Texas Comptroller issues first post-Gillette denial of MTC apportionment election

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In its first decision following the California Court of Appeals Gillette opinion, the Texas Comptroller of Public Accounts denied a taxpayer's election to apportion its Texas margin tax using the equally weighted three-factor apportionment formula under the Multistate Tax Compact. The Comptroller ruled that the election was not available under Texas franchise tax law. The taxpayer has subsequently filed a petition with a Texas trial court. [Comptroller's Decision No. 106,503, decided 8/10/12, released October 2012]



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