Texas State & Local Tax Law Blog

Recent Posts from Texas State & Local Tax Law Blog

• In Texas, federal cash for clunkers rebates aren't subject to motor vehicle sales tax

  At this writing, Congress appears to be unsure whether to further fund the extremely popular CAR Allowance Rebate System (“CARS”), also known as the “cash for clunkers” program. Whatever happens, Texas auto dealers and their…

• Why following the correct procedure is critically important in a state tax collection lawsuit

  Last Friday, the Third Court of Appeals in Austin issued its memorandum opinion in Milazzo v. State, et al., affirming a summary judgment in favor of the State in a collection lawsuit for unpaid sales…

• The Texas Supreme Court won't review two recent tax cases

  Today's Orders from the Texas Supreme Court denied taxpayer petitions for review in two tax cases. The first denial was in a sales tax case, Reynolds Metals Company v. Combs, et al., originally decided by the Third Court of Appeals on February…

• Texas' community banks will pay less franchise tax beginning next year

  House Bill 4611, effective next year, provides an important benefit to small and mid-sized Texas banks – often called community banks – under the revised franchise tax, or “Margin Tax.” The bill, passed in the…

• The Legislature has raised the minimum revenue required for franchise tax liability

  UPDATE: Governor Perry signed House Bill 4765 on June 16th. Here's the press release from the Governor's office. The 2009 Texas Legislature adjourns today after making only one significant change to the revised franchise tax,…

• If software works right out of the box, it's a taxable computer program

  A “computer program” is one type of tangible personal property that’s subject to Texas sales and use tax. Under Section 151.0031 of the Texas Tax Code, a “computer program” is “…a series of instructions that…

• When delivery is delayed after selling an aircraft to an out-of-state or foreign buyer

  As has been widely reported, many major U.S. corporations have been selling off part or all of their business aircraft fleets. When those aircraft are sold in Texas for registration and use in another state…

• Barge operators should be careful not to lose their sales and use tax exemptions

  Barges are an important mode of transportation on Texas waterways, as can be seen in the photo of the Houston Ship Channel to the right. It’s therefore not surprising that Texas Tax Code Section 151.329…

• The lease of a city-owned hangar is taxable when the hangar is used to store aircraft

  Is an entire aircraft an item of “aircraft equipment?” For ad valorem (property) tax purposes, the answer is “no,” at least in the area within the jurisdiction of the Third Court of Appeals, as explained…

• Here are some tips from the Comptroller about extending 2009 franchise tax reports

  The Comptroller of Public Accounts has just posted an article on the agency’s web site, the Window on State Government, with some suggestions for requesting extensions of time to file 2009 franchise tax reports. The…