News and Insights

Texas Court of Appeals' Decision in Home Interiors is Now Final

Tax Development Aug 29, 2007

The Comptroller has decided not to file a Petition for a Writ of Certiorari with the United States Supreme Court, which would have been due on August 29, 2007. As a result, the Court of Appeals’ Opinion in Home Interiors is now final. The Third Court of Appeals found that the earned surplus throwback provision of the Texas franchise tax unconstitutionally burdens interstate commerce as a result of unfairly apportioning the tax base. See Home Interiors & Gifts, Inc. v. Strayhorn, 175 S.W.3d 856 (Tex. App.--Austin 2005, pet. denied). For more details regarding the Opinion, see the prior releases dated August 7, 2005, September 27, 2005, and March 27, 2007.