On July 29, 2011, a petition was filed with the Texas Supreme Court seeking a declaratory judgment that the Texas margins tax (TMT) is unconstitutional. Regardless of whether the Texas Supreme Court will strike down the TMT in its entirety, the court’s decision could have significant implications for many corporate taxpayers. 

Read Sutherland SALT’s Legal Alert, “Be Ready to Pounce on a Texas Margins Tax Challenge,” for a summary of the legal issues and ramifications of the challenge.