| December 29, 2009
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[UPDATE (December 29, 2009): the State has begun the process of selecting an administrator for the rebate program described in the post.] December 28's issued Comptroller Office of agency request for proposals (RFP) "targeted to companies that can act as implementation contractor" for the appliance rebate program. [Interested companies, such a contractor should the link (current December 29, 2009) to the page "energy efficiency appliance rebate program for stimulus grant program" Comptroller's Web site, the window on Government followed.]

Susan Combs, Texas Comptroller of public accounts, recently announced the, that Texas $23 million in federal stimulus funds discount program will use after a mail-in for consumers, the specific energy-efficient household appliances to buy a 10-day period April of next year. Here is the Comptroller press release announcing the program. Comptroller explained that the program be in the spring coincide with earth day, retailers time was up on appliances give State, a provider to manage discounts and enough time, consumers details offer the discount program. The press release also contains a link for a more detailed explanation of the program from the Agency State energy conservation Office.

Photo credit: © iStockphoto.com Sklemin Kirill

Total discounts seem pretty generous although some amounts purchased depending on the appliance type and energy efficiency of the model vary, such as $255-$ 640 for a water heater. Also, there are some limitations. For example, the discounts applies only to purchases of certified "Energy Star" refrigerators, freezers, room air conditioners, central air conditioners, heat pumps, water heaters, clothes washers and dishwashers. What's more, has the new units that replace same kind of old appliance works.

To the program even more attractive, recycling to consumers who buy an eligible appliance and recycling your old enter into a separate $75 discount.

So it is fund the federal stimulus good news for Texas consumers, the shiny new household appliances didn't over the holidays get. You have just to keep your old energy hogs, work for a few months until you recycled and replaced with energy-efficient and discount eligible models.

Finally, for consumers in the hope of "double dip", it does not appear that the April discount program with the energy star amounting to holiday in May that overlap where many of the same types of household appliances (the counterpart to 2008 which was sales tax holiday discussed in a previous post on this Web site labeled "Texas sales and use tax: Comptroller weekend has provided more details about the new sales tax holiday on Memorial Day for certain energy efficient products").

Home > Texas franchise tax > Texas' community banks pay less tax of franchise at the beginning of next year >, Texas tax reform > Texas' community banks pay less tax of franchise at the beginning of next year > | June 22nd, 2009
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House Bill 4611, effective offers next year, an important advantage to small and medium-sized companies Texas banks - banks - often called Community under the revised franchise tax or "Margin Tax." In the last days of before recently ended legislative session enables credit institutions the Bill to pass, (i.e. banks), the gross proceeds from the sale of certain securities as part of their gross revenue for allocation of costs (instead of only the net proceeds) to treat purposes. Whether large or net income from securities, sales can be counted provision a Bank (or any other taxpayer) costs percentage is significant. This is because among subsection (e)(25) of the Comptroller of public accounts article 3.591 ("margin: breakdown"), proceeds from the sale of securities is at the location of the billing program is relative and, more importantly, "If securities are sold through an Exchange and the buyer can not be identified, then 7.9% of the revenue is a Texas entrance".

In other words, 92.1% of the revenue from the typical sale of securities on the stock exchange is outside of Texas, related so it is almost always advantageous to gross revenue, rather than only net profit from such a taxpayer sale distribution percentage calculation can include.

Image: Wikimedia Commons/public domain

House Bill 4611 is designed to resolve a problem by the Comptroller's interpretation of subsection (f) the tax code section 171.106 ("breakdown of margin to a State") arose. In subsection (e)(16) of rule 3.591 and explanations as the 2008 memorandum as document No. 200809240L agency STAR indexed database, how treated a Bank Securities for federal income tax purposes - and regardless of how it categorized those securities for purposes of financial reporting - determines whether gross or net proceeds from the sale of these securities in gross revenue sharing formula could be counted. The legislature's Bill analysis of language which has been declared the final (registered) version of the invoice;

[T] he comptroller's Office offers section 171.106(f) for securities and loans only applies to the a taxable entity dutifully or treatment under section 475(a)(1), internal revenue code or accounts for securities and loans under section 471, internal revenue code.

