The swirling force of Texas politics

Case Against Texas Business Tax Before Top Court

Tax is a major source of funding for public education

Monday, Oct 24, 2011  |  Updated 9:02 AM CDT
View Comments (
)
|
Email
|
Print
Case Against Texas Business Tax Before Top Court

flickr/Silly Jilly

advertisement

Attorneys for the state are set to defend Texas' business tax.

Claims that it violates the Texas Constitution are part of a case starting Monday in the Texas Supreme Court.

A Boerne insurance firm 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.

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
What's New
Get NBCDFW on Mobile!
Get NBCDFW's free news and weather... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out