Texas Supreme Court Denies Petition for Review in Home Interiors

On March 9, 2007, the Texas Supreme Court denied the Comptroller's petition for review. 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).