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

Comptroller Explains Cost of Goods Sold Deduction for Construction Industry

2016-11-23T15:02:01+00:00

The Comptroller highlights franchise tax issues facing the construction industry in its August 2010 Tax Policy News.  In addition to explaining other franchise tax issues, the Comptroller explains her interpretation that Tax Code § 171.1012(i)’s special provision that allows certain businesses in the construction industry to take the cost of goods sold deduction limits the deduction’s [...]

Comptroller Explains Cost of Goods Sold Deduction for Construction Industry2016-11-23T15:02:01+00:00

Comptroller Explains Revenue Exclusion for Construction Industry

2016-11-23T15:02:01+00:00

The Comptroller highlights franchise tax issues facing the construction industry in its August 2010 Tax Policy News.  In addition to explaining other franchise tax issues, the Comptroller clarifies that the revenue exclusion permitted for flow-through payments to subcontractors is only permitted when the taxable entity has a contract with its client that states that the [...]

Comptroller Explains Revenue Exclusion for Construction Industry2016-11-23T15:02:01+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

Texas Comptroller’s October 2008 Tax Policy News Available On-Line

2008-11-21T23:52:21+00:00

The Comptroller has posted her October Tax Policy News e-newsletter on her website.  The link to the Tax Policy News is http://www.cpa.state.tx.us/taxinfo/taxpnw/tpn2008/tpn810.html.  In the newsletter, among other things, the Comptroller notes that the administrative rule concerning the temporary margin tax credit (Rule 3.595) will be amended to require the credit to be applied for a [...]

Texas Comptroller’s October 2008 Tax Policy News Available On-Line2008-11-21T23:52:21+00:00
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