Margin Tax: TXSupreme Court & the $1.5 Billion Question

What is this mystery tax issue before the Texas Supreme Court?

Whether films shown at theaters count as a service or whether a film is tangible personal property.

What did the 3rd Court of Appeals ruling say films are for margin tax purposes?

Tangible Personal Property, because Texas statutes say these are things that can be “perceptable to the senses.”

What’s the big deal? It’s a tax court case, I’m mentally drained just thinking about it…

the Comptroller says will cost the margins tax $1.5Billion.  For those counting, that’s a significant chunk of margin tax revenue. And, if the TXSCT agrees with the Court of Appeals, that made property tax revenue sources and school finance a whole lot more complicated.

Fiscal Notes June/July 2015