In Hegar v. Sirius XM Radio, Inc., the Texas Supreme Court reversed the Third Court of Appeals, rejecting the Comptroller’s argument that receipts from services should be apportioned based on the “receipt-producing, end-product act” test. Instead, the court found that
Martens, Todd & Leonard
Martens, Todd & Leonard is a boutique law firm based in Austin, Texas, specializing in Texas state tax law. The firm focuses on matters such as Texas sales tax audits, franchise tax audits, tax refunds, administrative hearings, trials, and appeals. Their practice areas include handling various Texas taxes like sales and use tax, franchise tax, motor fuels tax, motor vehicle taxes, and oil and gas well servicing tax. The firm provides detailed legal analysis and updates on Texas tax law developments, including court decisions and administrative guidance, primarily serving clients with interests in Texas tax compliance and disputes.
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Texas Franchise Tax Update: Comptroller Issues FAQs on Cost of Goods Sold
On February 4, 2022, the Texas Comptroller recently provided guidance clarifying several Texas franchise tax Cost of Goods Sold (“COGS”) issues for Texas taxpayers. The Comptroller issued the guidance as responses to Frequently Asked Questions (“FAQs”). The FAQs touch on…
Refund Claims Easier to Preserve for Judicial Review—For Now
A Texas appellate court sitting en banc recently made it easier for taxpayers to preserve refund claims for judicial review by quoting the relevant subsection(s) of the manufacturing exemption statute and including supporting documentation identifying the equipment and transactions at…
Manufacturing Exemption – Raw Materials as Real Property
A Texas appellate court recently allowed the manufacturing exemption for equipment used to process real property into products.Lignite begins as real property and ends as tangible personal property.Texas Westmoreland Coal Company (“Westmoreland”) owned and operated a lignite coal mine in…
Texas Franchise Tax Update: Finance Leases Qualify for Lower Franchise Tax Rate
By Jimmy Martens & John Grubb
Businesses that finance sales using leases should consider filing Texas franchise tax refund claims based upon a recent Texas court case. A Texas appellate court recently held that Xerox Corporation (“Xerox”) was entitled to compute its franchise tax based upon…
Martens, Todd & Leonard Welcomes New Associate R. John Grubb II
By Publisher
Martens, Todd & Leonard is pleased to announce the addition of R. John Grubb II to its Texas state and local tax controversy team. Mr. Grubb will join the other members of the firm in representing Texas taxpayers before the…
Local Sales Tax Sourcing Rules for Online Retailers Delayed Again
Texas Taxpayers have reached a deal with the Comptroller to delay implementation of the Comptroller’s new local sales tax sourcing rules for internet and shopping app sales until a trial expected to occur the week of June 13, 2022.On Monday,…
New Laws Ease Taxpayers’ Path to State Court
On June 7, 2021, the Texas Governor signed both HB 2080 and SB 903 into law. The bills substantially lower the practical hurdles that taxpayers must meet to challenge the Comptroller in state court. New Option to Challenge Audit AssessmentsGenerally,…
Martens, Todd & Leonard Welcomes New Associate Katy Ballard
By Publisher
Martens, Todd & Leonard is pleased to announce the addition of associate Katy Ballard to its Texas state and local tax controversy team. Ms. Ballard will join the other members of the firm in representing Texas taxpayers before the State…
Texas Franchise Tax Update: Texas Taxpayers Spared from Tax Increase Arising from PPP Loan Forgiveness
Texas taxpayers can breathe a collective sigh of relief since House Bill 1195 was signed into law on May 8, 2021. The bill provides that forgiveness on Paycheck Protection Program (PPP) loans will not be considered revenue for Texas franchise…