Texas Comptroller appeals taxpayer’s margin tax win in Titan Transportation

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 real property in favor of the taxpayer’s more expansive view.  Our earlier post on the Titan case describes that opinion in more detail (Note that Seay & Traphagan does not represent Titan Transportation, L.P. and had no involvement in this case).  The Comptroller’s petition for review is available here.

This means that the Third Court of Appeals’ decision is not final.  The Third Court of Appeals’ decision will become final if the Texas Supreme Court decides not to review it — the Texas Supreme Court’s review is discretionary, meaning that, like the United States Supreme Court, it only reviews cases that it chooses to review.  The Texas Supreme Court may also decide to review the case and issue its own decision.

We will post updates on any further developments in the Titan case to this blog.


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