ROL_2009-04-09_16k.timecode

[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?
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[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.
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[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,
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[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.
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[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.