The recent Texas Third Court of Appeals decision in Hegar v. El Paso Electric Company highlights the importance of specificity when seeking Texas state tax refunds. There, the Third Court of Appeals found that the courts lacked jurisdiction over a taxpayer’s Texas sales tax refund suit when the taxpayer failed to specify the precise grounds […]
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 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. […]
The Texas Third Court of Appeals issued its opinion today in Fitness International, LLC v. Hegar. It held that certain equipment, such as cardio machines and weight racks, that a health club purchased for its customers’ use, was not exempt from Texas sales and use tax under the sale for resale exemption. The court based […]
The Texas Third Court of Appeals issued its opinion yesterday in Graphic Packaging Corp. v. Hegar, No. 03-14-00197-CV. It ruled that taxpayers may not choose to use the Multistate Tax Compact’s three-factor apportionment method to apportion their taxable margin under the Texas franchise tax. In doing so, the Third Court of Appeals held that the […]
The Third Court of Appeals recently held in Combs v. Texas Small Tobacco Coalition that a new tax on small tobacco manufacturers violates the Equal and Uniform Taxation Clause of the Texas Constitution. In doing so, the Third Court upheld a trial court decision from late last year invalidating the tax. The opinion highlights the […]
