Rent-A-Center is a leading provider of furniture and electronics to consumers through rent-to-own agreements in which customers become the owners of property if they do not terminate or breach the agreement during the lease term. Federal income tax law required
Texas Tax Law Blog
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Texas Supreme Court Rejects Pay-to-Play Requirement
In May of 2020, the Texas Supreme Court held in EBS Solutions, Inc. v. Hegar that a taxpayer may gain access to the Texas courts without first paying the tax assessment against it in full, if the taxpayer satisfies the…
Texas Franchise Tax Update: Congressman Fires Back with Proposed Bill After Texas Comptroller Threatens to Tax PPP Loan Forgiveness
Texas Franchise Tax Update: Congressman Fires Back with Proposed Bill After Texas Comptroller Threatens to Tax PPP Loan ForgivenessA Texas lawmaker has introduced a bill in the current legislative session reversing the Comptroller’s policy of treating federal Paycheck Protection…
Texas Franchise Tax Update: Texas Comptroller Adopts Comprehensive Changes to Apportionment Rule
Texas Franchise Tax Update: Texas Comptroller Adopts Comprehensive Changes to Apportionment RuleThe Texas Comptroller has adopted broad amendments to his Rule 3.591 governing franchise tax apportionment. In doing so, the agency rewrote numerous detailed rules for sourcing dozens of…
Texas Sales Tax Update: Texas Comptroller Changes Local Tax Rule to Undermine Economic Development Agreements
Local governments, like cities and counties, collect local taxes to finance their governmental operations. Generally, local governments receive local sales taxes based upon orders that local businesses receive within their boundaries. Local governments may also receive local use taxes when…
Texas Franchise Tax Update: Rent-to-Own Companies Must Reduce COGS by Federal Depreciation Deducted During Rental Period
Rent-A-Center is a leading provider of furniture and electronics to consumers through rent-to-own agreements in which customers become the owners of property if they do not terminate or breach the agreement during the lease term. Federal income tax law required…
Texas Franchise Tax: BREAKING NEWS: Texas Supreme Court Will Decide Three Important Texas Franchise Tax Cases
On June 28, 2019, the Texas Supreme Court accepted and scheduled for oral argument three important Texas franchise tax cases involving excluded revenue and the COGS calculation.The Gulf Copper case concerns whether a company that builds and repairs offshore drilling…
Court of Appeals Continues to Consider COGS Cases Pending High Court Opinion
As the Texas Supreme Court prepares to hear oral argument in three franchise tax COGS cases on October 9th, the Third Court of Appeals continues to issue opinions restricting the COGS subtraction. In March, the court greatly reduced the taxpayer’s…
Metropolitan Telecommunications v. Hegar: Second Appellate Court Rules Telecommunications Service Provider Is Ineligible for COGS Subtraction
On August 21, 2019, the Texarkana Court of Appeals ruled that a telecommunication service provider, Metropolitan Telecommunications (“MetTel”), is not entitled to calculate its franchise tax margin using the cost of goods sold (“COGS”) subtraction. See Metropolitan Telecomms. Holding Co.
Metropolitan Telecommunications v. Hegar: Second Appellate Court Rules Telecommunications Service Provider Is Ineligible for COGS Subtraction
On August 21, 2019, the Texarkana Court of Appeals ruled that a telecommunication service provider, Metropolitan Telecommunications (“MetTel”), is not entitled to calculate its franchise tax margin using the cost of goods sold (“COGS”) subtraction. See Metropolitan Telecomms. Holding Co.