Texas Comptroller Amends Franchise Tax Rules

The Texas Comptroller of Public Accounts adopted an amendment to regulations concerning margin nexus for franchise tax purposes. The amendment provides guidance on determining economic nexus for certain entities, specifically adding a provision that foreign taxable entities apportioning margin using a method other than gross receipts must use gross receipts sourced to Texas to determine economic nexus. The amended regulation takes effect Jan. 7. [Tex. Comptroller of Pub. Accts., Regs. 34 TAC 3.586, 01/02/26 51 Tex. Reg. 156]