The U.S. Supreme Court recently issued the most important state and local tax opinion in 25 years. That opinion, South Dakota v. Wayfair, Inc., overrules the U.S. Supreme Court’s 1992 decision in Quill Corp. v. North Dakota. In Quill, the U.S. Supreme Court reaffirmed that states could only impose their taxes on those businesses with […]
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 Fourteenth Court of Appeals issued its opinion Tuesday in Hegar v. CheckFree Services Corporation. It held that an online bill pay service was not a taxable data processing service under the Texas sales tax. The court based its ruling on the fairly extensive role of individuals with specialized, professional knowledge in providing the […]
The Texas Supreme Court issued an opinion today in Hallmark Marketing Co., LLC v. Hegar. The opinion invalidated a Texas Comptroller rule regarding apportionment under the Texas franchise tax (also known as the Texas margin tax). The rule required taxpayers to reduce net gains from sales of capital assets and investments by the amount of […]
A Travis County District Court judge ruled Thursday that Texas’s school finance system violates the Texas Constitution. The judgment and associated findings of fact and conclusions of law are available here. Review of the decision will go directly to the Texas Supreme Court. The judge wrote that his ruling would not be implemented until July […]
