On April 3, 2020, the Texas Supreme ...
On April 3, 2020, the Texas Supreme Court issued its opinion in Sunstate Equipment Co., LLC vs. Glenn Hegar, Comptroller of Public Accounts, et.al. This case involved Sunstate Equipment and the costs they deducted from their franchise tax assessments.
The Court ruled against Sunstate, concluding that neither section 171.1012(k-1) nor section 171.1012(i) authorizes Sunstate to subtract as COGS any of its costs associated with the delivery and pick up of its rental equipment.