Franchise Tax Constitutionality is Back Before the Texas Supreme Court

Nestle,
once rebuffed
by the Texas Supreme Court
on a technicality, has refiled
its claim
that the Texas franchise tax is unconstitutional.  With the
technicality remedied, Nestle now hopes the court will hear the case on its
merits.  Nestle’s challenge revolves around the different tax rates for
retailers and wholesalers (.5%) versus all
other businesses (1%).  While Nestle is a manufacturer, it has only retail
and wholesale operations in Texas.  Nevertheless, it must file as a
manufacurer.  Nestle’s contention is that the rate differential is
unconstitutional.  Oral arguments have been set for Sept. 18, 2012. 
Here are links to the various briefs.

Nestle’s
brief

The
State’s reply

Nestle’s
rebuttal to the State’s reply

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