Category Archives: Texas Supreme Court Decisions

Southwest Royalties: No New Manufacturing Exemption for Oil & Gas, Texas Supreme Court Says

Today, the Texas Supreme Court released its long-awaited opinion in Southwest Royalties, Inc. v. Hegar.  It held that oil and gas above-ground and downhole production equipment doesn’t qualify for the manufacturing exemption from Texas sales and use tax, affirming the ruling of both the Third Court of Appeals and the trial court.  This case has […]

Texas Supreme Court: Margin Tax Apportionment Rule Invalid

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 […]

Texas Supreme Court Refuses to Defer to Texas Comptroller’s Interpretation of Sale-for-Resale Exemption

Today, the Texas Supreme Court continued its trend of giving little deference to the Texas Comptroller in Combs v. Health Care Services Corporation.  There, the Texas Supreme Court held that Health Care Services Corporation, a company that administers federal health insurance programs, was entitled to the sale-for-resale exemption from Texas sales and use taxes on […]

Texas Tax Appellate Court Decisions: The Year in Review

This post takes a quick look at the decisions regarding Texas sales and use tax and Texas franchise tax that the Texas Supreme Court and Texas Courts of Appeals have handed down in the past year.  While this blog has already discussed some of these, now is a good time to revisit them in light […]

Not Much Deference to the Comptroller From the Courts These Days

Over the last few weeks, Texas courts haven’t been giving much deference to the Texas Comptroller—at least, not to her administrative rules. Two courts have determined that certain Comptroller rules are unnecessary at best, and invalid at worse. One of those courts was the Texas Supreme Court. The Roark Case and the Texas Sales Tax […]

Nestle’s Constitutional “Shotgun Blast” to the Texas Franchise Tax Results in a Loss: Any Positives for Texas Taxpayers?

Last Friday, the Texas Supreme Court announced its decision in the Nestle USA, Inc. case. This was Nestle’s second constitutional challenge to the Texas franchise tax.  Not surprisingly, the Court rejected Nestle’s challenge–it upheld the tax. Nestle’s Challenge to the Texas Franchise Tax Nestle’s approach was to take a “shotgun blast” to the tax. I […]


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