In response to numerous tax planning devices for the purchase of aircraft, the Texas  Comptroller has been using letter rulings and administrative adjudications to require economic substance.  The Comptroller originally limited the policy to aircraft.  Now, the Comptroller is… more


The Texas pay to play rule is one of the reasons that Texas often ranks near the bottom of scorecards ranking the states on the fairness of their tax appeal processes.  The rule generally requires a taxpayer to pay disputed tax as a prerequisite to a court appeal.  However, recent decisions in Richmont Aviation v. Combsmore


Franchise Tax Hot Topics
March 7, 2014

Three-factor litigation.  In January, litigation over the three-factor apportionment issue went the Comptroller’s way when a Travis County district judge in Graphic Packaging v. Combs granted the State’s motion for summary judgment and denied the taxpayer’s motion.  We previously reported on this issue, in which taxpayers are claiming the right to elect… more


Is “Pay to Play” still the rule in Texas? As discussed in our November newsletter, the Austin Court of Appeals decision in Richmont Aviation, Inc. v. Combs held that the Plaintiff could move for an injunction and a declaratory judgment in district court without first… more


On January 29, 2014, the Comptroller released “Taxability of Compressors – Memo for Discussion with Industry,” which could signal a significant change in the taxability of compressors.  The Memo posits that compressors used to support separators and heater-treaters are exempt from sales and use tax, while those used for transportation of gas are taxable… more


Curtis Osterloh moderated a panel discussion with Comptroller personnel regarding the Comptroller’s dispute resolution process and new policy and procedural developments.   The panel consisted of Robin Robinson, Deputy General Counsel of the Hearings Section, Hearings Section team… more


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