Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939 Page: 43 of 263
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It is intended to embrace the fundamental necessities pointed out above.
Briefly stated, it is a graduated chain store tax based and graduated upon
the number of stores and the gross revenues.
I recommend the passage of a bill embodying substantially the principles
of S. B. 188, placing a tax upon itinerant merchants and fly-bynight
dealers who pay no taxes for the support of government. It will
afford a small source of revenue and, at the same time, tend to protect
legitimate merchants in every town and community from this unfair
Petrolen 7 Ttx
Texas now produces almost half of the crude petroleum output in the
United States. This production represents not only a major industry in
the State, but the chief natural resource as well. The Oil and Gas Journal
reflects that for the twelve months period ending August 31, 1935, Texas
produced 41.94%C of the crude petroleum produced in the United States;
Oklahoma produced 29.21%e, and California produced 19.65%. These three
states produced 81.88': of the total crude petroleum produced in the
The Bureau of Mines of the United States Department of Commerce
shows that for the calendar year 1932 the gasoline yield per barrel of
crude petroleum was 18.77 gallons. Other sources of information reflect
the yield to range from 15.12 gallons to 22.01 gallons per barrel for the
During the fiscal year ending August 31, 1934, the Comptroller of
Public Accounts reports a production tax paid to the State government
on 364,721,615 barrels of crude oil. Assuming that only 15 gallons of
gasoline could be produced from a barrel of crude oil, and employing the
barrelage shown by the Comptroller, the crude petroleum produced in
Texas yielded 5,470,824,225 gallons of gasoline. On a 16 gallon yield per
barrel of crude oil, Texas produced a total of 5,835,545,840 gallons of
The report of the Comptroller further shows that the gasoline tax in
Texas yielded $33,879,648.00 for the fiscal year ending August 31, 1934.
This figure represents the tax on the total gasoline consumed in the State,
as the law provides that the tax be paid on all gasoline at the time of
the sale. Since the State gasoline tax is four cents per gallon, the
total amount collected represents a tax paid on 846,991,218 gallons of
gasoline consumed in Texas. Since it may be assumed that the consumption
of other petroleum products is in the ramie ratio as gasoline, then
approximately 15%', of all other products from petroleum are consumed
within the State. Using therefore a gasoline yield of 15 gallons of
gasoline per barrel of crude oil, the citizens of Texas consumed only
15.48% of the crude petroleum produced by the State of Texas. If the
gasoline yield be 16 gallons, then Texas consumed only 14.51%4, of the
total crude oil production.
In other words, approximately 85% of the crude oil of Texas is consumed
beyond the boundaries of the State. Our citizens pay a gasoline tax of
four cents per gallon on every sale within the State; yet purchasers of
gasoline in other states and in other countries secure the same gasoline
without paying any tax at all to Texas where these irreplaceable natural
resources are found.
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Allred, James V. Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939, book, 1939; (texashistory.unt.edu/ark:/67531/metapth3899/m1/43/: accessed June 21, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .