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.
Viewpoint: Why Brokers Have Little to Fear and Everything to Gain From AI 
Amish Mother and 6 Children Killed in Explosion and Fire at Pennsylvania Home 
Nationwide: Consumers Say Insurance Should Evolve for Micromobility Vehicles 
Ex-CEO, Ex-CFO of Bankrupt AI Company Charged With Fraud 
