A Big Win for the State of Texas in a Margin Tax Apportionment Case

This morning, the State of Texas won a big case involving the revised franchise tax, the so-called  “margin tax.” In Graphic Packaging Corporation v. Hegar, et al., No. 03-14-00197-CV (Tex. App. – Austin, July 28, 2015), the Third Court of Appeals at Austin affirmed a trial court’s decision that the taxpayer, Graphic Packaging, had to use the franchise tax’s single-factor apportionment formula based on gross receipts in apportioning its margin between Texas and everywhere else.