The Comptroller of the political position on section 171.106(f) is satisfiable trade easiest components of these companies from the large Multistate banks, due to the large security.  This large Multistate banks with Security Broker have all necessary procedures and guidelines to comply with section 475(a)(1) divisions, internal code needed revenue.

The Comptroller of the political position on section 171.106(f) will generate considerable administrative burden and potential regulatory issues for small to medium-sized banks, only shops in Texas, commonly recognized State community banks. These banks have usually not large trading security components, but sell securities and loans under its normal course of business. These banks with implementing costly and extensive management processes and policies to meet the comptroller's position face or suffer significantly higher franchise tax burdens (as a percentage of income) than their large Multistate counterparts.

The legislature's solution to this problem is subsection (f-1), section 171.106 of House Bill 4611 added. Under the new subsection purposes Division a bank is the gross proceeds from the sale of securities, be allowed, as part of their gross income the as "securities available for sale" or "Trading Securities" categorized under financial accounting standard (FAS) include no 115 as in effect on 1 January 2009. In other words, if a Bank Securities, thereby under FAS 115, categorized keeps it this securities 92.1% sold as from Alabama sources are handled by the gross proceeds, reducing this bank Texas distribution percentage and ultimately their franchise tax. So community keep banking and your tax advisor, this law change in mind in the preparation of the next year franchise tax reports.

One final note: Section 2 (providing that the laws originally only applies to a report due on or after the date of entry into force of the Bill) and section 3 (assuming that the legislation effective January 2010 is 1) House Bill 4611 together seem exclude reimbursement claims for banks that their securities sales reporting and paying their 2008 and 2009 franchise taxes used the net proceeds.

Home > practice and procedure > the Comptroller is on searching by service companies that were the cost incorrectly used method to calculate the margin sold >, Texas franchise tax > the Comptroller is on searching by service companies that were the cost incorrectly used method to calculate the margin sold >, Texas tax reform > the Comptroller is on searching by service companies that were the cost incorrectly used method to calculate the margin sold > | September 23, 2010
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Audits of 2008 and 2009 reports filed under the revised franchise tax, the so-called "margin tax," "in full swing" for a while in the edition July 2010 Tax Policy News were the electronic tax return policy newsletter of the Texas Comptroller of public accounts (it is available the window on State Government agency visit). These tests are started a follow up of the Comptroller franchise tax "Desk audit" project, in 2009 and discussed in a previous post on this Web site labeled "upcoming franchise tax desk audits and more in the March issue of tax policy news."

As in the recent Tax Policy News-articles labeled "Service industry of entities generally qualify for the cost of goods sold deduction" explains, have revealed the latest audits that "…many wrong choice are entities in the service of industry cost of goods sold (COGS) deduction to use, the margin determine." A representative of the Comptroller Office in testimony before a August 17th provisional underlined consultation from Texas House ways and means Committee's Comptroller concern about the incorrect use of bulk storage consumption method. In fact the Comptroller representative of the Agency belief expressed, that such erroneous reporting a major reason why was the revised franchise tax of significantly less revenue for the years 2008 and 2009 report expected produced. As a result, it is not surprising to learn that the Comptroller audit process to generate is carefully provided service industry tax reports in an attempt to additional tax by.

What's more, produces a particularly hard result for many companies that incorrectly uses the COGS method for calculating the margin tested during these audits, since you can now switch to the compensation method may not (a taxable entity can only choose between the bulk storage consumption and compensation methods for calculating the margin at the time when a tax report is originally stored). That is how the Tax Policy News-article pointed out,

If an entity that selected the cost of the sold deduction to use this method for earlier years reports were eligible, the entity must change the reports. The compensation deduction but available reports for the previous years. Choice language in tax code section 171.101(d) allows no change in the method of computing margin at the cost of goods sold or compensation deduction after the due date of the report.

These entities that elected the costs were originally, to use sold method must change and use the 70 percent method to determine margin or revenue is not more than $10 million, may use the E-Z computation to determine tax due. E Z computation a cost of goods sold or compensation does not allow deduction in computing margin but instead apply a lower rate of 0.575 percent directly to dispositive total revenue.

