Sirius XM Wins in Tax Allocation Dispute at Texas High Court (1)

The Texas Supreme Court agreed Friday with Sirius XM that the company’s tax apportionment should be calculated based on where its programs are produced, not where the customer receives the benefit of the service, nixing the state comptroller’s effort to tax the satellite radio giant.

The state comptroller levied taxes on the satellite radio service based on the location of its subscribers, arguing that the “receipt-producing, end product act” takes place in Texas. The comptroller contended that “receipt-producing” service in Texas enables radio subscribers to receive Sirius XM’s signal.

But Sirius XM disagreed, saying that the taxable service it performs ...