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Texas to Adopt Franchise Tax Rule on Apportionment

Jan. 21, 2021, 10:37 PM

Texas will adopt a franchise tax rule on apportionment effective Sunday.

The move solidifies the state’s position that a company’s receipts should be apportioned to where the customer receives the benefit of the service where there is a “receipt-producing, end-product act” in the customer’s state, according to Texas Comptroller spokesman Kevin Lyons.

The new rule breaks down the comptroller’s understanding of the sourcing statute that is similar to those in the Court of Appeals opinion for the state’s Sirius XM Radio case, according to a government-issued journal.

The ...