The Texas Supreme Court recently ruled on apportionment under the Texas franchise tax, also known as the Texas margin tax. Apportionment is the method by which a taxpayer determines how much of its income (or, in Texas, taxable margin) is taxable to a particular state as opposed to other states. In this case, the Texas […]
In its opinion issued May 8, 2020 in EBS Solutions, Inc. v. Hegar, the Texas Supreme Court allowed a taxpayer’s lawsuit challenging a Texas tax assessment to go forward even though the taxpayer had not prepaid the entire assessment before filing suit. (Note: Seay & Traphagan, PLLC represents EBS Solutions, Inc. in connection with this […]
The Texas Supreme Court recently issued its opinion in Graphic Packaging Corp. v. Hegar. It upheld the Third Court of Appeals’s ruling 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. However, in doing so, it relied on different reasoning […]
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. […]
Today, the Texas Supreme Court denied the Texas Comptroller’s Petition for Review in the Richmont Aviation case. As a result, the Third Court of Appeals’ decision in the taxpayer’s favor becomes final, but the Texas Supreme Court has taken no position on the Third Court of Appeals’ holding in Richmont Aviation, leaving some uncertainty in […]
