Texas Franchise Tax: Martens, Todd & Leonard says Big Win for Trucking
AUSTIN, Texas, March 17, 2014
AUSTIN, Texas, March 17, 2014 /PRNewswire/ --In Titan Transportation, L.P. v.
Combs, the Texas Third Court of Appeals held that Titan, an aggregate hauler,
was entitled to reduce its revenue for the payments it made to its independent
haulers to ship aggregate to construction sites. Martens, Todd & Leonard
handled both the trial and appeal of this case.
Titan is in the business of hauling and depositing aggregate, which is
construction material made of rock, gravel, dirt, sand, or fines. The
aggregate is sold by quarries, not Titan. Titan hauls the aggregate to and
deposits it at construction sites for roads or foundations. Titan pays its
independent haulers to provide this service. Titan sought to remove these
payments from its revenue on its Texas franchise tax reports.
The Texas Comptroller denied Titan's claim, but the Third Court of Appeals
held otherwise, rejecting every argument the Comptroller made.
As a result of this decision, CPAs and businesses that owe the Texas franchise
tax should review their prior Texas franchise tax reports to determine whether
they overpaid and are entitled to refunds.
Martens, Todd, & Leonard is analyzing the Titan decision, along with Combs v.
Newpark Resources, Inc., which the firm argued last year, to determine their
potential impact on other Texas franchise tax reporting issues and effect on
potential Texas franchise tax refund claims. They will publish the analysis
shortly on their firm's website.
For more details, please contact Jimmy Martens, Lacy Leonard or Danielle
Ahlrich the attorneys handling the trial and appeal of this case. To download
copies of the Court's Opinion and Judgment, please visit Martens, Todd, &
Leonard at www.textaxlaw.com and click on Franchise Tax.
SOURCE Martens, Todd & Leonard
Contact: Jimmy Martens, firstname.lastname@example.org, 512-542-9898
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