Texas Comptroller Proposes Amendment to Franchise Tax Rules

The Texas Comptroller of Public Accounts proposed an amendment to title 34 of the Texas Administrative Code Section 3.586, concerning margin nexus for franchise tax purposes. The proposed amendment adds a provision providing that a foreign taxable entity that apportions its margin using a method other than gross receipts must use gross receipts as sourced to Texas. Comments on the proposed rule are due Dec. 14. [Tex. Comptroller of Pub. Accts., Proposed Reg. Section 3.586, 10/30/25 Tex. Reg.]