In other words, if an entity the COGS method chosen, the margin on its original 2008 or his 2009 calculate report and should not, it must now use the "70% of the revenue method" (or, if authorized "E-Z Computation" method). This will almost certainly result in a higher tax as if the entity now only select, could the compensation method for the tested years use. This is another example of the Comptroller's strict interpretation of the calculation methods and options under the revised franchise tax described in the recent post on this site labeled "Select the 70% of revenue method of calculating the margin is irrevocable for the year."

| October 22, 2010
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The Dallas Morning News reported that the Texas Comptroller of public accounts reviewed Amazon.com $ 269 million in uncollected Texas sales tax in a copyrighted story on its Web site. To find the whole story, here is a link to the newspaper Web site home page.

The Texas State and local tax law blog will provide more details about the assessment if they are publicly available.

| July 10, 2009
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Orders of the day from the Supreme Court of Texas taxpayers denied petitions for review in two tax cases. The first denial-of-war in one case, sales Reynolds metals company v. Combs, et al., originally from the third Court of appeals decided February 4th and discussed on this site in a post labeled "Legislative acceptance doctrine will defeat not always a Comptroller policy." The Court later moved its original opinion and replaced its memorandum opinion on the hearing April 8th (accessible through the link above).

The second denied request for review was decided in an ad valorem (property tax case, ICAN Company Inc., et al., v. Williamson County appraisal district, et al., from the third Court of appeals. Opinion of the Court of Auditors to the issued (accessible from the link) on April 17th was and was discussed in a previous post "the lease a city owned hangar is taxable if the hangar is used to store aircraft".

The Texas Supreme Court's denial-of check is usually the last stop for State and local tax cases in Texas. Of course, there is always the possibility that the Supreme Court of Texas will change his mind on a motion of censure for case or that of the United States Supreme Court to one or two cases will decide. Extremely long shots are, however, so advise companies and their taxes with an interest in both cases should assume that you are now final.

James Maule has observed that some Congress of eartags benefactor who peppered are:

The practice of opposing peppered, while the share annoyed some members of Congress has. The best deal in this story reported among others comes from Senate majority leader Harry Reid. Reid said that some of those who to speak out "are people who have more crowded than others against peppered." "If in a dictionary and found hypocrites went to H, would be among the people for eartags to ask but vote against you."

Senator Dick Durbin, the ear tags inserted nearly $100 million in the legislation, is reported to have said, "many of the same senators who criticize... peppered are peppered have in the account." This is the height of hypocrisy to stand up and demand an ear tag and then fold your arms and pious announce, "I'm against peppered." "

Currently pending Congressional spending are invoices, the at least $8 billion in peppered contain. So much for the TAM-TAM's surrounded announcement by the Republicans, they were peppered ban last month. 38 You in pending legislation has Senate Minority Leader Mitch McConnell, a supporter of the ban on ear tags;. Senators John Thune and John Cornyn, attacked the legislation, which combined spending bills but peppered on the defensive with questions about the 17 had placed the two of you in the legislation. Thune replied: "I support this law to support these projects [funded by ear tags] but I."

Use this type of inconsistency, a gentler Word as hypocrisy, the deficit problems cut to underscores the madness of the opposition to budget deficit growth with support for tax combined extensions that help budget deficits, justified by claims that spending is reduced all thrown us from members who continue to solve to engage in the ear tag game.

I do not agree with Reid, Durbin and Maule. It is peppered hypocritical nor towards a total ban on while you benefit from earmarks while legally inconsistent.

Let me illustrate with a simple example:

When a Congressman hits that limit the speed on I-95 to be reduced to 55 miles per hour and for 70 miles per hour, he acts not hypocritical. His ride at the higher limit which speed is not hypocritical is because he does not propose that reduce the speed only for him, but rather that it be reduced for everyone. If on the other hand, the law changed and the maximum speed reduced to 55 and he continued to drive at 70, then he would be a hypocrite.¹

Allow Similarly, legislators, to favour a law, the ear tags; all congressmen not crowded when inserting their own invoices will be not necessarily hypocritical. If you are not back to bring the single for your constituents, are set on big political disadvantage.

