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SALT Blawg

State and Local Tax Blog

SALT Blawg – State and Local Tax Blog

State and Local Tax ("SALT") issues require state and local tax knowledge. Chamberlain Hrdlicka's SALT Blawg provides exactly that knowledge with news updates and commentary about state and local tax issues.

You can expect to find relevant information about topics such as income (corporate and personal) tax, franchise tax, sales and use tax, property (real and personal) tax, fuel tax, capital stock tax, bank tax, gross receipts tax and withholding tax. SALT Blawg, offers tax talk for tax pros… in your neighborhood.

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Posts in Franchise Tax.

Texas Supreme Court Rules “Pole Tax” Does Not Violate First Amendment

In a unanimous decision Texas Supreme Court rules stripper "pole tax" does not violate First Amendment. The decision reverses a 2-1 Third Court of Appeals decision, which had held the tax violated the First Amendment in upholding the trial court’s ruling. The decision remands the case to the trial court, where three arguments remain, all based on challenges to the tax under the Texas Constitution.

New Jersey Appeals Court Upholds Tax Court Finding No Unitary Nature of Limited Partnership

New Jersey ...

The Solicitor General of the Texas Attorney General has taken the lead and on August 18, 2011 filed a short response to Allcat's petition to declare the new Texas franchise tax unconstitutional. In summary, Texas argues that (i) a tax on the income of an entity does not constitute a tax on a person’s share of that entity’s income, (ii) that the Texas Supreme Court’s ruling should be narrowed to a natural person with an interest in a limited partnership (as opposed to striking down the franchise tax in toto), and (iii) that the last two issues raised by Allcat are not properly before the ...

Categories: Franchise Tax

 by William Grimsinger

On July 29, 2011, suit was filed in the Texas Supreme Court alleging that the Texas Margin Tax is unconstitutional under the Constitution of the State of Texas because: (1) it imposes an income tax on a natural person’s share of partnership income without voter approval (contrary to the Bullock Amendment) and (2) the Comptroller’s interpretation of the tax violates the equal and uniform taxation clause of the Texas Constitution.

Under the original Margin Tax statute passed in 2006, any challenge to the tax statute must be brought in the Texas Supreme Court ...

 By Paul Masters

The long-contested constitutional issue concerning the New Jersey throw-out rule has finally culminated in a New Jersey Supreme Court decision recognizing the general constitutionality of the rule, but for its application to sales receipts attributable to states that choose not to impose an income tax. But first, we summarize what this decision did not do. The decision did not address in any significant way the current challenges to nexus that the states confront. Rather, the decision reaffirmed existing federal law, 15 U.S.C.A. §§ 381-84 (commonly referred to ...

Alabama House Bill 434, signed by Governor Robert Bentley, enacts three significant changes to Alabama’s apportionment provisions for tax years beginning on or after December 31, 2010:

* Double weight the sales factor for determining apportionment to 50%;

* Change from focusing on the location of income production for apportionment purposes to the taxpayer’s market for the sale for transactions other than tangible personal property; and

* Adoption of a “throwout” rule (similar to that recently rejected by New Jersey), by which a transaction that cannot be assigned to a ...

Categories: Franchise Tax, SALT