:41:28.700 --> 01:41:31.700] and mail it and say, you owe us this much money. [01:41:31.700 --> 01:41:35.700] Even though, once again, they've never come in and asked to see my receipt, [01:41:35.700 --> 01:41:39.700] audited my books, they haven't done any of that. [01:41:39.700 --> 01:41:43.700] So they're just making numbers up and put them on these sales tax assessments [01:41:43.700 --> 01:41:45.700] and send them out to you. [01:41:45.700 --> 01:41:48.700] Now, they've got a problem with doing that. [01:41:48.700 --> 01:41:56.700] 151.7102A and B of the tax code say it is a felony of the third degree [01:41:56.700 --> 01:42:04.700] to falsify an entry in a tax record that is required to be made under Chapter 151. [01:42:04.700 --> 01:42:09.700] And it specifically states, a person commits an offense if the person intentionally [01:42:09.700 --> 01:42:14.700] or knowingly conceals, destroys, makes a false entry in, [01:42:14.700 --> 01:42:20.700] or fails to make an entry in records that are required to be made or kept under this chapter. [01:42:20.700 --> 01:42:25.700] An offense under this section is a felony of the third degree. [01:42:25.700 --> 01:42:30.700] Now, if all it does is limit that to person-granny, [01:42:30.700 --> 01:42:35.700] then it would seem to me like by faking numbers on those, they are extremely susceptible [01:42:35.700 --> 01:42:39.700] to that same punishment and charge. [01:42:39.700 --> 01:42:49.700] Well, this doesn't delineate between a taxpayer or a tax collector. [01:42:49.700 --> 01:42:50.700] That is correct. [01:42:50.700 --> 01:42:51.700] It does not. [01:42:51.700 --> 01:42:55.700] So when they start sending you these assessments or these tax statements [01:42:55.700 --> 01:43:01.700] that contain numbers that they could not possibly have derived from valid information from you [01:43:01.700 --> 01:43:09.700] because they've never asked you for it, then they're cooking it up. [01:43:09.700 --> 01:43:13.700] Because they can't seem to tell you what they're basing their numbers on. [01:43:13.700 --> 01:43:19.700] They just say, here they are. [01:43:19.700 --> 01:43:31.700] Is there code specifying how the tax is to be assessed by the agency? [01:43:31.700 --> 01:43:36.700] Not under the sales tax code, it's not being done at all. [01:43:36.700 --> 01:43:41.700] It just tells you what the rate to charge is and how you calculate it. [01:43:41.700 --> 01:43:44.700] Well, Eddie, this whole thing of where are they getting their numbers from, [01:43:44.700 --> 01:43:47.700] I mean, this reminds me of the Travis County Appraisal District [01:43:47.700 --> 01:43:51.700] and probably pretty much every other appraisal district in this state, [01:43:51.700 --> 01:43:54.700] if you want to call it that, where do they get their numbers? [01:43:54.700 --> 01:43:56.700] They just make them out of the thin air. [01:43:56.700 --> 01:43:58.700] Would you like to know where they get them, Deborah? [01:43:58.700 --> 01:44:03.700] Well, they claim that they get them from the realtors. [01:44:03.700 --> 01:44:09.700] They look at these comparisons, but that can't possibly be where they get them from. [01:44:09.700 --> 01:44:10.700] It's not. [01:44:10.700 --> 01:44:14.700] I actually had our county tax assessor admit to me [01:44:14.700 --> 01:44:18.700] that when they sent me a tax assessment for my business, [01:44:18.700 --> 01:44:23.700] I'd never even saw the tax collector or the assessor or anybody else. [01:44:23.700 --> 01:44:26.700] He specifically told me that the amount of money he was told to assess [01:44:26.700 --> 01:44:30.700] against my property came directly from the comptroller. [01:44:30.700 --> 01:44:32.700] So they're just making