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 […]
The Texas Third Court of Appeals issued its opinion yesterday in Graphic Packaging Corp. v. Hegar, No. 03-14-00197-CV. It ruled that taxpayers may not choose to use the Multistate Tax Compact’s three-factor apportionment method to apportion their taxable margin under the Texas franchise tax. In doing so, the Third Court of Appeals held that the […]
While the 2015 Texas Legislature gave taxpayers a significant franchise tax (margin tax) rate cut and repealed some smaller taxes (some of which had not been collected in years), it otherwise left much of the Texas tax code otherwise unchanged. In this Texas legislative recap, we’ll tell you about the changes the Texas Legislature made […]
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 […]
The Texas Comptroller recently published a very significant policy letter to the Comptroller’s online database. The letter announces a significant change in Texas franchise tax policy that could affect entities even only somewhat involved with the design, construction, remodeling, repair, or industrial maintenance of real property. The Comptroller’s previous policy was that only entities that […]
The Texas Comptroller filed a petition for review with the Texas Supreme Court, asking it to overturn the Third Court of Appeals’ decision in the taxpayer’s favor in Titan Transportation, L.P. v. Combs. That decision rejects the Texas Comptroller’s narrow, restrictive interpretation of the revenue exclusion for certain payments to those who perform work on […]
The Third Court of Appeals’ decision in Combs v. Newpark Resources, Inc. became final today, marking Texas taxpayers’ first appellate margin tax win. The Texas Comptroller did not file a timely appeal with the Texas Supreme Court, so the Third Court of Appeals issued its mandate today. The opinion, originally handed down this past December, […]
The Third Court of Appeals’ recent opinion in Titan Transportation v. Combs is another big win for taxpayers under the revised Texas franchise tax (also known as the Texas margin tax). In opinion, the Third Court of Appeals rejected the Texas Comptroller’s narrow, restrictive interpretation of the revenue exclusion for certain payments to those who […]
The Third Court of Appeals issued its opinion today in Combs v. Newpark Resources, Inc., its first case under the revised Texas franchise tax law (also known as the Texas margin tax). The opinion rejects the Texas Comptroller’s narrow interpretation of the Texas franchise tax’s cost of goods sold deduction in favor of the taxpayer’s […]
