The Texas Revised Franchise Tax: A Model for Change or a Cautionary Tale?

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

In the six years since Texas has shifted to a “Margin Tax,” it has been the subject of continued controversy. This has included three separate reviews of issues related to the tax by the Texas Supreme Court. While the tax is showing some promising returns for the state, Stephen Long and Trevor Mauck, associates at Baker & McKenzie LLP, caution there are still too many unanswered questions to determine whether the move to the new tax will be permanent. Taxpayers should be on the look out as these issues are considered by the courts.