it up. [01:44:32.700 --> 01:44:33.700] Exactly. [01:44:33.700 --> 01:44:37.700] Yeah, because when you protest your property tax appraisal [01:44:37.700 --> 01:44:41.700] and you bring in the comparisons from the realtors [01:44:41.700 --> 01:44:45.700] and you show very clearly that it's absolutely not possible [01:44:45.700 --> 01:44:48.700] that your property is worth what they're claiming it's worth, [01:44:48.700 --> 01:44:51.700] they just look at you with deer in the headlights, [01:44:51.700 --> 01:44:54.700] like you're speaking Chinese to them or something. [01:44:54.700 --> 01:44:55.700] They don't care. [01:44:55.700 --> 01:44:56.700] Yeah. [01:44:56.700 --> 01:44:59.700] Well, see, when they did this to me the first time in 2005, [01:44:59.700 --> 01:45:06.700] in 2007 I finally got a letter from the attorney general saying [01:45:06.700 --> 01:45:10.700] that they were going to file an injunction to prevent me from operating my business. [01:45:10.700 --> 01:45:13.700] So I sat down with the information that I've given you all tonight. [01:45:13.700 --> 01:45:17.700] I wrote up a nice little letter to the attorney general [01:45:17.700 --> 01:45:23.700] based on what his people had done to seize my business without due process [01:45:23.700 --> 01:45:26.700] and that how if they continued with this injunction [01:45:26.700 --> 01:45:31.700] that I would file suit against them for barritory. [01:45:31.700 --> 01:45:37.700] I never heard from the attorney general again. [01:45:37.700 --> 01:45:41.700] And I have the certified mailed copy of the letter and the receipt [01:45:41.700 --> 01:45:43.700] and everything that shows where I notified them [01:45:43.700 --> 01:45:47.700] that I will never, ever again collect a sales tax [01:45:47.700 --> 01:45:51.700] and I will never, ever again get a permit. [01:45:51.700 --> 01:45:53.700] Wow. [01:45:53.700 --> 01:45:56.700] And they have never contacted me again. [01:45:56.700 --> 01:45:57.700] Wow. [01:45:57.700 --> 01:46:02.700] But the enforcement officers keep trying. [01:46:02.700 --> 01:46:05.700] Now, Randy, we were talking about all this. [01:46:05.700 --> 01:46:11.700] Now we're getting into those multiple word phrases that they're using as actual terms. [01:46:11.700 --> 01:46:14.700] We're going to see some of exactly how we can turn this around [01:46:14.700 --> 01:46:19.700] and show why this does not apply to the people. [01:46:19.700 --> 01:46:21.700] What we need to figure out now is the terms that they've been using [01:46:21.700 --> 01:46:25.700] to describe the collection of a retailer, seller, and all this [01:46:25.700 --> 01:46:29.700] when it comes to transacts or transacting business, [01:46:29.700 --> 01:46:33.700] what an occupation tax is, what carrying on a trader business is, [01:46:33.700 --> 01:46:37.700] and what doing business means precisely. [01:46:37.700 --> 01:46:44.700] None of these terms are defined in any of the statutes in Texas that I can find anywhere. [01:46:44.700 --> 01:46:49.700] So I went to Black's Law again, and here's what I got out of this. [01:46:49.700 --> 01:46:53.700] The term transacts business or transacting business, [01:46:53.700 --> 01:46:59.700] the term as used in statute providing that no foreign corporation [01:46:59.700 --> 01:47:04.700] transacting business in a state without certificate of authority [01:47:04.700 --> 01:47:10.700] shall maintain an action in the state if it has not obtained a certificate of authority. [01:47:10.700 --> 01:47:16.700] The test is whether or not a corporation is transacting business in a district [01:47:16.700 --> 01:47:22.700] for the purpose of the section of the Clayton Act, and it continues on. [01:47:22.700 --> 