Texas High Court Denies Nestle's Bid To Kill Margin Tax

Law360, Houston (October 19, 2012, 4:13 PM EDT) -- Texas’ highest court on Friday upheld the state’s business margin tax as constitutional, ending a challenge by Nestle USA Inc., which claimed it was unfairly being forced to pay a higher rate than other companies.

In a 6-2 decision, the Texas Supreme Court ruled that the tax on businesses is “uniform and equal” despite Nestle’s complaint that classifications under the tax subject it to a higher rate than wholly in-state companies, simply because it has operations outside of Texas. 

“While we agree that a classification in...
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