Did Texas's tax-law definition of "person" change when the tax statutes were recodified in 1981?

Plain-English summary

A taxpayer asked a narrow legal-research question by email: has the definition of "person" for Texas tax purposes changed over time? The Comptroller's Tax Policy Division analyst -- who calls it "one of the most difficult questions of the month" -- traced the definitional history:

Before 1981, former Tex. Tax.-Gen. Ann. art. 20.01(A) defined "person" expansively: individuals, firms, copartnerships, joint ventures, associations, social clubs, fraternal organizations, corporations, estates, trusts, business trusts, receivers, assignees for the benefit of creditors, trustees (including bankruptcy trustees), syndicates, cooperatives, or any other group or combination acting as a unit -- plus the United States and its agencies, and the State of Texas and its political subdivisions, to the extent they sell taxable items.

In 1981, the Legislature recodified the tax statutes but didn't carry forward a separate definition of "person" (along with several other terms) into the new title -- instead, those terms are covered by the general Code Construction Act. Tex. Gov't Code § 311.005 defines "person" to include a corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity (with a later note that a county is also a "person" for a specific Civil Practice and Remedies Code appeal provision, unrelated to tax).

Comparing the two, the Comptroller concluded the definition "has not substantially changed" from the original pre-1981 version.

What this means for you

Anyone researching older Texas tax authorities

If you're working with a pre-1981 Texas tax citation or hearing that turns on who counts as a "person" (an individual, partnership, trust, government unit, etc.), this letter confirms the post-1981 Code Construction Act definition is understood by the Comptroller to carry essentially the same scope -- so older authorities interpreting "person" generally remain useful reference points on that specific question.

Accountants and tax professionals

Useful as a pointer for statutory lineage if you need to cite both the repealed pre-1981 tax article and its modern Code Construction Act counterpart in the same analysis.

Common questions

Q: Is "person" for Texas tax purposes limited to individuals?
A: No -- both the old and current definitions are broad, covering individuals, partnerships, corporations, trusts, associations, and various government units and subdivisions engaged in taxable activity.

Q: Did recodifying the tax code in 1981 narrow or expand who counts as a "person"?
A: According to this letter, no -- the Comptroller found the definition has not substantially changed between the pre-1981 tax article and the current Code Construction Act definition that now governs.

Q: Does this letter bind the Comptroller?
A: No -- it's an informal 2001 email response to one taxpayer's research question, not a modern Private Letter Ruling or General Information Letter, and cannot be relied on by anyone else.

Citations and references

Statutes:

• Former Tex. Tax.-Gen. Ann. art. 20.01(A) (pre-1981 tax-code definition of "person," since repealed by the 1981 recodification)
• Tex. Gov't Code § 311.005 (Code Construction Act, current general definition of "person")

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200110545L

Original ruling text

October 15, 2001

Dear **:

Thank you for your e-mail. You asked, what turned out to be, one of the most
difficult questions of the month. And, with your patience I will attempt an
answer that I hope is not too convoluted.

The TEX. TAX.-GEN.- ANN. Article 20.01 defined person. Under the provisions of
Article 20.01(A) a person was defined as follows:

Person shall mean and include any individual, firm, coparternership, joint
venture, association, social club, fraternal organization, corporation, estate,
trust, business trust, receiver, assignee for the benefit of creditors,
trustee, trustee in bankruptcy, syndicate, cooperative, assignee, or any other
group or combination acting as a unit. "Person" shall also include the United
States or any agency thereof, this State, or any agency hereof, or any city,
county, special district, or other political subdivision of this State to the
extent engaged in the selling of items taxable under this Chapter.

In 1981, the Texas Legislature recodified this Article and defined other words
not included in the amended title. These words included, property, person,
written, oath, swear, signature, and preceding federal census are either
defined by or appropriately covered by the Code Construction Act.

Under the provisions of TEX. GOV'T CODE ANN, 311.005 (Vernon 1998), "person"
includes corporation, organization, government or governmental subdivision or
agency, business trust, estate, trust, partnership, association, and any other
legal entity. The latest notation in TEX. GOV'T CODE ANN, 311.005 (Vernon
Supp. 2001) makes the notation that a County is a person for purposes of a
Civil Practice and Remedies Act appeal provision. The "layman's" translation
is, therefore, that the definition has not substantially changed from the
original definition found in paragraph three of this e-mail.

Please feel free to contact me with any additional or different information if
these answers to not respond appropriately to your question.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

You may call me toll free at 1-800-531-5441.

Sincerely,

Nolan F. Ward