Legal Trend. Southwest Royalties. Franchise Tax. Perryman Analysis. 3 Pieces Informed Intel.

Ray Perryman group analyzed the economic impact of a Texas Supreme Court ruling in favor of Southwest Royalties. 

The informed intel:

• A ruling that allows the sales tax exemption for items used in the processing of oil and gas is consistent with Texas law
• Will pay dividends to the state for decades
  • Within 5 years, total state and local tax gains will exceed losses
  • Tax gains will be due to increased exploration due to lower costs
• The short term revenue hit to the state is lower than projected at $2.4 Billion

Gilmer Mirror | Study by Perryman Group Finds Texas Supreme Court Ruling in Favor of Southwest Royalties Would Provide Substantial Long-Term Economic Benefits to State