01:47:26.700] All it talks about there for transacts business and transacting business [01:47:26.700 --> 01:47:29.700] are foreign corporations and corporations. [01:47:29.700 --> 01:47:33.700] Let's go down and look at occupation tax. [01:47:33.700 --> 01:47:36.700] Occupation tax is a tax imposed upon an occupation [01:47:36.700 --> 01:47:40.700] or the prosecution of a business, trade, or profession. [01:47:40.700 --> 01:47:45.700] It is not a tax on property or even the capital employed in the business, [01:47:45.700 --> 01:47:49.700] but an excise tax on the business itself. [01:47:49.700 --> 01:47:52.700] It is to be distinguished from a license tax, [01:47:52.700 --> 01:48:01.700] which is a fee or exaction for the privilege of engaging in the business, not its prosecution. [01:48:01.700 --> 01:48:04.700] In other words, you don't have to have a license to do it, [01:48:04.700 --> 01:48:08.700] but they're saying the fact that you're doing it is a privilege. [01:48:08.700 --> 01:48:14.700] Now, is it possible for the people of America that our right to life, liberty, [01:48:14.700 --> 01:48:22.700] the pursuit of happiness, to support ourselves and our family is merely a privilege? [01:48:22.700 --> 01:48:29.700] Well, the last one, life, liberty, and the pursuit of happiness are not, [01:48:29.700 --> 01:48:37.700] but support our family, that's not included in the Constitution. [01:48:37.700 --> 01:48:41.700] It's not contained in the term of life? [01:48:41.700 --> 01:48:44.700] No. [01:48:44.700 --> 01:48:47.700] We can't just jump to that conclusion. [01:48:47.700 --> 01:48:51.700] This goes to enterprise. [01:48:51.700 --> 01:48:54.700] Well, I think that we have a right to do whatever we want. [01:48:54.700 --> 01:48:57.700] If we're not harming other people, [01:48:57.700 --> 01:49:03.700] and as long as we're not inflicting damage or harm or injury or death upon somebody else [01:49:03.700 --> 01:49:07.700] by supporting our families or doing what it takes to support our families, [01:49:07.700 --> 01:49:10.700] then by definition, we have a right to do it. [01:49:10.700 --> 01:49:11.700] Exactly. [01:49:11.700 --> 01:49:18.700] See, that's where everybody tends to figure out, you know, that, hey, how is this possible? [01:49:18.700 --> 01:49:21.700] When you start looking at the fact that the purpose of government, [01:49:21.700 --> 01:49:26.700] its sole true purpose is to protect the right of the people. [01:49:26.700 --> 01:49:27.700] That's right. [01:49:27.700 --> 01:49:31.700] It's not to regulate the people, it is to protect the rights of the people. [01:49:31.700 --> 01:49:33.700] That's right. [01:49:33.700 --> 01:49:36.700] And it is my right not to starve to death. [01:49:36.700 --> 01:49:43.700] It is my right not to let my wife or my child or anybody I know and care for to starve to death. [01:49:43.700 --> 01:49:44.700] That's right. [01:49:44.700 --> 01:49:49.700] And I may feed them, I may care for them, I may clothe them in any manner I wish, [01:49:49.700 --> 01:49:54.700] as long as what I do does not infringe on the rights or property of another. [01:49:54.700 --> 01:49:56.700] That's right. [01:49:56.700 --> 01:50:02.700] Yes, but that doesn't mean those actions are not taxable. [01:50:02.700 --> 01:50:06.700] Do you tax a right? [01:50:06.700 --> 01:50:11.700] If the government is allowed to tax a right, all that right has to do to be destroyed [01:50:11.700 --> 01:50:14.700] is for them to raise the tax beyond your ability to pay it. [01:50:14.700 --> 01:50:17.700] Shoot, they're already trying to tax the air we breathe. [01:50:17.700 --> 01:50:19.700] Do we not have a right to breathe air? [01:50:19.700 --> 01:50:20.700] They literally are. [01:50:20.700 --> 01:50:23.700] I mean, remember that Beatles song, The Taxman? [01:50:23.700 --> 01:50:27.700] And one of the lines of the songs is about they're even going to tax the air we breathe. [01:50:27.700 --> 01:50:30.700] You know, it's kind of a joke back in the 60s, but it's true now. [01:50:30.700 --> 01:50:33.700] They really are trying to tax the air we breathe. [01:50:33.700 --> 01:50:38.700] So I say the answer is no, because if they have the right to tax our rights, [01:50:38.700 --> 01:50:42.700] well, then we're nothing more than slaves. [01:50:42.700 --> 01:50:44.700] Well, but that's the whole thing. [01:50:44.700 --> 01:50:46.700] If they can tax a right, they can destroy it. [01:50:46.700 --> 01:50:50.700] Just by setting the tax level so high, you can't pay it. [01:50:50.700 --> 01:50:54.700] So therefore they cannot possibly have the authority to tax a right. [01:50:54.700 --> 01:50:55.700] Exactly. [01:50:55.700 --> 01:50:57.700] I mean, let's face facts. [01:50:57.700 --> 01:51:02.700] Our elected legislature, we granted them certain powers. [01:51:02.700 --> 01:51:04.700] We didn't give them rights. [01:51:04.700 --> 01:51:08.700] We didn't give them governance of us. [01:51:08.700 --> 01:51:15.700] We gave them the power to govern for us on a particular thing. [01:51:15.700 --> 01:51:17.700] They don't govern us. [01:51:17.700 --> 01:51:23.700] They govern things that belong to us and they see to its care and to its maintenance [01:51:23.700 --> 01:51:28.700] and that it's kept in good condition for us, just like that butler of the house [01:51:28.700 --> 01:51:30.700] I was talking about the other night. [01:51:30.700 --> 01:51:32.700] Exactly. [01:51:32.700 --> 01:51:34.700] Yeah, and you're absolutely right, Eddie. [01:51:34.700 --> 01:51:38.700] I mean, if they can tax a right, then that means they can take it away, [01:51:38.700 --> 01:51:41.700] so they can't, period. [01:51:41.700 --> 01:51:44.700] Now, let me see if I can get to these last two terms real quick. [01:51:44.700 --> 01:51:47.700] Carrying on a trade or business, to conduct, prosecute, [01:51:47.700 --> 01:51:53.700] or continue a particular application or business as a continuous or permanent occupation. [01:51:53.700 --> 01:51:56.700] The term, which has multiple meanings depending on the context, [01:51:56.700 --> 01:52:01.700] but it is commonly used in connection with the degree of activity of a foreign corporation [01:52:01.700 --> 01:52:03.700] in a given state. [01:52:03.700 --> 01:52:06.700] Now, let's go directly to the term doing business, [01:52:06.700 --> 01:52:10.700] which is actually used in our state constitution as well as our law. [01:52:10.700 --> 01:52:17.700] Within statutes on service of process on foreign corporations means the equivalent [01:52:17.700 --> 01:52:20.700] to carrying on, conducting, or managing a business. [01:52:20.700 --> 01:52:31.700] A foreign corporation is doing business, making it amenable to process within the state. [01:52:31.700 --> 01:52:35.700] In every definition I have found in any law dictionary, [01:52:35.700 --> 01:52:41.700] the term doing business is directly related to foreign corporations operating in a state [01:52:41.700 --> 01:52:46.700] where they are not originally based, where their headquarters is not. [01:52:46.700 --> 01:52:48.700] And I found that fact rather interesting. [01:52:48.700 --> 01:52:55.700] And where there is no specific definition, the common definition governs. [01:52:55.700 --> 01:52:58.700] Right. [01:52:58.700 --> 01:53:04.700] That is interesting. [01:53:04.700 --> 01:53:07.700] It's one of those things that takes a while to get your head around it, [01:53:07.700 --> 01:53:12.700] and