A Texas Court of Appeals held that the federal Anti-Head Tax Act (“AHTA”) preempts Texas from imposing its franchise tax on American Airlines’ revenues from baggage fees, passenger ticket sales, and freight transportation. The case presented an issue of first impression – whether the AHTA’s prohibition on state and local taxes imposed on the “gross
A Texas two-step on franchise tax: Lessons from NuStar and American Airlines
In this episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor break down two noteworthy Texas franchise tax decisions that provide important guidance on sourcing and federal preemption.
The hosts first discuss NuStar Energy LP v. Hancock, a Texas Supreme Court decision addressing how receipts from the sale of tangible personal
Texas court holds chemical manufacturer’s returnable containers qualify for manufacturing exemption
The Texas Court of Appeals considered whether a chemical manufacturer’s purchases of returnable containers were exempt from sales and use tax under Texas’s manufacturing exemption. The taxpayer manufactured chemicals for use in water treatment applications and for customers in the oil and gas industries. It placed its products into returnable porta-feed containers that preserved chemical
No look-through for you: What is delivered in Texas is sourced to Texas
The Texas Supreme Court rejected a taxpayer’s refund claim asserting that its sales of bunker fuel (fuel for large, ocean-going vessels) delivered to foreign-registered ships at Texas ports were not delivered or shipped to a buyer for ultimate use or consumption in Texas. The taxpayer argued that the comptroller’s administrative rules making the transfer point
Texas Appeals Court draws bright line: Export‑bound oil is nontaxable under the Import‑Export Clause
The Texas Court of Appeals held that crude oil stored in tank farms in San Patricio County solely for export to foreign buyers was constitutionally immune from county ad valorem taxation under the Import-Export Clause of the U.S. Constitution. The court concluded the oil constituted property in the stream of export overseas and therefore could
Texas Comptroller dispenses advice to bitcoin ATM operator
The Texas Comptroller issued a private letter ruling on June 3, 2025, addressing whether the selling of bitcoin is “either the sale of tangible personal property (TPP) or the sale of a security” for Texas franchise tax purposes. The taxpayer requesting the guidance, a qualified S corporation for federal purposes, acquires bitcoin and resells the
Texas Comptroller holds hearing on proposed data processing rule
On Friday, December 6, 2024, the Texas Comptroller held a public hearing in Austin, TX regarding the proposed changes to the data processing regulation (section 3.330) published in the Texas Register on September 13, 2024. Several parties submitted written comments in response to the proposed regulation, including the Texas Taxpayers and Research Association (TTARA)
Highlights from the 2024 Texas Comptroller’s Annual Briefing
The Texas Comptroller of Public Accounts held its annual briefing in Austin on September 17 and provided taxpayers with updates regarding audit staffing shortages, pending litigation, recent guidance and related topics.
Solutions for a Texas-Sized Audit and Hearings Backlog
Audit Assistant Director Rosie Julius said that the agency continues to struggle with staffing issues due
Texas Court of Appeals upholds franchise tax apportionment rule
The Texas Court of Appeals for the Third District upheld the Comptroller of Public Accounts’ Franchise Tax apportionment rule as facially valid, including the provisions apportioning receipts to Texas where the seller ships or delivers property in Texas—regardless of whether the buyer is ultimately located in the state.
The taxpayer, a company that transports and
Highlights from the 2023 Texas Comptroller’s Annual Briefing
The Texas Comptroller of Public Accounts held its annual briefing in Austin on September 26 and provided taxpayers with updates regarding the administration of research and development credits, pending litigation, rule updates and related topics. The meeting – which was the first all in-person briefing since the beginning of the pandemic – struck an