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 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 Companies2016-11-23T15:02:05+00:00

Clarification of Deductibility of Sales Commissions for Franchise Tax

2009-05-20T00:51:37+00:00

In the March Tax Policy News, the Comptroller clarified that under Tax Code section 171.1011(l)(A) any sales commission paid to nonemployees, including to corporations, may be excluded from revenue if the payment was a sales commission related to work for which a real estate brokerage license is required under the Occupations Code.  Sales commissions other [...]

Clarification of Deductibility of Sales Commissions for Franchise Tax2009-05-20T00:51:37+00:00

Comptroller Announces Policies Affecting Franchise Tax Reporting by Federal Disregarded Entities

2009-04-03T19:01:06+00:00

In her February Tax Policy News, the Comptroller clarified that when an entity that is disregarded for federal income tax purposes is part of a franchise tax combined group, the repoting entity may to treat the entity as disregarded and not unwind its operations from its parent entity.  If the entity is treated as disregarded, [...]

Comptroller Announces Policies Affecting Franchise Tax Reporting by Federal Disregarded Entities2009-04-03T19:01:06+00:00

Texas Comptroller February 2009 Tax Policy News Posted

2016-11-23T15:02:07+00:00

The Texas Comptroller’s February 2009 Tax Policy News has been posted.  The newsletter addressed certain combined group reporting issues for Texas franchise tax.  The newsletter also highlighted a recent tax ruling addressing whether or not a bar's charge for a full bottle of liquor (which might also include a reserved table charge) is subject to [...]

Texas Comptroller February 2009 Tax Policy News Posted2016-11-23T15:02:07+00:00

Bill filed in Texas Senate Would Exclude Tenant Pass-Through Payments from a Landlord’s Total Revenue

2009-03-03T21:02:31+00:00

Under current franchise tax law, 100% of the payments that a landlord receives from a tenant, including so-called "pass-through expenses" or "triple-net expenses," which are tenants' reimbursements of the landlord's operating expenses, are included in the landlord's Total Revenue for calculating Texas franchise tax owed.  Tenant pass-through expenses typically include real property taxes, insurance costs, [...]