Featured Articles

Taxing a commercial airline's purchases of taxable services used at a public airport

Alan E. Sherman
October 31, 2008 15:10

A previous post captioned "Texas Sales & Use Tax: some pending sales tax cases that have been set for trial or disposition on a motion for summary judgment in 2008 (so far)" indicated that a sales tax refund lawsuit pending in state District Court in Travis County, Delta Air Lines, Inc. v....

Recent Articles

Chevron has asked the Texas Supreme Court to review its scaffolding case

Alan E. Sherman
November 11, 2010 14:56

Back in February, the Texas Third Court of Appeals issued its opinion in the sales and use tax refund suit styled Combs v. Chevron U.S.A. Inc., briefly discussed in a previous post on this site captioned "The Combs v. Chevron opinion is out, and it's big news for the Texas state tax world." In its...

Amazon.com apparently has been assessed $269 million in uncollected Texas sales taxes

Alan E. Sherman
October 22, 2010 22:16

The Dallas Morning News is reporting in a copyrighted story on its web site that the Texas Comptroller of Public Accounts has assessed Amazon.com $269 million in uncollected Texas sales taxes. To locate the full story, here is a link...The Dallas Morning News is reporting in a copyrighted story...

Texas use tax may not apply to some wrapping and packaging materials purchased out-of-state

Alan E. Sherman
October 18, 2010 14:47

A state district court recently decided that Texas use tax doesn't apply to wrapping and packaging materials purchased out-of-state and used by a Texas seller in shipping jewelry to out-of-state customers.A state district court recently decided that Texas use tax doesn’t apply to wrapping and...

The Comptroller is looking for service businesses that incorrectly used the cost of goods sold method to calculate margin

Alan E. Sherman
September 23, 2010 19:16

Audits of 2008 and 2009 reports filed under the revised franchise tax, the so-called "Margin Tax," have been "in full swing" for awhile according to the July 2010 issue of the Tax Policy News, the electronic tax policy newsletter of the Texas Comptroller of Public Accounts (it's available on the...

Choosing the 70% of revenue method for calculating margin is irrevocable for the year

Alan E. Sherman
September 22, 2010 19:04

A recent decision by the Texas Comptroller of Public Accounts explains why a taxable entity's use of the 70% of revenue method for calculating its margin on its original tax report is irrevocable for that year under the revised franchise tax, commonly called the "Margin Tax."A recent decision by...

The Combs v. Chevron opinion is out, and it's big news for the Texas state tax world

Alan E. Sherman
February 06, 2010 05:33

Today's sales tax opinion from the Texas Third Court of Appeals in Austin, Combs v. Chevron USA, Inc., No. 03-07-00127-CV, is big news for its treatment of both substantive tax law and tax procedure.Today’s sales tax opinion from the Texas Third Court of Appeals in Austin, Combs v. Chevron...

Too much product modification could cost a seller its favorable tax rate

Alan E. Sherman
January 29, 2010 20:11

As mentioned in a previous post captioned "Amended Comptroller rules solve the rental income flow-through problem and make other changes," the Texas Comptroller of Public Accounts recently amended several administrative rules applicable to the revised franchise tax, or "Margin Tax." One of the...

Predicting some Texas tax developments in 2010

Alan E. Sherman
January 04, 2010 20:11

Now that the New Year has begun, it's time to look into our crystal ball and make some predictions about Texas tax developments during 2010. A few developments expected from the Comptroller of Public Accounts, the state Courts and the Legislature are summarized below. Future posts will cover them...

Amended Comptroller rules solve the rental income flow-through problem and make other changes

Alan E. Sherman
December 30, 2009 23:17

The Texas Comptroller of Public Accounts has adopted, effective December 31, 2009, amended versions of eight administrative rules affecting the revised franchise tax or "Margin Tax." As explained below, the big news is how the Comptroller decided to amend (or not amend) Rule 3.582 ("Margin: Passive...