Tag Archives: pass through revenue

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 […]

Texas Franchise Tax Hearing on June 5

The Texas House Ways & Means Committee recently announced a hearing on changes to the Texas franchise tax, also known as the margin tax. The hearing is scheduled for June 5. The notice for the meeting is posted here. The Committee wishes to discuss “equity and administrative issues” about the margin tax, including but not limited […]


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