The United States Supreme Court denied review of Gillette Co. v. California Franchise Tax Board, the California Supreme Court case holding that taxpayers may not use the Multistate Tax Compact’s three-factor apportionment method to apportion their income under the California Business Income Tax. As is customary, the Court didn’t explain its reasons for denying review. […]
The Texas Third Court of Appeals issued its opinion today in Fitness International, LLC v. Hegar. It held that certain equipment, such as cardio machines and weight racks, that a health club purchased for its customers’ use, was not exempt from Texas sales and use tax under the sale for resale exemption. The court based […]
The Texas Fourteenth Court of Appeals issued its opinion Tuesday in Hegar v. CheckFree Services Corporation. It held that an online bill pay service was not a taxable data processing service under the Texas sales tax. The court based its ruling on the fairly extensive role of individuals with specialized, professional knowledge in providing the […]
The Texas Supreme Court issued an opinion today in Hallmark Marketing Co., LLC v. Hegar. The opinion invalidated a Texas Comptroller rule regarding apportionment under the Texas franchise tax (also known as the Texas margin tax). The rule required taxpayers to reduce net gains from sales of capital assets and investments by the amount of […]
A Travis County District Court judge ruled Thursday that Texas’s school finance system violates the Texas Constitution. The judgment and associated findings of fact and conclusions of law are available here. Review of the decision will go directly to the Texas Supreme Court. The judge wrote that his ruling would not be implemented until July […]
The Third Court of Appeals recently held in Combs v. Texas Small Tobacco Coalition that a new tax on small tobacco manufacturers violates the Equal and Uniform Taxation Clause of the Texas Constitution. In doing so, the Third Court upheld a trial court decision from late last year invalidating the tax. The opinion highlights the […]
As we reported earlier, the Third Court of Appeals ruled in Southwest Royalties, Inc. v. Combs that oil and gas above-ground and downhole production equipment doesn’t qualify for the Texas sales tax manufacturing exemption. This case has drawn a fair amount of attention due to the large potential financial impact on the State of Texas […]
The Texas Third Court of Appeals just issued its opinion in Southwest Royalties, Inc. v. Combs, No. 03-12-00511-CV. The opinion affirms a district court opinion denying oil and gas operators the Texas sales tax manufacturing exemption on their purchases of certain above-ground and downhole production equipment. The opinion also provides some useful discussion of the circumstances […]
A Travis County District Court judge ruled on July 22, 2014 in Autohaus LP, LLP v. Combs that an auto dealer could include labor costs to install new and replacement auto parts in its cost of goods sold for Texas franchise tax purposes. In doing so, the judge held that the Comptroller rule defining the […]
In its recent decision in IBM Corp. v. Department of Treasury, the Michigan Supreme Court ruled that taxpayers may apportion their tax base for the Michigan Business Tax using the three-factor apportionment method provided by the Multistate Tax Compact instead of the single-factor apportionment method the Michigan Business Tax statute provided. The decision means that […]
