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 company amended its federal income tax returns and franchise tax reports to show that its fuel surcharges were more accurately characterized as reimbursements and not revenue.  The Comptroller denied the franchise tax refund claim.  At the hearing, the taxpayer demonstrated that federal income tax law did not treat the fuel surcharges as receipts.  Texas franchise tax law follows the federal income law’s characterization of certain items.  The SOAH judge agreed with the taxpayer that the fuel surcharges were not revenue for franchise tax purposes and granted the claimed refund.  David Sewell and Gilbert Bernal of Stahl, Bernal, Davies, Sewell & Chavarria represent the taxpayer in this hearing.