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
Texas Tax Law Blog
The Texas Tax Law Blog, published by Martens, Todd & Leonard, focuses on Texas state tax issues including sales and use tax, franchise tax, motor fuels tax, and other state-specific taxes. It covers topics such as tax audits, administrative hearings, trials, and appeals related to Texas tax law. The blog discusses statutory interpretations, recent court decisions, and regulatory updates affecting Texas taxpayers. It also addresses practical matters like cost of goods sold calculations, refund claims, and manufacturing exemptions under Texas tax statutes. The content is aimed at providing insights into the application and enforcement of Texas tax laws and regulations.
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Latest from Texas Tax Law Blog
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…