A business tax created in 2006 to address the last school funding challenge is facing its own challenge at the state Supreme Court. Nestle USA has sued the state over the franchise tax, claiming that it violates the Constitution’s prohibition on taxes that are not equal and uniform. The company alleges that it is charged a higher rate than its wholesale role warrants, paying the full 1 percent that manufacturers pay. Texas officials defend the rate charged Nestle and other national companies that don’t have manufacturing operations in Texas but are nevertheless considered to be companies operating as manufacturers. The franchise tax has underperformed since its creation, but because it is expected to bring in over $5 billion this year, it could cause a major problem come budget-writing time.