Footnote:

I have repeatedly called for technology¹ to be fair, for these high net worth individuals on the left who have publicly clueless, increasing taxes on the rich to put your money where their mouths are and voluntarily more taxes. Left has countered with the same argument I do here: whether this wealthy Pro Taxers are not proposing a policy only your taxes but rather a increase, which will increase the taxes of all high-income people. You have a point.

Square Maule then says that the opposition to peppered only on principle (emphasis added is):

Earmarks $8 billion, although apparently represents a huge amount of money to most of us, something in the order of one quarter of one percent of the annual federal budget. I doubt there is already a drop in the bucket. It is rather a grain of sand at the beach. So what's the big deal? The great thing is principle. The great thing is the nefarious effects on the economy of a way of thinking, the tax extensions and peppered cut while complaining about budget deficits and accepted federal spending.

When no clear direction is submitted, are those who run end up scattered and lost. This is what will? Perhaps. Is this what do Americans? I hope not. But it's what we always have been and we continue to be what, until enough people understand what happened and strengthen opposition.

, Increased deficits we continue for as long as people on the left side as Professor right proposal of Maule, discount of each budget cut actually is page on the grounds that it is only "a drop in the bucket."

The prohibition of ear tags as spending cut action is more than principle, Mr Maule, because a bucket full, receives after enough drop into fall.

A named gentlemen Borden Bradley t. told his daughter - we call their little Borden - a tax parable that he called miss the Prince and the pauper who believes he proves that the rich from the politicians have purchased, to less than their fair share of taxes (added highlighting) to pay:

"So, Dad, the Prince of less tax paid and caused the beggars to pay, although made less money?"asked my daughter.

"Yes," I said. "The Prince was able to influence the law and reduce tax, rent its taxes."

"But the beggars couldn't" interrupted.

"Right."

", Which is apparently fair not," she said. Then asked: "Princes and beggars in America we?"

"Most people in America are more like the beggar." I replied. "You have income from work, which in General is taxed." "A small percentage of people are however, as the Prince, and have a lot of your investment income that is taxed or not at all."

"The Prince has to invest the money he would the beggars to benefit as he said,?", asked you.

"I don't think so", I replied.

"Why not the Supreme Governor could spend only less?" asked me.

"The head less spent, he would have to cut services." At some point, the Government can no longer cut services. Also of less expenditure would not make gerechteren taxes. "

Bradley Borden is yet another soak the rich true believers not to read and understand a basic tax diagram.¹

I hate your Daddy worship bubble, little Miss burst flanges, but the truth is that (your Daddy calls the Princes EM) pay about 60% of all of the top 5% income earners in America taxes and the bottom 50% (the beggar) pay less than 5% of all the taxes.

See my blog post entitled, the share of taxes paid increased during the Bush tax cut years by the rich.

In good class warfare form gives Mr. Borden us then the mandatory Maulian disbelief at how all think mid-range or poor person may not seize more of the wealth which range from (emphasis added) could encourage:

Finally, the difficult question asked [my daughter]:

"When so many Americans like the beggars are and might pay less money if everyone paid a fair share, say why more people Congress tax law change?"

This is an excellent question for which I have no answer.

What really here says Borden is that he did not understand, why agree to a majority of people will not, trample take caused to the rights of a minority of the population to some of their wealth. It is a telling if not surprisingly, approval of someone who belongs to an ideological cadre made their living from defending the rights of minorities.

Well, I have an answer for little Miss Borden:

Americans do not believe in class warfare as your dad, because they understand and appreciate the dangers of a Government that the wealth of the few haves to it, the many seized have nots. In other words, the beggars are smart enough to know that Stalinism was tried before and failed.

The lesson little Miss Borden should learn but is not, from her dad's adorable little parable is to not believe everything, your dad says it.

Footnotes:

¹  Below is a chart from the tax Foundation, the percent of the federal income tax, by each income group paid are listed. Made as Nick Gillespie says, "whatever else you want to say about the Bush tax rates you the wealthy pony up more of the whole."

Percent of the federal income tax paid by each group

Year top 01 top 1% of top 5% 5-10% top 10 10-25% top 25 25 50 top 50% bot 50%

(Hat tip: Paul Caron)