Attorneys for the state are set to defend Texas’ business tax.
Claims that it violates the Texas Constitution are part of a case that began Oct. 24 in the Texas Supreme Court.
A Boerne insurance adjustment firm, Allcat Claims Service LP, filed a lawsuit in July, claiming the tax violates a constitutional provision that requires the Legislature to get voter approval before imposing an income tax, according to a report in the Austin American-Statesman.
The case hinges on whether the margins tax — implemented in 2006 as part of the court-ordered school finance fix — constitutes an income tax when applied to certain business partnerships.
The tax is a major source of funding for public education.
The law includes a provision that any legal challenges to the law would go straight to the Texas Supreme Court.
Topics Texas
Was this article valuable?
Here are more articles you may enjoy.
Premiums Will Skyrocket by 2035; Discounts Not Enough for Wind Mit, Studies Say 
Remember the Fall of Patriot National? Trial in Suit vs. Mariano’s Lawyers to Begin 
Honda’s Insurance Agency Operations Stall, Services ‘Paused’ 
One Weather Firm Warns New England Could See Big Hurricane This Season 
