A-79133, AUGUST 26, 1936, 16 COMP. GEN. 185

A-79133: Aug 26, 1936

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SOLD UNDER THE INTERNAL REVENUE LAWS ARE REQUIRED TO BE PAID INTO THE TREASURY WITHOUT DIMINUTION. IN WHICH CASES APPROPRIATED MONEYS MAY NOT BE USED FOR SUCH EXPENSES WHERE THE PROCEEDS OF SALE ARE SUFFICIENT THEREFOR. AS FOLLOWS: TRANSMITTED HEREWITH ARE COPIES OF CORRESPONDENCE BETWEEN THE DEPARTMENT AND GILBERT MECHAM. IS AS FOLLOWS: ON THE 25TH OF SEPTEMBER. THIS MERCHANDISE WAS SOLD AT PUBLIC AUCTION. TO THE MARSHAL IS IN PART AS FOLLOWS: REPLYING SPECIFICALLY TO YOUR INQUIRIES. YOU ARE INFORMED THAT THE ENTIRE PROCEEDS OF THE SALE OF THE BAR FIXTURES AND OTHER MERCHANDISE SHOULD BE DEPOSITED IN YOUR TRUST FUND AND PAID OUT ON PROPER DISBURSEMENT VOUCHER FORMS TO THE COLLECTOR OF INTERNAL REVENUE IN ACCORDANCE WITH SECTION 1647 OF TITLE 26.

A-79133, AUGUST 26, 1936, 16 COMP. GEN. 185

LIQUOR LAW VIOLATIONS - SEIZURES - EXPENSES OF SALES PROCEEDS FROM SALES OF PROPERTY SEIZED, FORFEITED, AND SOLD UNDER THE INTERNAL REVENUE LAWS ARE REQUIRED TO BE PAID INTO THE TREASURY WITHOUT DIMINUTION, THE EXPENSES OF STORAGE, ADVERTISING, C., BEING FOR PAYMENT FROM APPROPRIATIONS FOR SALARIES, FEES, AND EXPENSES OF UNITED STATES MARSHALS, EXCEPT IN CASES OF SEIZURES AND SALES OF VEHICLES AND AIRCRAFT UNDER SECTION 204 OF THE LIQUOR REPEAL AND ENFORCEMENT ACT OF AUGUST 27, 1935, 49 STAT. 878, IN WHICH CASES APPROPRIATED MONEYS MAY NOT BE USED FOR SUCH EXPENSES WHERE THE PROCEEDS OF SALE ARE SUFFICIENT THEREFOR.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ATTORNEY GENERAL, AUGUST 26, 1936:

THERE HAS BEEN RECEIVED YOUR LETTER OF JULY 25, 1936 (B MC 23-77 178), AS FOLLOWS:

TRANSMITTED HEREWITH ARE COPIES OF CORRESPONDENCE BETWEEN THE DEPARTMENT AND GILBERT MECHAM, UNITED STATES MARSHAL, SALT LAKE CITY, UTAH, RELATIVE TO THE APPROPRIATION CHARGEABLE WITH COSTS OF STORAGE OF BAR FIXTURES SEIZED UNDER THE INTERNAL REVENUE LAWS. DO THE DEPARTMENT'S INSTRUCTIONS CONFORM WITH THE PRESENT RULINGS OF YOUR OFFICE IN VIEW OF THE LANGUAGE OF SECTIONS 304 AND 305 OF THE LIQUOR REPEAL AND ENFORCEMENT ACT OF 1935, 49 STAT. 880?

THE COPY OF A LETTER FROM UNITED STATES MARSHAL MECHAM TO YOUR, DATED APRIL 15, 1936, ENCLOSED WITH YOUR LETTER, IS AS FOLLOWS:

ON THE 25TH OF SEPTEMBER, 1934, WE SERVED MONITION AND NOTICE OF SEIZURE ON GEORGE GERRARD ET AL., COVERING BAR FIXTURES AND OTHER MERCHANDISE WHICH HAD BEEN SEIZED BY THE ALCOHOL TAX UNIT, AND ON THE 28TH OF MARCH, 1936, THIS MERCHANDISE WAS SOLD AT PUBLIC AUCTION, BY THE UNITED STATES MARSHAL, FOR THE SUM OF $29.75.

THE COST OF ADVERTISING THE SALE AMOUNTED TO $16.38 AND STORAGE TO DATE AT HADLEY TRANSFER AND STORAGE COMPANY AMOUNTED TO $21.60.

KINDLY ADVISE US AS TO WHAT DISPOSITION WE SHOULD MAKE OF THE MONEY RECEIVED FROM THIS SALE AND FROM WHAT APPROPRIATIONS THE COSTS OF ADVERTISING AND STORAGE SHOULD BE PAID, AND OBLIGE.

