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Author Archives: Michael Seay

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 […]

By | July 17, 2014

Introducing Seay & Traphagan, PLLC: State Tax Attorneys

I am very pleased to announce that Amanda Traphagan has agreed to join me as co-owner of the firm.   We are now Seay & Traphagan, PLLC: State Tax Attorneys.  Amanda has served our clients well for the past year, and I have no doubt that she will continue to provide stellar service in her […]

By | May 2, 2014

Texas Governor Signs all Significant Texas Franchise Tax and Texas Sales Tax Bills

Yesterday, the Texas franchise tax and the Texas sales and use tax became a bit more complicated. Governor Rick Perry just signed into law all significant Texas franchise tax and Texas sales tax bills the Legislature passed in 2013. Each bill adds a few more twists to an already-tangled Texas tax code. Amanda summarized the […]

By | June 15, 2013

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 […]

By | May 31, 2013

The Senate’s Plan for Texas Franchise Tax Relief

The Texas Senate just passed its plan for fixing the Texas Franchise Tax.  It’s quite different from the Texas Franchise Tax reform bill the House passed two weeks ago, which I detailed in an earlier post.  Of course, this means that the House and Senate must reconcile the differences over the weekend if the Legislature […]

By | May 24, 2013

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 […]

By | May 13, 2013

A Warm Welcome to Amanda Traphagan, Texas Tax Attorney

I’m pleased to announce that the firm has hired Amanda Traphagan, Texas tax attorney. You can read more about her by following the link. I worked with Amanda at my previous firm, and she is one of the brightest and most creative attorneys I’ve ever met. She also always has her clients’ best interests in mind. […]

By | May 7, 2013

Major Change in the Works for Texas Franchise Tax Cost of Goods Sold Rules

Last Friday, the Texas Comptroller posted to the Texas Register a proposed revision to her Rule 3.588, which explains how to calculate COGS (cost of goods sold) for Texas franchise tax purposes. The Comptroller appears ready to significantly expand which costs are included in the cost of goods sold deduction.

By | March 18, 2013

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 […]

By | March 13, 2013

More Complexity with the Texas Franchise Tax: Does a rent-to-own store qualify for the half-percent rate?

Over the next couple of weeks, I plan on writing about several Texas tax cases currently pending before the Texas appellate courts. Several cases involve the Texas franchise tax. Many more involve the Texas sales tax. Today we’ll discuss a Texas franchise tax case recently argued in Travis County District Court: Rent-a-Center, Inc. v. Combs, […]

By | February 8, 2013

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