Texas High Court Rejects Challenge to Franchise Tax

  • 1Comment

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 ...

Full Story

Comment Policy

The Texas Tribune is pleased to provide the opportunity for you to share your observations about this story. We encourage lively debate on the issues of the day, but we ask that you refrain from using profanity or other offensive speech, engaging in personal attacks or name-calling, posting advertising, or wandering away from the topic at hand. To comment, you must be a registered user of the Tribune, and your user name will be displayed. Thanks for taking time to offer your thoughts.

You must be logged in to leave a comment. Login | Sign-Up