Two recent Texas court opinions address 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. The Texas Supreme Court decided one […]
The Texas Comptroller has announced the extension of the Texas franchise tax filing and payment deadlines due to the ongoing COVID-19 situation. Annual Texas franchise tax reports are now due on July 15, 2020. All Texas franchise taxpayers will receive this extension automatically. Taxpayers may also request additional extensions. Mandatory EFT taxpayers. Taxpayers who the […]
The Texas Supreme Court recently released opinions in three Texas franchise tax/margin tax cases. All three opinions address the applicability of the Texas franchise tax’s cost of goods sold subtraction to costs incurred by taxpayers in specific industries. Below, we discuss the industry-specific rulings in each case, and then consider what the cases, taken as […]
The Texas Comptroller’s office announced today that it would offer assistance to taxpayers affected by coronavirus (COVID-19). According to a new page on the Texas Comptroller web site, the Texas Comptroller will offer short-term payment plans as well as waiver of penalty and interest for most taxpayers. Such assistance is available for the Texas sales […]
The Texas Comptroller announced possible Texas tax deadline extensions of some tax deadlines for those affected by Hurricane Harvey. The Comptroller may grant tax deadline extensions to file state tax returns and pay certain taxes, such as the Texas sales and use tax, of up to 90 days. Such Texas tax deadline extensions are available […]
The Texas Third Court of Appeals recently issued several Texas tax opinions, regarding both Texas franchise tax and Texas sales tax. This blog post summarizes those Texas tax opinions. Texas Sales and Use Tax Cantu Enterprises, LLC v. Hegar, et al. The Third Court of Appeals held that a taxpayer was not entitled to the […]
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 […]
The Texas Third Court of Appeals held today in Agri-Plex Heating and Cooling, LLC v. Hegar that the purchaser of a business may be liable for Texas sales and use tax assessed against the business for the time before the purchase, even if the Texas Comptroller did not audit the business and assess the tax […]
The Third Court of Appeals issued a new opinion today in American Multi-Cinema, Inc. v. Hegar, over a year and a half after the Texas Comptroller filed a motion for rehearing. The new opinion leaves in places the Third Court of Appeals’ prior ruling that a movie theater company may include costs of exhibiting films […]
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. […]
