The United States Supreme Court has already announced that it will review three state tax cases in its upcoming term — Comptroller v. Wynne, Direct Marketing Association v. Brohl, and Alabama Department of Revenue v. CSX Transportation, Inc. This is unusual as the Supreme Court rarely reviews state tax cases. While none of these cases involve […]
The Texas Comptroller filed a petition for review with the Texas Supreme Court, asking it to overturn the Third Court of Appeals’ decision in the taxpayer’s favor in Titan Transportation, L.P. v. Combs. That decision rejects the Texas Comptroller’s narrow, restrictive interpretation of the revenue exclusion for certain payments to those who perform work on […]
The Third Court of Appeals’ decision in Combs v. Newpark Resources, Inc. became final today, marking Texas taxpayers’ first appellate margin tax win. The Texas Comptroller did not file a timely appeal with the Texas Supreme Court, so the Third Court of Appeals issued its mandate today. The opinion, originally handed down this past December, […]
The Third Court of Appeals’ recent opinion in Titan Transportation v. Combs is another big win for taxpayers under the revised Texas franchise tax (also known as the Texas margin tax). In opinion, the Third Court of Appeals rejected the Texas Comptroller’s narrow, restrictive interpretation of the revenue exclusion for certain payments to those who […]
The Third Court of Appeals’ opinion in Cirrus Exploration Company v. Combs expands the number of businesses who may purchase aircraft without paying Texas sales and use tax. In doing so, the Third Court of Appeals once again rejected a long-standing Texas Comptroller policy that imposed additional requirements not found in the Texas Tax Code […]
The Third Court of Appeals issued its opinion today in Combs v. Newpark Resources, Inc., its first case under the revised Texas franchise tax law (also known as the Texas margin tax). The opinion rejects the Texas Comptroller’s narrow interpretation of the Texas franchise tax’s cost of goods sold deduction in favor of the taxpayer’s […]
A Travis County District Court judge recently found that a new tax on small tobacco manufacturers violates the Equal and Uniform Taxation Clause of the Texas Constitution in Texas Small Tobacco Coalition v. Combs, Cause No. D-1-GN-13-002414. The Texas Comptroller has appealed the judge’s decision. The Tax on Small Tobacco Manufacturers The Texas Legislature passed […]
The Texas Third Court of Appeals heard oral argument today in Southwest Royalties, Inc. v. Combs, No. 03-12-00511-CV. The case addresses whether oil and gas operators may claim the Texas sales and use tax manufacturing exemption on their purchases of certain above-ground and downhole production equipment. An ultimate win for the taxpayer here could mean […]
The Texas Tribune posted an article today called “Mixed Views on Increased Beverage Tax” by Alexa Ura. The article discusses the recent changes to Texas’s mixed beverage taxing scheme that I blogged about last month. I’m quoted in the article briefly explaining why some oppose this change. I encourage you to read my blog post […]
A new Texas Comptroller hearing decision spotlights the importance of terminating business entities after they conclude their business. Doing so helps limit the entity’s exposure to potential tax assessments. This is because it, in many cases, may effective reduce the amount of time the Comptroller has to make an assessment against the entity. I’ll discuss […]
