Nestle, et al Franchise Tax Challenge Tossed Out The Texas Supreme Court today “dismissed for want of jurisdiction” the constitutional challenge of the franchise (margin) tax in Nestle et al v. Combs. The challenge was primarily based on the contention that the tax runs afoul of the constitutional requirement for equal and uniform taxation. The…

_ TTARA Tax Update Webcast We invite you to join us for our quarterly webcast this Friday, February 10th at 9:30 (please note this is a half hour earlier than our previous webcasts). In spite of the legislative interim, there is a great deal of tax activity in back halls of the legislature and the…

_ Comptroller Rule Draft on Letter Rulings The Comptroller’s Office has shared with us a draft of a new rule they are considering relating to the acquisition and use of letter rulings from the agency. Under the draft rule, two types of letters would be established: A general information letter. This letter would provide guidance…

Comptroller Draft Franchise Tax Rule Clarifies Flow-Through Exclusion of Taxes The Comptroller’s Office has drafted a rules change concerning the franchise tax calculation of total revenue. The draft has been provided to TTARA for informal comment prior to sending it for publication in the Texas Register. The draft rule would more directly state which types…

Supreme Court Hears Second Margin Tax Challenge This morning Nestle USA, Switchplate LLC, and NSMBA LP presented oral argument on their claim that the franchise tax violates the equal and uniform clause of the Texas Constitution and the due process, equal protection, and commerce clauses of the U.S. Constitution. Their argument centered on a contention…