Court: Business Franchise Tax Isn't an Income Tax

The Texas Supreme Court turned back a challenge to the state's primary business tax, saying it doesn't violate a constitutional ban on personal income taxes.

The Constitution allows personal income taxes only when if voters approve. Lawmakers didn't seek voter approval when they revised the franchise tax in 2006, and Allcat Claims Service LLP and a limited partner there, John Weakly, sued for a refund from the state, calling it an illegal personal income tax and saying that it wasn't applied in an equal and uniform way. In the majority opinion, written by Justice Phil Johnson ...

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