it took this careful examination of the terms to get there. [01:53:12.700 --> 01:53:14.700] This is excellent. [01:53:14.700 --> 01:53:15.700] Yeah. [01:53:15.700 --> 01:53:18.700] And see, that's what I was saying before about what we're talking about in this state. [01:53:18.700 --> 01:53:22.700] Now, this is what I've started arguing with these people. [01:53:22.700 --> 01:53:23.700] You know what? [01:53:23.700 --> 01:53:27.700] The Attorney General will not say I'm wrong. [01:53:27.700 --> 01:53:30.700] He will not say I'm wrong. [01:53:30.700 --> 01:53:32.700] But this is how I presented to him. [01:53:32.700 --> 01:53:35.700] In Chapter 321 of the tax code, and when we read through it, [01:53:35.700 --> 01:53:42.700] we remember that all the terms that were defined in 151 mean the same thing in Chapter 321 that they did in 151. [01:53:42.700 --> 01:53:49.700] And 151, the term in this state, applies only to federal property and nowhere else. [01:53:49.700 --> 01:53:59.700] And he would not refute me. [01:53:59.700 --> 01:54:00.700] That's pretty incredible. [01:54:00.700 --> 01:54:06.700] Yeah, I found that sort of astounding, you know, because that's what I was basing that on, [01:54:06.700 --> 01:54:13.700] and I know Randy was latching onto that and to make it more, to make it all encompassing. [01:54:13.700 --> 01:54:18.700] But if that's true, I should have gotten an argument. [01:54:18.700 --> 01:54:27.700] Yeah, but that's a, I'm trying to remember the specific fallacy that goes to. [01:54:27.700 --> 01:54:30.700] Well, it's not the only nail I'm using to hang my hat on, though. [01:54:30.700 --> 01:54:31.700] Okay. [01:54:31.700 --> 01:54:38.700] By saying that because there was no objection, therefore, the statement must be true. [01:54:38.700 --> 01:54:43.700] It does not follow. [01:54:43.700 --> 01:54:45.700] That was the document I'm going to send you. [01:54:45.700 --> 01:54:46.700] Okay. [01:54:46.700 --> 01:54:47.700] That's fine. [01:54:47.700 --> 01:54:55.700] No, but I would say that if he did not object, it's highly likely that it's true. [01:54:55.700 --> 01:54:57.700] I'm going to say we can't go there. [01:54:57.700 --> 01:54:59.700] We have to find another way to get there. [01:54:59.700 --> 01:55:03.700] Well, I am, because it shows that it's most likely true. [01:55:03.700 --> 01:55:09.700] So for the time being, let's assume it is, and we'll find ways to prove it that are rock solid. [01:55:09.700 --> 01:55:14.700] Okay, because even though you may not be able to use that argument as proof, [01:55:14.700 --> 01:55:20.700] it certainly points in the direction, and it certainly gives us a clue that we need to head that direction. [01:55:20.700 --> 01:55:21.700] Yeah. [01:55:21.700 --> 01:55:30.700] Yeah, and I'm not saying not use it, just understand what ground we're actually on and not delude ourselves. [01:55:30.700 --> 01:55:40.700] When I write, sometimes I have grammatical errors, but if I have a grammatical error, I want to have done it on purpose. [01:55:40.700 --> 01:55:41.700] Right. [01:55:41.700 --> 01:55:46.700] Now, here's the thing that I think the listeners that find themselves in my situation are going to like, [01:55:46.700 --> 01:55:51.700] because this goes to your method, Randy, of putting things back on track. [01:55:51.700 --> 01:55:56.700] When we get to the enforcement actions, the way they're using them under Chapter 111, [01:55:56.700 --> 01:56:02.700] in other words, they are completely bypassing all statutory required procedures, all due process procedures. [01:56:02.700 --> 01:56:07.700] They're bypassing it all and going straight to the give me the money or I'm taking it anyway. [01:56:07.700 --> 01:56:09.700] That