The Texas Supreme Court recently released opinions in three Texas franchise tax/margin tax cases. All three opinions address the applicability of the Texas franchise tax’s cost of goods sold subtraction to costs incurred by taxpayers in specific industries. Below, we discuss the industry-specific rulings in each case, and then consider what the cases, taken as […]
Today, the Texas Supreme Court released its long-awaited opinion in Southwest Royalties, Inc. v. Hegar. It held that oil and gas above-ground and downhole production equipment doesn’t qualify for the manufacturing exemption from Texas sales and use tax, affirming the ruling of both the Third Court of Appeals and the trial court. This case has […]
While the 2015 Texas Legislature gave taxpayers a significant franchise tax (margin tax) rate cut and repealed some smaller taxes (some of which had not been collected in years), it otherwise left much of the Texas tax code otherwise unchanged. In this Texas legislative recap, we’ll tell you about the changes the Texas Legislature made […]
As we reported earlier, the Third Court of Appeals ruled in Southwest Royalties, Inc. v. Combs that oil and gas above-ground and downhole production equipment doesn’t qualify for the Texas sales tax manufacturing exemption. This case has drawn a fair amount of attention due to the large potential financial impact on the State of Texas […]
The Texas Comptroller recently published a very significant policy letter to the Comptroller’s online database. The letter announces a significant change in Texas franchise tax policy that could affect entities even only somewhat involved with the design, construction, remodeling, repair, or industrial maintenance of real property. The Comptroller’s previous policy was that only entities that […]
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 Legislature passed several changes to the Texas sales and use tax laws. None of these Texas sales tax law changes are particularly sweeping – they only impact particular industries. This article summarizes the Texas sales tax law changes that the Legislature passed. These will all become law provided that Governor Rick Perry doesn’t veto them.
Last week, the House passed HB 500, a major revision to the Texas franchise tax. This is the first indication of what changes may be in store for the Texas franchise tax, or margin tax, in 2013. Below is a fairly complete list of all of the changes that HB 500 includes. Of course, the […]
