No state is perfect. The state with the
awesome cities and the gorgeous sports stadiums that has created billions of
dollars in wealth for its citizens because of oil shale, low taxes, and
business friendly laws – the same state that has helped finally give America an
answer to OPEC, finally has some bad news regarding its name. No worries
though, Texas will survive this because there is so much going right for it
even with an anti-business and anti-job president in the White House.
The Texas Tribune reports that the Texas
Supreme Court has agreed to consider a case which claims that metal pipes,
tubing, and other materials used in oil and gas production should be exempt
from sales tax. If the lawsuit goes the way the filer’s intent it to, this
could eventually make the state lose billions of dollars in tax money and tax
lawyers see this happening. But Texas will still benefit since this could mean
more production in the state, that means more product to sell and more jobs.
Every job created is a win-win for any state.
Not only will the state of Texas lose
money going forward, but may also lose an estimated $4.4 billion as they will
need to issue refunds to energy companies whom they have taxed in the past,
according to Texas comptroller Glenn Hegar. But as already explained, Texas
will still benefit in the long run.
Attention was first brought to this
issue back in 2009 when midland based Southwest Royalties, an emergency
company, which is a subsidiary of Clayton Williams Energy, filed a suit against
the state. The comptroller at the time, Susan Combs, denied the claim made
asking for tax refunds on materials purchased in 1997. The case is still
ongoing after all these years and does not look ready to conclude anytime soon
says tax attorneys.
Comptroller Warns about Losses that
Texas could Face
Comptroller Hegar says if the ruling
does not go the state’s way it could be one of the biggest past and future tax
losses Texas has endured. He claims that the pending case will influence what
legislators draft and pass in the next legislative assembly of Texas. However,
Hegar seemed confident that in both cases, Texas would eventually triumph.
The case is pivoted on whether or not
materials such as tubing, casing, pipes, and pumps are materials which may be classified
under materials which are exempt from sales tax. The energy companies seem to
think that it fits the bill as these equipment essentially “process” crude raw
material into gas and oil.
On the other hand, tax lawyers in the
state clearly disagree with this notion, and do not think such materials should
be exempt from sales tax. They are of the opinion that underground raw
materials and minerals are not tangible personal property as required by law
for exemption. Either way the state of Texas comes out ahead and many people
know this.
Court in Delaware Set to Wrap Up Deal
Tax Litigation
A Delaware judge may have effectively
ended a bunch of tax lawsuits against Wall Street merger deals by laying out
new guidelines for settlements in such cases says tax lawyers who are paying
attention to these recent developments.
According to a Reuters report, one of the lawsuits which
will be affected by the new standards is the one challenging the merger of the
two companies Trulia Inc. and Zillow Inc. They both provide potential home
buyers with online information to assist or influence their purchasing
decisions.
Merger class actions against such
companies that merge have become such a common occurrence in Delaware that
people have begun to refer to them as a deal tax which at the end of the day
only drives up the cost of a merger.
If you or someone you know find yourself
in such a situation, call a tax lawyer today to understand how
to the new standards of settlements in such cases can be used in your benefit. Even
if this case does not affect you but you are having some tax difficulty, you
can use that website to find the tax legal help that you need. Do not wait any
longer, tax problems do not just magically work themselves out.
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