Tag Archives: construction business

Appeals Court: No COGS for Heavy Equipment Delivery/Pick-up Fees

The Texas Third Court of Appeals recently held in Hegar v. Sunstate Equipment Co., LLC, that a company that leased heavy equipment to contractors could not include its delivery and pick-up fees for the equipment in its cost of goods sold deduction for Texas franchise tax COGS deduction purposes.  In doing so, the Third Court […]


Major Texas Franchise Tax Policy Change: Comptroller Gives Up on the “Physical Change” Rule for Subcontractor Exclusion and COGS Deduction

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 […]


Another Taxpayer Win in Texas Margin Tax Case

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 […]


Major Change to Texas Franchise Tax Cost of Goods Sold Rule Finalized

The Texas Comptroller just adopted a major revision to the Texas franchise tax cost of goods sold rule.  The final rule the Texas Comptroller adopted is basically the same as the proposed cost of goods sold rule Michael described in his earlier post.  I’ll describe the ways the Texas Comptroller’s final cost of goods sold […]


The 2013 Changes to the Texas Franchise Tax

The 83rd Regular Legislative session is at an end, and the Legislature passed many changes to the Texas franchise tax in the session’s final hours. The bill that included most of these changes was HB 500. I previously covered the House version of this bill, as well as the very different Senate version. The Legislature worked out […]


Band-Aids on a Critical Patient: Changes to the Texas Franchise Tax in 2013

Last week, the House passed HB 500, a major revision to the Texas franchise tax. This is the first indication of what changes may be in store for the Texas franchise tax, or margin tax, in 2013.  Below is a fairly complete list of all of the changes that HB 500 includes. Of course, the […]


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