Texas Senate Proposes Tax Code Changes

2016-11-23T15:01:51+00:00

On Tuesday, February 24, the Texas Senate unveiled its proposed tax relief package worth approximately $4.6 billion.  Among the changes proposed by the Senate are Senate Bills 7 and 8, both of which would affect the Texas franchise tax.  Senate Bill 7 would permanently reduce the franchise tax rate from 1% to 0.85% (and from [...]

Texas Senate Proposes Tax Code Changes2016-11-23T15:01:51+00:00

Taxpayer Prevails in Franchise Tax Refund Claim By Proving that Fuel Surcharges are Not Revenue

2015-02-02T18:11:23+00:00

On December 4, 2014, in SOAH Docket No. 304-14-0501.13, Comptroller Hearing No. 107,457, the Comptroller issued its final Comptroller’s Decision granting a franchise tax refund to a transportation company.  This case involved the company’s fuel surcharges.  The company’s federal income tax returns and franchise tax reports, as originally filed, reported fuel surcharges as revenue.  The [...]

Taxpayer Prevails in Franchise Tax Refund Claim By Proving that Fuel Surcharges are Not Revenue2015-02-02T18:11:23+00:00

Victory in Texas Supreme Court for Taxpayer

2016-11-23T15:01:52+00:00

David Sewell and Gilbert Bernal represented the taxpayer in the case of Combs v. Richmont Aviation, Inc.  The Texas Supreme Court decided the case in favor of the taxpayer.  Based on the Court’s decision, the State of Texas can no longer require taxpayers to pay an amount of disputed tax as a precondition to challenging [...]

Victory in Texas Supreme Court for Taxpayer2016-11-23T15:01:52+00:00

Texas could face new budget woes

2012-09-19T04:14:53+00:00

"AUSTIN — The Texas Supreme Court could blow a hole in the state's budget if it finds the business tax unconstitutional, as pressed Tuesday in a lawsuit led by food giant Nestlé USA." http://www.mysanantonio.com/news/local_news/article/Business-tax-challenge-could-rock-state-budget-3875505.php

Texas could face new budget woes2012-09-19T04:14:53+00:00

Change in Comptroller Policy for Amending Franchise Tax Reports

2012-07-18T17:02:08+00:00

A June 2012 policy statement issued by the Comptroller notified taxpayers of a change in policy regarding amending franchise tax reports to select a different deduction. Under prior law and policy, a taxpayer that filed a franchise tax report electing the cost of goods sold deduction could not amend the report to take the compensation [...]

Change in Comptroller Policy for Amending Franchise Tax Reports2012-07-18T17:02:08+00:00

Filibuster Kills Extension of the $1 Million Small Business Franchise Tax Exemption

2016-11-23T15:01:59+00:00

Senate Bill 1811 was killed by a late filibuster at the end of the 2011 legislative session.  Among other things, this bill would have extended the $1 million small business franchise tax exemption.  Since the exemption was not extended, a sunset provision in the exemption (originally enacted during the 2009 legislative session) causes the exemption [...]

Filibuster Kills Extension of the $1 Million Small Business Franchise Tax Exemption2016-11-23T15:01:59+00:00

Change in Franchise Tax Reporting Policy for Passive Entities

2010-12-16T15:56:16+00:00

Under current Comptroller policy, once an entity has qualified as an exempt passive entity under franchise tax law and has filed a franchise tax report indicating that it is a passive entity, that same entity is not required to file any subsequent franchise tax reports so long as it continues to qualify as passive.  This [...]

Change in Franchise Tax Reporting Policy for Passive Entities2010-12-16T15:56:16+00:00

Comptroller Re-Emphasizes Eligilibity to Elect Cost of Goods Sold Deduction and Explains Amending Returns

2010-08-11T13:18:58+00:00

Evidently the Comptroller is still grappling with many businesses in the service industry incorrectly electing to take a cost of goods sold deduction on their franchise tax reports.  In her July 2010 Tax Policy News, the Comptroller reminds Texas taxpayers that "service industry entities generally do not qualify for the cost of goods sold deduction."  [...]

Comptroller Re-Emphasizes Eligilibity to Elect Cost of Goods Sold Deduction and Explains Amending Returns2010-08-11T13:18:58+00:00

New Law Would Expand Franchise Tax Exemption

2009-06-04T19:50:53+00:00

H. B. 4765 was passed during the final week of the 2009 legislative session and is currently awaiting the Governor's signature.  The Governor is expected to sign the bill.  If signed, the bill would expand the full exemption currently granted to all taxable entities with less than $300,000 in Total Revenue during the report period [...]

New Law Would Expand Franchise Tax Exemption2009-06-04T19:50:53+00:00

Comptroller Withdraws FAQ Concerning Passive Entities

2009-01-28T00:18:05+00:00

Franchise Tax FAQ number 12 under "Passive Entities" on the Comptroller's website would have required that taxpayers treat rental income distributed from one taxpayer to a second taxpayer as rental income of the second taxpayer for purposes of determining whether the second taxpayer qualified as a passive entity.  The Comptroller has removed FAQ number 12 [...]

Comptroller Withdraws FAQ Concerning Passive Entities2009-01-28T00:18:05+00:00