Texas High Court Rejects Challenge to Franchise Tax
The Supreme Court of Texas on Friday struck down a challenge by Nestle Inc. and two other businesses targeting the state’s franchise tax.
Lawyers for Nestle and two Texas-based companies, Switchplace LLC and NSMBA, sued the state this year and argued that the tax violated the Texas Constitution’s statement that taxes must be “equal and uniform.”
The franchise tax was revised during a 2006 special session, part of a plan to create more funding for public schools. The revision expanded the kinds of businesses subject to the tax, and made eligible companies like Nestle who manufactured outside of ...
Comments (1)
Michael Seay
It's a minor quibble, but I don't believe Switchplace LLC and NSMBA joined with Nestle on this second suit. The three taxpayers sued together early this year but the court claimed that it didn't have jurisdiction. Nestle sued again this summer (alone) but this one is a different lawsuit.