AND THE COPY OF YOUR REPLY OF JULY 24, 1936, TO THE MARSHAL IS IN PART AS FOLLOWS:

REPLYING SPECIFICALLY TO YOUR INQUIRIES, YOU ARE INFORMED THAT THE ENTIRE PROCEEDS OF THE SALE OF THE BAR FIXTURES AND OTHER MERCHANDISE SHOULD BE DEPOSITED IN YOUR TRUST FUND AND PAID OUT ON PROPER DISBURSEMENT VOUCHER FORMS TO THE COLLECTOR OF INTERNAL REVENUE IN ACCORDANCE WITH SECTION 1647 OF TITLE 26, UNITED STATES CODE. THE EXPENSES OF ADVERTISING THE SALE AND THE COST OF STORAGE SHOULD BE PAID, UPON AUTHORIZATION BY THE DEPARTMENT, FROM THE APPROPRIATION "SALARIES, FEES, AND EXPENSES OF MARSHALS, UNITED STATES COURTS.' * * *

THE INSTRUCTIONS GIVEN THE MARSHAL APPEAR IN ACCORD WITH THE PRINCIPLES AND RULES STATED IN DECISION OF MAY 10, 1932, 11 COMP. GEN. 422, AND DECISION OF JANUARY 28, 1916, 22 COMP. DEC. 336, THAT UNLESS OTHERWISE PROVIDED BY LAW THE ENTIRE PROCEEDS FROM FORFEITED PROPERTY SOLD BY COURT ORDER ARE REQUIRED TO BE PAID INTO THE TREASURY AND THAT THE EXPENSES ARE PAYABLE UNDER APPROPRIATIONS FOR "SALARIES, FEES, AND EXPENSES OF UNITED STATES MARSHALS"--- SEE, ALSO, 4 COMP. GEN. 594 AND 7 ID. 649--- AND WITH THE REQUIREMENTS OF SECTION 3216, REVISED STATUTES (TITLE 26, SEC. 1647, UNITED STATES CODE), WHICH PROVIDES:

ALL JUDGMENTS AND MONEYS RECOVERED OR RECEIVED FOR TAXES, COSTS, FORFEITURES, AND PENALTIES, SHALL BE PAID TO COLLECTORS AS INTERNAL TAXES ARE REQUIRED TO BE PAID. SEE 22 COMP. DEC. 336.

IN DECISION OF JUNE 8, 1936, 15 COMP. GEN. 1065, IT WAS HELD, PURSUANT TO SECTION 204 OF THE LIQUOR REPEAL AND ENFORCEMENT ACT OF AUGUST 27, 1935, 49 STAT. 878, RELATING TO THE FORFEITURE OF ,ANY VEHICLE OR AIRCRAFT SEIZED FOR A VIOLATION OF THE INTERNAL-REVENUE LAWS RELATING TO LIQUOR," THAT WHERE THE PROCEEDS OF SALE ARE SUFFICIENT TO COVER THE EXPENSES INCIDENT TO SEIZURE AND FORFEITURE, APPROPRIATED FUNDS ARE NOT AVAILABLE THEREFOR, BUT THIS APPLIES ONLY TO VEHICLES AND AIRCRAFT AS EXPRESSLY STIPULATED IN SUCH SECTION OF THE STATUTE AND HAS NO APPLICATION TO OTHER PROPERTY SEIZED, FORFEITED, AND SOLD BY COURT ORDER.

YOU CITE SECTIONS 304 AND 305 OF THE SAID LIQUOR REPEAL AND ENFORCEMENT ACT AS POSSIBLY AFFECTING THE MATTER. THESE SECTIONS ARE A PART OF TITLE III OF THE ACT, 49 STAT. 879, PROVIDING GENERALLY FOR THE OFFICIAL USE BY GOVERNMENT AGENCIES OF ABANDONED OR SEIZED AND FORFEITED PROPERTY. SECTION 305 IS IN PART AS FOLLOWS:

THE APPROPRIATION AVAILABLE TO ANY AGENCY FOR THE PURCHASE, HIRE, OPERATION, MAINTENANCE, AND REPAIR OF PROPERTY OF ANY KIND SHALL BE AVAILABLE FOR THE PAYMENT OF EXPENSES OF OPERATION, MAINTENANCE, AND REPAIR OF PROPERTY OF THE SAME KIND RECEIVED BY IT UNDER ANY PROVISION OF THIS TITLE FOR OFFICIAL USE; * * *. THE COSTS OF HAULING, TRANSPORTING, TOWING, AND STORAGE OF SUCH PROPERTY SHALL BE PAID BY THE AGENCY WHICH HAS SEIZED SUCH PROPERTY OR TO WHICH IT HAS BEEN ABANDONED; * * *.

CLEARLY THE TERM "SUCH PROPERTY"--- AS TO WHICH THE AGENCY SHALL PAY THE COSTS OF HAULING, TRANSPORTING, TOWING, AND STORAGE--- RELATES BACK TO "PROPERTY * * * RECEIVED BY IT UNDER ANY PROVISION OF THIS TITLE FOR OFFICIAL USE" AND THE SECTIONS CITED HAVE NO APPLICATION IN THIS RESPECT TO PROPERTY NOT RETAINED FOR OFFICIAL USE BUT WHICH IS OTHERWISE FORFEITED AND SOLD PURSUANT TO LAW.

ACCORDINGLY, YOU ARE ADVISED THAT, ON THE FACTS SUBMITTED, THE INSTRUCTIONS GIVEN THE MARSHAL WERE CORRECT.