On July 16, 2020, TEI filed an amicus brief seeking review with the Texas Supreme Court in Sirius XM Radio v. Hegar.
The case addresses the manner Texas apportions service provider’s gross receipts. TEI’s brief argued the Texas Supreme Court’s review was necessary to resolve the conflict created by the Texas Court of Appeals’ decisions in Hegar v. Sirius XM Radio and Westcott Communications, Inc. v. Strayhorn. These cases use fundamentally different standards to determine how taxpayers providing similar services must apportion their Texas franchise tax bases and cannot be reconciled, creating uncertainty for Texas taxpayers and the potential for inconsistent taxation.
TEI's brief was prepared under the aegis of TEI's State and Local Tax Committee, whose chair is Michell Rodriguez. TEI Tax Counsel Pilar Mata coordinated the preparation of the brief and was its principal author.