Another comptroller, another legislative session, another set of new rules, and another round of litigation. To differing extents, each of these impacted Texas tax law during the Survey period. The cumulative effect was significant in many respects. Comptroller Glenn Hegar’s team, including both long-standing comptroller staff and new appointees, brought a welcome willingness to work cooperatively with taxpayers (though several contentious court cases reflect the (unsurprising) ongoing role of litigation in interpreting tax statutes). Indeed, many of the franchise tax and sales tax cases decided during the Survey period focused specifically on statutory interpretation. Legislative changes continued the trend of not only reacting to judicial interpretations, but also trying to find balance on multiple fronts: between raising tax revenue and encouraging business growth, between taxing authorities’ needs and taxpayers’ rights, and between aggressively pushing ahead on state-level tax and administrative reforms and giving the new comptroller time to find his footing.
Cynthia M. Ohlenforst, et al., Taxation, 2 SMU Ann. Tex. Surv. 479 (2016)