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  Since the exemption was not extended, a sunset provision in the exemption (originally enacted during the 2009 legislative session) causes the exemption [...]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

Transportation Company Wins Apportionment Argument in Hearing

2010-10-05T15:12:16+00:00

A transportation company prevailed in a recent hearing involving the apportionment of receipts for transportation services.  Under Texas apportionment rules, receipts for transportation services are apportioned to Texas if the receipt relates to the “transportation of goods or passengers in intrastate commerce within Texas.”  See Comptroller Rule 3.591(e)(32)(A).  The taxpayer in the hearing filed a [...]

Transportation Company Wins Apportionment Argument in Hearing2010-10-05T15:12:16+00:00

Comptroller Issues Guidance for Transportation Industry

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

The Comptroller highlights franchise tax issues facing the transportation industry in its September 2010 Tax Policy News.  In addition to explaining other franchise tax issues, the Comptroller notes the following agency rules and policies: (1) transportation companies are not entitled to use the cost of goods sold deduction, (2) transportation companies are not permitted to [...]

Comptroller Issues Guidance for Transportation Industry2016-11-23T15:02:01+00:00

Comptroller Issues Guidance on Specific Fees Designed to Recover Franchise Taxes from Customers

2010-10-05T15:06:44+00:00

After the revised franchise tax was enacted in 2006, one telephone company added a margin tax recovery fee onto its customers’ bills; the Comptroller objected to this practice.  In STAR Document 201008847L, the Comptroller provides some guidance on how companies may add such fees to their invoices without violating Comptroller policy or being deemed to [...]

Comptroller Issues Guidance on Specific Fees Designed to Recover Franchise Taxes from Customers2010-10-05T15:06:44+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 Policy on Cost of Goods Sold for Lending Institutions

2009-09-25T22:27:01+00:00

The Comptroller issued a letter ruling stating that lending institutions that offer loans to the public may subtract as a cost of goods sold an amount equal to the interest expense on its loans. The letter also concludes that a motor vehicle financing company qualifies as a lending institution for this policy. You can review [...]

Comptroller Policy on Cost of Goods Sold for Lending Institutions2009-09-25T22:27:01+00:00

The Comptroller’s August 2009 Tax Policy News Issues Franchise Tax Policy Concerning Management Companies

2016-11-23T15:02:05+00:00

Under the revised franchise tax based on margin, entities that qualify as “management companies” are permitted to exclude certain reimbursements that it receives from its clients from its Total Revenue. The term “management company” is defined in Texas Tax Code § 171.0001(11) as “a corporation, limited liability company, or other limited liability entity that conducts all [...]

The Comptroller’s August 2009 Tax Policy News Issues Franchise Tax Policy Concerning Management C