The Texas Supreme Court recently ruled that a business tax does not violate the state constitution and cleared the way for lawmakers as they attempt to change the tax in 2013.<\/p>\n
The tax enacted in 2006 was the first in the state to require partnerships to pay a franchise tax, according to Bloomberg. The tax is not meeting expectations, and raising only about $4 billion a year for schools, prisons and other functions. Texas gets most of its revenue from property taxes, but since property values have been down, the state has had a revenue shortfall.<\/p>\n
An insurance adjuster claimed that the tax acted like an income tax on some partnerships. In Texas, voters must approve of any new income taxes. The court found that a business tax does not apply to the partners in a partnership and the tax can stand.<\/p>\n
This is good news for tax reform groups who think the Texas (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Texas Supreme Court recently ruled that a business tax does not violate the state constitution and cleared the way for lawmakers as they attempt to change the tax in 2013. The tax enacted in 2006 was the first in…<\/span><\/p>\n