makes it a street gang. [01:56:09.700 --> 01:56:18.700] Exactly. We're going with an organized criminal activity approach, and this is how I've put together to try to do that. [01:56:18.700 --> 01:56:28.700] It actually states in the tax code that by mandate, okay, all governmental entities must cooperate [01:56:28.700 --> 01:56:32.700] with the actions of the comptroller when they're doing these things. [01:56:32.700 --> 01:56:40.700] Section 111.005, governmental entities to cooperate, each department, officer, and employee of the state [01:56:40.700 --> 01:56:46.700] or of a local government entity shall cooperate with and give reasonable assistance and information to the comptroller [01:56:46.700 --> 01:56:49.700] when performing authorized duties. [01:56:49.700 --> 01:56:51.700] Now, we talked about that. [01:56:51.700 --> 01:56:53.700] What's an authorized duty? [01:56:53.700 --> 01:56:58.700] Their duty can only be when they are following the procedures they're given. [01:56:58.700 --> 01:57:03.700] Otherwise, they're operating outside of their lawful scope. [01:57:03.700 --> 01:57:09.700] When they do that, everyone that's helping them is dragged outside of that scope right along with them. [01:57:09.700 --> 01:57:13.700] It's our baby business. [01:57:13.700 --> 01:57:20.700] And that's exactly why I've got 100-plus criminal charges against half the Nacogdoge's police force [01:57:20.700 --> 01:57:23.700] and a dozen comptroller personnel. [01:57:23.700 --> 01:57:29.700] And that's precisely the way to get the police department's attention. [01:57:29.700 --> 01:57:33.700] Well, you know, the other thing I found out, Randy, is that in the civil procedure, [01:57:33.700 --> 01:57:36.700] and you may know this better than I, but I went looking for it, [01:57:36.700 --> 01:57:39.700] and I couldn't find where they're allowed to do what they're doing, [01:57:39.700 --> 01:57:43.700] it says that the sheriff is the one that must enforce that order. [01:57:43.700 --> 01:57:51.700] He is the only law enforcement official that may show up to assist in the taking of private property. [01:57:51.700 --> 01:57:59.700] Well, actually, he can delegate deputies to stand in his place. [01:57:59.700 --> 01:58:02.700] Exactly, but I'm talking county law enforcement. [01:58:02.700 --> 01:58:05.700] He's still responded superior for his purpose. [01:58:05.700 --> 01:58:09.700] Yeah, another law enforcement agency can't just come in and do it. [01:58:09.700 --> 01:58:10.700] There you go. [01:58:10.700 --> 01:58:16.700] The Sheriff's Department has not been present at any time they've come in here and seized my business. [01:58:16.700 --> 01:58:19.700] It has always been the city police department. [01:58:19.700 --> 01:58:22.700] Incredible. [01:58:22.700 --> 01:58:24.700] All right, well, listen, we're at the end of the show. [01:58:24.700 --> 01:58:27.700] Sorry, callers, we didn't have time to take any calls. [01:58:27.700 --> 01:58:29.700] And thank you, Eddie, for joining us. [01:58:29.700 --> 01:58:30.700] Yes, ma'am. [01:58:30.700 --> 01:58:32.700] Thank you all for listening, and I hope it helps. [01:58:32.700 --> 01:58:33.700] Oh, absolutely. [01:58:33.700 --> 01:58:36.700] We'll have to do more shows on this subject. [01:58:36.700 --> 01:58:40.700] All right, everyone, please tune in tomorrow evening, Agenda 21 Talk at 6 p.m. [01:58:40.700 --> 01:58:45.700] and we'll be back tomorrow at 8 p.m. with Attorney Brian Michaels from the Rainbow. [01:58:45.700 --> 01:58:49.700] We'll see you tomorrow night. [01:59:15.700 --> 01:59:18.700] Thank you. [01:59:45.700 --> 01:59:48.700] Thank you. [01:59:48.700 --> 01:59:51.700] Thank you. [01:59:51.700 --> 02:00:19.700] Thank you.